Feb 8: Faced with a dull year ahead, Indian jewellery exporters are turning their attention to newer untapped markets in Latin American countries, the Middle East and Europe. Currenty, jewellery exporters are experiencing an extended phase of declining demand and delayed payments from the once-booming markets of Japan and south-east Asia -- markets that are currently under a cloud due to the currency meltdown.Even the markets of Hongkong and the US are unlikely to remain as promising as they had been in the past. This is what has forced Indian jewellery exporters to look for other markets.
For starters, the Gem & Jewellery Export Promotion Council, the government-sponsored apex body of some 6,500 jewellery exporters, has turned its attention towards the kingdoms of Dubai, Muscat, Bahrain and Kuwait.
As its maiden effort to market Indian jewellery independently, the Council held a week-long exhibition in Kuwait last month. The net result of the joint efforts of the council and some 37 exporters is saidto be rather ``impressive'' with export orders worth Rs 18 crore already in the bag in an otherwise dull market.
Next on the agenda is Dubai (April 1-5), Kuwait again (October, 1998) followed by Dubai once more (November 1998). Before this, the Council is hoping to rake in the shekels by organising the India International Jewellery Show '98 in New Delhi from March 18-22, followed by a similar event in Mumbai (September 11-14).
A section of jewellery exporters, however, feels, that the government needs to ``space out'' the timing for diamond and jewellery exhibitions to avoid ``sapping the budding demand from the newer markets''.
Interestingly, before it is too late, the Council also intends to tap even the relatively untapped, but fast strengthening (economically), Latin American countries like Brazil, Argentina and Mexico as also Australia and some of the rich Eruopean countries. ``Given the importance of Dubai in the supply and trading of gold and gold jewellery to the nearby markets, the India-Dubaiaxis could become the main pivot for the world's gems and jewellery demand,'' said Pravinshankar Pandya, chairman of the GJEPC.
According to the Council, the US tops the list of India's jewellery export destination with a marketshare of 38 per cent, followed by the United Arab Emirates (20 per cent), the UK (13 per cent), Japan, Hong Kong and Singapore (each 4 per cent), Germany (3 per cent), Luxembourg and Kuwait (two per cent each) and the Netherlands (one per cent). ``India, with its expertise and low-cost labour, has a tremendous capacity to take on these markets,'' says VSA Sury, secretary. ``India simply does not have a matching competitor in the middle and lower ends of diamond jewellery.'' According to Sury, there is untapped demand for lower-value diamond jewellery in the West Asian kingdoms.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
