The 28th edition of the India International Jewellery Show (IIJS) did good business despite surging gold and diamond prices. A satisfactory turnout of visitors was reported and a fair amount of business was transacted. Here s a round-up of business sentiments on the show floor. CVM Exports
(Left to right) Anup Wadhawan, Rajiv Jain, PK Chaudhery, Ahmed Bin Sulayem, Sanjay Kothari, Haresh Zaveri, and Sabyasachi Ray releasing the official IIJS 2011 catalogue. igh prices remained the primary concern of the trade at the IIJS 2011. Gold reaching historical highs of over R25,000 per 10 grams during the fair (and R28,000 soon after the show); diamond prices climbing by almost 40-50% in the last nine months; coloured stone prices sky-rocketing in the face of increased demand by China were all contributing factors that could have easily dented business at the show, and put a dampener on business. That it didn t happen and exhibitors went back with a good number of orders only reiterates the fact that India is a fast emerging market and the buying power of consumers is hindered only by volatility in rates, and not the soaring prices of the metals or gems. The figures tell all: India s gold jewellery demand rose by 17% to 139.8 tonnes during the April to June 2011 period. This comes on the back of strong overall gem and jewellery exports in the previous fiscal year, which rose by 47% to $43.1 billion and amounted to 16.6% of the country s total merchandise exports. The IIJS was inaugurated by guest of honour Dubai Multi Commodities Centre (DMCC) executive chairman Ahmed Bin Sulayem, chief guest PK Chaudhery special secretary, ministry of commerce and industry, and Anup Wadhawan, joint secretary, ministry of commerce and industry. They were joined on the dais by GJEPC chairman Rajiv Jain, vice chairman Sanjay Kothari, exhibitions committee convener Haresh Zaveri, and executive director Sabyasachi Ray. Hot on the heels of the success of the second edition of the India International Jewellery Week (IIJW), the show that marked India s transformation from a top manufacturer of diamonds to a leading destination for world-class jewellery, optimism at the IIJS was tempered with caution. Rajiv Jain announced during the inauguration, Last year, the IIJS was accorded the status of India Show by the ministry of commerce and industry in recognition of India s growing status as the gem and jewellery hub of the world. Taking a leaf from the Mines to Market Conference for diamonds, a similar conference for coloured gemstones was being organised soon. And like Diamond India Limited, we will start a collective sourcing venture for coloured stones tentatively named Coloured Stone India Limited. The GJEPC, he informed, is also planning an office in Dubai to help members establish a foothold in the Arab market. Bin Sulayem said, We in the United Arab Emirates look to the Indian economy as a benchmark. We have seen the grit with which this country has faced difficulties, overcome them and has still remained strong. He added that diamond exports from India to the UAE grew from R5 billion in 2002 to R20 billion in 2009 finally touching R35 billion in 2010. PK Chaudhery commended the fact that the gem and jewellery sector contributes 16% to the exchequer and employs 3.4 million people. He noted that India was proud to promote the cause of the Kimberley Process and assured continued government support to the industry through pragmatic policies. On the fair grounds This year, the IIJS housed around 850 exhibitors, including international participants from Turkey, Israel, Dubai, Belgium and Thailand who showcased the best jewellery designs and a wide range of loose gemstones to nearly 40,000 trade visitors from India and abroad. The International Product Gallery was relocated in Hall 1 for the added ease of international buyers. The Elite Club hosted 1,500 retailers in an exclusive lounge for networking. Manufacturers were happy about the improved ambience, infrastructure and facilities. We in the United Arab Emirates look to the Indian economy as a benchmark. We have seen the grit with which this country has faced difficulties, overcome them and has still remained strong. INTERNATIONAL SEPTEMBER 2011 43
CVM Exports Ray Fine Jewellery Gold outperformed diamonds and loose gemstones. Gold jewellery manufacturers were a happy lot as there was no shortfall of orders. Everything from bridal to lightweight jewellery fared well. However, mixed reactions were heard from some sections like loose diamonds, coloured gemstones and diamond jewellery manufacturers. The increasing prices of the yellow metal and diamonds definitely raised concerns among the gem and jewellery trade but the industry is expecting a correction in prices in the near future (At the time of going to press, markets witnessed the downward correction in rough diamond prices.) Meanwhile, manufacturers at the fair tried to work within the limitations by introducing designer collections in gold, silver and diamond jewellery and other lifestyle artefacts. Diamonds moved slowly Diamond manufacturers reported that business was uniformly slow on the first three days at the IIJS, and business was marginally better during the weekend. This year the number of foreign visitors had fallen, I would estimate that only 20% of the usual crowd was there, said Sunil Shah, CMO, Diacentre, Mumbai, adding, Compared to last year, the number of local visitors was also down by 50%. Shah said that in his opinion high diamond prices affected business to some extent. Goods in demand were certified diamonds of 1 carat and above in VS-VVS clarity and between G-K colours, he added. Anant Mehta from AJ Mehta & Co., Mumbai, said that the prices for fancy cut diamonds have not risen as much as they have for round, brilliant cut and full cut/rose cut diamonds. This has helped maintain margins and realise sales, he remarked. Kobi Itzchaki from Dalumi explained, Fancy cuts have been selling well because the Rapaport pricelist is showing lower rates for fancy cut diamonds than for rounds hence a lot of movement is visible there. Itzchaki said that although the overall sentiment during the show may have been low, the Indian market witnessed by the Dalumi Group has been driven by a good retail market. Itzchaki felt that diamond prices are still low, and that in the long term, diamonds would be much more precious than any other product in the market. In my opinion diamonds cannot be compared to other luxury products like accessories or cars as they have an appeal of their own. Dalumi Group saw good sales of 44 INTERNATIONAL SEPTEMBER 2011
commercial qualities as well as fancy cut diamonds in better clarities, single stones in all shapes in total value below $200,000. All bigger stones valued above that figure were not that popular at the fair. Buyers would only buy bigger carats if they had a specific order to cater to, informed Itzchaki. According to him, diamond prices will appreciate more in the long term but a 5% to 10% correction may be impending. Studded jewellery does well The show proved to be a middling fare for manufacturers and exporters of studded jewellery with a few exceptions. Visitor Sunil Datwani, proprietor, Gehna Jewellers, Mumbai, remarked: This year, buyers are a bit cautious. I am looking for all kinds of goods including gold and diamond jewellery. The offerings at the show in the gold segment are much better than the diamond jewellery section. I want to stock up on gold bridal and kundan jewellery. Another visitor Pratap Kamath of Abaran, Bangalore, placed orders at the fair and took delivery of the goods without any hesitation. Gold has become dear, and it has affected our business to some extent, but irrespective of the high or low gold prices, Indian customers will buy jewellery because love for the yellow metal is deep-rooted in our culture. Gold prices don t matter much, stability in gold prices is important for robust business. Exhibitor Suvankar Sen, executive director, Senco Gold, Kolkata, described the show as good, but definitely not better than last year. Even though gold prices have increased we have received a good response from old customers and new. It could have been better if prices were lower but since gold is continuing to soar, the show was below par. Sen reported new customers from Maharashtra and the South. Last year we had several small customers who bought lighter jewellery (100-150 gm) but this year though the number of customers was less they placed substantially bigger orders, he In my opinion diamonds cannot be compared to other luxury products like accessories or cars as they have an appeal of their own. CVM Exports INTERNATIONAL SEPTEMBER 2011 45
noted. Sen surmised that more than the gold prices, diamond prices have affected sales due to a 30-40% hike over the last quarter. The sentiment was echoed by Jeetendra Jodhani, general manager, Jewel Goldi, Mumbai: Our clients were generally upset about the high diamond prices rather than the gold prices. He observed that the gold rates doubled over the last four years but diamond rates doubled in just nine months. In Jodhani s opinion, the prices of Indian goods are not expected to decline either stabilisation or a slight increase is expected. What happens to the export side of pricing cannot be predicted at this point. Most manufacturers have got substantial orders. However, foreign visitors were fewer as compared to last year, particularly those from the Far East, who were almost conspicuous by their absence, he added. Mehul Shah of Fine Jewellery said, I wouldn t say that the rising gold prices severely impacted our business, but yes, buyers were more cautious. Almost 70% of our clients have already confirmed their orders and the rest will decide in a month s time. Last year the mood was upbeat at the IIJS, and customers bought more than what they needed, but this year clients tightened their purse strings as they were waiting for the prices to plateau. Anil Bharwani of Seth Sunderdas and Sons, Mumbai, who manufactures gold and diamond jewellery, said that although orders were booked they were not confirmed. The mood is obviously more guarded, but I feel that stability is bound to come sooner than expected. Manufacturers who offered value for money in terms of making modular jewellery with a high design element, won a number of orders at the fair. Visitor Ketan Chokshi, joint managing director, Narayan Jewellers, Vadodara said, Retail sales these past 40 days (prior to the IIJS) have been pretty dismal. The escalating per carat price of diamonds and per gram price of gold is not something that the customer is thinking about when she enters the showroom. What is important is that the customer comes in with a fixed budget and a set perception about what her budget can fetch. It is the retailer s job to transform the retail inventory and match Diatrends We received a good response at the show even though sapphire prices have gone up by 20%. The majority of our business was conducted with new customers from Maharashtra and the southern region. Blue sapphires between 2 and 5 carats, priced between R5,000 and R10,000 per carat were selling well. Yellow sapphire in sizes of 5 carat plus, in the range of R15,000 to R25,000 moved well. Silver Emporium Ray Fine Jewellery Sama 48 INTERNATIONAL SEPTEMBER 2011
the budget and perception of the customer. If we don t do that, the customer just walks in and out of the showroom in no time. Exhibitor Abhishek Sand of Savio Jewellery, Jaipur, followed that dictum and reported a fantastic show. We worked around the rising prices of gold and introduced our new line of lightweight jewellery which is machine cut, modular, and high on design value. We specialise in gem-studded earrings that can be worn in six different ways. So, in effect, a person is getting six pieces of jewellery for the price of one. We never make the same piece again and our clients are assured that they are not going to end up with products that feature in every retailer s case. Plain gold shines Overall high diamond prices were more of a concern than high gold prices. K. Srinivasan, managing director, Emerald Jewel Industry India Ltd., Coimbatore told Solitaire that the show was a resounding success. Serious buyers congregated at our booth and we received a positive and encouraging response for our machinemade jewellery, he added. Kiran Jain, director, Sundaram Chains, seconded this sentiment and reported sales that were at par with last year s figures. This year we averaged at 60% repeat customers and 40% new customers many of whom were from North India, in particular New Delhi and Chandigarh, said Jain. Rajesh Kothari of Solid Gold, Mumbai, who manufactures and wholesales plain gold ornaments, was happy with the excellent response he received at the show. We received almost 25% more orders than last year mostly from new customers who were mainly from the North and South, he revealed. Mixed fare for coloured stones The prices for coloured stone beads as well as cut and polished gemstones have climbed steeply over the past quarter. Almost all gemstones except ruby have seen price hikes from 40% to 300%. Better qualities in emerald beads, mainly Zambian and Columbian material, are at an all-time high and are enjoying a good demand particularly beads between 4-6 mm and cut and cabochon stones ranging from 4-5 carats. Ramesh Gupta, Ridhi Sidhi Gems, Jaipur, cited, The demand for commercial quality emerald is stable. Stones in the range between R5,000 and R25,000 per carat and up to 7 carats in weight have seen price hikes of about 40% for faceted and cabochon cuts. Zambian stones between 1 carat and 7 carats are moving well. Tourmaline is a stone that has seen a phenomenal increase in prices. The rates have gone up by more than 300% in the last nine months, starting September 2010 when China started buying goods in bulk for local consumption. For these multi-hued stones, beads in all colours, raw material and high quality ready goods are very expensive at the moment. Hanuman Sahay, RMC Gems & Jewellery Co., Jaipur, said that tourmaline prices have tripled in the last few months. Rubies are lagging behind in both sales as well as pricing. Unheated goods, for example, like those from Mozambique are expected to see a price hike in the near future. The ruby market is slow at present. Gems weighing between 2 and 10 carats, and ranging from R2,000 to R5,000 per carat are moving well, observed Rohit Maheshwari from Majestic Gems India (P) Ltd. Quartz prices have stayed up due to high rates of raw material. Nitesh Dusad, Shreenath Gems, Jaipur, said, The ready goods in quartz have taken a beating mainly because calibrated stones have entered the market and are in huge demand. Bharat Jain from Mumbai-based AB Gems that specialises in blue and yellow sapphire reported encouraging sales figures for it. He said, We received a good response at the show even though sapphire prices have gone up by 20%. The majority of our business was conducted with new customers from Maharashtra and the southern region. Blue sapphires between 2 and 5 carats, priced between R5,000 and R10,000 per carat were selling well. Yellow sapphire in sizes of 5 carat plus, in the range of R15,000 to R25,000 moved well. Jain reported a good presence of foreign clients from Brazil, Hungary, and Turkey who bought blue sapphires. Overall, it was business as usual at the fair. The IIJS once again proved that it is the undisputed networking platform for growing business and contacts. Keisuke Sasaki, special assistant to director-general director and director of design policy office at the Japanese ministry of economy, trade and industry, was struck by the creativity of Indian jewellery designers. This is the first time Sasaki has visited India. He came to the IIJS on a special mission to closely study the jewellery market here. An amazed Sasaki remarked, I feel a lot of energy in the creative capabilities of Indian jewellers. India is slowly emerging to be an important destination for jewellery and I will be very happy if Japan can closely work with the Incredible India campaign to bring Japanese manufacturers to India and promote an exchange of crafts. That is my dream. The senior Japanese official was here on an assignment to promote the concept of Cool Japan, which aims to promote Japan s cultural and creative industries such as jewellery, design, animation, fashion and movies. These strategic sectors are expected to drive the nation s future economic growth. The initiative will plan and implement inter-ministerial measures to facilitate these industries overseas expansion, disseminate relevant information in Japan and abroad. INTERNATIONAL SEPTEMBER 2011 49
Crafts Pavilion The GJEPC put up a special display of jewellery inspired by four Indian craft forms at the IIJS. The genesis of the idea came about during the Abhushan Show organised by the World Crafts Council and Ministry of Textiles in New Delhi in February this year. For ten days, prior to the show, craftsmen from across the country came together in a workshop sponsored by the GJEPC in a bid to incorporate four indigenous crafts - Bamboo, Filigree, Patwa and Bidri into fine jewellery. There were 21 participants split into four teams presided over by Shimul Vyas from National Institute of Design (NID). Each team had a faculty member, designer and craftsmen who worked to design and fabricate jewellery using the crafts techniques. Vikram Singh headed the Bamboo craft group; Rupali Gupta, Bidri; Devendra Layal, Patwa; and Giri Nath, Filigree. The idea was not to commercialise the crafts but to give the manufacturers at the IIJS a new business module the pieces were made by the craftsmen in their hometown and brought to the factories/workshops for finishing. This would provide a livelihood to the craftsmen, a revival of the craft; give variety to the end consumer and new business opportunities to the manufacturer. About the crafts: Filigree: Filigree is a method of jewellery design and manufacture that is formed by thin pliable threads of metal curled, entwined and soldered together to form a fine mesh. Kolkata and Cuttack are known for the use of extensive filigree work in jewellery. Bidri: Named after a town Bidar in Andhra Pradesh where this art is said to have originated during the reign of Bahamani Sultans in the 14th century. The art involves silver inlay on blackened metal alloy. It will now be used in conjunction with precious metals other than silver and studded with precious gems to increase its appeal in fine jewellery. Bamboo: Bamboo jewellery originated in the north eastern states of India where thin strips of bamboo are used to make necklaces, bracelets and other pieces of jewellery. Bamboo strips were woven with gold or silver to create interlinked jewellery that maintained the aesthetics of bamboo jewellery at the same time incorporating precious metals to form fine jewellery. Patwa: The tribal art form of Patwa was practised by a community mainly in Rajasthan, who used intricate thread-work to string together royal jewels, made of gemstones in the times of the maharajas. The artisans braided, knotted or weaved the threads to make the jewels fit well. Examples of Patwa can be seen in the silken fastenings at the backs of heavy necklaces especially choker necklaces and armlets. Using colourful thread as a base, silver tubes, rudraksh beads and gemstones were used to transform simple thread/yarn jewellery into hi-end wearable fine jewellery at the workshop. 50 INTERNATIONAL SEPTEMBER 2011