The International Diamond Conference 2007 Mines to Market organized by The Gem & Jewellery Export Promotion Council (GJEPC) at Mumbai concluded Friday with discussions covering a wide range of issues confronting the industry - beneficiation, finance, synthetics, the situation in the emerging trading hubs and the challenges of boosting consumer demand for diamond jewelry.

 

According to conference moderator Chaim Even-Zohar, the two-day event highlighted “the centrality of India to the diamond industry”. He drew attention to the participation of leading representatives of virtually all the important centers at various stages of the pipeline – with speakers and delegates from different parts of Africa, UK, the U.S., Belgium, Israel, Dubai and China.

 

Even-Zohar stressed that the active participation of ministers and other senior government officials from most of the important mining countries was indicative of the new channels that were emerging in the industry.

 

The second day commenced with a discussion on the Kimberley Process and the social and ethical responsibility of the industry following presentations by former KP chair Kago Moshashane and Martin Rapaport.

 

The new centers of the industry, China, Dubai and India, were next in focus. Ahmed bin Sulayem and Peter Meeus presented an overview of the Dubai Diamond Exchange and the Master Plan for its development, particularly the move to set up a grading laboratory which they promised would help develop greater standardization.

 

Later, Anoop Mehta, President of the Bharat Diamond Bourse, pointed out that given its massive manufacturing capabilities and the liberalized government policies, India only needed a modern trading infrastructure to emerge as a complete trading centre. The new bourse, which he said would begin operations before the end of the year, would fill this gap. 

 

Caroline Yuan of the Shanghai Diamond Exchange traced the emergence of a diamond jewelry market in China and the policies of the government guiding the business in the country.

 

Different approaches on the issue of synthetic diamonds were presented by Ronnie Vanderlinden, President of Diamex and Stephane Fischler of Fischler Diamonds who serves as Secretary General of the International Diamond Manufacturers Association (IDMA).

 

Vanderlinden spoke about the reasons that led him to cut and polish synthetic diamonds from Gemesis, and stressed that their sale as a distinct category had opened up new business opportunities. Interestingly, Vanderlinden revealed good demand for products that combine a large synthetic centre-stone with many small natural diamonds.

 

Drawing attention to the threat posed if synthetic diamonds enter the market undisclosed, Fischler called for diamantaires to invest in detection equipment, and suggested to make complete disclosure mandatory for any diamond firm that deals in lab-made goods. He however added that it was his firm belief that natural diamonds have an emotional appeal that no lab grown stone could match.

 

The session on finance saw both Loet Kniphorst of ABN AMRO and Bharati Rao of State Bank of India drawing attention to the high levels of industry debt. While Kniphorst stressed the importance of a paradigm shift and the development of an objective and independent price source, Rao pointed to the strength of the Indian industry and the very low incidence of non-performing loans, as reasons for continued confidence in the sector.

 

The final session had Beryl Raff, Executive Vice President of JC Penney, pinpointing some of the general lessons about retailing that the chain had learnt in the process of its turn around during the last few years.

 

She highlighted the dangers of driving slowly in the multi lane of modern retailing, and the importance of proper merchandising, creating the right ambience and identifying of trends and opportunities as essential ingredients.

 

The last presentation by Hemant Shah, Convener PM & BD Sub-Committee of GJEPC, called for a refaceting of the diamond and jewelry industry if it was to successfully face the competition from other luxury goods categories and still retain its size and relevance in a world that is changing at a rapid pace.