FOCUS 18 | JNA Jan/Feb 2022 diamond factories are now fully functional, enabling the country to fulfill demand from its major markets of the US, China and Hong Kong, he noted. “Beside the need to have a strong digital presence, the pandemic taught us the importance of market diversification and to not rely too much on a single export destination,” revealed Shah. “Keeping communication channels open among trade members is another important takeaway.” In the last 18 months, GJEPC organised several virtual trading events including Buyer-Seller Meets on diamond jewellery and loose diamonds to enable manufacturers to transact business during the pandemic. It also tapped new markets through its virtual India Global Connect initiative for manufacturers to discuss market trends and explore business opportunities with retailers from other countries. GJEPC has held India Global Connect meets with the UK, Colombia, Switzerland, Angola, Oman, Singapore, Morocco, Saudi Arabia, the UAE, Hong Kong, Qatar and Thailand. To uplift the diamond sector, GJEPC has been appealing to the Indian government to implement a turnover/presumptive tax regime for Special Notified Zones; rationalise the GST rate on certification and grading services; abolish the 2 per cent equalisation levy to purchase rough diamonds; and reduce the import duty on cut and polished diamonds. A recent government directive requires GJEPC membership to obtain the Kimberley Process Certificate for the import and export of rough diamonds in India, a move that would allow the council and its members to self-regulate and maintain the high standards of India’s diamond industry. Shah maintains a positive outlook for the year. “Diamond sales will be good in 2022 barring strict lockdowns. We are targeting growth of 10 to 15 per cent in diamond exports compared to 2021,” he said. Business scenarios Pandemic-driven challenges became the greatest catalyst to streamline businesses across the value chain, said Kiran Exports (HK) Ltd Director Gautam Gopani. Miners played a pivotal role in keeping rough mining and supply in check, thereby creating a healthy pipeline, he pointed out. This along with restricted manufacturing activity kept inventories low. When demand snapped back globally, prices remained stable and there was no excess inventory. In fact, some goods are in short supply now. “Pent-up demand provided the initial buying support to the industry. In some markets, consumers diverted stimulus packages and discretionary spend to jewellery purchases, as other luxury items such as travel and dining were limited,” Gopani commented. The company official observed strong demand from the US, Europe and Asia, and anticipates an upturn in business from China soon. “We have seen a sharp increase in demand across categories. Non-certified diamonds particularly are showing tremendous strength due to robust demand, higher input cost and depleting midstream inventories. Quality-wise, SI to I3 stones are moving extremely well,” Gopani shared. Another significant development for Kiran Gems, one of the world’s largest diamond manufacturers, is the continued growth of its online business. Servicing over 2,000 repeat customers worldwide, its e-commerce portal generates more than 65 per cent of overall sales. Business is also booming for Prism Group. According to Managing Director Zulu Ghevriya, demand has exceeded pre-pandemic times, thanks to diverted discretionary spend, the return of weddings and diamond jewellery’s evergreen appeal as a symbol of love and lasting relationships. David Kellie, CEO of Natural Diamond Council 天然钻石委员会首席执行官David Kellie Younger – Millennial and Gen Z – consumers, both women and men, now consider diamond jewellery as part of their everyday wardrobe, not just for engagements, weddings and special occasions. This offers huge potential for markets globally. – David Kellie, CEO, Natural Diamond Council
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