RAPAPORT... With the India International Jewellery Show (IIJS) happening in Mumbai in August, the attention of the gems and jewelry industry in India — and also to some extent across the globe — was focused on India during the month. Overall, the show didn’t change much in terms of stabilizing business, which has been showing a negative pattern of growth. The month closed on a sad note with the news of the death of Tanvir Choksi, founder of the Indian Institute of Gems and Jewellery (IIGJ).
IIJS 2008 – A SnapshotWith approximately 30,000 visitors, 800 exhibitors and 1,600 stalls, the IIJS 2008 Silver Jubilee Show lived up to the expectations of the industry, as it has the past couple of years. Except for the heavy rain showers during the last two days of the show, there were no glitches to dampen the spirit of the participants or visitors.
Reinforcing the idea of IIJS becoming an important event for players across the globe was the presence of approximately 250 international stalls and 2,000 international visitors. The seven international countries that had pavilions at the show included Italy, Belgium, Thailand, Japan, Dubai, Turkey and Israel. Delegations represented Hungary, Uzbekistan, Pakistan, Bangladesh, Myanmar, Thailand, Israel and Iran. In further recognition of the potential of the Indian market, the Israel Diamond Institute Group of Companies (IDI) had, in fact, declared 2008 as the “Year of India” and is actively encouraging Israeli companies to explore business opportunities in India.
To align the diamond industry with the gold and platinum industries, the Gems and Jewellery Export Promotion Council (GJEPC) proposed forming an organization of global associations and other trade units to promote gold and diamond jewelry in India. Sanjay Kothari, chairman of GJEPC, made the proposal to other industry leaders, including Philip Olden from the World Gold Council (WGC), James Courage from Platinum Guild International (PGI), Bill Champion from Rio Tinto and Rajeev Bhandari from Diamond Trading Corporation (DTC).
IIJS – Participants’ Take“We had a very good response,” Kunal Sheth, marketing executive, J.B. & Brothers, said about IIJS. He added that his company generated a lot of new inquiries from within India, although he felt that the number of international visitors was not as great as he had expected. For Sheth, the 5-carats-and-larger category was giving him good business.
Krunal Enterprise had many visitors at its stall, too, and Nilesh Shah from Krunal was of the opinion that GJEPC had done a very good job of putting the show together, in fact, remarkably well, considering that the infrastructure of the country is still not up to the mark. For Krunal, it was fancy shapes that were more in demand by visitors attending the show. First-time IIJS participant Shasvat Diam is already looking forward to the 2009 show. “Our aim was to target the local market and we were successful in doing so,” said Puneet R. Shah, partner in Shasvat. “VS-plus showed very good demand.”
While the majority of the crowd seemed satisfied with the show, a few thought it had not lived up to their expectations. Dhaval Shah, partner in Aashna Diamond, said “This year, the show was not good for us. We had more inquiries in 2007.” He also suggested that the show organizers “should invite more of the local crowd from Maharashtra, since there is a very good market for diamonds in places like Nashik, Nagour, Solapur, etc. The last two days were a total waste, with the rains playing havoc. Even worse was having to close out our stall by 3 p.m. on the last day when, except for the exhibitors, there was a negligible presence of visitors.”
With the holiday season beginning in earnest in October, Manish Painter, general manager with Kiran Gems, feels that a lot of buyers are actually holding off on their purchases for the next month. “I did not see a lot of on-the-spot buying and selling taking place at IIJS,” he said. His advice: Position IIJS as a sourcing hub for polished diamonds and jewelry for international audiences.
Market DynamicsMany in the industry believe that prices of rough will see an increase of up to 10 percent and, according to Kothari, will continue to increase until the end of the holiday season. A correction is expected post-New Year. In respect to industry dynamics, Kothari said, “We are expecting gems and jewelry to grow by 15 to 20 percent in 2008, with gold exports forming the major chunk of total exports. The growth in diamond exports is likely to remain in the single digits.”
As for goods that are moving, the fancy shape is doing very well and that includes pears and marquises on a bigger scale. Demand is also good for white diamonds under 50 pointers.
The Marketplace• The 25th IIJS show in India concluded successfully, with big foreign participation.
• Local jewelers, diamond manufacturers and dealers had a good show overall and are looking forward to selling to newer markets outside of the U.S.
• Overall trading activity has been quite slow but domestic sales are steady for small goods. Large goods are weak, with buyers showing resistance to high prices.
• The market seems to be optimistic about domestic sales for the upcoming wedding and Diwali season.
Article from the Rapaport Magazine - September 2008. To subscribe click here.