India

   The 34th edition of the India International Jewellery Show (IIJS) this summer gave the industry the opportunity to discuss major issues it is currently facing. It proved to be a success in spite of the ongoing goods and services tax (GST) and post-demonetization crises challenging the country’s economy.

Dealing with synthetics
   Since the appointment of Praveenshankar Pandya as chairman of the Gem and Jewellery Export Promotion Council (GJEPC), dealing with the problem of synthetic diamonds getting mixed in with natural diamonds has taken top priority. The council has installed detection machines at the Bharat Diamond Bourse (BDB) in Mumbai and at some places in Surat, so diamond manufacturers and traders there can have their diamonds checked. 
   During IIJS, the World Federation of Diamond Bourses (WFDB) expressed its support for the establishment of an International Diamond Monitoring Committee by the GJEPC and BDB, a move announced earlier this year. “All the major diamond industry bodies, including the WFDB and the Diamond Producers Association (DPA), took part in exhaustive discussions on the subject,” said WFDB president Ernie Blom, who attended the show. The new panel, he added, “will have comprehensive objectives, including the monitoring of trends and instances of non-disclosure of synthetics, threats to the polished diamond sector, and agreeing on the most effective detection devices for trade members.”

Going their separate ways
   Mehul Choksi, chairman of the Gitanjali Group, stressed the importance of keeping synthetic and natural diamonds separate.
   Synthetic diamonds ”should be marketed as a new category without impacting or interfering with the natural-diamond business. We are clearly against any type of illegal mixing or non-disclosure of these diamonds,” he said.
   Choksi considers it a priority for his brand to educate customers about the difference between the two products. “All the jewelry sold by our brands comes with a certificate from a well-known international diamond lab, and we have always encouraged customers to view the certificates before making purchases,” he stated.

Fast-growing diamond market
   Meanwhile, the industry was upbeat about demand as the Indian festive season kicked off, just a month before the Diwali shopping boom.
   “The diamond market is one of the fastest-growing sectors in India,” said Gautham Chand, managing director of Navrathan Jewellers. “The sale is witnessing changes in consumer preferences due to adoption of the Western lifestyle. Consumers are demanding new designs and varieties in jewelry and are showing a willingness to amplify traditional demand for gold jewelry with purchases of diamond jewelry.”
   The shift to more profitable diamond jewelry has been smooth, continued Chand, because India is the world’s dominant processor of rough diamonds, and the country has a near-monopoly on processing small and lower-value diamonds. 
   Though diamond jewelry is gaining in popularity, there is a challenge in terms of consumer education, Chand pointed out. “Selling diamond jewelry is comparatively complex, because it requires consumers to have at least passing knowledge of the 4Cs of a diamond — color, clarity, cut and carat.”

Article from the Rapaport Magazine - September 2017. To subscribe click here.