Look Up and Smell the Info
April 27, 11 Last week IDEX Online launched an old-new product, the Indian Diamond Retail Benchmark (DRB). Old, because we have had the DRB for the international market for about a year now, new because this version is in Indian Rupees, specifically geared for the Indian market – and pardon the shameless plug. I think there is a certain shift in the industry; a deep and fundamental one that is emerging from the ashes of the recent crisis. The DRB's reception is reflecting this in a way. While the taste for gold jewelry is shifting to diamond jewelry, the reason for buying remains the same – to store value. Once again retailers are competing on price, and asked for a price guide. It was interesting to see the response – a deep interest in information. Retailers are at the end of the pipeline. In discussions with the market in the past few weeks, including financial institutions, the same theme repeats itself: a deep interest in information – hard facts, clear figures, and analysis based on qualitative research. When we learn how to ride a bicycle, almost all of us have the same initial instinct – to look down, right ahead of the front wheel. Natural, but not smart. The correct thing to do is to look further on, have a broad view and see the path ahead of us. This way we know what is coming at us and can decide in advance what to do – steer around it, slow down, turn, or just enjoy the view. When the 2008 financial crisis hit, we started to look down. Counted every penny, moved forward very slowly, the path ahead of us completely unknown. Now we are raising our eyes, looking ahead and making long-term plans. In the past few days, polished prices have been stable, a result of the vacations many took (which stopped the upward price rally) and unwillingness on the part of those working to let prices slip. On Tuesday, the DTC's fourth Sight will open, and there is a certain apprehension in the market regarding rough diamond prices. The industry wants to know what to expect. All sorts of financial bodies are taking a closer look at the diamond market these days, trying to assess what opportunities are there. And so, while some of us may still be looking down, others – retailers, manufacturers, producers and bankers - are looking up, seeking insights, hungry for more information, historical data as well as forward looking analysis. All this activity is happening for a reason. Consumers are buying jewelry, the predictions for Mother's Day jewelry buying are up, business at trade fairs is strong, finances are stable, and credit is available. We need to be cautious not to cross the line into a "bubble zone," but for now, this is the time to grab the bull by the horns. Have a peaceful weekend.