A seminar organized by the Gem & Jewellry Export Promotion Council at the Taj Hotel in Mumbai, gave diamantaires and jewelers insights into retailing in the United States.

 

Indian diamantaires were warned that the new measures implemented after September 11, most notably the Patriot Act, would cause harm to the Indian market due to its tendency to under-invoice, over-invoice and route rough diamonds through Dubai to avoid taxes.

 

The Patriot Act requires businesses to keep a strict record of trade transactions, particularly the diamond trade which is viewed as having the means to transfer large sums of money while bypassing the record-keeping built into the banking system.

 

Ben Kinzler, Executive Director of the Diamond Manufacturers & Importers Association of America, told the audience that this could be a useful tool in the hands of terror groups.

 

Companies such as DTC, BHP Billiton and Rio Tinto, with a good reputation to maintain and watchful shareholders, will enjoy the maximum benefit of the act. Kinzler said larger companies would likely grow and benefit from the changes while smaller and middle-sized companies will be adversely affected.

 

GJEPC Chairman Sanjay Kothari appealed to the members of the Indian council to conduct business legitimately for the sake of the entire Indian diamond and jewelry industry.

 

Meanwhile, Nirupa Bhatt, Marketing Manager of Rio Tinto Diamonds, in a lecture entitled “Perspectives on US Jewellery Market”, pointed out the shortcomings of the Indian industry and where a greater emphasis is needed.

 

According to Bhatt, the challenges facing Indian jewelers in the American market include:

• Finishing of products
• Styling of jewelry and new designs
• Managing time
• Developing new products
• Using EDI (Electronic Data Interchange) software to improve communication
• Improving relationships and communication with clients
• Targeting regional chains rather than national ones
• Trying to create exclusive designs for retailers and wholesalers alike

According to Bhatt, who repeatedly stressed the importance of communication during her lecture, Indian jewelers shouldn’t be hasty in employing relatives as sales people in the United States, but rather should recruit people with the right skills for the job.

 

She said that recent research by Rio Tinto Diamonds found that there were 4,100 jewelry manufacturers, 5,000 wholesalers and 37,100 retailers in the United States.

 

Diamond studded jewelry constitutes about 55 percent of total jewelry sales.

 

Of women who buy jewelry 41 percent are married, 37 percent single or engaged and the rest divorced or widowed.

 

Rings are by far the most popular items of jewelry followed by neckwear and earrings while bridal jewelry accounts for 25 percent of total jewelry sales.