The indian gems & jewellery sector must now reorganise itself to be able to sustain growth in the coming years. by Angshuman Paul
However, the recovery is only visible for the polished diamonds segment. The gold and other jewellery segments have not evinced a rejuvenation post the slowdown. So the million dollar question over here is what happens to the 450,000 goldsmiths and 100,000 gold jewelers (CII data) of this country? “India is being considered as a hub for polished diamonds but when it comes to finished goods, our specialized jewellery will help us in the long run,” comments Rajiv Arora, MD, Amrapali. This Rajathan-based jeweler, buoyed by its edge of ‘kundan’ and ‘mina’ jewellery has opened stores in places like London. The recession might have caused a slowdown in their global expansion plans, but Amrapali is now optimistic that in the long run, they will be able to come back on track. They plan to open 4 more stores in Europe by 2011.
Coming back to the diamond business, if other segments of jewellery business pay attention to innovation in their finished goods, adopting professional best-in-class practices and leveraging direct presence, then Indian players should be able to cater to newer markets both domestically and internationally and also command better margins. Moreover, players need to increasingly reduce their vulnerability by focusing on newer markets. Countries like China, Middle East and Russia account for 40% of the world’s sales and Indian players have a very miniscule presence in these places. The slowdown chapter may hopefully be a thing of the past soon, but the lessons learned should not be easily forgotten.
NOT SO BRIGHT YET
The country of Uncle Sam accounts for around 50% of the world’s sales of gems and jewellery and with US being browbeaten by recession, the overall exports and imports of gem and jewellery across the globe were visibly disturbed till the first half of 2009. According to the US Commerce department, US’ total imports (units) from India saw an alarming dip by 21.7% in 2008. In dollar terms, the imports stood at $25.76 billion, which was a 6.5% fall w.r.t. 2007. The situation was quite similar in other major gems and jewellery markets like China, Hong Kong and the UAE. However, although Asian markets have begun to revive, the US is still not sparkling bright. This highlights the importance of geographical diversification for Indian players.
Read more....
However, the recovery is only visible for the polished diamonds segment. The gold and other jewellery segments have not evinced a rejuvenation post the slowdown. So the million dollar question over here is what happens to the 450,000 goldsmiths and 100,000 gold jewelers (CII data) of this country? “India is being considered as a hub for polished diamonds but when it comes to finished goods, our specialized jewellery will help us in the long run,” comments Rajiv Arora, MD, Amrapali. This Rajathan-based jeweler, buoyed by its edge of ‘kundan’ and ‘mina’ jewellery has opened stores in places like London. The recession might have caused a slowdown in their global expansion plans, but Amrapali is now optimistic that in the long run, they will be able to come back on track. They plan to open 4 more stores in Europe by 2011.
Coming back to the diamond business, if other segments of jewellery business pay attention to innovation in their finished goods, adopting professional best-in-class practices and leveraging direct presence, then Indian players should be able to cater to newer markets both domestically and internationally and also command better margins. Moreover, players need to increasingly reduce their vulnerability by focusing on newer markets. Countries like China, Middle East and Russia account for 40% of the world’s sales and Indian players have a very miniscule presence in these places. The slowdown chapter may hopefully be a thing of the past soon, but the lessons learned should not be easily forgotten.
NOT SO BRIGHT YET
The country of Uncle Sam accounts for around 50% of the world’s sales of gems and jewellery and with US being browbeaten by recession, the overall exports and imports of gem and jewellery across the globe were visibly disturbed till the first half of 2009. According to the US Commerce department, US’ total imports (units) from India saw an alarming dip by 21.7% in 2008. In dollar terms, the imports stood at $25.76 billion, which was a 6.5% fall w.r.t. 2007. The situation was quite similar in other major gems and jewellery markets like China, Hong Kong and the UAE. However, although Asian markets have begun to revive, the US is still not sparkling bright. This highlights the importance of geographical diversification for Indian players.
Read more....
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
