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Will Diwali Shine Bright?

The festive season is fast approaching and with gold fluctuating like a seesaw it was imperative for us to gauge the mood of the industry across India. We interviewed some key figures in the jewellery industry to learn about their expectations of Diwali sales and consumer buying trends. The prevalent mood is one of cautious optimism. Read their detailed views in the Cover Story.

The Gem & Jewellery Export Promotion Council (GJEPC) welcomed a host of new measures announced by the union minister for finance and corporate affairs, Nirmala Sitharaman. The industry is happy about the policy of reimbursement of taxes and duties for export promotion as well as the inclusion of the gem and jewellery sector for the Annual Mega Shopping Festivals in four cities around March 2020. Turn to GJEPC News for more information.

In the Design Directions section, we have on board Pratiksha Kishandas of the renowned brand Kishandas & Co., Hyderabad, who speaks of the current trends in bridal and non-bridal segments.

Famous Italian trend forecaster, Paola de Luca decodes the theme of The Artisan Awards 2020, “Architectural Gems”; she expresses her views on India’s design strengths and how the country can take a big leap forward to enhance Indian jewellery’s global appeal.

The three-year review and reform of the Kimberley Process Certification Scheme (KPCS) to strengthen the definition of “conflict diamonds”, will finally reach a conclusion at the KP Plenary in New Delhi from November 18th-22nd. Turn to the Bulletin section for an overview of the World Diamond Council’s annual general meeting.

Design At The Heart

In this issue of Solitaire, one will find a recurrent leitmotif of high design – ranging from Indian reinterpretations of traditional patterns resurfacing as modern art, to Muzo’s curated designs that have the emerald as the hero of every piece. The Colombian emerald mining company hand-picked a team of avant-garde designers of the likes of Alexander Mor, Nikos Koulis, Selim Mouzzannar and more, who celebrated the beauty of this evergreen stone through their invigorating art.

In another venture, Canadamark teamed up with Muse for a 4x4 project and roped in four top names in the jewellery field to showcase a diverse range of pieces. Turn to IIJS Trends and Trail Blazers to check out some outstanding pieces of beauty.

The month of August brought in some cheer for most of the IIJS Premiere participants. The show that opened amidst trying times, was not expected to bring in good results. But, to everyone’s surprise, despite several unfavourable factors including the inclement weather across the country, which kept many buyers from visiting the show, exhibitors reported fair-to-good sales. However, the volatility in the gold price since then could negatively impact all those orders booked during the show.

The industry had yet another reason to celebrate as West Bengal-based jewellery artisan, Sanjoy Pramanik, picked up the Bronze medal at the 45th WorldSkills Kazan 2019 competition in Russia. With the complete backing of the GJSCI, Sanjoy’s stellar performance contributed to India’s best-ever finish at the event.

The Great Disruption

The sudden and unexpected hike of 2.5% in the gold import duty to 12.5% has caught the industry by surprise. Following the announcement, a wave of disappointment swept through an already beleaguered industry, which is beset with challenges. Gold analyst Sanjiv Arole pens this month’s Cover Story which examines the repercussions of the hike in depth. He notes that the high incidence of import duty as well as GST renders the domestic market uncompetitive to boost exports or even be innovative in its products.

The industry had some reason to cheer as the Finance Ministry declared that the Integrated Goods and Services Tax (IGST) will not be levied on gems and jewellery taken out of India for exhibition purposes or on consignment basis. This was the result of several representations made by the GJEPC in this regard to the Finance Ministry, Department of Revenue, and the Central Board of Indirect Taxes & Customs.

Moreover, India became one of the first countries to adopt distinct HS Codes for rough and polished lab-grown diamonds, which will undoubtedly strengthen the Council’s efforts to maintain the integrity of the natural diamond pipeline, while enhancing transparency and disclosure throughout the synthetic diamond pipeline.

In an exclusive interview, DPA CEO Jean-Marc Lieberherr shares details about the recently published Trucost study, which, for the first time ever, quantifies the diamond industry’s socio-economic benefits at $16 billion. Turn to Global Eye to read more about it.

Moment of Truth
The five-day Kimberley Process Intersessional meeting, organised by the ministry of commerce & industry, Government of India, and co-organised by the Gem & Jewellery Export Promotion Council (GJEPC), concluded with the promise that the reform and review process of the diamond monitoring mechanism would be finalised at the Plenary meeting in New Delhi this November. KP chair Alok Vardhan Chaturvedi said, “India will play an active role in the evolution and transformation of the Kimberley Process, in the transition from conflict diamonds to peace diamonds.”

The KP Intersessional hosted over 200 delegates from 82 countries in Mumbai. The single most talked-about issue was the expansion of the scope of the “conflict diamonds” definition to include “diamonds acquired through systemic and widespread violence, forced labour, the worst forms of child labour, or through violations of international humanitarian law.” Turn to the Cover Story for a detailed account of the meeting.

Design Connect 2019 is an idea whose time has come. The career fair saw over 100 jewellery designers meet and interact with 35 manufacturers and retailers in Mumbai. The much-lauded event was organised by the Gem and Jewellery Skill Council of India (GJSCI) and the Women’s Jewellery Association – India (WJA India). Read more about it in In Focus.

The GJEPC held the India Silver & Fashion Jewellery Buyer-Seller Meet in Jaipur, where more than 20 silver jewellery manufacturers met 39 international buyers from countries such as Algeria, Australia, Egypt, England, Ireland, Jordan, UAE, USA, Spain, Kuwait and Thailand.

Acche Din 2.0

The Gem & Jewellery Export Promotion Council (GJEPC) congratulated Prime Minister Narendra Modi for his thumping win in the Lok Sabha elections and pledged to support his dynamic vision of creating a New India. As one of the biggest contributors to India’s GDP and merchandise exports, the gem and jewellery industry will naturally pay a huge role in supporting the government’s vision of India becoming a $5 trillion economy. 

In his reciprocatory message to the GJEPC, the Prime Minister stated: “We will continue to make development a mass movement and provide progressive, development-oriented and corruption-free governance to build a strong, prosperous and inclusive India.” Read the PM’s full letter in the GJEPC News section (page 35).

The previous financial year 2018-19 witnessed its share of economic challenges, tightening liquidity, IGST on re-import consignments, and higher import duties on cut & polished diamonds and precious stones. Despite this difficult scenario, India registered only a 3% fall in gross exports of gems and jewellery, in dollar terms, at $39.68 billion.

The relatively subdued JCK Las Vegas, Couture and Luxury shows may have dashed the hopes of exporters who were expecting a much better response from the world’s biggest jewellery consuming market. Our US-based correspondent Cynthia Unninayar reports that perhaps the lower attendance and sales levels indicate the new reality of trade shows, which may need to up their game to stay relevant. Read her first-hand account in the Cover Story.

A Unifying Force

The Domestic Council for Gems & Jewellery, which is in the final stages of formation, is a reflection of the industry’s determination to project a unified front for getting its voice heard. It is one of the major reforms undertaken by the Government of India to bring together a fragmented and opaque industry on a single structured platform.

So far 16 big trade associations representing the entire gem and jewellery supply chain – including jewelers, manufacturers, miners, artisans/craftsperson’s, refiners, bullion dealers, hallmarking centres, etc. – have joined hands to lay the groundwork for the Domestic Council. Turn to the Cover Story for an exhaustive report by industry analyst Sanjiv Arole. Also read the opinions of key members of the Domestic Council’s ad hoc committee, including Rajesh Khosla, Surendra Mehta, Anantha Padmanaban and Duli Chand Karel.

With the aim of strengthening trade relationships and augmenting business, the GJEPC organised the 4th edition of the India-SAARC-Middle East buyer- seller meet in Chennai and the 6th edition of the India Gemstone Week in Jaipur last month. The events each got more than 75 international buyers from several different countries.

The Power Of Transformation

The long-standing demand of the Indian gem and jewellery industry to have a dedicated gem and jewellery park was finally initiated. The India Jewellery Park project got underway with the laying of the foundation stone by Suresh Prabhu, union minister of commerce & industry and civil aviation, Government of India; Devendra Fadnavis, chief minister of Maharashtra; and Subhash Desai, minister of industries and mining, Government of Maharashtra, on March 5th.

Among the numerous benefits that the India Jewellery Park will bring is raising manufacturing standards to world-class levels and also creating affordable housing for its artisans under the Pradhan Mantri Awas Yojana scheme. The ambitious project, spread over 21 acres, will hopefully generate an additional 1 lakh jobs and see an investment of I14,467 crore ($2.09 billion). Read more about the India Jewellery Park in GJEPC News.

This month’s Cover Story focuses on the twin Hong Kong shows that welcomed a record number of over 90,000 buyers, an increase of 4% over last year. Our US-based correspondent Cynthia Unninayar met with several exhibitors who reported good sales and also examined the reasons why Hong Kong continues to be a big draw for the gem and jewellery industry.

Singapore-based special correspondent Richa Goyal Sikri travelled to Gemfields’ Kagem emerald mine in Zambia, where she witnessed how a well-run, transparent mining operation has positively impacted the local communities and the country at large. Read about her first-hand account in the Mining section.

Creativity At The Forefront

The recently concluded IIJS Signature exhibition, Design Inspirations seminar, and The Artisan Awards all point to India’s holistic approach to generate business and to put design front and centre, to achieve its goal of becoming the world’s leading jewellery manufacturing powerhouse. With a view to offering design directions for the Indian industry, the GJEPC also released a jewellery trend book, Aatman – Inspirations 2020, that was produced by Italy-based jewellery analyst and trend forecaster Paola De Luca, head of The Futurist group.

Living up to its credentials as a design-forward show, IIJS Signature presented nature-inspired collections, jewellery lavished with softer hues of coloured gemstones, especially Russian emeralds and corals. Exhibitors also showcased exciting categories in jadau collections. Couture and daily wear segments saw reasonable demand for jewellery set with fancy-cut diamonds and natural fancy colour diamonds, particularly pink and yellow.

Promoting design excellence and ingenuity, the GJEPC held the second edition of The Artisan Jewellery Design Awards under the theme of ‘Enchanted Cosmos’, which coincidentally is becoming a major global trend this year.

Among other GJEPC initiatives, last month saw the inauguration of the Indian Institute of Gems & Jewellery (IIGJ) in Udupi, and the Common Facility Centre (CFC) in Coimbatore, at the hands of Suresh Prabhu, the union minister of commerce & industry and civil aviation.

One Body, One Voice.
The launch of the Domestic Council for Gems & Jewellery by Suresh Prabhu, the union minister for commerce & industry and civil aviation, is a landmark joint initiative by the government and trade. For the first time ever, the export and domestic segments have come together on one platform to address and fulfil the long-term vision of India becoming “jeweller to the world” and making the industry more organised and unified. This, in turn, will fuel economic growth for the country and generate jobs for millions of people. 
The Domestic Council will be all-encompassing, and will work to fulfil the aspirations of small and big associations from across the country. The core committee comprises the following members: Chairman, GJEPC; Chairman, All India Gems & Jewellery Domestic Council (GJC); Chairman, India Bullion and Jewellers Association (IBJA); Chairman, Bhartiya Swarnkar Sangh (BSS); and Chairman, Association of Gold Refineries and Mints (AGRM). The Domestic Council will be operational from May 1st this year. 
Our Cover Story by renowned diamond analyst Pranay Narvekar delves into the complex world of diamond-backed cryptocurrency, and exposes the flaws of this unregulated form of investment.
In Design Corner, Anup Bohra, managing director of Jewels Emporium, Jaipur, talks about his pioneering efforts in introducing French enamelling techniques in fine jewellery in India.
As we go to press, the 12th edition of IIJS Signature looks set to welcome an estimated 18,000 trade visitors from 325 Indian cities and 55 countries. With gold prices looming around I34,000 per 10g, exhibitors expect to see heavy demand for lightweight jewellery.

Promising Future
The year 2019 began on an optimistic note for the Indian gem and jewellery export sector with the economic revival of the US, its largest market. A research note released by the GJEPC points out that America’s cut and polished diamond imports from India in the April to October 2018 period grew by a staggering 22% year-on-year to $5.43 billion. Another positive development was the 13% jump in gold jewellery imports from India during the same period, which stood at $981.85 million. This is a positive sign that the diamond export market is finally starting to look up.

On the domestic front, India has the highest potential for diamond jewellery retail growth, according to the eighth annual report on the global diamond industry prepared by the Antwerp World Diamond Centre (AWDC) and Bain & Company. It goes on to state that India’s dominance of the diamond manufacturing segment has come as a result of lower labour costs, a favourable regulatory environment, and relatively better access to financing. 

The 15th edition of Jaipur Jewellery Show (JJS) that concluded on December 24th drew nearly 40,000 visitors and saw demand mainly for kundan-meena and jadau jewellery. According to the show organisers, the exhibition was starting to see a more business-centric focus, although it continues to remain the biggest B2C jewellery show in the country.

Committed To Gold
The thrust of the second edition of the India Gold & Jewellery Summit (IGJS), organised by the GJEPC, was on implementing the recommendations of the NITI Aayog report, complying with global standards, and bringing the industry up to speed in terms of upskilling artisans and adopting the latest manufacturing technology. The summit was attended by key decision makers from the gold ecosystem, including government officials, refiners, bullion dealers, retailers and analysts among others.

Taking a key step in the direction of safeguarding consumer confidence in gold, the World Gold Council and MMTC-PAMP jointly launched the Precious Metals Assay and Training Institute (PMATI) just days before IGJS 2018. The institute, which will develop a new generation of skilled assayers, will be located at the Indian Institute of Gems & Jewellery (IIGJ) in Mumbai.

In the third quarter of 2018, India’s gold demand grew by 10% to 148.8 tonnes as the dip in the gold price to I29,700/10g drew bargain hunters who had been waiting for an opportune moment such as this. Read the detailed report by the World Gold Council in Bulletin.

In the In Focus segment, our Singapore-based correspondent Richa Goyal Sikri, who curates educational visits to gemstone mines, gem and jewellery manufacturing hubs, and museums, offers an insider’s view of Gemfields’ recently held auction of Zambian emeralds in the Lion City.

One Voice

The 38th World Diamond Congress, the biennial meeting of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) that was hosted in Mumbai by the GJEPC, ended with a resolve to unitedly tackle pressing issues like finance, lab-grown diamond nomenclature, SMEs, generic diamond promotion and much more.

At the conclusion, WFDB president Ernie Blom urged diamond exchange presidents and members to join hands to boost the global presence of the trade organisation. IDMA president Ronnie Vanderlinden, in a press note, expressed concern over the closure of diamond manufacturing units in smaller diamond centres like Armenia, Namibia, South Africa, Russia, Sri Lanka and Thailand. He also indicated that diamond manufacturing was dwindling in China, which is down from a peak of 40,000 cutters to less than 5,000.

Echoing Blom’s sentiments, Vanderlinden, too, said that the time may have come for the diamond trade to unite under a single header and speak with a single voice on behalf of its members.

For the Cover Story, US-based journalist Cynthia Unninayar travelled to Bogota, Colombia, for the Second World Emerald Symposium, which discussed the challenges facing the emerald industry along with talks on industrial mining, geology, gemmology, origin, treatments, new technologies, jewellery and more.

Vivek Shah of Karma Designs, Ahmedabad, outlines jewellery trends for the coming year in Industry Insight, while Italy Trends showcases design directions from the recently concluded Vicenzaoro show.

The October issue focuses on three of the mid-year’s most awaited trade fairs in the Asian region – the Hong Kong Jewellery & Gem Fair, the Bangkok Gems & Jewellery Fair, and the Jewellers Association Show (JAS) in Jaipur. The Hong Kong fair had raised considerable expectations, with a record number of exhibitors participating in the event. However, nature played spoilsport as typhoon Mangkhut hit the city with all its fury, bringing the show to an abrupt halt. Although the show reopened after the storm, the damage was done, as many exhibitors and visitors had packed up early before the full impact of the typhoon could be felt. Read US-based journalist Cynthia Unninayar’s first-hand account of the Hong Kong show in the Cover Story.

In Trade Fair, Cynthia also covers the preceding Bangkok fair and showcases the bestselling gem and jewellery items at the event. Gem dealers and silver jewellery exhibitors fared better than most, she observed. Nearly a fifth of sales were generated during the final two days when the show was thrown open to the public at large. Similarly, the JAS 18 show attracted 25,000 consumers and a little over 5,000 trade buyers at the Jaipur Exhibition & Convention Centre in Sitapura.

Meanwhile, the GJEPC welcomed the government’s move to increase the import duty on jewellery articles from 15% to 20%, saying it would boost local jewellery manufacturing. However, the Council warned that the increased customs duty on semi-processed, half-cut or broken diamonds, and cut and polished coloured gemstones from 5% to 7.5% would increase costs and impact exports.

Marching Ahead
There can be no doubt left that the IIJS can – single-handedly – turn around the fortunes of the entire Indian gem and Jewellery industry. The 2018 edition boasts an order book worth I8,000 crore – and this at a time when the markets were subdued and expectations were at an all-time low. The Cover Story offers a detailed report on the goings-on, product categories that were in demand, and views by industry experts and key players. The success of the show has set a positive tone for the upcoming festive and wedding seasons.

The Indian gem and Jewellery industry has always responded quickly and generously towards victims of natural calamities. Following the devastating floods in Kerala, the GJEPC distributed emergency relief materials to over 3,000 people. The Council will be involved in rehabilitation efforts along with other trade bodies through the Gem and Jewellery National Relief Foundation (GJNRF). On the sidelines of the IIJS, the GJEPC, through its Jewelers for Hope initiative, held a charity dinner that donated I1 crore to three NGOs. Read more about these philanthropic activities in this issue.

Neil Ventura, executive vice president of strategy and innovation, De Beers Group, has penned a response to Solitaire’s August Cover Story, ‘De Beers: Fire in the Hole’ by Chaim Even-Zohar with Pranay Narvekar. Turn to In Focus, to read Neil’s point of view on the Lightbox issue and the future of De Beers’ diamond business.

Scoop of the Year!

On reading about the Lightbox launch by De Beers, we’ll admit, the first thought that popped in our heads was: “Wonder what Chaim would have had to say about it?!” And so we tried reaching out to the now reclusive industry pundit, who was busy enjoying his retirement. But great journalists don’t retire. And we were lucky that the consummate investigative reporter in him rose to the bait. 

Chaim Even-Zohar – whose incisive, witty comments and analysis about the diamond industry in the Diamond Intelligence Briefs kept the trade better informed, engaged and entertained for years – has penned our Cover Story on Lightbox: the most talked about disruption to hit the diamond industry in recent times. Industry expert Pranay Narvekar, who has worked with Chaim for several years, has shared his inputs in the article. 

The Cover Story is supplemented by De Beers’ point of view as well as the opinions of world leaders across the supply chain, including Alrosa, WFDB, GIA and Chow Tai Fook among others, in Industry Reactions. 
Back on home turf, shrinking bank finance has the whole Indian industry worried. We caught up with GJEPC executive director Sabyasachi Ray, who informed us that the 10% cut in bank lending to the industry will directly affect exports, with SMEs bearing most of the brunt.

The IIJS Special Issue has many more stories related to design, retail, collectible Jewellery and blockchain among others. Happy reading.

The Way Ahead

The many jewellery shows held in Las Vegas in June evoked mixed reviews. While the high-end Couture show received a thumbs-up from many exhibitors, sentiments were not so upbeat at JCK and AGTA GemFair. Read the full report on Las Vegas by Cynthia Unninayar in the Cover Story. The JCK State of the Jewelry Industry Report released at the fair was a key indicator of the health of the industry in America. More than 500 respondents, including retailers and manufacturers took part in the survey, which revealed that they are optimistic about the next 12 months. The main challenges the respondents outlined were: online competition, overall economic climate, lack of consumer demand, and lack of millennial demand.

Interestingly, almost a fifth of the retailers in the JCK survey said that lab-grown diamonds were now part of their product mix. Although synthetic diamonds may be growing in popularity in the US, this, however, does not diminish the halo around natural diamonds. Another survey of 2,000 respondents released by the Diamond Producers Association (DPA) and The Harris Poll stated unequivocally that a clear majority of Americans recognise that diamonds created in a factory are not ‘real’ diamonds. DPA CEO Jean-Marc Lieberherr said: “These results are important, and confirm what our consumers tell us: ‘Real Matters’—a perspective shared across generations and one that cannot be replicated in a matter of weeks.”

Lightweight prêt wear diamond-studded jewellery is a growing trend in the Indian jewellery market. The prospects of this category growing exponentially are very good, especially since jewellers are now focusing on designs that appeal to the younger generation. Read the opinions of top Indian jewellery retailers in Retail View.

It isn’t very often that a single incident has the power to shake the very foundations of an industry. The PNB-Modi-Choksi scandal is indeed a watershed moment for us. The aftermath of the fraud has left a trail of bad press, negative consumer sentiment, & worst of all, drying up of bank finance & working capital, which has badly affected the entire sector.

The incident was a defining moment for the industry, which held intense discussions with bankers & the government prior to drafting a white paper on mitigating finance & credit risks that was released at the banking summit organised by the GJEPC in the month of May in Mumbai.

The paper highlights particular issues such as credit limit, collateral security, related party transactions & valuation of stock, & also offers recommendations to iron out the concerns of all stakeholders. At the summit, the Council also announced that it had made MyKYC enrolment mandatory for all its members. Turn to our Cover Story for the summary of the banking conclave that chalks out many practical suggestions for streamlining processes, infusing transparency & maintaining the confidence of its stakeholders—all measures that will bode well for the industry.

Come August, & the entire gem & jewellery industry will gear up for the IIJS Premiere show which is slated to be the largest ever. The addition of the new Hall 7A will open up 10,800 sq m of extra floor space. The GJEPC expects 40,000 plus visitors to attend the show.

Years of speculation among industry pundits about De Beers’ possible entry into the synthetic diamond space were finally put to rest. De Beers announced that it would launch a new brand of lab-grown diamond jewellery called Lightbox. The brand will make its debut in the US market priced at a considerable discount to existing lab-grown diamonds. Will De Beers’ anointing of this market segment drive a large portion of possible natural diamond buyers towards synthetics? Only time will tell.

Time for Introspection

While the PNB-Modi-Choksi scam has undeniably upset industry leaders in India, it has dismayed industry observers around the world, too – more so since India is a global leader in the sector. Our Cover Story this month offers a platform to Israel-based strategic consultant and communications specialist, Ya’akov Almor, to put forth his views on the subject. He raises tough questions and also appeals to the new GJEPC leadership to take steps in the right direction by setting new standards and addressing future reputational, environmental and social challenges.

The after-effects of the scandal are plain to see with bank financing to the industry reportedly getting harder to come by. To overcome the crisis, Indian industry leaders have now gone into introspection mode with the aim of having an open dialogue with bankers and the government. One such initiative was the two-day Manthan conclave organised in April by the All India Gem & Jewellery Domestic Council (GJC), which called for a strict code of conduct to regularise the industry. Turn to Spotlight for a detailed report. The GJEPC, too, has planned a Banking Seminar later this month (see GJEPC News).

India’s gem and jewellery exports in the previous fiscal year 2017-18 fell by a marginal 5% to $40.9 billion owing to certain underperforming categories. While India’s annual exports were mainly driven by cut and polished diamonds, up 4% to $23.7 billion, and gold jewellery, up 11% to $9.67 billion, they were dragged down by the poor performance in silver jewellery, pearls, and gold medallions & coins. Find the complete annual trade statistics on page 32.

What Next?

In the wake of the Nirav Modi-Mehul Choksi scandal, almost overnight the reputation of the Indian gem and jewellery industry was dealt a huge blow. The incident also triggered queries about the murkier side of the business. For weeks on end, questions were raised by almost every news channel and newspaper about malpractices such as round-tripping, gold smuggling, etc. by a few rogue operators. Given the magnitude of the fraud, things will never be the same again—from the government’s perspective, the banking sector’s perspective, and the consumer’s perspective. The industry has some soul-searching to do. Solitaire invited diamond industry advisor Pranay Narvekar to show the way forward and discuss in detail the long-term impact of the financial fraud on the industry. Read the Cover Story for Pranay’s in-depth views on the need for greater self-regulation, tightening of lending norms, adhering to a code of ethics and more.

Our special correspondent Cynthia Unninayar visited the twin Hong Kong gem and jewellery shows, which attracted an all-time high of 87,000-plus buyers and a record 4,550 exhibitors from 52 countries and regions. Turn to Trade Fair for the full show report.

The third Common Facility Centre of the Gem & Jewellery Export Promotion Council (GJEPC) was inaugurated by Suresh Prabhu, the union minister of commerce & industry, in Amreli, Gujarat last month. This facility, which aligns with Prime Minister Narendra Modi’s ‘Skill India’ and ‘Make in India’ initiatives, will help in the technological and social transformation of workers and small manufacturers engaged in diamond cutting and polishing activities.

Signature IIJS, the first trade show of the calendar year, set a positive tone for the coming months. The show registered a 22% growth in visitor footfalls, at 16,500 attendees, compared with last year. Plain gold and studded jewellery manufacturers reported good sales, while there was strong demand for diamond jewellery under K5 lakh. Turn to the Cover Story for a detailed report, and view some of the statement jewellery pieces highlighted in Signature Trends.

Design Inspirations, the GJEPC’s two-day trend seminar that is held just after Signature each year, provided valuable insights from some of the leading luminaries of the industry from India and abroad, including Alexandra Mor, Paola De Luca, Roza Topolnicka, Farah Khan, Siddharth Kasliwal, Payal Singhal, and Nilesh Hundekari. Spotlight summarises their viewpoints.

In a major development, the India Jewellery Park Mumbai project moved one step closer to realisation as the GJEPC and MIDC signed an MoU for its establishment. The Jewellery Park will be spread across 25 acres in Navi Mumbai, with 4 million sq ft of built-up area housing more than 5,000 gem and jewellery units. The project will attract an investment of over K13,000 crore spread across 3-5 years.

The GJEPC has strongly condemned the K12,700 crore financial scam involving Nirav Modi and Gitanjali Gems, and has agreed to support investigating agencies to reach the right conclusion. GJEPC chairman Pramod Agarwal and vice chairman Colin Shah share their views on the impact the fraud may have on the industry in this issue.

Retail Focus
In a super-competitive environment, everyone wants to stand out. But the bigger question is: how? The science and art of retailing jewellery is mostly a learning-on-the-job affair. While innovation in design is almost mandatory in today’s day and age, it is equally important to know the art of selling and engaging the customer at the retail counter. In Industry Insight, our guest writer Himanshu Shekhar, director of Manohar Lal Jewellers, New Delhi, shares his decades of experience and insights about how a jeweller should evolve with the times to stay relevant.

US-based brand strategist Dan Scott agrees that jewellery retailers shouldn’t just rely on sales hooks like the Holiday Season in the US (think Diwali in India). The Santa Claus effect, or the enthusiastic energy levels among sales staff during such festive jewellery-buying occasions must continue throughout the year, he states. Turn to the Cover Story to read more about his thoughts on the US jewellery industry.

On another note, Palanpur, which is the hometown of India’s first diamantaires, witnessed the two-day celebrations of Vidyamandir Trust’s 70th anniversary. Bollywood actor Aamir Khan, HDFC chairman Deepak Parekh, and union minister of state for coal & mines Haribhai Chaudhary were among the invited guests. Vidyamandir Trust has been imparting liberal, secular and gender-neutral education to its students with special emphasis on extra-curricular activities and sports.

The first-ever India Gold & Jewellery Summit in New Delhi underlined the need of a policy framework for the growth of the industry to $22 billion in exports by 2022, and $25 billion by 2025. There was a unanimous call for a single regulatory body for gold to simplify policy coordination. Suresh Prabhu, union minister of commerce & industry, supported the creation of a gold board and urged the trade to prepare an action plan with quantifiable targets. It was agreed upon that a gold exchange and the India good delivery mechanism were necessary to standardise quality and set price benchmarks, while bringing in greater transparency. Jewellery design will be the cornerstone of India’s plan to become the world’s leading jewellery manufacturing hub. The participants felt the Indian gem and jewellery sector should capitalise on the handcraftsmanship label, which commands a premium with other products in the world. At the same time, India should go beyond traditions in order to be relevant to global markets.
This issue also focuses on the US, the main market for Indian jewellery exports. Our Chicago-based correspondent Smitha Sadanandan spoke to American designers and retailers to find out trend directions in the diamond jewellery category for this year.
Interestingly, some US jewellery retailers are steps ahead in targeting the next generation of jewellery consumers. In Spotlight, brand architect Dan Scott writes about the benefits of marketing jewellery to Centennials (those born around 2000), who will soon outnumber the Millennials.

The recent alterations in the direct and indirect tax structures in the four major midstream centres – Belgium, Israel, Dubai and India – may have a long-term impact on the diamond sector and could change the direction of the flow of goods in the pipeline, believes industry expert Pranay Narvekar. He notes that while the industry is resilient and will adapt to these modifications, businesses will have to study the cost equation. For Narvekar’s in-depth analysis, turn to the Cover Story.

The GJEPC successfully held the first edition of the India Diamond Week (IDW) in Mumbai, which hosted over 110 buyers from 11 countries including USA, Turkey, China, Russia/CIS, Lebanon, Saudi Arabia, South Africa and South Korea. The outcome of the three-day event was deemed positive for the 48 
Indian participants, many of whom reported having concluded successful deals. 

Sanjay Kothari, vice-chairman, KGK Group, speaks to Solitaire in an e-mail interview about their recently opened state-of-the-art diamond-cutting factory in Vladivostok, Russia, which is expected to reach a sales target of $70 million by the end of 2017. He also shares his views on the challenges of retaining and training the workforce in an efficient and effective manner.

Dev Shetty, head of the newly established colour gemstone mining company, Fura Gems, tells Solitaire about the recent acquisition of the famous Coscuez emerald mine in Colombia, and the investment plans for modernising the existing mining facilities which could boost production nearly threefold.

The worldwide effort to revive the diamond story finally seems to have gathered steam, picking up from where De Beers had left off. After launching the ‘Real is Rare’ generic campaign in the US last year, the Diamond Producers Association (DPA) is poised to unleash its promotions in India. Unlike previous one-off attempts at generic marketing in India by trade bodies over the years, this time around a hefty annual budget of $7 million (Rs. 44.8 crore) will ensure that diamonds stay on top of consumers’ minds. DPA’s Jean-Marc Lieberherr outlines the strategy for the next few months. Turn to the Cover Story for more details. 

The who’s who of the coloured gemstone industry converged in Jaipur for the 17th edition of the ICA Congress on October 21st to 24th. Transparency, corporate social responsibility (CSR) and sustainability were among the main themes evoked by a number of speakers at the Congress. US-based veteran journalist Cynthia Unninayar gives a low-down of the four-day conference in In Focus. Auction house Saffronart held its first jewellery conference, The Timeless Legacy of Indian Jewels, in early October with much fanfare. The event, which was curated by jewellery historian Dr. Usha Balakrishnan, was attended by many luminaries from across the jewellery world, who shared interesting anecdotes about the famous Jacob diamond, the Golconda mines, and the legacy of royal jewels among several other interesting topics. Read more about the event in Spotlight. Our guest writer Vivek Shah of Karma Enterprise highlights the trends in silver jewellery for 2018 in Industry Insight.

In the run-up to the festive and wedding season, the Gem & Jewellery Export Promotion Council (GJEPC) held the seventh edition of the India International Jewellery Week (IIJW). The annual celebration of India’s finest craftsmanship and innovative designs from heritage houses and budding designers is the ideal medium for promoting ‘Made in India’ jewellery to a global audience. Its longevity is testimony to India’s seemingly limitless pool of talent. This year, twelve brands displayed festive, bridal and contemporary jewellery that mesmerised the audience. Turn to IIJW Special for a visual treat of some of the finest jewellery that India has to offer. 
Solitaire’s US-based correspondent Cynthia Unninayar visited two trade fairs in the Asian region: Hong Kong September Fair and the Bangkok Gem & Jewelry Fair. Although the mood was cautious, she reported that sales were up in both regions. For a more detailed account, read the Cover Story and Trade Fair.
In Spotlight, Mark Hanna, chief marketing officer at Berkshire Hathaway company, Richline Group, the leading American jewellery manufacturer, talks about the challenges and opportunities for the gold jewellery industry to flourish in one of the world’s biggest jewellery markets.

Branding and the art of selling are equally important as making a piece of fine jewellery. In order to attract millennials to jewellery, retailers are adopting various strategies from visual merchandising and packaging to training sales staff and offering them a holistic buying experience.
In our three-part Cover Story, the first section features an interview with Orra’s CEO Vijay Jain, who throws light on various factors that the retail industry should address to make themselves relevant to the new generation of buyers who have no shortage of choices on which to spend their surplus income.
The second part of the Cover Story is written by New York-based brand guru Dan Scott. He outlines how brands across the globe have made powerful associations by sticking to a colour – think powdery blue and Tiffany – or a peculiarity like a red ruby hidden in every piece that Roberto Coin designs.
The third section deals with the importance of effective retail sales training programmes. Retail consultant Navin Sadarangani underscores the reasons why technical knowledge combined with on-the-job training leads to sales growth.
In Industry Insight, Vaishali Banerjee, managing director – India, Platinum Guild International (PGI), talks about the reasons attributed to platinum’s quick growth and popularity across the country.

IIJS 2017 drew praise from all quarters as business exceeded pre-show expectations. Gold jewellery participants did roaring business, with many reporting that they had sold out their stock on the first couple of days. Diamond jewellery manufacturers, too, fared well across the lightweight and bridal categories. Demand for loose diamonds and gemstones also picked up at the fair.
There were apprehensions that the recently introduced GST would be a dampener. However, these fears remained unfounded, as buyers and sellers told Solitaire that GST has opened up new opportunities to do interstate business without incurring additional tax. In Industry Insight, Dr. Suresh Surana rightly predicts that GST will redefine the jewellery business due to greater transparency and a new tax structure.
Designer lightweight jewellery for work and travel wear is popular across all ages for its affordability and versatility. Demand has gone up by 20% in the past twelve months and is expected to continue growing with self-purchases and gifting on the rise. Read more about this promising jewellery category in In Focus.
Small scale jewellery manufacturers in and around Palanpur, the birthplace of India’s first diamantaires, will benefit from the Common Facility Centre that was recently opened in the city by the GJEPC. The Council has plans to open two more similar facilities in Amreli and Ahmedabad.

The industry is eagerly awaiting the 34th edition of the India International Jewellery Show (IIJS) which has become one of the most important events for the trade. The Indian industry is just about shaking off the effects of the past twelve months, including excise, demonetisation and sluggish demand, and the period of wait and watch now seems to be over. The optimism of manufacturers is also shining through in their fresh and innovative offerings that will be on display at IIJS. 
The IIJS comes barely a month after the rolling out of GST, which is pegged at 3% on gold jewellery, a move that has been unanimously welcomed by the industry. However, the 0.25% GST on rough diamonds – which were hitherto untaxed – has received sharp criticism, owing to the tedious process of refunds. 
Bullion analyst Sanjiv Arole in the Cover Story studies the impact of GST on the various segments of the industry. He notes that while the intention of the government is laudable, the implementation could have been better.

Solitaire visited the office and factory of Imaginarium, one of the pioneers of 3D jewellery printing in India, to understand the future of this largely untapped avenue. Retail jewellery consultant Navin Sadarangani shares his views on how top Indian jewellery retailers are enhancing customer service by providing a holistic shopping experience. In a landmark pact, the GJEPC and Alrosa signed a Memorandum of Co-operation in the areas of generic marketing of diamonds, tackling synthetic diamonds, and establishing a representative office in the BDB that could eventually turn into a sales office.

Solitaire International is India’s leading B2B magazine on the gem and jewellery trade. With more than 20 years behind it, the monthly publication is today recognized in India and the world over as a quality publication in trade journalism. The magazine is referred to by the global trade sector for information on India and its industry.

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Solitaire International is India’s leading B2B magazine on the gem and jewellery trade. With more than 20 years behind it, the monthly publication is today recognised in India and the world over as a quality publication in trade journalism. The magazine is referred to by the global trade sector for information on India and its industry.

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Solitaire International Magazine - December - 2012

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