UPSIDES & DOWNSIDES · international bi-monthly gjepc newsletter february–march 2020 upsides & downsides featuring intelligence i policy matters i in focus i the real gems i spotlight

INTERNATIONALBI-MONTHLY

GJEPC SLETTERNEWS

FEBRUARY–MARCH 2020

UPSIDES & DOWNSIDES

F E A T U R I N G

INTELLIGENCE I POLICY MATTERS I IN FOCUS I THE REAL GEMS I SPOTLIGHT I DEMAND MAPPING IYOUNG TALENT I EVENTS I MAESTRO I MSME DIARY

MANDATORY HALLMARKING

IIJS Signature 2020 begins events year with a sparkle

GJEPC-Feb-Cover.qxd 2/18/2020 10:25 AM Page 3

Bimonthly newsletter of the Gem & Jewellery ExportPromotion Council

Gem & Jewellery Export Promotion Council,Tower AW 1010, Bharat Diamond Bourse, BKC, BandraEast, Mumbai – 51

Phone: +91 22-26544600 Toll-free number: 1800-103-4353 Missed call number: +91 7208048100

Website: www.gjepc.orgFacebook: GJEPC Twitter: GJEPCIndia Instagram: gjepcindia

February-March 2020

Disclaimer:This disclaimer informs readers that the views, thoughts, andopinions expressed in the magazine belong solely to the authorsand are independent in nature, and not necessarily to the authors’employer, organization, committee or other group or individual.

A division of Bennett, Coleman & Co. Ltd.

The Times of India, First Floor, Gulab Bhawan,6, Bahadurshah Zafar Marg, New Delhi-110002Phone: 011-40738253, Email: [email protected]; www.timesgroupbooks.com

TimesGroupBooks

INTERNATIONAL

GJEPC Board

ChairmanPramod Agrawal

Vice ChairmanColin Shah

Promotion Marketing & Business Development –Sub-CCommittee

Convener – Milan ChokshiCo-CConvener – Russell MehtaCo-CConvener – Rajiv JainMember – Ankit Mehta Member – Rajiv MehtaMember – Nirupa BhattMember – Shailesh SanganiMember – Prakash Pincha

Executive DirectorSabyasachi Ray

PMBD, DirectorDolly Choudhary

Consultant – EditorShanoo Bijlani

Consultant – Associate EditorRegan Luis

Consultant – Editor, TGBChandna Arora

Designer, TGBSubhasish Munshi

Cover Jewellery: Anand Shah

Printed by: Silverpoint Press Pvt. Ltd.


2 Mandatory hallmarking: Good intentions, but needs efficient implementation

9 2020 Union Budget: Industry welcomes MSME boost, bullion exchange proposal

13 Surat International Diatrade Centre in the Gujarat Hira Bourse notified as an SNZ

14 GJEPC videos choose humour over sentiment to promote gold, diamonds

18 Is silver the new gold?

25 Exports of Gems & Jewellery, April-December 2019 (Comparative)

26 IIJS dazzles in industry’s February events calendar

28 Stephen Webster: The artisan and the artist

32 Work begins on the gems and jewellery Common Facility Centre (CFC) in Kolkata

34 Artisan Awards 2020 concludes with final jury round

39 Brighter days ahead: An overview of the US jewellery market

49 GJEPC helpdesk achieves over 1 lakh outbound calls in first year

50 IIGJ Mumbai: Students visit Italy to attend Vicenzaoro 2020

53 Good US season offers hope for diamonds in 2020, but impacted by China outbreak

56 The Cartiers: From a family enterprise to a global luxury brand

59 Hari Krishna Exports hosts fifth edition of Kisna Diamond Marathon

60 IJES 2020: A heartening success

61 IGJS – A brand new show for a global audience

62 GJEPC members prioritize the 5th C: Charity

65 Packed calendar at GJEPC regional centres in Surat, Delhi

70 2020 GJEPC events calendar

72 Council conducts MSME seminars in Satara and Ratnagiri

CONTENTS

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FEBRUARY–MARCH 2020 / SOLITAIRE INTERNATIONAL/ 2 /

MANDATORY HALLMARKING:Good intentions, but needs efficientimplementation

After much discussionand hand-wringing forover two decades, themandatory hallmarkingof gold will finallybecome a reality inIndia. The industry hasbeen unequivocal in itssupport for theregulation, but expertsbelieve much remainsto be done aboutimproving andupgrading jewellerymanufacturingstandards and thequality standards of theassaying andhallmarking centres

By REGAN LUIS

In India, gold – the most noble of all metals – isset to become nobler still. Gold hallmarkingwill be made mandatory, almost twenty-five

years since the first discussions on the subject. TheDepartment of Consumer Affairs is giving jewellersuntil January 2021, a year from the governmentnotification, to register with the Bureau of IndianStandards (BIS), clear their existing stocks, andensure the sale of only hallmarked gold.

The industry has been unequivocal in its

support for the regulation, which it agrees willbring several benefits to consumers and to thetrade, including to the export segment. Industryobservers believe that much remains to be doneabout improving and upgrading jewellerymanufacturing standards as well as the qualitystandards of the assaying and hallmarking centres.However, there can be no doubt that mandatinghallmarking is an important milestone on the roadto reforming the Indian gold sector.

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Students being taught standardized assayingtechniques at the Precious Metals Assay andTraining Institute launched by the World GoldCouncil and MMTC-PAMP India Pvt. Ltd in Mumbai


COVER STORY

SOLITAIRE INTERNATIONAL / FEBRUARY–MARCH 2020 / 3 /

‘Hallmarking centres are notmeant to be treated as the qualitycontrol department of the jewelleryretailer. Instead, they are doing onlyrandom verification of the jewellerysubmitted to them, to certifying it asper BIS standards. Hallmarking is 10per cent testing, and 90 per centtrusting the jeweller’s qualitycontrol systems and procedures,’emphasises James Jose, ManagingDirector of CGR Metalloys PrivateLimited, Cochin, and the pastsecretary of The Indian Associationof Hallmarking Centres.

An equitable exchange of moneyfor goods or services is one of thebasic tenets of business – one thathas been flouted by jewellers timeand again. This alleged widespreadunder-karatage of gold by jewellersacross the country has been well-documented by the BIS marketsurveys of 2001 and 2006, in whicha shocking 90 per cent of thesamples had failed quality testing.

Ram Vilas Paswan, the UnionMinister for Consumer Affairs,Food and Public Distribution, statedat a press conference in New Delhion 14 January 2020 that the purposeof making hallmarking mandatoryfor gold jewellery and artefacts is ‘toensure that consumers are notcheated while buying goldornaments and that get the purity asmarked.’

Concurring with the minister’spoint of view, K Srinivasan,Convener – Gold Jewellery Panel,GJEPC (Gem & Jewellery ExportPromotion Council), notes, ‘Thegovernment’s decision to make goldhallmarking mandatory is the rightmove. Customers must get thepurity of gold for which they arepaying, that is, they must get valuefor their money. This measure willmake the industry more disciplined

and highly competitive.’Dr C Vinod Hayagriv, Managing

Director and Director of heritagejewellery house C Krishniah ChettyGroup of Jewellers, and pastchairman of the All India Gem &Jewellery Domestic Council (GJC),offers his perspective: ‘I was part ofthe delegation that went to TheKathmandu Convention in 1995 torally for bringing hallmarking toIndia. BIS is the appropriate body tomonitor standards. I have no regretabout the current hallmarkingstandards or the laws/policyimplemented. I do believe it’samong the best in the world.’

Surendra Mehta, NationalSecretary, India Bullion & JewellersAssociation Ltd (IBJA), adds that hewould have preferred hallmarking tohave been implemented in phasesover the next few years. Mehtastates, ‘Mandatory hallmarking atone go in the entire country maynot be a good idea, but must beimplemented in a phased manner,first in the metropolitan cities andthereafter in ‘B’ and ‘C’ cities,gradually over a period of five-sevenyears. The industry must adhere toconsumer requirement ofhallmarking jewellery instead ofdisputing the mechanism toimplement hallmarking. This is amust to regain the confidence andtrust of the customer.’

Citing the technical nature of thehallmarking process, SurendraMehta wants jewellers to be exemptfrom prosecution for anywrongdoing related to hallmarkingfor a period of two years. ‘Everychange in the policy will have itsown challenges and each problemcoming out of such challenges canbe resolved by the industry itself.Hence, it is necessary that for thefirst 24 months of its

WHY HALLMARK?In the BIS market surveys of 2001and 2006, a shocking 90 per cent ofthe samples failed quality tests

MANDATORY HALLMARKING Covers gold jewellery of three

karatages: 22 karat, 18 karat and14 karat

Every hallmarked piece ofjewellery will feature four marks

1. the BIS mark

2. the purity in karat and fineness(22K916 for 22 karat, 18K750 for 18 karat, and14K585 for 14 karat jewellery)

3. the assay centre’s identificationmark

4. the jeweller’s mark

2

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4


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LETTER OF THE LAW

The BIS Act, 2016, states Chapter III Section 18.1 (Obligations of license holder,seller, etc.) The license holder shall, at all times, remainresponsible for conformance of the goods, articles,processes, systems or services carrying the StandardMark.

Relevant sections from the Draft Regulationsquoted below:Section 1.7.1: The certified jeweller shall remainresponsible for purity and fineness of the hallmarkedarticle sold by him.

Section 1.7.2: The certified jeweller may sell hallmarkedprecious metal articles, which are marked with theidentification mark of any other certified jeweller,provided evidence of purchase or authorization in anyother form is available with him.

Section 1.7.4: The certified jeweller, who makes the saleto the consumer, shall pay compensation to consumerfor any shortage in purity or fineness as specified bythe Bureau irrespective of whether the article bears hisidentification mark or he is selling articles underprovisions of sub-regulation (2).

Section 1.7.5: The certified jeweller may also sell suchhallmarked precious metal articles, which are markedwith the identification mark of any other certifiedjeweller, provided evidence of purchase or authorizationin any other form is available with him. In such cases,the jeweller getting the article hallmarked and whoseidentification mark is on the article shall be responsiblefor purity and fineness.

Section 1.7.10: The certified jeweller, who makes thesale to consumer, shall pay compensation to consumerfor any shortage in purity or fineness as specified byBureau irrespective of whether the article bears hisidentification mark or his selling articles underprovisions of regulation 7(5) above.

implementation, penalties and prosecution arenot launched against jewellers. It is important forthe government to understand that hallmarking isa technical subject and goods are hallmarkedbased on a sampling mechanism. Hence,penalizing someone from day one may not be agood idea. Let the mechanism evolve by itself.’

The majority of experts whom Solitaire spoketo agreed that a year’s time was more thansufficient for jewellers to clear their existinginventory. On that point, Rajesh Khosla,Chairman Emeritus of LBMA-accredited goldrefinery MMTC-PAMP India Pvt. Ltd, states,‘Gold jewellery lends itself to recycling adinfinitum, with the underlying asset not losing itscharacteristic. One year seems quite reasonable.’

WGC INDIA MD SOMASUNDARAM PR’S

VIEWS ON HALLMARKING

‘The gold industry in India is at the cusp oftransformation, as transparency, standards andinfrastructure begin to define the next phase ofreforms. Making hallmarking mandatory is amuch-awaited progressive step that safeguards theinterests of the consumers, particularly women,who put their hard-earned savings into this assetclass. This reform should be backed by a tightenforcement mechanism and has the potential toenhance trust in Indian gold jewellery, therebyenabling a favourable environment to market ourfamed handcrafting skills appropriately.Employment potential in assaying andhallmarking will increase. Hallmarking will alsocreate a level playing field, benefitting smallplayers. The transition time of one year will allowthe industry enough time to sell the existinginventory, while simultaneously plugging anygaps in infrastructure and making suitable changesin logistics. To make this a smooth process,government and the industry players should alsocreate a strong consumer pull through consumerawareness campaigns.

However, GJC Chairman AnanthaPadmanabhan asserts in an email interview thatjewellers should be given more than 18 monthsto shift to the approved karatages, besides othersuggestions for the government. ‘Yes, we would

In the lab at the Precious Metals Assay and Training Institute, IIGJ, Mumbai


COVER STORY


like to add a few more categorieslike 20 karat, 23 karat and 24 karat.And the time period that thegovernment has given us is 12months, but we expect beyond 18months for the jewellers to shift tothe announced karatages,’Padmanabhan asserts.

Taking issue with the demand foradditional purity grades, IBJA’sSurendra Mehta states, ‘While thereis demand for hallmarking of 20-karat jewellery, I personally feel thisdemand is illogical, it has been madewith no basis or thought. Therecords of the gem and jewellerysector will not show even 1 per centsale of 20-karat jewellery. Makingsuch a demand raises suspicion inthe eyes of the government that theentire industry might have beenmanufacturing 20-karat jewellerybut selling it as 22-karat.’

In the same vein, James Joseadds, ‘The restriction on multiplekaratages, limiting them to the

sufficiently wide selection of 14 karats, 18 karatsand 22 karats, was initiated by the HonourableMinister for Consumer Affairs, Ram VilasPaswan, for better consumer protection.’

As of now, the hallmarking scheme does notextend to bullion. ‘But in due course, aregulatory authority for good delivery bullion,acceptable to banks and commodity exchanges,shall be coming up and mandatory hallmarking ofbullion bars also may be introduced, providingfull traceability, using blockchain technology andensuring responsible sourcing practices,’ revealsJose, who started the first BIS-recognized goldhallmarking centre in the country on 11 April2000 in Cochin.

THINKING GLOBAL

The move to make gold hallmarking mandatoryis likely to enhance the Indian jewellery industry’sreputation worldwide and have a positive impacton sales to tourists as well as on jewellery exports.

Responsible Jewellery Council (RJC)Executive Director Iris Van der Veken says, ‘Wewelcome the gold hallmarking initiative from theIndian government. It is a positive step andshould provide consumers with additional

Hallmarking centresare not meant to betreated as the qualitycontrol department ofthe jewellery retailer.They are doing onlyrandom verification ofthe jewellerysubmitted to them, tocertify it as per BISstandards.Hallmarking is 10 percent testing and 90 percent trusting thejeweller’s qualitycontrol systems andprocedures

– JAMES JOSEManaging Director, CGR

Metalloys Private Limited,

Cochin, and past secretary,

The Indian Association of

Hallmarking Centres

892 Assaying and HallmarkingCentres (AHCs)

234 districts have AHCs

28,849jewellers have beenregistered by BIS

Syed Asif, TOI


COVER STORY


confidence about the purity of thegold they are buying. This isespecially important in a marketwhere gold is bought predominantlyby weight.’

When asked whether Indiashould pursue membership of theInternational HallmarkingConvention, she notes, ‘This isdefinitely something worth lookinginto as otherwise, the Indianhallmarking scheme may not berecognised internationally.’

Jose informs, ‘India is pursuingmembership of the InternationalHallmarking Convention, with itsown processes and procedurestaking several years’ time forcompletion. Several of thehallmarking centres in India haveexpressed their willingness to jointhe Vienna Convention. As andwhen the country becomes amember of the Vienna Convention,these hallmarking centres will beaudited by the international team,subsequent to which, these centresshall be permitted to hallmark thefifth mark, that is, the mark of theVienna Convention onhallmarking.’

EXPORT BONANZA

Although the mandatoryhallmarking scheme relates primarilyto the domestic sector, theunintended but grateful beneficiaryof a standardized, nationalhallmarking scheme may just be theexport segment.

The World Gold Council(WGC), in its 2015 report‘Developing Indian hallmarking - Aroadmap for future growth’, notes,‘Artisanal Indian jewellery is widelyprized for its intricacy andcraftsmanship. Yet, India currently(as of 2013) exports around $8billion of gold jewellery, equivalent

to just 8 per cent of the global goldmarket. This has significantpotential to increase if qualitycontrol is addressed.

‘Our firm belief is that enhancingthe hallmarking system in India willrebuild trust in the purity of Indiangold, increase consumer confidence,enhance exports and createemployment. It would also be anessential element in any successfulgold monetization programme and acritical element to India becoming“jeweller to the world”,’ the WGCstates in the same report.

Quoting from the same WorldGold Council report, GJEPC ViceChairman Colin Shah states thatmandatory hallmarking couldincrease India’s jewellery exports to$40 billion and create 2.5 millionjobs ‘if global markets had more faithin the integrity of Indian jewellery,and if local consumers, overseasbuyers and financial markets couldplace their trust in the quality andpurity of Indian gold.’

All jewellery exports from Indiaare mandatorily checked at the portof entry of their destinationcountries because the country has,so far, lacked a national hallmarkingsystem. Instituting such a systemwill allow India to become asignatory to the ViennaConvention, which grants anautomatic waiver of all suchinspections to member countries.

CATCH 22-K

The spectre of mandatoryhallmarking hovered for severalyears over the domestic jewelleryindustry, which resisted it with theargument that there wasn’t adequateinfrastructure to implement theorder, given the country’s largeretailer base and logistics issues insmaller towns and villages, where

– WGC’s 2015 report ‘Developing Indian hallmarking –A roadmap for future growth’

INDIA’S GOLDJEWELLERY EXPORTS2013

Around $8 billion (8 per cent ofglobal gold market)

If quality control is addressed andinternational buyers can trust Indiangold, this could go up to...

...$40 billion, creating up to 2.5million jobs

8%

40%


COVER STORY


the majority of gold is consumed.The BIS too was cautious aboutopening more hallmarking centresdue to poor demand at existing ones– leading to a type of chicken-and-egg situation.

However, as of 31 December2019, there are 892 Assaying andHallmarking Centres (AHCs)spread across 234 districts and so far,28,849 jewellers have beenregistered by the BIS.

Refuting the ‘inadequateinfrastructure’ argument, James Joseexplains, ‘Each hallmarking centrehas the capacity to mark 1,000pieces in a shift, which is around 10kg per shift or 3,000 kg (3 tonnes)per year. At this rate, the 892hallmarking centres in the countrycan easily hallmark 2,500 tonnes ofjewellery per annum, as against the

average sales of 1,000 tonnes perannum in the country. Hence, wedo not visualize any capacityconstraints or infrastructuralbottlenecks in the mandatoryhallmarking regime.’

In an interview with Solitaire in2006, a top BIS official had spokenof two possible approaches tomaking hallmarking mandatory: thefirst was the top-down approach ofsimply declaring it so, and thesecond, bottom-up approach wouldentail generating enough publicityabout hallmarking so that jewellerswould have to give in to consumerpressure and provide hallmarkedjewellery.

Industry bodies like the IBJA andGJC have committed themselves toraising consumer awareness abouthallmarking. ‘Yes, we will promote

Hallmarking by itself is not thesolution. Jewellery manufacturingtechnology also needs an upgrade.And assay and hallmarking needserious international collaborationand intervention, which alsoincludes review of the BIS norms,which are two decades old. There issimply too much of a trust deficitbetween jewellers and hallmarkers,and Band-aid therapy will lead usnowhere

– RAJESH KHOSLA

Chairman-Emeritus, MMTC-PAMP India Pvt. Ltd

The next generation of skilled assayers in themaking at the Precious Metals Assay andTraining Institute in Mumbai


COVER STORY


awareness of hallmarking in all ourB2C activities,’ assertsPadmanabhan.

Dr Hayagriv adds, ‘There isadequate consumer awareness abouthallmarking in the cities. However,trade bodies need to do more toeducate customers in smaller townsand cities. BIS alone cannot do this.We must lend a hand in the interestof fair trade practice.’

Surendra Mehta remarks, ‘IBJA,through its social media and otherwebsites, recommends people buyonly hallmarked jewellery. At IBJA,we regular conduct multiplehallmarking seminars across India.Apart from this, BIS also conductsvarious workshops to raiseawareness among jewellers. As far asconsumer awareness is concerned,BIS has launched a campaignpromoting the purchase ofhallmarked jewellery. We have alsocarried out a survey and have found40 per cent of consumers asking forhallmarked jewellery. This numberis rising by the day.’

THREAT OF TECHNOLOGICAL

OBSOLESCENCE

Rajesh Khosla believes that there isa danger of India’s hallmarkingtechnology becoming obsolete andrequiring further investment. ‘Thatis the clear and present danger, asthe technology, introduced as farback as the late 1990s, is sorely inneed of an upgrade to internationalstandards. Hallmarking of jewelleryenjoins upon the jeweller tenderingjewellery for hallmarking to declarethe gold purity in the jewellerybeing tendered, and upon thehallmarking centre to do a scientificassay to verify that the gold contentis not less than that declared. Bothparticipants are liable for anymisdeclaration or misdemeanour.

hallmarking technology periodicallybecomes obsolete, it issimultaneously upgraded by theBIS, with the addition of newoperating standards andtechnological improvements such asthe digital hallmarking scheme.‘Digital hallmark will take Indianhallmarking to greater heights, withimproved transparency ofoperations, for which thehallmarking centres may have toupgrade their machinery in terms ofprecision and faster turnaroundtime. In addition to the existingchemical method of fire assay, newoperating standards for analyticalmethods such as Silicone driftdetector-based XRF, spark opticalemission spectrometry, etc., are invarious stages of development by theBIS, making the Indian hallmarkingindustry truly world class.

‘It is understood that themandatory regime announced bythe minister, with a grace period upto 15 January 2021, shall coincidewith the launch of the BIS digitalhallmarking scheme, ensuring 100per cent consumer protection,’ Josereveals.

Khosla offers a final word ofadvice: ‘Hallmarking by itself is notthe solution. Jewellerymanufacturing technology alsoneeds an upgrade. The use ofquality alloying elements, qualitysolders, etc., must become a sinequa non for the gold jewellerymanufacture. And assay andhallmarking needs seriousinternational collaboration andintervention, which also includesreview of the BIS norms, which aretwo decades old. There is simplytoo much of a trust deficit betweenjewellers and hallmarkers, andBand-aid therapy will lead usnowhere.’

Industry associations need to takethe lead in addressing this trustdeficit by creating a network ofAHCs of the highest integrity. Thisneeds investment, and thegovernment does provide financialsupport. But in the current race ofdescending to the lowest commondenominator, quality andconsistency are the first casualties.The only answer is a radicaltechnology leap, akin to the leap wesaw in the automobile and telecomindustries. Regrettably, there are noshortcuts,’ Khosla warns.

DIGITAL UPGRADE

In response, Jose says that although

We would like to add a few morecategories like 20 karat, 23 karatand 24 karat. And the time periodthat the government has given us is12 months, but we expect beyond18 months for the jewellers to shiftto the announced karatages

– ANANTHA PADMANABHAN

Chairman, All India Gem & Jewellery Domestic

Council (GJC)Se

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2020 UNION BUDGETIndustry welcomes MSME boost,bullion exchange proposalThe gems and jewelleryindustry cheered the 2020-21Union Budget, which proposesinvoice financing, workingcapital and debt financing bybanks and NBFCs, increase inaudit threshold from `1 crore to`5 crore to encourage MSMEs,and the establishment of abullion exchange at Gift City

Finance Minister NirmalaSitharaman, in the UnionBudget for the fiscal year

2020-21, presented a gamut ofinitiatives that gave the gems andjewellery industry reason to cheer.The government proposed to reducethe import duty on platinum fromthe existing 12.5 per cent to 7.5 percent. Also, the proposal to establish abullion exchange at Gift City inGandhinagar is a move that willattract international bullion trading.

BULLION EXCHANGE

IN GIFT CITY

GJEPC Chairman Pramod KumarAgrawal, said, ‘We welcome theUnion Budget announced by theFinance Minister. It certainly hasmeasures to boost domesticconsumption and to put the overalleconomy on growth trajectory. Westrongly believe that thegovernment is determined to makeIndia a $5 trillion economy. Theproposal to establish a bullionexchange in Gift City will attractinternational bullion trading toIndia. It will also help inestablishment of a full-fledged

Finance Minister Nirmala Sitharaman,holding a folder containing the UnionBudget documents, at the Ministry ofFinance with her deputy Anurag Thakurand a team of officials in New Delhi

Ashwani Nagpal, TOI


bullion exchange in India in the future.’‘However, we understand that the government

has now equated the gold bullion sector under asingle import duty regime by increasing theimport duty on gold coins from 10 per cent to12.5 per cent. Our demand was to decrease theimport duty on bullion to 4 per cent from 12.5per cent,’ added Agrawal.

EASIER FINANCE AND AUDITING

CONDITIONS

Speaking about other important points in thebudget, Agarwal said, ‘Initiatives like invoicefinancing, working capital and debt financing bybanks and NBFCs, raising the threshold for auditfrom `1 crore to `5 crore will address the existingdemands of the G&J sector and accelerate growthin the sector. The industry also believes that theNIRVIK Scheme will result in increase of exportcredit disbursement to the gems and jewellerysector. With these initiatives, the governmentmarches ahead to make India a global gems andjewellery hub by 2025.’

WITHDRAWAL OF DIVIDEND

DISTRIBUTION TAX

This is an encouraging move. The decrease in taxon various income slabs will empower purchasingpower of common people, said Agarwal.

IMPORT DUTY HIKE ON ROUGH COLORED

GEMSTONES AND OTHERS

Commenting on the proposed import duty riseon rough coloured gemstones, rough semi-precious gemstones and pre-forms of preciousand semi-precious gemstones, Agrawal said,‘These rough gemstones are primarily importedfor cutting and polishing work and are laterexported internationally. There is minisculedomestic consumption of coloured gemstonesand India competes in exports in this segmentwith China and Thailand. This rise in importduty of rough coloured gemstones could upsetthe exports of gemstones from Rajasthan, the hubof coloured gemstones processing, whichemployees around 1.5 lakh workers. We earnestlyrequest the government to roll back the proposedimport duty on these rough coloured gemstonesin the interest of gemstone exports from India.’

THE UNION BUDGET 2020-21CONTAINS THE FOLLOWINGPROVISIONS FOR THE INDIANGEMS AND JEWELLERY SECTOR:

1. Basic customs duty on rubies, emeralds and sapphires,unset and imported uncut, falling under heading 7103,increased from nil to 0.5%

2. Basic customs duty on rough coloured gemstones,falling under heading 7103, increased from nil to 0.5%

3. Basic customs duty on rough semi-precious stones,falling under heading 7103, increased from nil to 0.5%

4. Basic customs duty on pre-forms of precious and semi-precious stones, falling under heading 7103, increasedfrom nil to 0.5%

5. Basic customs duty on rough synthetic gemstones,falling under heading 7104, increased from nil to 0.5%

6. Basic customs duty on rough cubic zirconia, fallingunder heading 7104, increased from nil to 0.5%

7. Basic customs duty on polished cubic zirconia, fallingunder heading 7104, increased 5% to 7.5%

8. The end use-based exemption available on gold in theform of wire, ribbon, pre-form of purity 99.9% andabove used in manufacture of specified goodswithdrawn

9. The end use-based exemption available on gold wirewith phosphorous or antimony doping used inmanufacture of specified goods withdrawn

10. Basic customs duty on platinum and palladiumreduced from 12.5% to 7.5% for use in manufacture ofall goods (including noble metal compounds and noblemetal solutions) and catalysts with precious metals orcontaining precious metals as active substances,subject to actual user condition

11. Basic customs duty on spent catalyst or ash containingprecious metals imported for recovery of preciousmetals reduced from 12.5 % to 11.85% subject tocertificate from Ministry of Environment, Forest andClimate Change

12. Basic customs duty on all goods falling under heading7118 increased from 10% to 12.5% by increasing thetariff rate of all goods falling under this heading

13. GIFT IFSC has an approved Free Trade zone for housingvaults. It already has 19 insurance entities, 40 bankingentities. It has also provided for setting up of preciousmetals testing laboratories and refining facilities. Withthe approval of the regulator, GIFT City would set up anInternational Bullion exchange(s) in GIFT-IFSC as anadditional option for trade by global marketparticipants.This will enable India to enhance itsposition worldwide, create jobs in India and will lead tobetter price discovery of gold.

POLICY MATTERS





POLICY MATTERS


The GJEPC, which has beenmaking representations toget the Surat International

Diatrade Centre (SIDC), set up inthe Gujarat Hira Bourse, declared aSpecial Notified Zone (SNZ), hasrecently met with success.

Through a notification issued on16 January 2020 by the PrincipalCommissioner of Customs,Ahmedabad, the SIDC has nowbeen declared an SNZ. The orderstates that it is considered ‘as aCustoms area for the purpose ofimport, trading and re-export ofRough Diamond and such othersimilar items which may bespecified from time to time.’

While some routine proceduresstill need to be completed, it isunderstood that the new SNZ willswing into action sometime laterthis year, most probably in the newfinancial year. While it is wellknown that Surat is the hub for thediamond cutting and polishingindustry dealing mostly in smallgemstones, diamond manufacturinghas recently also blossomed in othercentres like Bhavnagar, Navsari,Ahmedabad, Visnagar, Palanpur,Amreli, Junagadh, etc.

‘However, availability of rawmaterial at competitive prices toSMEs of this sector remained amajor concern for policymakers andstakeholders,’ said the GJEPC. ‘Themajor source of supply and centre ofprocurement for such SMEmanufacturers is primarily Surat.Even the rough diamonds imported

to Mumbai are forwarded to Surator other centres in Gujarat forprocessing.’

The setting up of an SNZ inSurat will provide the SMEs of thesector based in Gujarat direct accessto mining companies which canexhibit their goods there. In theroutine course of things, thesesmaller companies find it bothdifficult and uneconomical to travelto Mumbai for rough buying.

‘A large number of reputed globaldiamond companies like De Beers,Dominion Diamond Corp, RioTinto, Alrosa and OkavangoDiamond Company have expressedtheir willingness to hold theirauctions or viewings in Surat, if thenecessary infrastructure is availableand the required statutorypermissions are granted,’ the GJEPCsaid.

The Surat International DiatradeCentre (SIDC) is an SPV promotedby the GJEPC and is limited byguarantee and registered underSection 8 of the Companies Act,2013. The SIDC had expressed awish to set up an SNZ in Surat tohold viewing of rough diamonds forthe benefit of diamondmanufacturers/traders of the region,who are mainly in the SME sector.In preparation, SIDC had takenapproximately 3,000sq ftconstructed area on a long-termlease from the Gujarat Hira Bourseat Ichhapore, Surat, and has set up astate-of-the-art viewing facilitythere.

Surat International Diatrade Centrein the Gujarat Hira Bourse notified as an SNZ

The setting up of anSNZ in Surat willprovide the SMEs ofthe sector based inGujarat direct accessto mining companieswhich can exhibit theirgoods there


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GJEPC videos choose humour oversentiment to promote gold, diamondsGJEPC has partnered with Times Studio to create six videos thatpromote gold investments and diamond gifting, but instead of usingemotional appeal, like jewellery ads, they use humour to make apoint about financial realities

By CHANDNA ARORA

Most jewellery ads feature tears, but theGJEPC has chosen laughter to do thejob. The Council has commissioned

six promotional videos to promote goldinvestment and diamond gifting, but unliketraditional jewellery ads, these do not usesentiment to appeal to the viewers’ hearts.Instead, the videos employ humour to reach theconsumers’ minds and make some practicalfinancial points.

The Times Studio, a digital video contentcompany of the Times group, has created thesesix videos for GJEPC as a follow-up to the twocreated initially. The Council tested the waterswith the first two videos, and the promisingresponse led to latest six. Three of these sixvideos promote gold investment to buffer life’sbig expenditures. The other three promotediamond gifting as the most enduring, financiallysound indulgence for life’s landmark events.

One of the six humourous videoscommissioned by GJEPC shows ayoung woman imagining that herhusband’s ‘big, romantic surprise’ isgoing to be a diamond ring


SPOTLIGHT


THE VIDEOS

Three of the videos that promotegold investment feature varied agegroups. The first video shows a mature

couple, in their 30s, dealing with anunexpectedly large bill for ahospitalization. To their dismay,their insurance does not cover theentire bill. However, the voiceoversays that gold is an investment thatcan meet unforeseen expenditureslike hospital bills. The second video shows a

similar, almost middle-aged coupleplanning purchases to furnish a newhome. The video conveys thatwhether it’s imported furniture orquality furnishings, gold can helpfund planned expenses like these aswell.

The third video shows a fatherexploring higher education optionsfor his teenaged son. The sale ofother tangible assets, like land andproperty, can fund only so much,while gold can easily be used forcash to fund better options inimportant expenses like highereducation.

The other three videos promotediamond gifting over spending onindulgences like designer clothing,cars or gadgets to mark life’s bigoccasions. The first video shows a young

couple, with the husbandannouncing that he has a bigsurprise for his wife. Since it’s a bigand important surprise, she expectsdiamonds, but is disappointed to

On diamonds,we wanted toemphasizethat unlikeeverything elsein one’s life,whichperishes, adiamond istruly forever

and is the ultimate gift of love. Ongold, we wanted to emphasize theimportance of gold in your life andhow it can help in any and everysituation as it is probably the onlyasset class that is risk-free

– COLIN SHAHVice Chairman, GJEPC

This gold investment videouses humour to assert thatgold investments can cushionsudden expenditure likehospitalization


SPOTLIGHT


find it’s just a dress. The husband’sbig romantic surprise would havebeen much more powerful if it werediamond jewellery. The second video shows the

husband gifting his wife a newcamera, but there are newer, moreadvanced models of the same camerain the market. The wife’s delightturns to disdain and there is nopleasure in the gifting. The third video shows the

couple gushing over their new car.But the neighbour drives up in thesame car and reminds them that hehas a better equipped, upgraded

model. The wife’s pride in theirswanky car is dashed and the joy ofthe acquisition evaporates instantly.

THE THOUGHT

Punit Sheth, Senior VP, content andcreative, Times Studio, explainswhat the challenge was before them.‘When we met the GJEPC, welearnt that the younger generationwas losing faith in traditionalcommodities like gold anddiamonds. People today are moreinclined towards experiences, theirchoices are more brand-oriented,and they are less keen to buy

The idea was to try a tonality verydifferent from typical jewellery ads– the appeal to emotions, tradition,the focus on relationships and thegenerally warm and fuzzy feel. Asthe Council, they wanted theircommunication to look different, sowe chose humour

– PUNIT SHETHSenior VP, content and creative,

Times Studio

Another humourous gold investment videoshows a middle-aged father exploring highereducation options for his teenaged son


SPOTLIGHT


jewellery. But gold and diamond areextremely liquid in nature and canbe encashed quickly. So we neededto figure out how to make gold anddiamonds contextual and relevant tothe young-but-settled consumer foroccasion gifting and investment.’

Colin Shah, Vice Chairman,GJEPC, explains what they weretrying to achieve with the videos.‘We at GJEPC were trying to createawareness on the various relevantreasons a consumer should buydiamonds and gold. On diamonds,we wanted to emphasize that unlikeeverything else in one’s life whichperishes, a diamond is truly foreverand is the ultimate gift of love. Ongold, we wanted to emphasize theimportance of gold in your life andhow it can help in any and everysituation as it is probably the onlyasset class that is risk-free.’

However, the Council was keenthat its communication not look likethat of jewellery brands. The aimwas to motivate the consumer andbenefit the industry in general,much like the ‘mutual funds sahihai’ campaign. ‘The idea was to try atonality very different from typicaljewellery ads – the appeal toemotions, tradition, the focus onrelationships and the generally warmand fuzzy feel. As the Council, theywanted their communication tolook different, so we chose humour,’explains Sheth. ‘We wanted toconvey financial practicalities andthe harsh realities of life, butthrough the lens of humour.’

Shah adds, ‘We tried to break theclutter by bringing some humourinto the ads so that they catchanyone’s attention.’ He also says thatfeaturing various age groups in thevideos – from middle-aged parentsto young couples – is a way ofreaching out to diverse consumer

groups. ‘With the style and thecontent of the videos, we are tryingto reach out to all ages, varied targetgroups, as the message is generic innature,’ he adds.

THE STRATEGY

The videos, says Sheth, presentsituations in which gold can bail youout more quickly than otherinvestment options. The othermessage, which the diamond videosconvey, is that of investing indiamonds as a more thoughtful giftthan depreciating assets like phones.

Hence, says Sheth, the six videosdepict situations in which an assetclass has failed. ‘The life situationsdepicted in the gold investmentvideos are in the 5-6 lakh or 10-12lakh price points, which can bemanaged through investments likegold. The diamond videos portraydiamonds as the ideal gift. Weacquired insights about howconsumers are buying for “big-moment” gifting, for landmarkevents like anniversaries, the birth ofa child, auspicious occasions and, of

course, weddings. The videos pitchdiamonds as enduring gifts over cars,dresses, etc., for which there willalways be upgrades,’ he explains.

A LIGHT-HEARTED APPROACH

Sheth says that because the videostalk about life’s big truths –emergency expenditure, financialcrunch, saving and investments – aserious approach might havebordered on ‘preachy’. ‘Also, theemotional space is alreadydominated by traditional jewelleryplayers. The idea was to promotebuying of gold and diamonds, but ina different space from brands,’explains Sheth.

GJEPC’s Shah feels the videosdeliver their message effectively, andthat the platform has the potential tofurther strengthen the Council’scommunication to the public. ‘Thevideos are good as a start. As weevolve the themes and the style ofthe videos, based on feedback fromthe trade, we are sure they willbecome great,’ he says.

The diamondpromotion videosseek to convey theenduring value ofa diamond as agift on life’sspecial occasions



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IS SILVER the new gold?

According to the World Silver Survey 2019,India represents 17.5 per cent of global silver

demand. Is there room to boost silver exports?SHANOO BIJLANI finds out

Silver Emporium


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Silver is gaining ground across the globebecause of two main drivers – first, it’sprecious yet affordable; the ‘democratic’

metal is well within everyone’s reach. Silverprices have stayed stable for a couple of years andare nearly eighty times lower than the price ofgold. Second, silver is versatile – it correlates tofashionable, pret wear jewellery, which is anunderlying lure for today’s generation, and it alsofits into the slot of high-end designer jewellery,which is an investment and a keepsake.

But first, let’s talk some figures: India is a hugeexporter of silver jewellery and silverware. Silverbullion imports rose 36 per cent in 2018 to 6,958tons, according to the World Silver Survey 2019report, published by the Silver Institute.

Industry experts estimate that the figure mayhave reached close to 7,000 tons in 2019 as well.

Ram Babu Gupta, convener of the SilverJewellery Panel Committee, GJEPC, notes, ‘Asexports have grown by about 20 per cent, it can

be estimated that the import of silver bullion willgrow by 15 per cent to 20 per cent.’

In 2019, the figures could hover around 7,000tons. India is the third largest exporter of silverjewellery in the world, according to a GJEPCanalysis based on UN Comtrade 2018 data.

Abhineet Boochra, spokesperson and directorof Sangeeta Boochra, a jewellery export firm,notes, ‘We estimate the increase in import to bearound 20-25 per cent. However, the import billin the last quarter of 2019 has increased from theOctober quarter. This means, in the last quarter,huge quantities are understood to have enteredIndia. Indian consumers buy silver jewellery andinvestment grade bars and coins. Traders boughtmore silver this year than last year as a “tactical”purchase, which eventually has increased theimports volume. Excessively high price of gold,due to huge depreciation of the rupee, has alsodiverted precious metal buyers towards silver.There was arbitrage demand for silver import due

Karma Designs


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to higher price difference betweenfutures prices of silver on majorexchange MCX and spot marketprice. Traders are buying at spotmarket and selling future contractswhenever the difference betweenthe two markets is markedly higherthan normal. Then, silver hasindustrial use as well, which hasincreased and hence would affectthe imports.’

Global silverware fabrication rose6 per cent year-on-year to 1,900tons. India accounted for the bulk ofthe annual rise, increasing 10 percent year-on-year to 1,301 tons andaccounting for more than two-

thirds of global consumption.‘The annual increase in India was largely

due to a rise in stock building from regionaland national retail chains as consumer

demand gathered pace, and a jump inexports, which more than doubled in2018,’ the survey noted.

TAPPING GREENER PASTURES

The United States of America and theMiddle-East are the two major regions

that register a major demand for silverjewellery. However, realizing the

untapped potential, Indian silverexporting companies are also looking to

penetrate markets such as China, Singapore,Sri Lanka, the Middle-East, Russia, Hong

Kong, the Philippines and Australia.Rahul Mehta, managing director, Silver

Emporium, Mumbai, believes that apart from theestablished markets, countries such as HongKong, the UK, Italy, Germany and Africa can begood export destinations. ‘Some regions offergreat opportunity for contract manufacturing asthe cost of labour for handmade jewellery is verylow in India and we have highly skilled workers,’he notes, adding that his company is targetingChina, the Middle-East and Russia.

According to Vivek Shah, owner and creativedirector of Karma Designs, Ahmedabad, a majorsilver jewellery export house that also has adomestic brand, Vega Vaan by Karma, smallernations like Monaco, Switzerland, Fiji, etc., withmore spending power can be options worthlooking into. Shah’s major export markets areAmerica, Japan, France and Spain.

To boost exports, he believes that it is crucialto have more buyer-seller meets for silver in Indiaas well as in key cities like New York, London,and Los Angeles, to promote Indian exporters.‘Indian silver jewellery exporters have a strong

Global silverware

fabrication rose 6 per

cent year-on-year to

1,900 tons, and India

accounted for the bulk of

the annual rise,

increasing 10 per cent

year-on-year to 1,301

tons and accounting for

more than two-thirds of

global consumption

INDIA’S QUARTERLY SILVER IMPORTS

2018 2019

(tons) Q1 Q2 Q3 Q4 Q1 Q2 Q3

Silver Imports 1199.7 2348.3 1081.9 2345.6 1152.3 2135.3 1993.6

Source: Thomson Reuters

Silver Emporium


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design database supported by qualitymanufacturing operations.

‘If the government makes hallmarkingmandatory in silver jewellery, it will not onlyboost the confidence of foreign markets but willgive a fillip to exports.’

THE WAY AHEAD

The room for export growth is tremendous,according to Rahul Mehta, managing director,Silver Emporium, Mumbai. However, herecommends that it is imperative to ‘markethandcrafted Indian silver jewellery on a globalplatform and trade shows. I believe that we havean edge as our jewellery or silverware is

handcrafted.’Ram Babu Gupta adds, ‘The government

should provide financial help to undertakegeneric promotion of silver jewellery in variousinternational markets. Identifying major silver

jewellery manufacturing clusters and creatingshared manufacturing facilities to improve thequality would help empower our MSMEs toundertake exports. The MSME unitsmanufacturing silver jewellery should beencouraged to participate in overseas foreignexhibitions by offering them booths at nominalprices, as the silver jewellery companies have topay the same cost for a booth as the diamond orgold jewellery company is paying at an overseasexhibition. The government must earmark a fundto subsidizing such participation charges for silverjewellery manufacturers, which can be routedthrough an export promotion council. Silverjewellery should be considered a non-preciouscategory from the freight point of view; in fact,the charges applicable to silver are the same asgold and diamond.’

On the home front, Mehta advocatesupskilling and training MSMEs to produce

globally acceptable finish and quality. ‘Sharingknowledge on alloys, conducting practicalworkshops with skilled trainers, and sharingglobal trends with manufacturers to developcollections is the way to go,’ Mehta suggests,adding that curated study tours abroad as well asin India for MSMEs would be an eye-opener forthem. ‘Small and medium-sized manufacturingunits should be allocated booths at trade fairs atsubsidized costs.’

Lauding the GJEPC’s efforts to have a

The government should providefinancial help to undertake genericpromotion of silver jewellery invarious international markets.Identifying major silver jewellerymanufacturing clusters and creatingshared manufacturing facilities toimprove the quality would help inempowering our MSMEs toundertake exports

Silver Emporium


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Designer Gallery at IIJS Signature, Mehta saysbudding entrepreneurs and designers should begiven the chance to showcase their creativity atsuch mega shows. ‘This is a confidence-buildingexercise that will ultimately boost our exports.’

To boost exports, Ram Babu Guptarecommends that steps need to be taken by theIndian government to equate the prices of silver indomestic and international markets, which arepresently way too high due to a high import duty.‘The duty drawback and replenishment availableto an exporter is not giving full relief in lieu ofduty drawback and actual duty difference on silverbullion. This initiative will boost the exports ofsilver jewellery from India, including exports ofplain silver jewellery, for which countries likeChina and Thailand are our major competitors.’

He continues, ‘The scheme for refunding of allduties and taxes to a foreign tourist makingjewellery purchases while in India should berolled out immediately to make India a shoppingdestination like Dubai, Thailand, etc. Also, thebaggage rules should be simplified for foreignbuyers to enable them carry goods, bought during

their visit to India, without any hassle.’ Abhineet Boochra notes, ‘Increasing duty

drawbacks by the government is one of the majorsteps towards boosting exports of silver.

‘Jewellery parks should be established whichhelp a jeweller work in an organizedenvironment, and that, in turn, can improve thequality and durability of the product. This wouldgive an edge to Indian goods in the market.

‘Customs duties on jewellery machines shouldbe reduced, as that would help India producehigh-quality jewellery at par with China orThailand, which are currently the market leadersin finishing and quality.

‘Seminars and know-how sessions should beconducted by the GJEPC domestically andglobally to educate jewellers on various aspects ofthe trade.’

THE DOMESTIC SCENARIO

Back home, silver jewellery is becoming popularnot just for its lower rates, but also because themetal is the go-to option for modern-dayjewellery designers. Trendy designs and silver

Shut

tersto

ck


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almost go hand-in-hand. Mehta says the Indian markets are warming up

to silver items in categories such as home décor,furniture, personalized gifting options and others.‘New-age consumers prefer silver jewellery fordaily wear and occasions. The price points ascompared to gold are lower and they have theoption of changing their jewellery more often.’

The current crop of designers are giving acontemporary look to silver jewellery and giftingarticles and have clearly created substantialdemand for the white metal. Surveys done in thisregard have revealed that youngsters in particularhave started appreciating silver more than goldbecause the current silver jewellery designs are somuch more chic and in sync with the aestheticsensibilities of today’s generation.

In India, gifting coins and silverware forreligious purposes and as decorative home itemsis popular. Silverware demand has steadily grownin the range of 15-20 per cent year-on-year.Indian exporters opine that there is hugepotential for this segment to grow over 30-35 per

cent consistently, but this will require educationand promotion.

As for hallmarking, Mehta comments, ‘Istrongly recommend that silver hallmarkingshould be made mandatory in the country. Thiswill bring trust and help the market to grow assilver has huge potential.’

Ram Babu believes that to begin with,hallmarking each piece of silver jewelleryweighing 30 grams or more should be mademandatory, as hallmarking smaller pieces wouldnot be viable. ‘However, the same can beextended to smaller pieces in future or they canbe marked with the percentage and the maker’sstamp,’ he adds.

Vivek Shah adds, ‘While it is important tomake silver hallmarking compulsory, moreawareness and promotion needs to be done toeducate the public about purity standards anddifference in quality.’

OVERVIEW

The World Silver Survey 2019 reports Indian

Shutterstock


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silver jewellery fabrication surged 16 per cent in2018, setting a new record of 76.5 Moz (2,378tons), helped by the migration to silver due toelevated gold prices and expansion of retailoutlets. ‘With the gold price at an average of`30,689/10gm in 2018, gold was consideredexpensive and a significant part of traditional golddemand spilled over to silver,’ the report stated.

The World Silvery Survey 2019 noted, ‘Onthe trade side, silver jewellery export contractedby 25 per cent year-on-year in 2018. However, ifwe look at value-to-volume ratio, last year’sperformance was actually better than that of2017, since less bogus exports in form of “round

tripping” did occur. Regulatory reforms alongwith authorities cracking down on a fewfraudulent exporters made the value of exportsdecline in 2018, but increased the volume ratio.That said, our interaction with genuine exportersrevealed that they are now also exploring newdestinations, such as Australia and Denmark,apart from shipping to their traditional partnerssuch as the United States and Eastern Europe.

‘Exporters believe that if the Indiangovernment enforces mandatory hallmarking insilver jewellery, it will reduce the adulteration(using less copper) and raise confidence amongforeign buyers,’ it added.

New-age consumersprefer silver jewellery

for daily wear andoccasions. The price

points as compared togold are lower and

they have the optionof changing their

jewellery more often

Silve

r Em

poriu

m


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The India InternationalJewellery Show (IIJS)Signature 2020 has added

excitement to the February calendarfor exhibitors and visitors in thegems and jewellery industry. Thefirst trade show of the year isstarting things off with a bang,attracting domestic andinternational buyers alike. TheGJEPC has left no stone unturnedto make a truly exclusive event outof this mega show, considered thenerve centre of jewellery design andtechnology.

The India Gem and JewelleryMachinery Expo (IGJME), beingheld concurrently, is a major drawfor those interested in upgradingmachinery and technology. TheIGJME is Asia’s largest gems andjewellery technology fair, with over100 participating companies fromcountries like the US, China,Turkey, Italy and others.

The IIJS Signature platform willalso be known for giving exposureto the new comers in the industry.This year, IIJS Signature has aspecial DDeessiiggnn PPaavviilliioonn, which willfeature the works of hand-pickedwomen entrepreneurs and buddingjewellery designers. The platformwill be a great experience for ourdesigners and entrepreneurs tonetwork and meet buyers fromIndia and abroad. This will also givethem an understanding on theexpectations of different buyers.GJEPC has offered special rates for

IIJS DAZZLES IN INDUSTRY’SFEBRUARY EVENTS CALENDARWith over 1,300 booths and over 12,000 pre-registered visitors,the 13th edition of IIJS Signature, along with the concurrently heldIGJME, promises to start this year’s events schedule with dazzle

IIJS SIGNATURE 2020

700+ exhibitors

1300+ booths

45,000+ sq m

18,000+ trade visitors

325+ cities in India

55+ countries

12,000+ pre-registered visitors



these participants with the aim toencourage tomorrow’s creative starsof India. Selection of jewellerydesigners and women entrepreneurswill be done by independentindustry experts appointed by theCouncil in assistance with theWomen’s Jewellery Association –India. Preference will also be givento IIGJ past and present alumni.

PPrraammoodd AAggrraawwaall,, CChhaaiirrmmaann,GGJJEEPPCC states, ‘IIJS Signature hasdefined itself as an importantbarometer of success for the Indianindustry, showcasing the best ofjewellery in terms of design, qualityand finish, as well as hightechnology solutions – all under oneroof. The show will undoubtedlyhelp to boost India’s jewelleryexports from $12 billion at presentto $18 billion by 2025.’

‘As an endeavour to encouragedesign talent and entrepreneurship,this time we have created a special

Design Pavilion, which willshowcase the works of nine hand-picked women entrepreneurs andnine budding jewellery designersfrom the industry. GJEPC hasoffered nominal rates for theseparticipants, with an aim to bringforth such design talent. As GJEPCwe indulge in a series of designinitiatives across the year that helpsnurture the skillset and talent ofjewellery design. Design Pavilion atIIJS Signature is yet another sucheffort in that direction,’ saidAgrawal.

CCoolliinn SShhaahh,, VViiccee CChhaaiirrmmaann,,GGJJEEPPCC, notes, ‘The hearteningresponse received from exhibitorsand visitors for IIJS Signature – interms of record numbers of stallbookings and pre-registrations – isthe best antidote to the slowdownthat has affected our industry for solong. It is a clear indication that thetrade believes 2020 will witness an

uptick in demand throughout thepipeline. In these stressful times, theoptimism and positivity shown byour industry is perhaps our greateststrength. I envisage a more stablepolitical and economic environmentin the next few years, which willhopefully bring about furtherbusiness-friendly policy changesrelated to taxation, export financeand so on.’

MMaannssuukkhh KKootthhaarrii,, CCoonnvveenneerr -NNaattiioonnaall EExxhhiibbiittiioonnss,, GGJJEEPPCC,comments, ‘IIJS Signature stands tallfor its eclectic mix of high-designjewellery to cater to a variety ofindividual requirements. The firstshow of the Indian calendar year isperfectly timed to replenishinventory for the upcoming festivalsthat drive jewellery sales and thesummer wedding season.’

IIJS Signature, besides being aperfect networking platform due toits unhurried pace, it is also a placeto get the pulse of the market interms of high design, marketdemand, and insights on inventivetechnology. The show is a platformthat bridges the gap betweenmanufacturers and trade attendeesand is an ideal meeting point tointroduce the right manufacturer tothe right buyer.

PRODUCT SECTIONS Loose stones Studded jewellery Gold jewellery Jewellery start-up zone

(JSZ) Signature Club Laboratories and

education

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STEPHEN WEBSTERThe artisan and the artistStar jewellery designer Stephen Webster, founder and creativedirector of the eponymous brand in London, is in India at theinvitation of the GJEPC, and speaks about his process, hispreferences and how India has influenced them

By SHANOO BIJLANI

Stephen Webster, founder andcreative director of theeponymous brand in London,

is in India at the invitation of theGJEPC. He will be the chief guestat The Artisan Awards at a galanight in Mumbai on February 12.

Webster, who was awarded anMBE (Most Excellent Order of theBritish Empire) in 2013, is anoutstanding jewellery artist, knownfor combining artfulness withaudacity in his high-end pieces. His

near-Gothic but spirited pieces areprovocative, infused with highdrama – the uninitiated may refer tosome of his past collections inspiredby lobsters, bats, the crime fiction ofAgatha Christie and more.

Stephen’s strong technicalexpertise gives him an advantage inexecuting complex jewels craftedmostly in gold, a metal that he lovesto work with.

Beneath his flamboyant personalies an altogether different person –an artisan who gets a creative highwhen working with his tools. Hisworkbench is the place where he isgripped by a feverish frenzy toexperiment hands-on with gem cutsand metal textures.

There’s excitement in the air aswe, at GJEPC, prepare to welcomehim to India again. His last visit asthe Council’s guest was at the IndiaInternational Jewellery Week (IIJW)held in Mumbai.

Excerpts from a free-wheelingconversation on a long-distance callwith the rock star of the jewelleryindustry.

(Above and below)Pieces from the

collection Dynamite


MAESTRO


HHooww ddooeess iitt ffeeeell ttoo bbee bbaacckk iinn IInnddiiaaaafftteerr aa lloonngg ttiimmee??I am excited. I have not been inIndia for some years. All my trips toIndia have been great, and I amhappy to be coming back.

TThhiiss yyeeaarr’’ss tthheemmee ffoorr TThhee AArrttiissaannAAwwaarrddss iiss AArrcchhiitteeccttuurraall GGeemmss.. IItt’’ssoonnee ssuubbjjeecctt tthhaatt iiss cclloossee ttoo yyoouurrhheeaarrtt,, eessppeecciiaallllyy ssiinnccee yyoouurr llaatteessttttwwoo ccoolllleeccttiioonnss,, DDyynnaammiittee aannddVVeerrttiiggoo,, aarree ssttrruuccttuurreedd iinn ffoorrmm.. Because I have been a jeweller for45 years, I do tend to explore lots ofinspirations for the direction whereI am going. For the last two-threeyears, I have been looking at the sortof extraordinary architecture thatfeels like it plays with a bit ofillusion; almost playful architecture,conceptual takes on what a buildingcan be. We use that and extractelements that we could thenincorporate into a jewellerycollection. Vertigo has been a bigsuccess for us and it’s very muchabout playing with perspectives. It’sthe sort of thing that architects liketo do now and again. In some ways,it has got that sort of inspiration.

TTeellll uuss mmoorree aabboouutt VVeerrttiiggoo aannddDDyynnaammiittee..The collections are part of a trilogy– they are not connected in anyform other than it was about thisidea about things not being whatthey first appear to be. The threecollections were Jitterbug,Dynamite and Vertigo. We releasedJitterbug and Dynamite first. Andlast year, Vertigo completed thestory. Both Dynamite and Vertigowere, for me, a bit of a newdirection. They are very muchabout angles, precision, and usingcuts of stones that were different tothe more organic forms that I often

play with. It’s been a good challengefor us, and I like to challenge myclients as well otherwise it all gets tobe a bit boring.

Those two collections arebecoming more of a continueddirection for us to explore.

YYoouurr pprreevviioouuss ccoolllleeccttiioonnss hhaavveeaallwwaayyss bbeeeenn nneeaarr-GGootthhiicc ,, wwiitthh bbaattss,,lloobbsstteerrss aanndd ddaaggggeerrss –– uunneexxppeecctteeddccoommbbiinnaattiioonnss lleeaapp oouutt aatt uuss tthhrroouugghhyyoouurr ccoolllleeccttiioonnss!!You are right. If you have got abody of work that’s quite huge, youfeel that you cover a lot of ground.When I did the collection called theSeven Deadly Sins, I did it for onlyone year, but it became such aniconic collection that those sevenrings can define a bit of what youare.

I think some of these bigstorytelling pieces are what defineyou. They can be somethingfigurative, something playful, andcould be a bit dark in inspiration. Inever go to a place that’s really dark– I will go towards that place andthen I’ll add a bit of humour to it. Ithink people appreciate that I amnot a Gothic designer. I am a bitmore playful, and I love a lot ofcolour.

TThhee ttwwoo ccoolllleeccttiioonnss aarree ddiiffffeerreennttffrroomm eeaacchh ootthheerr…… VVeerrttiiggoo iissiinnssppiirreedd bbyy rraaddiiccaallllyy mmooddeerrnnaarrcchhiitteeccttuurree,, aanndd DDyynnaammiittee iiss aabboouuttsshhaarrpp,, jjaaggggeedd ssiillhhoouueetttteess.. You are right. With Dynamite, theidea was that there was somethingthat kind of exploded it and thatcreated a kind of motion thatbecame Dynamite, and itfragmented what may have beenthere before.

With Vertigo, it’s more aboutplayful perspectives and it visually

(Below) Pieces from thecollection Vertigo


MAESTRO


stuns people, which in a piece ofjewellery is quite a challenge initself, because jewellery by nature isnot very big.

The success that we found in ithas been with the moreextraordinary pieces, like those thatI made in titanium, so they got bigvolume, using enamel, baguettecuts, stones like spinels, diamondsto create an illusion of perspective.

YYoouu hhaavvee wwoorrkkeedd aa lloott wwiitthhttiittaanniiuumm –– ddooeess iitt ggiivvee yyoouu tthhaattffrreeeeddoomm ooff eexxpprreessssiioonn aass aa ccrreeaattiivveeppeerrssoonn??Yes, it does. I first started workingwith titanium about 16 years agoand that was a real process ofdiscovery because as far as I wasconcerned, the titanium jewellery Iwas creating wasn’t very exciting.But it has these qualities of beingvery light, strong and you cancolour it. I thought that wasinteresting, but I needed to form it.And forming titanium was thebiggest challenge.

So I took it to a bit of an extremeby creating this collection that was

based on Japanese fighting fish,which was very sculptural. I onlymade about four pieces, one ofthem was a bracelet, which is nowin the Victoria and Albert Museumin London, partly because it wassuch an unusual piece at the time tobe made in titanium; it was sosculptural.

Going forward, I am much morefamiliar with the challenges you canovercome, and then where you maynot want to go with titanium –because it is not like gold. Gold, asyou know, does everything. If youshout loudly at a piece of gold, itwill do something for you, buttitanium doesn’t want to doanything.

YYoouu aarree hhaappppiieesstt aatt tthhee wwoorrkkbbeenncchhwwiitthh yyoouurr ttoooollss,, eexxppeerriimmeennttiinngg wwiitthhvvaarriioouuss ggeemm ccuuttss.. BByy yyoouurr oowwnnaaddmmiissssiioonn,, yyoouu aarree mmoorree ooff aannaarrttiissaann.. IIss tthhaatt wwhhaatt ggiivveess yyoouu aaccrreeaattiivvee hhiigghh??If I go back to my early years injewellery, I went to art school whenI was 16, to be a fashion designer. Ivery, very quickly realized thatprobably wasn’t for me. In an artschool, you start to see what else isgoing on, and the thing that drewme in was jewellery – not by design,

I am much more familiar with thechallenges one can overcome, andthen where you may not want to gowith titanium – because it is notlike gold. Gold, as you know, doeseverything. If you shout loudly at apiece of gold, it will do somethingfor you, but titanium doesn’t wantto do anything

The Fighting Fish brooch

(Below) Pieces from the collectionJitterbug

The Wrath Ring


MAESTRO


because design was not the biggestpart of what was going on. It was allabout technique, all of the art schoolskills that were required for learningto make a piece of jewellery, andthat was what totally seduced meinto this industry. The craft skillsare amazing!

And I am talking to someonewho lives in a country where thecraft skills that are applied tojewellery are probably second tonone. India is phenomenal and it’sall very much hand skills.

And almost the first five years ofmy existence as a jeweller were, firstof all, learning to be a really goodcraftsperson. And the next five yearswere about working withtechniques that I’ve learnt in orderto help me become more of adesigner. Because I was nevertrained to be a designer. I wastrained to be an artisan, acraftsperson.

But I found that with jewellery,if you master the techniques, youcan apply yourself to become adesigner. We are not like architects,we are not designing cars! We aredesigning things that people wearon their body and that are verymuch centred on the materials; youcan’t avoid that.

When you introduce a newmaterial, you are working withprecious gems... then I’ll go I don’t

want my gems to look exactly thesame as everybody else’s, so I wantto start playing with the cuts ofgems. And then I start to do handengraving on a piece of metal thatgave me texture that looks liketapestry. So it is all about using craftskills. And that led to my style. AndI think I have never left that.Sometimes people say, ‘My God,everything about your jewellerylooks so complicated!’ But youknow what? I don’t know any otherway of doing it.

AArree tthheerree aannyy ccoolllleeccttiioonnss iinnssppiirreedd bbyyIInnddiiaa??I want to say yes. When I first visitedIndia with my wife, we were onvacation in Jaipur, where I wanted togo because of the gems, obviously.

Before that I wasn’t very familiarwith Indian cut gems, except formaybe rose-cut diamonds, etc. Laterin my life, I became more familiarwith Indian gems and then I reallystarted to see what is the spirit andthe heart of the Indian jewelleryindustry. I mean, the bridal jewellerythat goes with India is wow!

I think what it’s done for me isit’s one more part of how much Ilove gems and Indians love gems,and then being bold, helps give youconfidence in what you do. In thatrespect, I very much enjoyed mytime there. And every time I’vebeen there (in India) since that one

time on holiday, it’s always beenconnected with work. So I’m alwaysinteracting with Indian jewelleryand Indian jewellers... that’sinspiring for me.

I’m not going to make acollection of jewellery that looks likean Indian would have made it. But Ilove looking at the techniques andincorporating those – in some ways,it’s got incredible discipline. I lovethe Indian enamel work, cuts ofgems, and they’re all things that Ifeel, somewhere along the line, Ihave a bit of the spirit of in my work.

EEvveerryyoonnee ccoommppaarreess yyoouu ttoo BBoobbDDyyllaann……(Laughs) Now and again it’s eitherKeith Richards or Bob Dylan orsomeone, I don’t know why.

……HHaass DDyyllaann’’ss pphhiilloossoopphhyy rruubbbbeeddooffff oonn yyoouu??To be honest, I feel a bit like anomad. I could maybe say I feelmore like a Jack Kerouac than a BobDylan. I love the road, I loveAmerican roads – my biggestindulgence every year is I just drivein my 1969 Thunderbird aroundAmerica. I’ve been everywhere foryears with my best friend who’sAmerican. And we feel a bit likewe’re both Jack Kerouacs. It’s aromantic way of looking at acountry that’s not always romantic.You know, it’s that idea of the road,and Bob Dylan’s got a bit of thatabout him, I guess.

(On this page) Pieces fromthe collection Jitterbug



The Ministry of Commerceand Industry has taken ahost of initiatives at the

grassroots level to increase theefficiency of and empower theMSMEs of the Indian gems andjewellery industry. Apart fromintroducing trade-friendly policiesfor the sector, the Ministry is also inthe process of facilitating theindustry through creation ofinfrastructure in the form ofCommon Facility Centres (CFCs).

As a part of that exercise, theground-breaking ceremony of CFC,Bow Bazar, Kolkata, was recentlyheld in the presence of Rupa Dutta,Economic Adviser, MoC&I;Pramod Agrawal, Chairman,GJEPC; Prakash Pincha, RegionalChairman, Kolkata, GJEPC; SenthilNathan, Deputy Secretary, MoC&I;Sabyasachi Ray, Executive Director,GJEPC, and office-bearers of theSwarno Shilpo Bachao Committee(SSBC), among others. The CFC inBow Bazar will enhance theproductivity and quality of products,especially of the small gems andjewellery units set up there and insurrounding areas, by introducingcutting-edge technology injewellery manufacturing to fringekarigars in the Kolkata gems andjewellery cluster. It will benefitnearly 1 lakh handmade jewelleryworkers in and around Bow Bazar, amajor jewellery hub in Kolkata.

Setting up CFCs across thecountry to help the marginalworkers upgrade their productquality and output has been carriedout through the GJEPC with thehelp of Local Trade Associations(LTAs) of the respectivemanufacturing hubs. The Councilhas already set up CFCs at majordiamond clusters like Amreli,Palanpur, Visnagar and Junagadh inGujarat. These CFCs are alreadyoperational and have proved to bevery helpful for process re-engineering and empowering thetrade, especially the MSME units,become export-worthy. The workfor the jewellery CFC inCoimbatore is underway and isexpected to be completed by March2020.

The objective of setting up CFCsis to give small and mediumjewellery manufacturing units accessto a common pool of high-end andcapital-intensive state-of-the-artmachinery/equipment which isotherwise not affordable forindividual units.

Rupa Dutta, Economic Advisor,Ministry of Commerce andIndustry, said, ‘Exports of gem andjewellery accounts for $40 billionannually. It is one of the mostemployee-intensive sectors,employing more than 4 millionpeople across the country, frombackward sections of society. The

industry has a huge potential togrow and reach the next level. Ourtarget is to take exports to $75billion by 2025. CFC is one of theinitiatives in which our effort is toenhance the productivity andquality of products of our MSMEunits and make them contribute toexports. The concept of CFCs isideal as small units can now get easyaccess to capital-intensive cutting-edge technology to process theirproducts, which is normally beyondthe investment capacity of a small-scale individual jewellerymanufacturing unit-holder.’

Pramod Agrawal, Chairman,GJEPC said, ‘India is a leadingplayer in the global gems andjewellery market. To sustain itsleadership, GJEPC has beenfacilitating the industry, especiallythe MSMEs, who are the backboneof the industry, with modernmachines and tools at affordableprices at CFCs. Currently, theartisans are manufacturing jewelleryon a make-to-order basis for retailjewellers or wholesalemanufacturers. The use oftechnology like casting technology,finishing techniques such astumbling, magnetic polisher, etc.,are found in only some of the units.Bench work is also carried out usingold techniques. In tier two citieslike Coimbatore, Hyderabad, Jaipur,Rajkot and interior villages,

Work begins on the gems andjewellery Common FacilityCentre (CFC) in Kolkata

GJEPC will set up gems and jewellery CFCs, as projects of the Union Ministry of Commerce andIndustry, across the country, and as part of these efforts, the ground-breaking ceremony of the CFC atBow Bazar, Kolkata, was performed recently

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jewellers are still operating using theold technology, and this has affectedthe quality of the finished goodsproduced. Our effort is to give smalland medium jewellerymanufacturing unit-holders accessto a common platform where theycould benefit from the equipmentglobally used in the jewelleryindustry, thus improving theiroverall performance when it comesto manufacturing jewellery.’

The CFCs will empower thetrade and increase overallproductivity, yield and timelydelivery. It will make the trade self-sustainable by offering all types ofservices under one roof to meet therequirements of their clients. CFCswill be instrumental in generatingmore revenue for SMEs and will bea tool for the socio-economictransformation of these regions.

The jewellery CFC at Kolkata

will help the local handmadejewellery sector upgrade their valueaddition and compete with the bestby taking advantage of this CFC.SSBC, on whose premises the CFCis being set up, will eventually runthe centre to benefit the localworkers. Other than SSBC,representatives from HowrahJewellers Association, CalcuttaJewellers Association and Bangiyo

Swarno Shilpi Samity were alsopresent to witness this memonetousoccasion for the local trade. As partof this visit, the team from theUnion Commerce Ministry led byRupa Dutta also visited theimitation jewellery cluster in Singurto explore its potential in exportsfrom the region. The CFC inKolkata is expected to becommissioned in April 2020.

PERFORMANCE OF CFCs

CFC Sq ft area Beneficiaries Diamonds processed

Visnagar 2,398 50+ 25 lakh

Palanpur 2,600 166+ 23 lakh

Amreli 1,967 18+ 6 lakh

Junagadh 1,795 102+ 4 lakh

Coimbatore Likely to be

completed by

March 2020

(L-R) Samar Kumar Dey, Working President, SSBC; Senthil Nathan, Deputy Secretary, MoC&I, GOI; Pramod Kumar Agrawal, Chairman, GJEPC; Rupa Dutta, EA,MoC&I, GOI; Prakash Chandra Pincha, Regional Chairman, ER; Sabyasachi Ray, ED, GJEPC; Subir Kumar Sen, President, SSBC



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Artisan Awards 2020 concludeswith final jury round An impressive panel comprising jewellery designers, industryexperts and design consultants from India and abroad chose thenine winning designs in the final jury round of the ArtisanJewellery Awards 2020

An illustrious jury comprisingexperts from across thefashion, jewellery and

design industries come together latelast month for the final jury roundof the Artisan Jewellery Awards2020. This is the third edition ofthe prestigious jewellery awards,organized by the GJEPC at SohoHouse in Mumbai.

With the theme ArchitecturalGems, the Artisan Awards iscelebrating three key periods fromdifferent architectural eras – ArtDeco, Islamic Arabesque and Neo-Futurism.

A whopping 625 sketch entrieswere received from talenteddesigners all over the world acrossvarious design disciplines. Fromthese, 27 jewellery pieces wereshortlisted from across the threecategories – nine creations fromeach category – in the first juryround, held in November 2019.

These 27 crafted pieces werethen judged by the esteemed jury inthe final round on 28 January 2020.The judging criteria were physicaldesign, technicality, innovation andfunctionality.

Milan Chokshi, Convener –Promotions, Marketing andBusiness Development, GJEPC,remarked, ‘It has been a greatprocess, right from receiving entriesto selection and manufacturing. Thedesigns have been extremelypromising and have given us aninsight into the design capabilities of

THE ILLUSTRIOUS JURY

Aparna Badlani Co-Founder at Atosa

Ambika Anand Fashion consultant and TV anchor

Neha Dani Fine jewellery designer

Anna MartinBoard President and ExecutiveCommittee member, GIA

Nirupa BhattManaging Director, GIA India & MiddleEast

Smriti Bohra Creative Director, Jewels Emporium

Pics: Prashant Jadhav, TOI


EVENTS


the young generation. Thecountry’s young talent has displayeda knack for injecting the DNA oftheir own individuality into thepieces through their unique ideas.It’s been especially heartening to seethat the design and interpretation ofthe concepts has been non-linearand the creators have used a varietyof raw materials, metals and

gemstones.’The grand award ceremony is

scheduled for 12 February 2020 atHotel Four Seasons, Mumbai. Atthe ceremony, the winners will beawarded internships at prestigiousjewellery design houses along withcash prizes by internationallyacclaimed jewellery designerStephen Webster.

OCTOBER 2019625 design entriesreceived

NOVEMBER 2019,FIRST JURY ROUND27 pieces selected,nine from each of thethree categories

JANUARY 2020, FINAL JURY ROUND9 winning pieces,three from eachcategory

It has been remarkableto see the incredibleshortlisted designscome to life in theirphysical form. Throughthis platform, we havetapped talent that notonly has the vision tocreate designs thatpush the boundaries ofcreativity, but alsoimbibe factors thatgive jewellery a 360-degree touch to makeit accessible to theend user

– COLIN SHAHVice Chairman, GJEPC


EVENTS


WINNERHARJAS KAURA’Star Jewellery

FIRST RUNNER-UPARIF HOSSAINA’Star Jewellery

SECOND RUNNER-UPMONU JAIN GUPTAMonu Jain Gupta

FINALISTSJuhee BolakheVummidi Bangaru Jewellers

Saurabh JhaveriTiara Silver Pvt. Ltd

Budoor AlbudoorLa Marquise Diamonds, Dubai

Shruti SharmaKP Sanghvi

Ashishkumar DoshiOopal Diamonds

Hema Harika ChandanaImaginarium (India) Pvt. Ltd

ART DECO



WINNERNAMRATA BHARDWAJA’Star Jewellery

FIRST RUNNER-UPKOSHA SHAHAnand Shah

SECOND RUNNER-UPJINAL PATELReliance Jewels

NEO-FUTURISM

FINALISTSJuhee BolakheVummidi Bangaru Jewellers

Anant JainMukti Gold

Saayli DhongadeDiagold Creation Pvt. Ltd

Ashishkumar DoshiOopal Diamonds

Mitali KikaniH. Ajoomal Fine Jewellery

Archangel CaszoReliance Jewels

EVENTS


EVENTS


WINNERKAUSHIK MONDALTanvirkumar & Company

FIRST RUNNER-UPKETKI AMBARDEKARJewel Goldi

SECOND RUNNER-UPSONALI SHETHSphere

ISLAMIC ARABESQUE

FINALISTSPratiksha GandleReliance Jewels

Saloni KaushikTitan Company Limited

Tanaya AgarwalImaginarium India Pvt Ltd

Jaydeb DoluiTribhuvandas Bhimji Zaveri

Bhagyashree VaidyaTanvirkumar & Company

Rakesh BakulyKiran Gems Pvt. Ltd.



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BRIGHTER DAYS AHEADAn overview of the US

jewellery market

Despite a disappointing 2019, reports and industryanalyses say the US market might pick up in 2020,with self-purchasers and casual designs competing

with bridal jewellery

by CYNTHIA UNNINAYAR

$100 MILLIONSUPERSELLERS TOP 10

Signet Jewelers ($5.64 billion in sales)

Walmart ($2.76B)

Tiffany & Co. ($1.62B)

Costco ($1.59B)

Richemont group($1.55B)

Macy’s ($1.49B)

Amazon.com ($1.34B, online)

Helberg Diamonds(941M)

JC Penney ($816M)

Jewelry Television($571M, television,online)

As we enter a new decade,the gems and jewelleryindustry in the United

States – the world’s largest marketfor luxury jewellery – faces bothnew opportunities and newchallenges. According to Polygon,sales in jewellery stores in theUnited States amounted toUS$39.7 billion in 2018, a year-over-year increase of $7.3 billion.Yet, 2019 showed slower growth aswe head into the new decade.

The US jewellery and watchmarket is diverse, with more that21,000 retailers and e-commerce

companies in a highly competitivemarket. Stores range from jewellerymega-sellers generating more than$100 million in revenue per year tosmall independent family-runbusinesses. The top ten on the listof the $100 Million Supersellers areSignet Jewelers ($5.64 billion insales), Walmart ($2.76B), Tiffany &Co. ($1.62B), Costco ($1.59B),Richemont group ($1.55B), Macy’s($1.49B), Amazon.com ($1.34B,online), Helberg Diamonds (941M),JC Penney ($816M) and JewelryTelevision ($571M, television,online), according to National

Simple gem and/or diamond necklaces are adefinite design direction for 2020. Thisdelicate emerald and gold piece is by Sorellina


DEMAND MAPPING


independent jewellery retailers closed their doors,up from 2017, according to Jewelers Board ofTrade. Figures from the first half of 2019indicated 464 closures already, some due toretirement/lack of succession or other reasons.

Because the jewellery industry is sofragmented, we take a look at the various sectorsof the industry and the major factors influencingthem. To get a more up-front-and-personalviewpoint, we also interviewed four independentretailers representing different segments of theindustry to get their take on the state of theirmarket.

DIAMONDS

Diamond jewellery reigns supreme, by far, in theglobal jewellery sector, with a value of $80billion, and the US is no different, accounting fornearly half the demand. These gems are thebackbone of nearly all jewellery sold in the US,from bridal to fashion, from centre stones toaccents.

Yet, the industry is facing a number ofchallenges. According to Bain & Company, thesector is feeling softer demand for polished andrough diamonds, driven in part by geopoliticaland macroeconomic tension that loweredconsumer confidence as well as increased e-commerce that decreased the need forinventory on hand. The softer demand forpolished diamonds led to a 3 per cent drop inprices and is expected to lead to 10 to 15 per centlower revenues for midstream players. The resultsare the lowest profit margins in years, combinedwith high inventory, which has been buildingsince 2017. Among major diamond players, bothAlrosa and De Beers finished 2019 with a salesdecline of 26 per cent.

But all is not gloom and doom. Bain notes thatthe market has historically returned to pre-crisislevels within a couple of years. The midstreamshould clear its backlog in early 2020, paving theway for a better year, even if not a full recovery,with a good chance to rebalance by 2021. And,while non-branded and mid-range jewellery facean uncertain mid-term future, the branded high-end diamond jewellery segment, (about 15 percent of the total) is expected to grow by highsingle digits in 2020, in line with the growth of

Jeweler’s 2019 State of the Majorsreport. The types of jewellery soldrange from unbranded or store-branded to a variety of well-knownnames. The report also lists the topfifty specialty jewellers, ranked bystore count, but not sales volume.The top ten are Signet Jewelers,The Kroger Co, HelzbergDiamonds, Swatch Group,Swarovski AG, Kering SA, Pandora,Diamonds International, Tiffany &Co., and Richemont group.

Examination of the $100 MillionSupersellers shows that the largerretailers have fared better over thelast few years, with total revenueamong the companies increasing.With large marketing budgets forboth traditional advertising andsocial media, they understand howto attract the right customers.

But there is another side to thestory. A number of jewelleryretailers have shuttered lessprofitable stores or closed entirely.Even the top seller, Signet Jewelers(3,300 stores primarily under thebrands Kay, Zales, Jared andPiercing Pagoda), closed 150 storeslast year, following the closure of232 stores the previous year inNorth America. And, in 2018, 852

JEWELLERY STORE CLOSURES IN THE US

2018

852 independentjewellery retailers

2019 first half

464 Source: Jewelers

Board of Trade

(Above and below)Stackable rings are apopular trend. In this case,they come together inthese gemstone anddiamond rings by Giovanni Ferraris


DEMAND MAPPING


personal luxury goods.Other factors affecting the

diamond sector – and indeed theentire jewellery industry – arechanging consumer preferences,most notably of millennials and GenZ consumers, who preferexperiential purchases andelectronics. The diamond sector isfinding it challenging to makediamonds top-of-mind for theseyoung consumers. But, toencourage the emotional attachmentto diamonds for these and otherpotential customers, miners andsome industry players are increasingmarketing budgets. In 2019, morethan $200 million was invested,including $70 to $80 million ofgeneric marketing by the DiamondProducers Association (DPA), withcampaigns such as ‘Real is Rare,Real Is A Diamond’, which includesa short video, ‘The Diamond’sJourney.’ DPA’s latest campaignfocuses on women self-purchaserswith its ‘For Me, From Me’marketing strategy. According toDe Beers, the number of womenbuying diamond jewellery forthemselves has risen steadily since2005, and now accounts for morethan one-third of diamondpurchases in the US.

Also influencing diamond sales isthe heightened awareness and focusby consumers on transparency andsustainability along the supply chain.This provides a good opportunityfor the industry to practise corporatesocial responsibility (CSR) andensure minimal negative impact onthe environment. In terms oftraceability, blockchain technologyis being adopted by some miners tofollow a gem’s path from mine-to-market. De Beers launched itsdiamond provenance program‘Diamonds from DTC’ in 2019,

while Alrosa launched a similarprovenance program. Tiffany & Cotraces its individually registereddiamonds (0.18 carat and larger)using a unique ‘T&Co’ serialnumber laser-etched into the stone,that provides geographical sourcinginformation. The diamond giantalso has stated that in 2020, it willprovide details on each diamond’scraftsmanship journey – location ofcutting and polishing workshops.Initiatives such as Diamonds DoGood,a non-profit

organization supported by theinternational diamond industry, hasa mission to support programmesthat develop and empower people indiamond communities and to sharestories of positive impact.

Despite the diamond industry’sslowdown and other challenges,Bain estimates that the long-termoutlook is positive. If middle-classgrowth is strong, combined witheffective marketing efforts, demandfor diamond jewellery is expected to

grow at an average annual rate of upto 3 per cent, with the USA, Chinaand India leading the way. Of note,however, are the really bright spotsin the diamond sector – coloureddiamonds. These beautiful gemshave garnered much attention,especially at auctions, where priceshave soared.

LAB-GROWN DIAMONDS

Although still quite small –estimated at less than 2 per cent ofthe diamond market – the lab-grown diamond (LGD) sector grew15 per cent to 20 per cent in 2019.Most LGDs are purchased in theUnited States, but are produced inChina and India, as well as the US,which consumes 80 per cent ofproduction. The prices of LGDshave come down and have stabilized– for a polished 1 ct G SI – to about45-55 per cent of the price of an

earth-mined diamond at retail,and 15-20 per cent atwholesale.

Over the last few years,increasing numbers ofmanufacturers have jumped ontothe LGD bandwagon, not the leastof which is De Beers, when it madeits surprising – or maybe not sosurprising – U-turn with thecreation of its lab-grown diamondsub-brand, Lightbox Diamonds. Inaddition to white LGDs, LightboxDiamonds has been promotingshades of pink and blue LGDs whilemerchandizing engagement ringswith fashion designs.

Another heavy hitter to jumpaboard is Atelier Swarovski, whichhas partnered with luxury-rockdesigner Stephen Webster and BigScreen celebrities, includingPenelope Cruz, to create lines ofLGD jewellery at affordable prices.Atelier Swarovski offers a blend of

The Paraiba tourmaline accented bydiamonds in gold by Sutra


DEMAND MAPPING


change in the FTC guidelines wasthe removal of the word ‘natural’from the official definition of adiamond, while insisting that theterms ‘real,’ ‘genuine,’ or ‘natural’cannot be applied to a lab-growndiamond.

Following the revisions to theFTC’s Jewelry Guide in 2018,regulators sent warning letters tojewelers about deceptive marketingpractices related to the sale ofLGDs, thus forcing the industry atlarge to clarify how they market andtalk about LGDs.

COLOURED GEMSTONES

Unlike the diamond sector, thecoloured gemstone sector iscomposed primarily (about 80 percent) of small-scale and artisanalminers, although internationalindustrial companies have entered

this space over the decade. Amongthem is Gemfields, with extensiveemerald mining in Zambia and rubymines in Mozambique, along withvarious operations in Madagascar,Ethiopia and other countries.Another major player, Fura Gems,extracts emeralds in Colombia,rubies in Mozambique, andsapphires in Australia, among others.

While diamonds enjoy the lion’sshare of jewellery purchases,coloured gemstones continue toincrease in popularity, with a widerange of colours and price points tosuit any budget. Long considered

coloured Swarovski-createddiamonds as well as createdcoloured gemstones. Webster andCruz both tout the ‘greener’ aspectsof LGDs as among the reasons forincluding them in their jewellerycollections, although the earth-mined diamond sector wasted notime challenging the ‘eco’ value ofLGDs. A controversy to follow…

As LGDs shake up the market,there are questions about disclosure.To protect consumers in the US,the Federal Trade Commission hasissued a set of revised guidelines,which state that man-madediamonds must be clearly labelled assuch, with the recommended termsof laboratory-grown, laboratory-created or [manufacturer name]-created. The term ‘synthetic’ wasremoved from the recommendedlist, although it may still be used.The biggest and most controversial

In 2019, more than $200 million

was invested in marketing,

including $70 to $80 million of

generic marketing by the Diamond

Producers Association (DPA)

Diamond jewellery reigns supremein the global jewellery sector, with avalue of $80 billion, and the US isno different, accounting for nearlyhalf the demand

Over one-tthird ofdiamond purchasesin the US are bywomen bbuyingdiamond jjewelleryfor tthemselves

Coloured gemstones offermyriad possibilities for

designers, such as this pairof gemstone earrings in

gold accented by diamondsby Caratell


DEMAND MAPPING


the Big Three, rubies, emeralds andsapphires have been joined by aplethora of gems that are rarer thandiamonds and sometimes moreexpensive – think red beryl fromUtah, for example, a uniquelyAmerican gemstone, among others.Coloured gems also tend to fall intotwo tiers, the high-end that suppliesthe premium client base and thelow-end that seems to be the bread-and-butter for most designers.According to Future MarketInsights, the coloured gem sectorshould see growth of more than 4per cent over the next year.

Some of the challenges facing thecoloured gem sector are the same asthose facing the diamond industry,namely CSR, sustainability, and atransparent supply chain. Industrialplayers Gemfields and Fura, amongothers, have expended money andeffort to ensure that their gems aresourced responsibly, with supportfor local communities. To taketransparency to the next level, theminer partnered with Gübelin,whose Provenance Proof blockchaintechnology not only shows a gem’sorigin, but also creates an encryptedrecord of its journey from mine-to-market.

GOLD

In 2019, gold had its bestperformance since 2010, rising 18.4per cent to around US$1,560 anounce as of the writing of thisarticle. And, in light of financialuncertainty, price volatility, lowerinterest rates and weakening globalgrowth, the World Gold Councilindicates that the outlook for 2020remains bullish.

Of the 1,90,000 tons of goldabove ground in the US, nearly 48per cent is in jewellery. Since highprices impact this market, we are

Some of thechallenges facing thecoloured gem sectorare the same as thosefacing the diamondindustry, namely CSR,sustainability, and atransparent supplychain

seeing greater shifts of gold jewellerymanufacturers into vermeil designs usingcoloured gems and diamonds. Others offerdesigner silver (whose price rose more than 15per cent in 2019) with gold accents.

In terms of CSR, gold faces similar issues asthe diamond and coloured gem sectors. Artisanalmining generally uses mercury, and industrialminers are sometimes criticized for poor workingconditions. Organizations such as No-Dirty-Gold are working to ensure that gold miningrespects human rights and the environment. Tothis end, American jeweller Toby Pomeroycreated ‘The Mercury Free Mining Challenge,’which will give US$1 million to anyoneproviding artisanal gold miners with a reliable,cost-effective alternative to using mercury. ‘Wecannot just stop mining gold,’ he says. ‘What weneed is responsible mining.’ He adds that a pilot

Themed designs to suit thetastes of some consumersare seen in these earringsby Brent Neale, crafted inmalachite, blue topaz,peridot, citrine, tourmaline,amethyst and diamonds


DEMAND MAPPING


programme is underway in Ghana,and the hope is that encouragingresults will be announced soon.

OTHER FACTORS

Internet sales of jewellery continueto climb. In 2020, online sales areexpected to rise to 25 per cent of alljewellery sales, up from 23 per centin 2019 and 21 per cent in 2018.Online sales are not limited tolower-priced pieces, however, ascan be seen by fine retailers such asTiffany & Co, which just partneredwith Net-A-Porter to offer piecesfrom the Tiffany T Collection.

As the usage of social mediaincreases, especially Instagram, theway consumers interact withjewellery brands is evolving.Reaching a wider audience at lesscost than traditional advertising,jewellers can adjust their collectionsaccording to consumer opinions ormarket them through influencers,which is especially important forselling to self-purchasers.

In terms of design directions, ifwe can translate jewels from therecent fashion catwalks to MainStreet sidewalks, 2020 should seemore designer hoops, asymmetricalearrings, chain links, Y-necklacesand art-inspired pieces in thedesigner sector. For the bread-and-butter segment, small diamond orcoloured gemstone-studdedpendants and earrings, stacking ringsand bracelets, along with the layeredlook, should prevail. In the bridalworld, halo settings seem to be lesspopular while traditional solitairesand streamlined designs are gainingmarket share. The landscape is alsoshifting towards customization asconsumers look for jewels not onlyas accessories, but as a part of theiridentity.

So, as the new decade opens, and

Of the

190,000tons of gold

above ground in

the US, nearly 48

per cent is in

jewellery

which means it’s necessary toadvertise more and find creativeways to reach the customer.’ Shesays that ‘white diamonds are thepreferred choice for bridal,’ andthere is little demand for coloureddiamond or coloured gemstonecentres in engagement rings. Susanstates that there are ‘no requests forlab-grown diamonds,’ which shedoesn’t carry. In terms of colour,quality, and cut, her answer is ‘I andSI and up, generally ideal cut.’ Sheonly uses ideal cut for melee.‘People also want large stones, so itis important to source from differentvendors to get the best pricing forhigh quality diamonds,’ she adds.

Favoured categories or pricepoints? For engagement rings, thebestsellers are in the low and high-end segments. ‘The sweet spots are$1,000 to $2,500 at the lower end,while for premium customers,prices range from $25,000 to$50,000. The mid-range is difficult.’Her customer base is central tosouthern Texas as well as customersfrom Mexico who are looking for

the jewellery industry makes stridesin overcoming its challenges, we canlook forward to a positive 2020.

UP FRONT WITH RETAILERS

The first part of this article is ageneral overview of the US market,but to get closer to the source, weinterviewed retailers from differentsections of the country to get aclearer idea of what is selling whereand at what price points.

‘NECESSARY TO ADVERTISE

MORE AND FIND CREATIVE

WAYS TO REACH THE

CUSTOMER’

An author, certified appraiser andtalented award-winning designer inher own right, Susan Eisen is theowner of Susan Eisen Jewelry in ElPaso and Austin, Texas. Her storescarry a broad range of branded,non-branded and store-brandedjewellery as well as watches.

Her outlook for diamondjewellery in general and bridal inparticular? ‘Optimistic, even thoughthe market is somewhat difficult,

Earrings in 18Kgold anddiamonds byMagerit


DEMAND MAPPING


higher quality. The types of jewellery that sell

best? ‘Diamond pieces are thebestsellers, in all categories, but I dosell colour, mostly the Big Three aswell as a variety of other colouredgemstones,’ she explains. ‘Asidefrom bridal, most sales are occasion-driven – birthdays, anniversaries,and other special events. Customwork is a large part of my business,both original design and inheritedpieces that clients bring to beredesigned.’ Many of her clientswant casual pieces that can be wornwith any outfit, although ‘self-purchasers are not a large part of mybusiness.’ She also enjoys goodonline sales (susaneisen.com).

‘IT IS IMPORTANT TO BE

UNIQUE, TO CARRY ITEMS NO

ONE ELSE DOES’

Drawing on her expertise in pearlsand experience with jewellery whileliving overseas, Susan Fotos createdHigashi Pearls and Fine Jewelry,offering a broad selection of jewelsand eyewear, located nearHarrisburg, Pennsylvania. Sherecently sold the business, but evenin retirement, she is active inhelping companies succeed in theUS market. ‘There is so much thatnew companies don’t realize abouthow to make jewels wearable,’ shesays, ‘for example, that it isimportant to have the right type ofbacking for earrings, clasps that areeasy to open, etc.’ So, after decadesof advising her vendors, she decidedto use her retirement years helpingnewcomers to the market. Sheshares her insight into the jewellerymarket below.

Her outlook for diamondjewellery? ‘The market has been ok,but somewhat difficult, requiring usto think outside the box,’ she says,

‘It is important to be unique, to carry items noone else does, and that is what we are known for.’Part of being unique is travelling the world,looking for things the other retailers in towndon’t have, from Paris to Bangkok, from HongKong to Sao Paulo, seeking out interestingdesigners. ‘It’s more work, but it pays off,’ shemuses. As for diamonds, ‘they continue to be astrong category since they go with everything,and small pieces of diamond jewellery are easy foreveryone to wear. Diamond-set rings and earringsare easy to sell and range from simple to dressy.These are big self-purchasing items, and self-purchasers are a big part of my business.’

What about LGDs? ‘My customers have notasked for lab-grown. I am a bit uncertain aboutthem, although I am open to the idea.’

Favoured categories or price points? ‘For self-purchasers, $2,500 and under are good sellers.Fashion pendants or small stackable diamondrings at around $900 sell really well. Millennialslove them.’ The sweet spot, in general, isbetween $1,500 and $2,500. Above $3,500, it is adifferent customer, and fashion pieces above$10,000, she notes, are a hard sell in her area. In

Online jewellerysales in the US as apercentage of alljewellery sales

2018: 21%

2019: 23%

2020 (expected): 25%

Designer Stephen Webster recentlyjoined the LGD mini-wave with hiscollaboration with Atelier Swarovski.Shown here is a gold and rose quartzbracelet featuring Swarovski-createddiamonds (Photo: Atelier Swarovski)


DEMAND MAPPING


terms of designs, she feels that‘cocktail rings are passé.’

What about coloured gemstones?Most of her clients buy diamondsfor themselves, ‘but when it comesto coloured gem pieces, they areusually gifts.’ While she sellssapphires and rubies, most requestsare for other gems, among themaquamarine, indicolite and othertourmalines. ‘My clients consideremeralds to be old people’s jewels,’she smiles. Because of the high priceof gold, she notes that a number offormerly 18K gold-only brands arenow doing vermeil. ‘They use thesame beautiful coloured gems asbefore, but in gold-plated silver,which brings the price down asmuch as 70 to 90 per cent.’Especially for her self-purchasers, acoloured gem ring at $700 is a goodseller, but these same customers willthink twice about spending $5,000for the same stone set in 18K gold.

And bridal? ‘For engagementrings, $6,000 seems to be the sweetspot for bridal, although we offer arange.’ In terms of colour, whitediamonds are preferred, but Susangets requests for black diamonds aswell as a small demand for bluesapphires. ‘The rules on bridal seemto have disappeared.’

Other categories? ‘Most peoplewant casual jewellery, somethingthey can wear for nearly alloccasions. This is the best categoryto be in and what self-purchasersmostly want.’ These include smallpendants, stackable rings andbangles, simple earrings, includinghoops. While millennials love thiscategory, ageing boomers also wantcasual, easy-to-wear pieces. As aboomer herself, she can relate to thisdemographic. ‘For example,boomers might want a necklace thatis 18–20 inches for increased

necklines vs 16 inches, or they might want a claspon a casual necklace that is easier to open, or theymight want a ring that is expandable. ‘It isimportant that jewellers know their customersand their needs ([email protected]).’

‘WE HOLD JEWELLERY PARTIES FOR OUR

SELF-PURCHASERS’

Christensen & Rafferty Fine Jewelry is a raresuccess story – two long-time friends operating asuccessful partnership in a fine jewelryestablishment in San Mateo, California. Wecaught up with one of the partners, ColleenRafferty, to get her take on retailing jewellery inNorthern California.

Her outlook for the diamond jewellery marketin 2020? Optimistic. ‘While we certainly sell a lotof diamond pieces, our clientele tends to gravitatemore towards coloured gemstones, but not in atraditional sense. Many of our vendors offer

For self-purchasers,$2500 and under aregood sellers. Fashionpendants or smallstackable diamondrings at around $900sell really well.Millennials love them.The sweet spot, ingeneral, is between$1500 and $2500.Above $3500, it is adifferent customer,and fashion piecesabove $10,000 are ahard sell... In terms ofdesigns, cocktail ringsare passé

– SUSAN FOTOSHigashi Pearls and Fine

Jewelry

Expandablerings areanotherinnovation tomeet theneeds oftoday’sconsumers.Shown hereis a selectionby Picchiotti


DEMAND MAPPING


original, one-offs in interestingcolour combinations,’ she explains,adding that ‘tourmaline, spessartitegarnet, aquamarine and spinel arepopular, while pink and bluesapphires are good sellers in three-stone rings. We also sell full circle,simple pendants in diamonds orgemstones, layered jewels, and a lotof casual pieces.’

Most popular price points andcategories? ‘We have a cross-sectionof clients. The self-purchasers willeasily buy the $350 to $1,100 range,with an average of $500. Amonggood sellers are designer sterlingsilver designs set with whitesapphires.’ For 18K gold enamel anddiamond bracelets, prices start ataround $3,200. The $1,800to $3,500 price rangeattracts a slightlyolder self-purchaser.‘During holidayperiods, largerdiamondstuds, boughtgenerally asgifts, rangefrom $5,000to $10,000,whilediamond-sethoops sell for$13,000 to$30,000. Ourclientele includes a fairnumber of affluentexecutive women who will drop$49,000 on larger colouredgemstone and diamonds studs, forexample a “Me to Me with Love”purchase,’ she smiles.

How is the bridal segment? ‘Weare selling more non-traditionalengagement rings to a youngerclientele that is being recommendedto us by their parents and

grandparents.’ The sweet spot forengagement rings seems to bearound $10,000, although somerings sell for $30,000. In terms ofcolour, Colleen says whitediamonds are the norm, althoughthey have been asked for grey andeven some coloured diamonds suchas cognac, and sometimes unusualshapes. There is not, however,much demand for colouredgemstone centres in bridal. ‘Mostimportant for our clients is quality.If it is not up to par, the sale won’thappen,’ she adds. Colleen and herpartner Diane Christensen arealways searching for well-made

products that can work for theirclients. ‘We look for unusual waysto help our customers as well,thinking outside the jewellery box,so to speak. One way is to holdjewellery parties for our self-purchasers. A group of girlfriendswill get together and all contribute

to a piece that the birthday girlwants.’ She adds that for this type ofoccasion, sales are in the $500 to$1,200 range. ‘For our gentlemenclients, we host a men’s shoppingnight, which includes some of thebest martinis in town and where weencourage the men to plan ahead forupcoming anniversaries, birthdaysor holidays. We remind them thatwhile the jewelry is virtually free,the martinis start at about $5,000!(crfinejewelry.com)’

‘THE TREND IS DEFINITELY

CASUAL JEWELLERY THAT

WORKS WITH A CASUAL

LIFESTYLE’

To say that Tiny Jewel Box, in theheart of Washington DC, has had a

rich history would be a grossunderstatement. The iconic

multi-generational storebegan in 1930 and soon

attracted an array ofclients that includedpresidents fromFranklin Rooseveltto Barack Obama, abevy of first ladies,ambassadors,members of

Congress, actors andmany foreign

dignitaries. The store isnow under the leadership

of the third generation, andMatthew Rosenheim shares his

insight into the fine jewelleryworld.

His outlook for diamondjewellery sales in 2020? ‘We arebullish, based on a solid 2019, asolid Christmas, and a lot of activityin January,’ says Matthew, addingthat the market has ‘goodmomentum, and fears of a recessionhave subsided. Bridal is a strongcategory, and although people are

The self-purchaserswill easily buy the

$350 to $1,100range, with an

average of $500

With the high price of gold, jewellers areturning to silver, which is sometimes platedwith black ruthenium and yellow gold as in thisnecklace by Jorge Revilla


DEMAND MAPPING


marrying at later ages, there is stillplenty of business.’ He adds thatwhile ‘fashion jewellery was a bitsoft in 2019, it had an excellentcomeback during the holidays andhas started the year strong.’ Inaddition to fine jewellery, TinyJewel Box carries a selection ofhigh-end Swiss watches. ‘Ourwatch business is extremely strongand we are seeing significantdemand for Rolex and PatekPhilippe.’

And bridal? ‘We cater to higher-end bridal, specializing in finely cutstones and platinum.’ Most demandis for diamonds up to 2 caratsalthough they see a lot of sales in 2to 5 carats. Prices range from$20,000 to $1,00,000, with most inthe $20,000 to $50,000 segment,although Matthew indicates thatthey do carry some engagementrings in the $5,000 and up category.White diamonds are the mostpopular, with little demand forcoloured gemstone centres. ‘As forshape, rounds are the most popular,although ovals and cushions are alsostrong sellers, with an occasionalemerald shape. Classic solitaires instreamlined settings are mostrequested, while the halo setting isoff its peak.’

Price-point differentiation? Therange of $5,000 to $15,000 is thesweet spot for this retailer. ‘We alsohave good sales in the $15,000 to$50,000 segment,’ adds Matthew.‘While diamonds rule the day, wehave significant sales in colouredgemstone jewellery.’ These includethe Big Three as well as other typesof gems. ‘Blue has been the betterseller, whether in sapphires or otherstones. It is also a fashion colour, sowe accessorize with blue gemstonejewels.’ When asked about requestsfor LGDs, he is quick to answer that

no, they don’t carry them. ‘They don’t align withour business strategy, although we are payingattention to that sector and how it evolves.’

Types of clientele? ‘While many sales areoccasion-driven and the jewels given as gifts, wehave lots of self-purchasers. These are mainlyprofessional women for whom purchasing a pieceof jewellery is quite normal. They wantsomething that is relevant to their lifestyle, and isunique and different. The trend is definitelycasual jewellery that works with a casual lifestyle(tinyjewelbox.com).’

While these four retailers are from differentparts of the country, with different types ofcustomers, a few things stand out. The diamondcategory is by far the most important for both

ends of the price spectrum. While the lower andthe high-end segments are doing well, the mid-range is suffering. For three of the four, self-purchasers are a major component of their store’sclientele. And the trend towards casual purchasesis strong at all four stores, as their clients wantjewels they can wear for nearly any occasion.

Most demand is fordiamonds up to 2carats although wesee a lot of sales in 2to 5 carats. Pricesrange from $20,000 to$100,000, with most inthe $20,000 to $50,000segment

– MATTHEWROSENHEIM

Tiny Jewel Box

Diamond jewellery is a staple fornearly all jewellery wardrobes.

Shown here is a diamond pendantfeaturing baguette and round

diamonds in gold by Emily Wheeler

Hoops set with a rainbow of gems by Harwell Godfrey



IN F

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GJEPC helpdesk achievesover 1 lakh outbound callsin first year

Besides the impressive number of outbound calls, the GJEPC'shelpdesk processed 29,190 inbound calls and successfully revertedto 14,246 missed calls

Ayear ago, the GJEPC set up a call centre to reachout to members in every corner of the country,resolve their doubts and disseminate information

about the Council’s initiatives and activities. The toll-freenumber of the GJEPC helpdesk is 1800-103-4353.

Member details were confirmed and updated in amassive exercise, and inbound call facilities and a chatmodule were added to create a fully realized CRMmodule.

A year on, the initiative has lived up to its potential.The CRM centre made 1,05,654 calls in one year, raisingawareness of the Council and its activities all across thecountry. Additionally, it has processed 29,190 inboundcalls over the course of the year, answering members’queries and resolving doubts.

A missed call service was also launched on the number7208048100. Under this service, members giving a missedcall will get a return SMS from GJEPC, and this will befollowed up with a call from one of the team members,who help the member with their issue. Under this service,the CRM centre successfully returned 14,246 missed callsover the course of the year.

3,214 6,343 5,038 14,595 29,190

1,240 2,527 3,356 7,123 14246

26,388 13,463 12,976 52,827 1,05,654

The toll-freenumber of theGJEPC helpdeskis 1800-103-4353. A missedcall service wasalso launched onthe number7208048100. Thecaller gets areturn SMS fromGJEPC, followedby a call

Activity Inbound Missed OutboundMonth Calls Calls Calls

attended connected done

Jan 19 974 414 9460

Feb 19 1601 546 9425

Mar 19 639 280 7503

Total Q1 3,214 1,240 26,388

Apr 19 1,160 564 2,127

May 19 2,566 440 1,574

Jun 19 2,617 1,523 9,762

Total Q2 6,343 2,527 13,463

Jul 19 3,231 2,158 9,508

Aug 19 1,440 1,020 3,468

Sep 19 367 178 9050

Total Q3 5,038 3,356 12,976

Oct 19 295 275 8130

Nov 19 1241 502 10507

Dec 19 1062 464 8019

Total Q4 2,598 1,241 26,656

Activity Q1 Q2 Q3 Q4 Total



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IIGJ MUMBAI Students visit Italy toattend Vicenzaoro 2020

Global immersion is anintegral part of thecurriculum at the Indian

Institute of Gems and Jewellery(IIGJ), Mumbai. The instituteensures that all the students havehad an opportunity to look at theworld and see things from adifferent perspective.

With the aim of imparting high-quality training to the students tobecome future leaders of thejewellery industry, every year, IIGJMumbai organizes an internationaltour for the students of their degreeand postgraduate programmes,during which they attend popularjewellery shows in the world.

This year, the students attendedVicenzaoro 2020 in Italy.

A group of 34 students, alongwith two faculty members, visitedItaly from 15 to 22 January 2020 toattend the jewellery exhibition.

Vicenzaoro 2020 gave thestudents meaningful exposure andadded experiential learning inunderstanding different designtrends, elements, stones, visualmerchandising, store branding,innovative jewellery-makingtechniques and many more.

Students got an opportunity tovisit the Murano Jewellery glassfactory at Venice, Italy. Thestudents were fascinated to see the

artwork and technique of makingglass jewellery and glass sculpture.They also examined in detail thespectacular finished pieces, and itgave them an inspiration to createtheir own work of glass jewellery.

The students also explored thebeautiful cities of Italy, like Rome,Florence, Venice and Milan.

IIGJ strongly believes that thelearning from the show and thefactory visit will help students tostep forward into the jewelleryindustry confidently.

The international educationaltour to Italy was an enthrallingexperience for the young minds,who are always eager to learn moreabout the intriguing world ofjewellery.

A group of 34 students and two faculty members from the IndianInstitute of Gems and Jewellery (IIGJ), Mumbai, visited Italy lastmonth to attend the Vicenzaoro jewellery exhibition





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Good US season offers hopefor diamonds in 2020, butimpacted by China outbreakFollowing a dull, distressing 2019, the Bonas Market Report ondiamonds says there’s a glimmer of hope after a brief upswing indemand from the US and China seasons, but says the overallindustry sentiment remains cautious despite this

2020 began with cautious optimismfollowing what is thought to havebeen a reasonable season in the US,and some decent sales into Chinaprior to Chinese New Year… Formany in the mid-stream, the prioritythis year is for some stability, withdecent profitability to be allowed toreturn. Another year like last willlikely force significant, permanentchange in the complexion of theindustry

– Bonas Market Report

After grim reports of acutemidstream distress andshrinking demand for most

of the past year, the Bonas MarketReport for January 2020, for thefirst time in months, has someoptimism to offer. Bonas, a globaldiamond brokerage and consultingfirm, compiles a report each monthon the latest rough and polisheddiamond trends from each of theindustry’s major centres in theworld. This includes an overview ofthe global synthetic diamondindustry, on behalf of the GJEPC,plus reports on various other topicslike the current state of the Swisswatch industry and chroniclingdiamond manufacturing activity inSouthern Africa.

2020 BEGINS WITH OPTIMISM

DUE TO US AND CHINA SALES

‘2020 began with cautious optimismfollowing what is thought to havebeen a reasonable season in the US,and some decent sales into Chinaprior to Chinese New Year,’ saysthe report in its general overview.‘Factories in most manufacturingcentres looked to normalizeproduction levels, following the

sharp reductions during the secondhalf of 2019. As a result, rough saleshave been relatively strong, and forthe first time in many monthspremiums have been offered onboxes.’

However, it struck a note ofcaution for the industry (see excerpton right).

ROUGH

On Mumbai, Surat and other Indiancentres, the report said, ‘Theopening sight of 2020 followed aperiod of subdued manufacturing.The large miners were able to selldecent volumes of rough as thepipeline needed to restock.Manufacturers are keeping a sharpeye on profitability and are notwilling to take risks after havingbeen burnt recently. Many DeBeersboxes performed well on thesecondary market. Boxes with morecomplicated models, that needmulti-sawing and take longer tomanufacture, saw higher premiums,

Shut

tersto

ck


INTELLIGENCE


eg, MB Clivage 3grs+7 sold at 10per cent more than in Decemberand Preparers Low 3-6grs sold at 25per cent, 120 days. These were alsoin limited supply. Following newsof the coronavirus, the positivitythat was coming back to the markethas evaporated. It is felt that thosewho bought rough at higher pricesmay regret their decision.Manufacturers of better quality,sawn material continue to migrateto makeable product. Overall,manufacturing levels are higher thanthe Diwali sight, but still not at thesame levels as this time last year.’

Tel Aviv, Botswana, Dubai,South Africa and Namibia all sawincreased demand and healthierbuyer appetites at the start of theyear. On Antwerp, the report saysthat while the market maintained itspositive momentum over theChristmas holidays, ‘demand forrough has mostly been driven byfactory replenishment rather than by

genuine polished demand. This is acause for concern for most of theAntwerp players. If activity in thepipeline does not pick up over theweeks to come, the current positivesentiment might evaporate quickly.’

POLISHED

‘Trading picked up marginally inthe Indian market in the run-up tothe Chinese New Year, as well ason the back of late US-drivendemand,’ says the report. ‘It helpedthat other centres were closed forthe Christmas and New Year’sholiday.’

The mood in the markets in TelAviv and New York was similarlypositive, but the Chinesecoronavirus outbreak is causingconcern in Tel Aviv. Hong Kong issimilarly affected by the epidemic.Brick-and-mortar sales in the USare seeing falling sales despite ahealthy economy and a good season.

Following news of the coronavirus,the positivity that was coming backto the (Indian rough) market hasevaporated… Overall,manufacturing levels are higherthan the Diwali sight, but still not atthe same levels as this time lastyear


TOI


INTELLIGENCE


MARKETS

IInnddiiaaThe Bonas report was released justbefore the Budget, and it had this tosay about the Indian market: ‘Likelast month, all high-value itemscontinue to struggle in India, likereal estate, cars and even jewellery.Major retailers in India haveperformed well, but sales for smallerplayers have been softer on the backof high gold prices and a weakeconomy. Jewellers are appealing tothe government for a reduction induty in the Budget, which will beannounced on 1st February, to helpstimulate the industry.’ The dutycut did not quite materialize,though Minister Sitharaman didannounce a slew of other measuresto benefit the industry.

EEuurrooppee‘The consumer confidence indicatorin the Euro Area stood at -8.1 inJanuary 2020, unchanged from theprevious month and below marketexpectations of -7.8, a flash estimateshowed. It remained at the lowestlevel since February 2017.Considering the EU as a whole,consumer sentiment was flat at -7.0.(source: European Commission).Brands have been holding backordering due to the instability anduncertainty in the Hong Kong/China region. Suppliers have beenbusy fulfilling orders from the end oflast year, however new ordering hasbeen soft at the start of 2020.’

UUSSAA‘The Conference Board ConsumerConfidence Index increased inJanuary, following a moderateincrease in December. The Indexnow stands at 131.6, up from 128.2(an upward revision) in December.“Consumer confidence increased in

January, following a moderateadvance in December, drivenprimarily by a more positiveassessment of the current job marketand increased optimism aboutfuture job prospects. Optimismabout the labour market shouldcontinue to support confidence inthe short-term and, as a result,consumers will continue drivinggrowth and prevent the economyfrom slowing in early 2020,”according to The ConferenceBoard… According to MastercardSpending Pulse, jewellery sales rosealmost 2 per cent in the US over theholiday period, largely as a result ofstrong e-commerce growth. Onlinesales of jewellery are believed tohave grown 9 per cent in the run upto Christmas.’

HHoonngg KKoonngg//CChhiinnaa‘The spread of the coronavirus hasundermined all hope of a goodChinese New Year sales season.While some cases exist outsideChina, China is very much theepicentre, and this is where theeconomic impact will mostly be.This is particularly dramatic as ourindustry has been underperformingin the region for some time now,mainly on the back of the socialunrest in Hong Kong and theChina-US trade war. Our hopes fora good retail season in mainlandChina, at the start of the year of TheRat, have now turned into a distantdream as restrictions on movementand travel imposed by the authoritieshave brought the economy to astandstill. Shops, offices and factoriesremain closed, and the ShanghaiDiamond Exchange has halted alloperations at least until February 9.Following feedback from mainlandretailers, sales have plummeted by60-80 per cent.’

Like last month, all high-valueitems continue to struggle in India,like real estate, cars and evenjewellery. Major retailers in Indiahave performed well, but sales forsmaller players have been softer onthe back of high gold prices and aweak economy




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THE CARTIERSFrom a family enterprise to a globalluxury brand

Francesca Cartier Brickell’s book, The Cartiers: The Untold StoryOf The Family Behind The Jewellery Empire, was unveiled inMumbai recently. Most business biographies tend to be eitherhagiographies or elaborate PR dossiers. The Cartiers, however,turned out to be an exception. The page-turner of a book keeps thereader engaged throughout by its anecdotal and conversationalnarrative. India features prominently in the book as it has playedan important role in Cartier’s initial success. Many of the Cartier’siconic collections such as the panther motif and the Tutti Fruitynecklace are inspired from India. The jewellery industry in India isdominated by family jewellers and they will gain severalinteresting insights from its reading

By ANIL PRABHAKAR

Brand Cartier owes it successto the entrepreneurial spiritof Louis Francois, his son

Alfred Cartier and his threegrandsons. While the mercurial,Louis was a visionary designer,Pierre was the deal-makingnetworker, an impeccably dressedsuave salesman who could sell ice toeskimos. The youngest of them,Jacques, was a patriotic,globetrotting gem expert.

Louis-Francois, the patriarch, hadhumble beginnings. His mother wasa washerwoman. Every client towalk into a Cartier store was to betreated with respect and enjoy theexperience. ‘Be very kind’ was thekey tenet of Cartier philosophy thathe passed on. He may not have hadthe resources to afford a showroomin the prestigious locations but heknew that the personal touch wasone way in which his firm could

distinguish itself from others.In order to raise their economic

status, the Cartiers sought allianceswith business families richer thanthem. Louis-Francois got Alfredmarried to Alice, a metal dealer’sdaughter, for a large sum of dowry,thereby doubling their net worth.

When the time came for Alfred’sson Louis Joseph Cartier to getmarried, Alfred got him married toAndree Caroline Worth, thegranddaughter of Charles FrederickWorth, a renowned couturedesigner. Louis was against thealliance as Andree and he wereincompatible. However, Alfredliterally pushed him as it was goodfor business.

The love stories of Louis, Pierreand Jacques have all the ingredientsof a Bollywood potboiler and makean interesting reading. Pierre metthe thirty-three-year-old AmericanElma Rumsey for the first time inCartier’s Paris store. She hadentered the store with her motherto escape from the rain. It was love

at first sight. While listening to thischapter on the audio book, I couldalmost hear the romantic song Ekladki bheegi bhagi si in thebackground.

Jacque fell in love with NellyHarjes who was a divorcee and 12years older to him. Her protectivefather was against their marriage asher previous husband had marriedher for money. He consideredJacque far too inferior a match forthe Harjes name with its loftyreputation in banking circles. Hehowever, came to a compromiseand laid down a condition thatNelly and Jacque shall not meeteach other for one year. If at the endof twelve months, if the two werestill convinced that they wanted tobe together, he would allow theirunion.

Louis’ marriage with AndreeCaroline Worth was not workingout. He had an eye for the ladies andused to hang out at Maxim’s, apopular restaurant in Paris. After hisdivorce, he met Jeanne Toussaint,


BOOK REVIEW


whose parents were very poor. Shefrequented Maxim’s and mixed in thecircles of the demimondaines (ladiesof the night). Both of them fell foreach other. The status-consciousAlfred was against this liaison andopposed their marriage. Family pridecame in the way of their union.However, they continued theirclandestine relationship even afterLouis’ second marriage to JacquelineAlmassy, who was from theHungarian aristocratic family.

Jeanne Toussaint had a long-lasting relationship with the Cartiersafter Louis hired her in the handbagdepartment. Nicknamed ‘Pan-Pan’(for her love of panthers), shebecame the creative director ofCartier and oversaw the designfunction.

Toussaint, who was rejected forher unsuitable background, was tobecome an integral part of theCartier family.

She and the talented designerLemarchand shared a common loveof birds and animals. Toussaint hadcreated the panther vanity case asearly as 1917. After the death ofboth Louis and Jacque, she built onthe earlier idea of the panther andpopularized the motif among agroup of powerful women.

Cartier’s tryst with India beganwhen Jacque visited Bombay for thefirst time in 1911. He stayed at theiconic Taj Mahal hotel and latervisited Hyderabad and Patiala beforeattending the King’s durbar inDelhi.

The durbar opened up the worldof Indian royalty to Cartier. Jacquetravelled far and wide from Calcuttato Baroda and from Indore toPatiala.

Francesca describes vividly theepisode where Jacque visited Patialaon the invitation of MaharajaBhupinder Singh to sell him a large

pearl. The Maharaja did thevanishing trick with the pearl underthe pretext of showing it to hiswomen. Most of us in sales wouldrelate to the trouble that one has totake to recover outstanding duesfrom evasive customers.

The same maharaja, 14 yearslater, commissioned Cartier to makethe Patiala necklace that contained2,930 diamonds weighing over athousand carats. It was mounted onplatinum and enhanced by rubies.At the centre was the yellow 234.6-carat De Beers diamond.

Jacque was to develop long-lasting relationship with the royalfamilies of Baroda, Nawanagar andKapurthala among others. Hisfriendship with Maharaja RanjitSingh of Nawanagar deserves aspecial mention. Both of them lovedgemstones. Among the variousjewels that Cartier made for RanjitSingh was an emerald necklace at a

The book signing event took place in Mumbai on 28 January 2020, at the Title Waves bookstore. It was organized in association with Penguin Random House andjewellery influencer Prernaa Makhariaa. (From left) Special guests at the event included novelist Shobhaa De, GIA India managing director Nirupa Bhatt, GJEPCchairman Pramod Agrawal, Forevermark India president Sachin Jain, and GJSCI chairman Sanjay Kothari. Also seen are the author Francesca Cartier Brickell (thirdfrom right) and jewellery influencer Prernaa Makhariaa (in the foreground)


BOOK REVIEW


price of £115,640 ($8.4 milliontoday).

Jacque Cartier also created adiamond necklace called theToussaint necklace for MaharajaRanjit Singh. It included the136.25-carat blue-white Queen ofHolland Diamond, a 12-carat olive-green diamond and severalsubstantially sized pink diamondsamong other huge white diamonds.Named after Jeanne Toussaint thenecklace was recreated for theHollywood film Ocean’s 8 that wasreleased in 2018.

Before the term ‘disruption’became a buzzword, disruption inthe jewellery industry occurred inthe year 1867 when South Africa’sfirst authenticated diamond wasdiscovered. It weighed 21.25 carats.

It was brownish yellow in colourand would later be named as theEureka diamond. It would later leadto the discovery of large diamonddeposits and founding of the DeBeers mine in the 1880s.

Previously, diamonds had beenfound in small quantities in Indiaand Brazil. Their scarcity had meantthat they were far more expensivethan pearls. Now with diamondsbecoming affordable, high qualitynatural pearls became the costliestobjects in the world.

Forty years later, from 1928onwards the steady rise in theavailability of cultured pearls hadput the natural pearl market undersevere pressure. This resulted in theprice of natural pearls plummetingby 85 per cent.

Cartier, who relied on naturalpearls, teamed with rival Rosenthalto fight for the fair classification ofcultured pearls. They had asked thatMikimoto Kokichi, the Japanesecultured pearl pioneer, should beforced to label his pearls as cultured

to distinguish the real from the fake. Mikimoto insisted that his pearls,

made by seeding the oyster with asmall amount of mother-of-pearl,were no less real. As the naturaldiamond industry faces competitionfrom lab-grown diamonds, whatwill happen in future is anyone’sguess.

The success of Cartier was builton the foundation of the trust andteam spirit that existed betweenLouis, Pierre and Jacques. Whilethey had freedom in taking theoperational decisions in theirrespective territories, they had alsoinvested in each other’s businesses.This was the reason they could be at three different places at the same time.

Their children were brought upin different environment. Theybarely knew each other as theirapproach towards business wasentirely different.

After Louis’ demise, Claude hada major difference of opinion withhis uncle Pierre as a result of whichthe business was split.

Claude was the first to sell hisbusiness and after Pierre passedaway, Marion Cartier too sold hershares to the Danziger brothers.

Jean-Jacque Cartier continued torun the London business for sometime. The business conditions weretough, and he was unable to copeup with changing consumer tastes.To make matters worse, due to theoil crisis of 1973, there were moreconsumers selling their jewels thanbuying them.

Multiple factors convinced Jean-Jacques to sell his business. Amongthem was the possibility of all threebranches, Paris, New York andLondon, being reunited. The end ofthe family business becameimminent.

The ownership of Cartier passedhands several times and today it restswith the Geneva-based RichemontGroup.

Francesca, in her afterword,quotes a Harvard study that foundthat 70 per cent of family-ownedbusiness either fail or are sold beforethe second generation takes over.Cartier was unusual in enduring tothe fourth generation as a family-managed firm.

Many family businesses in theIndian jewellery business are beingrun successfully. Some of the namesthat come to mind are PC ChandraJewellers in Kolkata, Waman HariPethe (WHP) in Mumbai andRanka Jewellers in Pune.

The siblings and other familymembers enjoy operationalautonomy as well as ownershipbenefits.

They will find the book veryinteresting indeed.

Francesca Cartier Brickell’s new book, TheCartiers ( https://www.the-cartiers.com) isavailable now on Amazon and leadingbookstores.

Maharaja Bhupinder Singh wearing the Patialanecklace



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Hari Krishna Exports hostsfifth edition of Kisna Diamond Marathon

Hari Krishna Exports Pvt.Ltd, India’s leadingmanufacturer of cut and

polished diamonds, hosted KisnaDiamond Marathon on 22December 2019 at BKC, Bandra(E), Mumbai. The aim of this eventwas to promote the noble cause ofSwachh Bharat Abhiyan. In its fifthedition, the company marathonsuccessfully registered more than8,000 runners.

The chief guests present at themarathon were Ujjwal Nikkam,Public Prosecutor; MadhukarPandey, Joint Commissioner(Traffic); Kapil Arora, marathonrunner and author; and ManishaGupta, CNBC Awaaz Editor.

Hari Krishna Exports is the solecompany in the diamond industryto host a marathon every year in

order to encourage fitness and thecause of Swachh Bharat Abhiyan.The collected amount will beutilized for this cause. Theorganization has already placed binsand signboards across various areasin Mumbai. The Group has alsobuilt toilets across many villages inMaharashtra to create awarenessabout Swachh Bharat Abhiyanamong the masses.

Hari Krishna Group alsoorganized practice and diet sessionsfor the runners thrice a week, toboost running among employeesand participants. The marathon alsowitnessed great participation fromthe diamond industry. Winners ofthe marathon were entitled withexciting prizes worth `4,00,000.

Shri Ghanshyam Dholakia,Founder and Managing Director,

Hari Krishna Group, said ‘We atHari Krishna always believe infitness and health. With KisnaDiamond Marathon, we always aimto encourage fitness and the noblecause of Swachh Bharat Abhiyanamong employees and masses. Themanagement has worked hard toput up a great show and it turnedout to be successful event.’’

Savji Dholakia, Founder andChairman, Hari Krishna Group,said, ‘Sports and fitness is a way oflife at Hari Krishna Group. It isheartening to know that KisnaDiamond Marathon has beenwitnessing a massive number ofparticipants each year and with thisevent, we have been successful increating awareness about SwachhBharat Abhiyan.’


EVENTS


The first edition of IndiaJewellery ExcellenceSymposium (IJES), an

initiative of the Gem and JewellerySkill Council of India (GJSCI), washeld at Hotel, The Leela in Mumbaion 8 and 9 January 2020. GJSCIworks toward the advancement ofthe gems and jewellery industrythrough its various skillinginitiatives. It covers skilling underall areas and functions of theindustry under various sub-sectors.

IJES is an initiative of GJSCI toorganize the only technologysymposium for the jewelleryindustry in India in order to fill along felt vacuum.

Dignitaries from ministry, NSDCand trade bodies made their presencefelt at the grand inauguration of thesymposium. The lighting of lampwas done by the chief guest, RupaDutta, Economic Adviser, Ministryof Commerce and Industry; theguest of honour, Manish Kumar,

MD and CEO, National SkillDevelopment Corporation (NSDC);Pramod Agrawal, Chairman,GJEPC; N Anantha Padmanabhan,Chairman, GJC; GJSCI Chairman,Sanjay Kothari, and Director,GJSCI, Shishir Nevatia andExecutive Director - CEO, GJSCI,Rajeev Garg.

Speaking on the occasion,GJSCI’s Sanjay Kothari outlined themotive of skilling and achievingmanufacturing excellence in thegem and jewellery industry to setthe tone for the symposium. He saidthat the industry had a dream tohave a knowledge platform similarto the Santa Fe Symposium forIndian jewellery companies,especially the small companies, at anaffordable cost. He also said, ‘Indiahas the tremendous potential tobecome the preferred sourcingdestination for the world’s leadingjewellery brands like Cartier,Tiffany, etc... IJES has been unique

in the sense that it could blend thecombination of technical andmanagement system-related topics.’

The first edition of IJES recordeda registration of over 300 delegatesrepresenting more than 140companies all over India. IJESindeed turned out to be a one- stopsource for bringing together theindustry’s most innovative anddiligent experts to share their ideas,innovations, best practices,experiences, techniques and insightson manufacturing excellence. Theevent concluded with a felicitationof the eminent speakers and alsodemonstrated the commitment ofGJSCI to continue IJES with yetanother edition in January 2021.

It doesn’t end here. On thesuccessful execution of IJES, GJSCIis planning to organize exclusiveworkshops by renowned processexperts with interested industrystakeholders to meet industryneeds.

IJES 2020: A HEARTENING SUCCESS



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IGJS - a brand new show for aglobal audience

The Gem & Jewellery ExportPromotion Council(GJEPC) introduces an

exclusive trade show only forinternational buyers – theInternational Gem & JewelleryShow (IGJS), which will debut inJaipur, the world’s largest gem-cutting centre. It will be held fromApril 1-3 2020 at the world-classJaipur Exhibition and ConventionCentre (JECC), Sitapura.

The Council aims to pushexports of the Indian gems andjewellery sector across all productcategories. The standout show thatwill offer enhanced customerexperience aims to bring together allIndian gem and jewellery exporterson the new, single platform that willfocus on boosting business.

The GJEPC is hosting around1,000 buyers who have beenspecially invited to the show. Thesebuyers are from more than fortycountries, including Australia,Bahrain, Bangladesh, Canada,China, CIS, Iran, Japan, Jordan,Kenya, Korea, Kurdistan, Kuwait,Latin America, Lebanon, Malaysia,Morocco, Myanmar, Nepal, NewZealand, Oman, Qatar, Russia,Saudi Arabia, Singapore, SouthAfrica, Sri Lanka, Tanzania,Thailand, Turkey, the UAE, theUK/Europe, the USA and Vietnam.The visitor profile includeswholesalers, retailers, design houses,importers and exporters,merchandisers and jewellerymanufacturers.

Promoting Brand India has beenone of the top agendas of the

FAST FACTS - IGJS 2020

EVENT DATE1–3 April 2020 (three days)

EVENT TIMING10am–6pm

NUMBER OF BOOTHSApproximately 400

HOSTED BUYERS1,000 international buyers

Council and the show already hasover 200 exhibitors on board, whowill showcase the best range of gemsand jewellery. IGJS hopes toprovide a unique opportunity forIndian manufacturers to expandtheir client base and get a feel of theworld market.

WHY JAIPUR?

The Pink City is the world capitalof coloured gemstones and animportant manufacturing hub forstudded gold and silver jewellery.The historic city carries a royallegacy and evokes an old-worldcharm through its splendiferouspalaces, heritage hotels andimposing forts, thus attracting many foreign tourists from all overthe world during spring/earlysummer. Bhagirath, TOI



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GJEPC members prioritize the5th C: CharityVarious companies, members of the GJEPC, have been conductingsocial welfare programmes and CSR activities, ensuring that theindustry makes a positive impact besides just profits

Succour to backwardGujarat areas

BBHHAANNSSAALLII TTRRUUSSTTMMAAHHEESSHH KKIIRRTTIILLAALL BBHHAANNSSAALLII,Partner, Bhansali & Co.

Registered in 1969, the Bhansali Trustwas established by seven brothers of theBhansali family (Bhansali & Co). It was

formed with the aim of working for the benefit ofthe downtrodden in villages in the Banaskanthaand Patan districts of Gujarat. Over the years, setin motion various projects in the fields of medicalaid, education, income generation, de-addictionand other socio-economic areas of concern invarious districts of Gujarat and other parts of thecountry.

It has been active in relief and rehabilitation

work when natural calamities have struck in stateslike Gujarat and Odisha. Most of the Trust’sprojects are carried out using family funds, whilenatural calamity relief projects employ funds fromthe diamond trade and friends. The area selectedfor their various projects is one of the most socio-economically backward parts of Gujarat,bordering Rajasthan.



THE REAL GEMS

Supporting artisancommunity in RajasthanBBIIRRDDHHIICCHHAANNDD GGHHAANNSSHHYYAAMMDDAASSJJEEWWEELLLLEERRSS

DDRR NNAAWWAALL AAGGRRAAWWAALL,, Partner

Birdhichand Ghanshyamdas Jewellersfocuses on child health and education,providing the underprivileged access to

healthcare, and a lot more. They identified thecraftsmen specializing in kundan and meenakariand provided them modern tools and techniques.Since these workers are in Jaipur and surroundingareas in Rajasthan, documentation has been

prepared for geographicalidentification (GI registration) ofthese artisans to protect their rights.

BG has supported thalassemia-affected children by sponsoring thebone marrow transplant of twoaffected children. They also sponsorsix children from the SOS children’svillage each year.

BG has been supporting a blindschool in Jaipur, helped in carryingout cataract operations at CalgaryEye Hospital, supported MahaveerCancer Hospital for the treatment ofpoor children, and supportedkeratoplasty procedures for poorpatients.


THE REAL GEMS


Cleanliness and infrastructureimprovement in SalemAAVVRR SSWWAARRNNAA MMAAHHAALL JJEEWWEELLRRYY PPVVTT.. LLTTDD..SSRRII AABB SSUUDDAARRSSAANNAAMM, Chairman

AVR Swarna Mahal Jewelry Pvt. Ltd strives to ensure acorporate culture that integrated CSR values withbusiness objectives. Among their efforts is the

installation of a plastic bottle recycling machine at the Salembus terminal. They have also installed a 1,500-litre waterpurification RO plant at the terminal and helped repair andbeautify the walls of the terminal with the help of the SalemCity Municipal Corporation.

AVR took up the responsibility of automated sweeping,cleaning and maintenance of eight bus terminals in Tamil

Nadu - Salem, Tharamangalam,Attur, Kalakurichi, Mettur,Dharmapuri, Krishnagiri andTirupattur. They have supportedthe construction of eight trafficroundabouts in crowded areas ofSalem and installed many barricades.

In education, AVR providesfinancial help to deserving youngminds from weak economicbackgrounds. They have distributedlaptops to such students incollaboration with Ladies CircleIndia, and beautified the walls ofGovernment Girls HR Sec Schoolin Salem and Kallakurichi.



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Packed calendar at GJEPC regionalcentres in Surat, DelhiDecember 2019 and January 2020 were busy and productive months, with aplethora of GJEPC activities in the regional centres

SURATGGJJEEPPCC CChhaaiirrmmaann IInnaauugguurraatteess BB22BBJJeewweelllleerryy SShhooww SSuurraatt SSppaarrkkllee 220011991133-1166 DDeecceemmbbeerr 22001199The Chairman of GJEPC, PramodKumar Agrawal inaugurated SuratSparkle 2019, a mega B2B JewelleryTrade Show organized by theSouthern Gujarat Chamber ofCommerce and Industry (SGCCI)at Surat. It has emerged as a popularplatform where companies exhibittheir latest jewellery designs andproducts. Among the visitors arelocal and overseas buyers as well assome business delegations fromother countries. Membership camp,

Parichay Card camp and visitorregistration camp were organizedduring the show.

GGJJEEPPCC OOrrggaanniisseess DDiiaammoonnddGGrraaddiinngg TTrraaiinniinngg PPrrooggrraammmmee iinnVVaaddooddaarraa,, GGuujjaarraatt1166-2211 DDeecceemmbbeerr 22001199,, VVaaddooddaarraaThe Gujarat Regional Office ofGJEPC organized a week-longtraining programme on DiamondGrading for the jewellerymanufacturers of Vadodara. Theprogramme was held under thebanner of ‘Kaushalyam ..Committed to Excellence’.

Conducted by GJEPC’s

Knowledge Partner, IndianDiamond Institute, the sessionsencompassed both theory andhands-on practice in the grading ofpolished diamonds.

The 41 participants were dividedinto two batches and all completedthe course successfully. Certificateswere distributed by hands ofRegional Director, Gujarat, GJEPCand Deputy Director, IDI, followedby a trade meet with the office-bearers of Vadodara JewelersAssociation.MMeemmbbeerrsshhiipp AAwwaarreenneessss SSeemmiinnaarr2222 DDeecceemmbbeerr 22001199GJEPC Regional Office participated

GJEPC hosted a trade meeting to resolve the issue of ITC accumulation under the GST regime in Surat


IN FOCUS


in diamond manufacturing Bank finance Introduction of Presumptive Taxation in

Special Notified Zone Introduction of Technology Upgradation

Scheme for G&J sector Introduction of Risk Management System to

encourage profile-based monitoring systemfor clearance of import / export shipments.

EEPPFFOO OOffffiicciiaallss AAddddrreessss SSeemmiinnaarr ffoorr GGJJEEPPCCMMeemmbbeerrss aatt SSuurraatt1100 JJaannuuaarryy 22002200,, SSuurraattThe Surat Regional Office of GJEPC organizedan interactive session with the senior officials ofEmployees’ Provident Fund Organisation(EFPO) in Surat last week to discuss the schemeson offer and their benefits.

Shashank Raizada, Regional Commissioner -II, Regional Office, Surat gave a presentation onthe concepts and schemes of the EFPO. He gaveclear definitions of the terminology used andexplained the eligibility criteria, placing emphasison the importance of compliance and the processfor doing so. He apprised member about theduties of various stake holders of a business, suchas employees, employers, contractors, freelancersetc. and made them aware of the variousplatforms EPFO has created to reach out to them,including mobile apps and other online platforms.

Ajeet Kumar, Regional Commissioner - Ispoke about the importance of the EPFO. Heexplained that as per the International LabourOrganization, EPFO provides one of the best

in the Annual Function of ShriSurendranagar Sona ChandiAssociation. Mr. Kishan Detroja,Sr. Executive represented GJEPCand provided guidance on G&JParichay Card, Swasthya Kosh andbenefits of Membership withGJEPC. He explained the processto enrol with GJEPC, and how toapply online for IEC.

The function was attended byapprox.. 200+ members of theassociation

HHoonn’’bbllee PPMM SShhrrii NNaarreennddrraa MMooddiiMMeeeettss TTrraaddee DDeelleeggaattiioonn ffrroomm SSuurraatt;;GGJJEEPPCC RReeggiioonnaall CChhaaiirrmmaannHHiigghhlliigghhttss SSeeccttoorraall IIssssuueess2299 DDeecceemmbbeerr 22001199A trade delegation from Surat metthe Hon’ble Prime Minister ShriNarendrabhai Modi and maderepresentations regarding varioustrade issues being faced by differentsectors. GJEPC Regional Chairman- Gujarat, Dinesh Navadiya,represented the gems and jewelleryindustry and spoke about the issuesbeing faced by the sector in detail.

Some of the points hehighlighted included: Input Tax Credit accumulation

due to inverted duty structure


IN FOCUS


social security schemes foremployees. He said that employershave a moral responsibility towardstheir employees and accepting thiswill create loyal employeesdelivering increased productivity,both factors that can impact abusiness positively. He described PFcontributions and support to EPFOas a kind of CSR and an expressionof humanity, giving the employerspride that they are contributingtowards nation building.

In the interactive discussion thatfollowed, participants put forwardtheir queries, including manypractical issues that arise due tochange in birth date, change inname, change in employer, delay inreceipt of interest, technical issueswith portal etc.

Nearly 50 members of the OB ofSurat Diamond Association, SuratJewellery Manufacturers Associationand other representatives of tradewere present.

GGJJEEPPCC HHoossttss TTrraaddee MMeeeettiinngg ttooRReessoollvvee IIssssuuee ooff IITTCC AAccccuummuullaattiioonnUUnnddeerr GGSSTT RReeggiimmeeJJaannuuaarryy 2299,, 22002200,, CCoonnffeerreennccee HHaallll,,GGJJEEPPCC,, SSuurraattThe Surat Regional Office ofGJEPC convened a meeting of trademembers to discuss the way forwardin addressing the issue of ITCaccumulation under the GSTregime.

It may be recalled that a fewmonths ago, following earlierrepresentations made by GJEPC,the central government had reducedthe GST rate on job work from 5per cent to 1.5 per cent. However,this did not resolve the issue ofaccumulation totally and thequestion of refund or utilization ofaccumulated tax credit persists.

GJEPC has now appointed M/s

Deloitte Haskins & Sells LLP as consultant topropose possible solutions to this issue.

More than 55 trade representatives, mainlyfrom diamond manufacturing units, attended themeeting where they had detailed discussions withthe consultants. The points covered includeddifferent working models, practical challenges andreasons for ITC accumulation, etc.

DELHIJJaannuuaarryy An interactive session was organized on 6January 2020 wherein Pankaj Singh, RegionalHead, ICICI had made the presentation. Keybanking issues of member exporters of northernregion were discussed in detail. Around twentymembers attended the session. An exporters’ meet was organized on 10January 2020 to discuss the critical issue of re-import of gems and jewellery items exportedthrough exhibition/export promotion tour mode.Around thirty members had participated in thedeliberations. An interactive session was organized on 10January 2020 wherein Anuj Sahai with hiscompliance team from Axis Bank had interactedwith member exporters to discuss the keybanking issues in detail. Around twenty membershad attended the session. An interactive session was organized on 29January 2020 wherein senior officials of KotakMahindra Bank were invited to discuss issuespertaining to E-BRC and other topics. The bankpromised to resolve the queries of the members atthe earliest.

DDeecceemmbbeerr An exporter’s meet was organized on 9December 2019 to discuss the Public NoticeNo.1 dated 28 November 2019 issued by theOffice of the Chief Commissioner of Customs,Delhi Zone, on Standard Operating Proceduresto be adopted by jewellery exporters in handcarry of jewellery consignments in case of exportthrough overseas exhibition and exportpromotion tour modes. Organized training session for 12 customsofficials of Delhi Customs from 17-28 December2019 at IIGJ-Delhi.





GJEPC Presents India Diamond Week from 15th to 17th October 2019

India Diamond Week, New York (Jan)

Vicenza Oro Winter 2020, Vicenza (Jan 17–22)

Baselworld 2020 (Apr 30–May 05)

Hong Kong Int’l Diamond, Gem & Pearl Show 2020 Asia World Expo

Hong Kong Int’l Jewellery Show 2020 ai (Mar 4–8)

JCK Las Vegas Show 2020, USA(June 2–5)

India Gemstone Week in Shanghaiwith China Gem & Jade Exchange(Jun 16–18)

Hong Kong Jewellery & Gem Fair2020 (Jun 25–28)

International Gem & Jewellery Show 2020, Jaipur (Apr 1–3)

JANArtisan Awards 2020, Mumbai (Feb 12)

Signature IIJS, Mumbai(Feb 13–16)

Gems & Jewellery Conclave, Mumbai (Feb 15)

Design Inspirations, Mumbai (Feb 16)

Doha Watch & Jewellery Expo, Doha (Feb 24–29)

INDIA GEM & JEWELLERY AWARDS, SURAT (FEB)

FEBEVENTS

MAR

APR

MAY

JUN



CALENDAR

India Australia Jewellery BSM, Mumbai (Jul 3–4)

Singapore Intl Jewelry Expo 2020 (Jul 23–26)

Banking Summit,Mumbai (Jul)

India Silver & Fashion BSM, Delhi

Jewellers for Hope(Aug 6)

IIJS Premiere, Mumbai(Aug 6–10)

India Diamond Week, New York

India Gemstone Week, Jaipur (Oct 26–28)

India USA Jewellery BSM, Mumbai (Oct 29–31)

India Diamond Week (Loose Stones), Mumbai(Oct 30–Nov 1)

India Gold & Jewellery Summit, New Delhi (Nov)

Jewellery Arabia 2020(Nov 17–21)

VicenzaOro Fall 2020(Nov)

JULHong Kong Jewellery & Gem Fair (Jew)Wan Chai (Sep 23–27)

India SAARC Jewellery BSM, Mumbai/Goa

SEP

OCT

NOV

India Jewellery BSM, Kolkata (TBD)

DEC

AUG



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Council conducts MSMEseminars in Satara andRatnagiri

The GJEPC held two seminars each in Ratnagiri and Satara lastmonth to educate the MSME sector and karigars and raiseawareness about the Council’s programmes

The GJEPC is committed tothe growth of the MSMEsector in gems and jewellery

and conducts many seminars,workshops and camps to educateand benefit the sector. As part ofthese efforts, the Council conductedtwo seminars each in Satara andRatnagiri recently.

The two MSME activities inRatnagiri were an MSME seminarand a Parichay card shivir, held on19 January 2020. The Councilorganized these in collaborationwith the associations MumbaiSuvarnakar Sangh and Shri SantNarhari Sonar Karagir Sanghatna.The seminar was attended by morethan 100 attendees. It began withwelcome speeches by the heads ofthe Mumbai Suvarnakar Sangh andShri Sant Narhari Sonar Karagir

Sanghatna, followed by speeches ofthe GJEPC secretariat and theEdelweiss representative.

The two activities held in Satarawere a jewellers’ seminar and akarigars’ seminar. The GJEPC

organized these two seminars jointlywith the Satara Saraf Association,Satara, on 28 December 2019. Thefocus of the seminars was tostrengthen the MSME sector of theIndian gems and jewellery industryand create awareness about MSMEand NSIC schemes, bankingprocedures and documentation,export and import procedures,cluster development program,Common Facility Centre (CFCs),lean manufacturing competitivenessscheme, GJEPC’s health insurance,Parichay card and membershipbenefits among karigars andMSMEs. These seminars sawparticipation from around 300attendees. Eminent speakers fromthe trade and from reputedgovernment organizations wereinvited to participate and make theseminar more informative.

Syed Asif, TOI

Uma Kadam, TOI


www.gjepc.org GJEPCIndia gjepcindia GJEPCIndia

Toll Free Number : 1800-103-4353 | Missed Call Number : +91-7208048100



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UPSIDES & DOWNSIDES · international bi-monthly gjepc newsletter february–march 2020 upsides & downsides featuring intelligence i policy matters i in focus i the real gems i spotlight