The India International Jewellery Show 2006

By Edahn Golan

The 23rd India International Jewellery Show (IIJS), organized by The Gems and Jewellery Export Promotion Council (GJEPC), opened with expectations of high visitor attendance. But the hopes of the 1,500 local jewelry, diamond, and gem exhibitors did not transpire. Nevertheless, exhibitors ended the show satisfied with the quality, rather than the quantity of visitors. "Less talk, more work," was one quick summation.

One of the reasons for the low attendance at the show, which was held at the Bombay Exhibition Grounds, can probably be blamed on the dates on which it was held. After the 2005 show closed early because of flooding, this year's show was held in early May, to avoid the heavy seasonal rains. However, May is summer vacation time in India, and many were away with their families.

Another outcome of last year's flooding was an improved venue: generator backups, halls 5 and 6 had a new ceiling, air conditioning and roof insulation, though the new ceiling in hall 1 has yet to be completed. Organizers expect to finish work on the structure later this year, and IIJS 2007 will be held in July, though the final dates have yet to be set.

Sightholders, diamond dealers, jewelry manufactures, and toolmakers had their eyes set on the local market. Those with local and international initiatives displayed only their local efforts, some taking advantage of the opportunity to roll out new brands, or announced new initiatives, for example Gitanjely, or new diamond cuts, such as K.P. Sanghvi's Cupio.

The mood is positive for the local market, and the general consensus is that the growing middle class will be supportive for years to come. Indians are growing richer, more money is available to spend, and according to one insider, the next 10 years will be good ones on the retail side.

The polished diamond market, however, is faring less well. While some are putting on a positive spin, big, small, and medium size companies all fear a possible collapse in the market. Long-term debt, poor payment by many oversees clients, and large stockpiles of rough and polished diamonds have all the makings of a dark cloud on the horizon. One Sightholder said that he hopes the major banks financing the industry won't lose their nerve. "If they hit the panic button we are all going to suffer."

Finally, the designs at the show covered a wide spectrum of items. From the very traditional gold bracelets sold purely by weight as an investment, to modern diamond jewelry backed by brands. Yellow gold is back by popular demand after the rising demand for white gold is slowly waning.

Diamond Trading Company (DTC) Sightholders brought their local brands to the show, displaying a wide range of lines to suit different pockets and occasions. Local independent jewelry manufacturers brought out big items in traditional designs set with cut diamonds.

The Indian industry is trying every marketing approach. From simply selling polished diamonds to jewelers, to branded jewelry supported by the DTC, to fully branded stores. They are all meeting with success in this strong market.

India’s middle class is expanding. Men in their early thirties, with university degrees, and jobs in the country’s booming hi-tech industry, earn some 35,000 rupees ($800) and save about 30 percent of their income while living with their parents. This was the target audience for many of the jewelers attending the show.

However, India has a highly fragmented retail jewelry market – only about 3 percent of India’s jewelry stores belong to retail chains. The rest are mostly small ‘dwellers’, who own one shop, and whose clients are families who have purchased from them in the past and trust them. The traditional Indian consumer is very suspicious of jewelers – always fearful they will be cheated in the quality or weight of gold. Since the purchase is viewed as an investment, confidence is a key issue.

Companies are trying to figure out the best way to reach retailers. Some, like DTC Sightholder Sheetal, sell them polished diamonds and the retailers make the jewelry per order of the buyer. Sightholder Gitanjely offers storeowners a complete conversion of their stores and a split in profits, while many offer retailers their banded jewelry. This will include Sightholders Laxmi’s Cygnus and D.Navinchandra’s Ira Jewellery.