Consumer Confidence Key to Indian Diamond Market Success

(IDEX Online News) –The principal lesson to take away from the India International Jewellery Show (IIJS), which closes today (Monday) is that a mixture of consumer confidence and design innovation is key to strengthening the Indian retail diamond market.

Sachin Jain, president of Forevermark India and Vikram Merchant, director of Rio Tinto’s India representative office, said in an interview that their respective pre-show events, the Forevermark Forum held on July 21-23 in Hyderabad and a Nazraana release of its 2015 designer collection for 100 retailers in Mumbai, had attracted positive feedback and that this had fueled their expectations for a successful IIJS. Both said that the preliminary events had resulted in confirmed orders for diamonds from retailers.

Jain said that many retailers were interested in diamonds of 2-3 carats. Merchant said a good price point was essential and that the majority of diamond sales were in the R20-50,000 range ($391-$782) and that 0.5 carat diamonds were particularly popular.

Jain and Merchant also agreed on the need for the industry to be invested in its storytelling as a way of attracting more consumers and potentially securing brand loyalty too. Both said that innovative designs were a crucial way to promote the diamond category, which also includes the need to highlight a stone’s provenance and the sustainability of its mining.

Makesh Varma, owner of diamond manufacturer MMK Enterprises said that retailers and other consumers were most interested in stones above 2 carats and generally in the G-M color range.

Jignesh Donda, a manager from the Sheetal Group, also said the show had been quite good, especially compared to previous years. Customers were buying and that there was demand, which needed to be fulfilled, he added.

The issue of lab-grown diamonds was a concern, but more specifically because there seems to be confusion, speculation, misperception and misinformation surrounding it. Merchant, in particular, was unequivocal about the industry not tolerating any unethical practices, such as the non-disclosure of lab-grown diamonds, but also included bank finance malpractice and grading issues. 

According to the GJEPC around 70,000 visitors attended the IIJS in the first four days. The dates of the next IIJS have yet to be finally confirmed, but preliminary dates are for August 25-29, 2016.