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With strength of 6,500 members' spread all over the country, the Council is primarily involved in introducing the
Indian gem & jewellery products to the international market and promotes their exports. To achieve this, the
Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations,
rates of import duties, and information about jewellery fairs and exhibitions.
The role of GJEPC can be broadly classified under the following categories:
• Trade Facilitator : The Council undertakes direct promotional activities like organising joint
participation in international jewellery shows, sending and hosting trade delegations, and sustained
image building exercises through advertisements abroad, publications and audio-visuals.GJEPC also
invites countries to explore areas of co-operation in supply of rough diamonds and rough colored stones
as well as offers co-operation in jewellery manufacturing. The Council regularly communicates with
Indian Embassies, trade bodies and associations in various countries. And finally, GJEPC also organizes
seminars, buyer-seller meets, symposiums.
• Advisory Role : A crucial area of activity of the Council has also been aiding better interaction and
understanding between the trade and the government. The Council takes up relevant issues with
government and agencies connected with exports and submit documents for consideration and inclusion
in the Exim Policy. The Council also grants membership, registration certificates and performs other
roles as per the Exim Policy.
• Nodal Agency for Kimberly Process Certification Scheme : GJEPC works closely with the
Government of India and the trade to implement and oversee the Kimberly Process Certification
Scheme. To that effect, the Council has been appointed as the Nodal Agency in India under the
Kimberly Process Certification Scheme.
• Training and Research : The Gems & Jewellery Export Promotion Council runs a number of institutes
that provide training in all aspects of manufacture and design in Mumbai, Delhi, Surat and Jaipur. These
training programs are being conducted to ensure that the Indian industry achieves the highest levels of
technical excellence.
• Varied Interests : The Council also publishes a number of brochures, statistical booklets, trade
directories and a bi-monthly magazine - Solitaire International, which is distributed internationally as
well as to its members. Finally, the Council has also developed its own promotional audiovisual film -
'India - Your First Choice', which is dubbed in various international languages as well as screened at
various trade shows.
Gems and jewellery form an integral part of Indian tradition. A legacy passed from one generation to another. The components of jewellery include not
only traditional gold but also diamond, platinum accompanied by a variety of precious and semi-precious stones.
The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on the back of improving lifestyle and availability of skilled labour, as per a
report ‘Indian Gems and Jewellery Market – Future Prospects to 2011’, by RNCOS.
India, the largest consumer and importer of gold in the world, is projected to import around 500-550 tonnes of gold in 2010, as per AnjaniSinha, head of
the Indian Bullion Market Association (IBMA).
As per the credit rating agency Crisil, the diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady
demand.
The Gem and Jewellery Export Promotion Council (GJEPC) predicts that the gems and jewellery exports would witness a rise of around 5 per cent year-
on-year during FY11.
• Global jewellery sales will grow at 4.6 per cent year-on-year to touch USD 185 billion in 2010 and USD 230 billion in 2015.
• India and China together will emerge as a market equivalent to U.S. market by 2015.
• With collective action, the industry has the potential to grow to USD 280 billion by 2015 at a CAGR of 6.7%.
• India 's share of the diamond processing industry pie will drop from 57 per cent today to around 49 per cent (in value terms) by 2015.
• China will emerge as a strong player with 21.3 per cent of the diamond processing share by 2015.
Mumbai, 11th December 06: The Gems and Jewellery Export Promotion Council (GJEPC) of India released a report by KPMG “The Global Gems and
Jewellery: Vision 2015: Transforming for Growth” on 11 th December 2006 amongst much fanfare. The findings of the report were revealed in presence
of Industry stalwarts and luminaries. The study gives insight on the current size and scale of the value chain, identifying trends that will have an impact
on the future, predicting the likely state of the industry by 2015, recommending initiatives, and developing a roadmap for various players given the
expected changes in the environment.
Various socio-economic and political forces are driving the pace of change in the gems and jewellery industry. The report indicates that in the future, the
global jewellery industry will see sluggish growth of Global jewellery sales and also an emergence of new markets.
Commenting on the findings of the Report, Mr. Sanjay Kothari, Chairman, The Gem & Jewellery Export Promotion Council , said, “On this
occasion, I congratulate and thank KPMG and all those dignataries for their immense contribution in building this report. The report has thrown lot of
challenges and time has come when every individual player in this Industry will have to work efficiently and professionally for taking this industry to the
next level. I urge the entire Industry and trade organizations world wide such as World Federation of Diamond Bourses, International Diamond
Manufacturers Association, Jewelers of America etc to play a pivotal role as facilitators and work in synergy for betterment of this Industry.”
Global jewellery sales is expected to grow at 4.6 per cent year-on-year to touch USD 185 billion in 2010 and USD 230 billion in 2015. Palladium is
expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market
together, accounting for about 82 per cent. Diamond jewellery will be the slowest growing segment at a CAGR of 3.3 per cent. Growth in the industry
will be slow as compared to that expected in other luxury goods categories such as watches, perfumes, etc. For example, luxury apparel, a USD 100
billion market today, is expected to grow at 10-15 per cent over the next seven years.
Mr. Neelesh Hundekari, Director, Advisory Services, KPMG India, further added, “Transformation is necessary for growth. The industry has the
potential to successfully compete against the luxury goods industry and preserve its traditional domination of the consumer's discretionary spend. The
industry needs to defend jewellery as a category and explore newer markets, while professionalizing family businesses”.
To realize its potential by 2015, the industry would have to focus on the growing demand for jewellery as a category and strengthen industry-level and
enterprise level capabilities. These programmes need to be initiated within the next 12-18months for its benefits to be realized over the next 10 years.
GJEPC-KPMG Report: Jewelry Industry Growth Rate May Slow
3. Growth in global demand for jewelry may slow from the 5.2 percent
Compounded Annual Growth Rate (CAGR) it registered since 2000, to 4.6
percent by 2010 or 2015, unless appropriate collective action is taken by
players in the industry. This was the conclusion reached in a special report
titled “The Global Gems and Jewellery: Vision 2015: Transforming for
Growth” released jointly by The Gem & Jewellery Export Promotion Council
(GJEPC) of India and financial and management consultants, KPMG.
The projection is based on an assessment of the impact of eight key business
trends that the two bodies believe will affect the performance of the industry.
These trends include: the local beneficiation in the mining countries;
fragmentation of supply sources and an increase in rough supply;
consolidation across the value chain; rise of new centers for jewelry
manufacturing; growth in the use of synthetics and non-precious metals in
jewelry; a decline in demand for plain gold jewelry; organization and
consolidation in the emerging markets of India and China; and intense
competition from other luxury goods.
Based on the findings, the report estimates that worldwide jewelry sales will
rise from $146 billion in 2005 to $185 billion in 2010 and $230 billion in
2015. However, it stresses that if the industry as a whole focuses on
“growing demand for jewelry as a category” and “strengthening industry-level
and enterprise-level capabilities” in the “next 12-18 months,” sales could
reach $280 billion in 2015, registering a CAGR of 6.7 percent.
Bakul Mehta, immediate past chairman of GJEPC, during whose tenure the
project began, stressed that while the report had laid out a broad road map, it
was essential for the industry bodies to undertake periodic reviews of the
direction in which the industry was moving and make corrections if
necessary.
The report on the perspective for the global jewelry industry released by The
GJEPC and KPMG offers some projections of the global gem and jewelry
industry in 2015.
(September 22, '10, 6:19 Michelle Graff, Courtesy National Jeweler Network)
According to WGC report, net retail investment was less affected by the
upward price movement and set a new annual record in tonnage terms, with a
massive 34 percent increase over 2004.
A consumer survey carried out for the WGC at the end of 2005 reveals the
underlying strength of Indian gold demand remains robust and is underpinned
by a strong economy and favourable demographics in gold’s key target
markets. While jewellery demand may have been constrained in the first
weeks of 2006, a period of price stability is likely to see a strong level of
buying once again.
The Indian Gem and Jewellery industry has witnessed 6.32 growth in
exports in fiscal 2005-06 totaling at US$ 16669.11 million (Rs.73304.29 crore)
against US$ 15678.14 million (Rs. 70245.95 crore) achieved in the previous
fiscal.
The growth in the sector was primarily driven by the Cut & Polished Diamonds
(CPD) segment, which witnessed a remarkable increase of 6.07%. The export
sales of CPD grew to $11860.49 million during fiscal 2005-06 from $ 11181.56
million in the previous financial year. While total volume of CPD were at
432.72 Lakh carats during 2005-06 as compared to 479.47 lakh carats in the
corresponding period in 2004-05.
“Industry through its consistent efforts has shown immense fortitude and has
managed to maintain its year on year growth of the total gem & jewellery
exports. The Gem & Jewellery Sector continues to be the frontrunner and
highest contributor to the total value addition of the country, contributing
US$3.5 billion in FY2006,” Commenting on the industry's performance, Mr.
Bakul R. Mehta, Chairman, GJEPC, said, “Industry for last few years have
grown consistently at 15%-20%. The last two quarters of FY 2005-06 have
witnessed diminishing exports. This is primarily because of market slow down
in USA, the largest export destination for Indian Gem & Jewellery sector.
Industry has achieved remarkable growth in its previous years and now it has
reached a stage where it needs to consolidate and focus on value addition and
increasing the value chain. Industry marks the year 2005-06 as ‘year of
consolidation' and looks forward to transform and establish itself as a trading
hub for gem & jewellery globally”, he said.
The United States, Hong Kong and UAE were the top export markets for the
Indian Gem and Jewellery products accounting for 28 percent, 21 percent and
15 percent of the total exports followed by Singapore and Belgium accounting
for 9 percent and 8 percent respectively.
On the Import front, total imports of Gem and Jewellery grew by 11.79
percent to with imports increasing from $11640.21 million in 2004-05 to $
13013.11 million in 2005-06. Rough Diamonds were imported to the tune of $
8708.98 million ; Gold Bar for $ 856.60 million and Cut & Polished Diamonds
for $ 3009.02 million.
The results of Jewelers of America's (JA) 2010 Cost of Doing Business Report are
not pretty, but they are also not surprising, given the economy: 2009 retail jewelry
sales fell for the third year in a row, finds the report, released exclusively to National
Jeweler.
"As the report covers financial data from 2009-a year in which the national economic
crisis left no industry unscathed-it's no surprise that respondents reported a median
overall sales decrease," JA states in a media release.
This is the second year JA conducted the survey in conjunction with National
Jeweler magazine and itsAmerica's Best Jewelers benchmarking program. The
survey included responses from 331 companies including: independent mid-range
stores (57.9 percent of participants), independent high-end stores (25.8 percent),
designer/artist/custom jewelers (13.2 percent) and jewelry chain stores (9.1 percent).
Looking at Cost of Doing Business data by store type reveals that 2009 wasn't a year
of entirely bad news for all retailers.
While sales were down across the board for every type of jewelry store in 2009,
designer/artist/custom jewelers experienced a median sales increase of 3.1 percent for
the year (see Change in Sales By Store Type chart below), compared to a 0.8 percent
decline in 2008. Mid-range independent stores also recovered somewhat, with sales
declining 0.9 percent, compared with a 5.5 percent drop in 2008.
Chain stores continued to fare the worst, reporting the steepest decline, 13.6 percent
as compared to 13.2 percent in 2008. And independent high-end retailers were hit
hard, with their sales falling 7.5 percent after recording only a 1.3 percent drop in
sales in 2008.
Industry profitability was a median 3.8 percent net profit as a percent of net sales, just
slightly greater than 2008's 3.6 percent, its lowest recorded level since 1989.
Perhaps fueled by the uptick in the amount of margin-friendly sterling silver carried
by fine jewelry stores or the increase in the number of mid-range independents that
took the survey, gross margins for specialty jewelers were up across the board.
Independent high-end stores led the way, with margins jumping from 43.5 percent in
2008 to 47.6 percent in 2009. Mid-range stores saw a more modest increase from
50.4 percent to 51.2 percent.
Overall, the median gross margin was 49.4 percent up from 48.6 percent in 2008.
Even though high-profit firms (sales down 0.9 percent on average) and low-profit
firms (sales down 7.8 percent on average) both experienced sliding sales in 2009, the
report demonstrates that effective management continues to be critical, especially
during tough economic times.
High-profit firms' total operating expenses were lower than those of low-profit firms,
spending less on payroll, occupancy and advertising and promotions.
Firms that boasted high profits also got more out of their employees-averaging sales
of $289,770 per employee versus $235,030 per employee for low-profit firms- and
achieved gross higher margins (51.2 percent versus 47 percent).
Interestingly, however, this year's survey showed that high-profit firms actually
operated larger stores in terms of square feet than their low-profit counterparts. The
average store size for a high-profit firm was 3,124 square feet compared to an
average of 2,498 square feet for low-profit firms.
Distribution of Sales
As noted in the report, the distribution of sales among specialty jewelers continues to
remain relatively stable. While there were some changes, they weren't monumental
enough to shift the established pattern. They also weren't surprising, given the state of
the economy, the report notes.
Diamonds continued to make up the largest percentage of sales for specialty jewelers,
though sales of the stones declined for the third year in a row. Diamonds (including
loose stones and diamond jewelry) constituted 46 percent of sales, down from 49
percent in 2008 and 52 percent in 2007.
Colored stone and karat gold jewelry accounted for 8 percent of sales, and repairs
remained important, making up 10 percent of sales for specialty jewelers.
According to the report, sales of fashion merchandise spiked 25 percent but the
category remains a small percentage-5 percent-of jewelers' sales. Sales of
estate/antique jewelry also rose substantially but the category still only accounts for 3
percent of specialty jewelers' overall sales.
The report also examines Internet usage among retail jewelers. Though it notes that
retailers have become more open to marketing online and connecting with customers
via social media, retailers still aren't capitalizing on the Internet's full potential.
Notably, last year's report made the same observation.
Still, the number of jewelers who said they use the Internet to promote and sell
jewelry rose to 37 percent in 2009, up from 28 percent in 2008, and the number of
retailers who said they had no plans to use the Internet dropped, from 11 percent in
2008 to only 6 percent in 2009.
The Cost of Doing Business report is available on CD or via e-mail. To order, click
here, contact JA's Member Services department at (800) 223-0673 or send an e-mail
to info@jewelers.org. The price of the report is $24.95 for members and $150 for
non-members.
National Jeweler will take a more in-depth look at the Cost of Doing Business in its
November/December issue.
5.Overview
INDIA is the largest consumer of gold in the world to be followed by China and
Japan. India is emerging as world's largest trading centre of this commodity with
a target of US$ 16 billion set for 2010. According to a World Gold Council press
statement, in terms of tonnage, overall consumer demand in India in 2005
witnessed 17 percent growth over 2004. In rupee terms, this was equivalent to a
25 percent increase bringing the value of gold demand in India to a second
successive annual record. Jewellery demand also experienced a second successive
annual record of over 20 percent in rupee terms over 2004. In terms of tonnage,
the increase was 14 percent accounting 589 tonne.
According to WGC report, net retail investment was less affected by the upward
price movement and set a new annual record in tonnage terms, with a massive 34
percent increase over 2004.
A consumer survey carried out for the WGC at the end of 2005 reveals the
underlying strength of Indian gold demand remains robust and is underpinned by
a strong economy and favourable demographics in gold’s key target markets.
While jewellery demand may have been constrained in the first weeks of 2006, a
period of price stability is likely to see a strong level of buying once again.
The Indian Gem and Jewellery industry has witnessed 6.32 growth in exports in
fiscal 2005-06 totaling at US$ 16669.11 million (Rs.73304.29 crore) against US$
15678.14 million (Rs. 70245.95 crore) achieved in the previous fiscal.
The growth in the sector was primarily driven by the Cut & Polished Diamonds
(CPD) segment, which witnessed a remarkable increase of 6.07%. The export
sales of CPD grew to $11860.49 million during fiscal 2005-06 from $ 11181.56
million in the previous financial year. While total volume of CPD were at 432.72
Lakh carats during 2005-06 as compared to 479.47 lakh carats in the
corresponding period in 2004-05.
Gold Jewellery Exports registered a growth of 1.28 percent with exports recorded
at $ 3861.57 million in fiscal 2005-06 as compared to $ 3812.88 million in
financial 2004-05. Colored Gemstones grew by 21.05% to $ 233.32 million in FY
2005-06 compared to $192.75 million in FY 2004-05.
“Industry through its consistent efforts has shown immense fortitude and has
managed to maintain its year on year growth of the total gem & jewellery exports.
The Gem & Jewellery Sector continues to be the frontrunner and highest
contributor to the total value addition of the country, contributing US$3.5 billion in
FY2006,” Commenting on the industry's performance, Mr. Bakul R.
Mehta, Chairman, GJEPC, said, “Industry for last few years have grown
consistently at 15%-20%. The last two quarters of FY 2005-06 have witnessed
diminishing exports. This is primarily because of market slow down in USA, the
largest export destination for Indian Gem & Jewellery sector. Industry has
achieved remarkable growth in its previous years and now it has reached a stage
where it needs to consolidate and focus on value addition and increasing the value
chain. Industry marks the year 2005-06 as ‘year of consolidation' and looks
forward to transform and establish itself as a trading hub for gem & jewellery
globally”, he said.
The United States, Hong Kong and UAE were the top export markets for the
Indian Gem and Jewellery products accounting for 28 percent, 21 percent and 15
percent of the total exports followed by Singapore and Belgium accounting for 9
percent and 8 percent respectively.
On the Import front, total imports of Gem and Jewellery grew by 11.79 percent to
with imports increasing from $11640.21 million in 2004-05 to $ 13013.11 million
in 2005-06. Rough Diamonds were imported to the tune of $ 8708.98 million ;
Gold Bar for $ 856.60 million and Cut & Polished Diamonds for $ 3009.02 million.
ITEMS April May June July Aug. Sept. Oct. Nov. Feb. Mar.
Dec. Jan.
Cut &
Polished 654.36 684.85 693.79 698.54 912.14 915.17 1077.13 435.93 587.97 847.94 874.89 1107.6
Diamonds
Gold
235.67 267.73 264.62 278.31 360.09 371.75 416.32 338.6 302.43 301.13 290.75 434.17
Jewellery
Coloured
13.05 22.11 14.87 15.26 22.22 21.87 20.95 14.97 19.52 32.33 16.24 19.93
Gemstones
Pearls 0.17 0.29 0.08 0.17 0.23 0.19 0.11 0.21 0.07 0.17 0.26 0.42
Non-gold
9.68 13.5 10.31 12.06 14.47 11.26 13.17 10.13 10.26 16.18 10.95 13.46
Jewellery
Synthetic
0.05 0.07 0.05 0.07 0.05 0.09 0.04 0.02 0.01 0.07 0.07 0.03
Stones
TOTAL 1038.55 1239.08 1305.87 1349.71 1652.92 1641.51 1793.2 861.5 963.19 1277.71 1277.41 1703.16
GRAND
1099.82 1274.69 1342.74 1394.43 1715.57 1702.05 1851.47 882.67 1007.68 1324.53 1322.13 1751.33
TOTAL
April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.
ITEMS
Cut &
Polished 2859.51 2982.57 3007.49 3035.04 3954.02 3985.53 4717.56 1959.41 2589.27 3815.72 3858.1 4904.2
Diamonds
Gold
1029.26 1165.94 1146.73 1209.11 1560.94 1618.72 1823.21 1521.95 1378.97 1355.04 1281.99 1923.1
Jewellery
Coloured
56.99 96.32 64.45 66.3 96.41 95.11 91.68 67.3 89.03 145.5 71.63 88.15
Gemstones
Pearls 1.03 0.17 1.07 1.03 1.21 0.45 2.83 1.38 1.33 0.79 1.17 1.85
Non-gold
42.35 58.8 44.68 52.47 62.74 48.99 57.7 45.57 46.79 72.73 48.21 59.62
Jewellery
Synthetic
0.24 0.33 0.07 0.19 0.22 0.37 0.17 0.1 0.07 0.32 0.31 0.13
Stones
TOTAL 4537.82 5396.29 5660.42 5864.34 7165.38 7148.33 7853.57 3872.34 4392.08 5749.6 5632.97 7544.37
GRAND
4805.6 5551.36 5820.26 6058.65 7436.96 7411.93 8108.81 3967.5 4594.98 5960.29 5830.17 7757.76
TOTAL
ITEMS April May June July Aug. Sept. Oct. Nov. Feb. Mar.
Dec. Jan.
Cut &
Polished 654.36 684.85 693.79 698.54 912.14 915.17 1077.13 435.93 587.97 847.94 874.89 1107.6
Diamonds
Gold
235.67 267.73 264.62 278.31 360.09 371.75 416.32 338.6 302.43 301.13 290.75 434.17
Jewellery
Coloured
13.05 22.11 14.87 15.26 22.22 21.87 20.95 14.97 19.52 32.33 16.24 19.93
Gemstones
Pearls 0.17 0.29 0.08 0.17 0.23 0.19 0.11 0.21 0.07 0.17 0.26 0.42
Non-gold
9.68 13.5 10.31 12.06 14.47 11.26 13.17 10.13 10.26 16.18 10.95 13.46
Jewellery
Synthetic
0.05 0.07 0.05 0.07 0.05 0.09 0.04 0.02 0.01 0.07 0.07 0.03
Stones
TOTAL 1038.55 1239.08 1305.87 1349.71 1652.92 1641.51 1793.2 861.5 963.19 1277.71 1277.41 1703.16
GRAND
1099.82 1274.69 1342.74 1394.43 1715.57 1702.05 1851.47 882.67 1007.68 1324.53 1322.13 1751.33
TOTAL
ITEMS April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.
Cut &
Polished 2859.51 2982.57 3007.49 3035.04 3954.02 3985.53 4717.56 1959.41 2589.27 3815.72 3858.1 4904.2
Diamonds
Gold
1029.26 1165.94 1146.73 1209.11 1560.94 1618.72 1823.21 1521.95 1378.97 1355.04 1281.99 1923.1
Jewellery
Coloured
56.99 96.32 64.45 66.3 96.41 95.11 91.68 67.3 89.03 145.5 71.63 88.15
Gemstones
Pearls 1.03 0.17 1.07 1.03 1.21 0.45 2.83 1.38 1.33 0.79 1.17 1.85
Non-gold
42.35 58.8 44.68 52.47 62.74 48.99 57.7 45.57 46.79 72.73 48.21 59.62
Jewellery
Synthetic
0.24 0.33 0.07 0.19 0.22 0.37 0.17 0.1 0.07 0.32 0.31 0.13
Stones
TOTAL 4537.82 5396.29 5660.42 5864.34 7165.38 7148.33 7853.57 3872.34 4392.08 5749.6 5632.97 7544.37
GRAND
4805.6 5551.36 5820.26 6058.65 7436.96 7411.93 8108.81 3967.5 4594.98 5960.29 5830.17 7757.76
TOTAL
SOURCE: GJEPC, India