This article first appeared in the Thailand Special 2024.

Market preferences for coloured gemstones are evolving, with demand on the rise for stones that reflect consumer tendencies towards self-expression and individuality, according to KGK Group, which is well-placed to cater to these new customer requirements.

Among the notable shifts is the growing interest in coloured gemstones embodying positivity and emotional significance. “This trend aligns with broader societal changes, reflecting a desire for meaningful connections in turbulent times,” remarked KGK Group Vice Chairman Sanjay Kothari.

He has also observed a discernible movement towards unique cuts and sizes of coloured gemstones, reflecting individualistic preferences and the desire for personalised jewellery pieces.

Demand has remained robust for perennially popular gemstones such as sapphires, emeralds and rubies, a development Kothari attributed to discerning consumers seeking exceptional quality and craftsmanship.

“In addition, consumers are increasingly valuing ethically sourced and sustainably produced gemstones, emphasising our commitment to responsible sourcing practices and transparency throughout the supply chain,” he continued.

And pointing to the substantial uptick in online purchasing habits, Kothari underscored the importance of digital platforms in engaging customers and driving sales.

Business agility

But while consumer interest in coloured gemstones is on the rise, market conditions in recent years have been challenging. Supply constraints and prices increases since 2022 count among the hurdles that coloured gemstone dealers have had to grapple with. KGK’s gemstone business, though, has showcased resilience amid adversity.

Kothari said, while prices of certain gemstones have stabilised, those of other varieties continue to exhibit upward pressure due to factors that include rarity, scarcity and heightened demand.

“These price dynamics have necessitated strategic adjustments in pricing policies and inventory management,” he explained. “Despite the challenges posed by price increases, we have focused on maintaining consistent supply while ensuring customer satisfaction through transparent pricing policies and offering a diverse range of gemstone options across price points.”

KGK also diversified its market reach to mitigate risks and capitalise on growth opportunities elsewhere, amid the slowdown in demand from China. Its main markets for coloured gemstones span across North America, Europe and the Asia-Pacific region.

“Emerging markets in Southeast Asia and the Middle East offer significant growth potential, and we are strategically positioning ourselves to tap into these markets effectively,” Kothari disclosed. “Through targeted marketing campaigns and strategic partnerships, we aim to strengthen our presence in these regions while continuing to cater to established markets.”

Positive outlook

The KGK official identified market volatility, supply chain disruptions and evolving consumer trends as some of the challenges on the horizon. Addressing these, he said, requires a proactive approach, encompassing robust risk management strategies, agility in response to market dynamics, and continuous innovation in product offerings and customer experience.

“By staying attuned to market shifts and leveraging our expertise and resources, we are well-positioned to navigate these challenges while seizing emerging opportunities,” Kothari noted.

He still keeps an optimistic outlook on business possibilities, saying KGK will capitalise on growth prospects while staying true to its core values of integrity, excellence and customer satisfaction.

The group maintains a competitive edge in the market through its vertically integrated supply chain, ensuring quality control and traceability from mine to market. Moreover, its commitment to ethical sourcing and sustainable practices resonates with conscientious consumers.

Kothari added, “Our expertise in gemstone cutting and craftsmanship, coupled with a diverse portfolio of gemstone varieties, truly positions us as a preferred partner for discerning clients worldwide.”

Looking ahead, KGK remains focused on driving growth through strategic initiatives that leverage technology, expand its online presence and strengthen partnerships across the value chain. Sustainability and responsible business practices will remain central to its operations, aligning with evolving consumer expectations and industry trends.