Moving onto the Global Stage

RAPAPORT… Jewelry buying in India is undergoing a gradual change. Consumers are no longer shying away from investing in diamond and gold jewelry, despite the price increases. The situation was not the same a year ago, when the purchase of jewelry was on no one’s agenda because of high prices. What is interesting to note is that even though the price of gold is playing around $1,200 an ounce, there are healthy sales of jewelry being made throughout the country.

China a Possible Threat?

Slowly, but steadily, the industry is watching China gain a foothold in the cutting and polishing of diamonds. Though it may not yet boast a generation of the skilled workforce available in Surat, industry experts still see China as a possible future threat for India. The Chinese government reportedly is trying to secure rough diamond supplies directly from African countries. If that happens, then the possibility of India becoming dependent on China for its rough supply cannot be ruled out. With that threat in mind, the diamantaires in Surat have sent a request to their state government asking that it help the local industry by investing directly in the diamond mines in Africa.

New Initiatives

The Indian Diamond Institute (IDI) Surat took a step toward maintaining a healthy relationship with Africa when it was invited by the central Indian government to discuss using Indian expertise to help establish diamond cutting and polishing training institutes in various African countries.

In yet another initiative to promote the local gems and jewelry industry, the Gem and Jewellery Export Promotion Council (GJEPC) has announced India International Jewellery Week (IIJW), to be held at the Grand Hyatt in Mumbai from August 15 to 19. According to Vasant Mehta, chairman of GJEPC, the goal is to promote India as the “Innovation and Design Destination” for jewelry “and to provide an international platform for India’s budding designers, leading designers and design houses to unveil their fascinating jewelry collections to the world jewelry market.”

The establishment of an Indian chapter of the U.S.–based Women’s Jewellery Association (WJA) is good news for women entrepreneurs in India working in the gems, jewelry and watch industry. The chapter will be headed by Nirupa Bhatt, managing director, Gemological Institute of America (GIA) for India and the Middle East. Prominent industry members already named to the board include: Bina Goenka, director, La’Cascade Joaillier; Poonam Soni, chief executive officer (CEO), Poonam Soni Signature Line; Vaishali Banerjee, manager, Platinum Guild International (PGI) India; Ranak Patel, managing director, InterCarat Jewellery Pvt. Ltd. and Sucheta Khandwala, CEO, Hammer Plus Jewellery Pvt. Ltd. Sneha Mehta has been named the WJA’s brand consultant.

Commenting on the launch, Bhatt said: “Attending WJA events in the U.S. made me realize that we need such an organization here in India. There are a few women like me who would want to give back to the industry what we have learned in the past 15 to 20 years. But there are a larger number of women who are waiting to be guided and nurtured. This platform is for all of us to come together, share our experiences and grow in our related fields. It’s all about empowering women.”

Market News

With every player in the industry trying to come up with a competitive advantage, the battle to be first with any innovative initiative is intense. Shree Ramakrishna Export (SRE) recently scored points with the launch of its fully loaded mobile website, called SRK Lite. The name reflects the fact that it was designed to be a lighter and faster version of the company’s original website, srkexport.com. According to Shreyans Dholakia, SRE director of marketing and information technology (IT), “SRK Lite will enhance customer access to SRK’s live inventory and drive greater engagement with existing users.” With the announcement, the company becomes the first diamond manufacturing company in the world to introduce a wireless application protocol (WAP) page accessible by mobile phone for B2B diamond trading.

Commenting on the JCK Las Vegas Show, Dholakia said, “The trade shows are mainly to attract new buyers and build new and strong relationships and we succeeded as far as that part of the show is concerned. But, in terms of over-the-counter sales, we did not have buyers asking for the stones as much as they were in Hong Kong. Yes, the show was supposed to be better than last year and we have had a lot of inquiries and we met a lot of new local retailers. But we will have to wait and watch for a short period to scrutinize how successful we were at the show” by the orders that come in.

The Marketplace

• The JCK Las Vegas show was good and better than expected.
• There is lots of optimism in the market about how good the Christmas season could be this year.
• Demand is strong across the board for piqué goods.
• Higher rough prices and shortages have pushed polished prices up by 5 percent.
• In the -2 category, prices are up by as much as 15 percent.
• The unstable exchange rate is interfering with trading activity in size goods.