epages News [Jewellery, March 2004]

• De Beers to raise rough diamond prices
• Tanishq to launch jewellery design contest
• China opens door for jewellers
• Jewellery exports to exceed $10 bn
• Back to Jewellery Archives

De Beers to raise rough diamond prices

Mar 22, 2004: London: De Beers, which sells three of every five rough diamonds in the world, will raise prices by 5% this month, the second increase this year, because of higher sales in Western, Asian and Arab markets and a weakening dollar. The company based in Kimberley, South Africa, boosted prices by 3% in January. Demand in India and China is increasing, and De Beers is promoting a campaign to persuade women in the U.S., the market for half of all diamond jewellery, to buy their own diamonds. Diamonds are traded in dollars. South Africa's gained 23% against the dollar in the past year, driving up mining costs as diamonds became cheaper for holders of other currencies. Diamond jewellery sales rose 6.7% last year to about $56.5 billion, and may grow 6% this year, according to De Beers.

De Beers, 45% owned by Anglo American Diamonds was Anglo American's biggest source of profit in the second half of last year. The Oppenheimers, Africa's richest family, also own 45% of De Beers. Debswana Diamond Co., jointly owned by Botswana's government and De Beers, own the rest. De Beers's profit rose 10% last year after it raised prices for rough diamonds by the same amount. The company plans to mine about 7% more diamonds this year. De Beers runs its own mines in South Africa and operates joint ventures with the governments of Botswana, the world's biggest diamond producer, and Namibia, which produces the highest quality gems. The company has curbed its practice of buying competitors' gems to prop up prices, seeking instead to bolster demand in the retail market. De Beers cut its diamond stockpiles by almost $700 million last year, after a $1 billion reduction in 2002. Industry wide, spending on marketing rose to $420 million last year, double the figure two years earlier.

Tanishq to launch jewellery design contest

Mar 22, 2004: To bring fresh talent to the forefront, Tanishq, the jewellery business arm of Titan Industries, is planning to launch a nationwide jewellery design competition. Tanishq has also specially designed the three crowns for the Ponds Femina Miss India Contest this year. For the first time, the new crowns are based on contemporary designs along with using vibrant colours, thus conveying the symbolism of each of the title that they represent.

Tanishq had spent Rs.16 crore last year towards advertising with equal stress on print and electronic media. But the company is planning to increase the frequency on electronic media by investing more in satellite TV channels, especially targeting the women-oriented programmes. Even the overall ad budget is expected to shoot up.

China opens door for jewellers

Mar 24, 2004: Chennai: It is now the turn of India ’s gem and jewellery industry to jump on to the China bandwagon. The dragon country, with its large market place and a penchant for diamond jewellery, is attracting Indian players to set shop in China. The Gem & Jewellery Export Promotion Council is planning to conduct a study tour to evaluate the feasibility of doing business in China. As Hong Kong and China share an export arrangement, diamond jewellery trade between the two nations will not attract a high duty. An Indian jewellery player could benefit by setting up a small processing set-up in Hong Kong to tap the Chinese market. The jewellery exporter could also use a combination of off shoring bulk of work in India while completing the residual work in Hong Kong.

An Icra report on gem and jewellery too points out that while India currently enjoys dominance in the world’s cut and polished diamonds market, China may be a potential rival in the long term. China has attracted diamond processors from Israel and Belgium to set up facilities because of the significant increase in economic growth in the last decade coupled with potential customers in the high-income bracket. As per the destination-wise data for gem & jewellery exports, US, Hong Kong, Belgium, the UAE, Japan, Thailand, UK, Singapore, Switzerland and Israel figure prominently while China is conspicuous by its absence. Recently, the council led a delegation to countries like Lebanon, Turkey, Jordan, Egypt and Italy to explore trade opportunities. The delegation has found that there was a large market for loose diamonds, cut and polished diamonds and jewellery in these countries who source it from Antwerp and Dubai.

Jewellery exports to exceed $10 bn

Mar 31, 2004: New Delhi: Adding glitter to ‘India Shining’ despite the rupee’s appreciation, export of gems & jewellery from India has surged past the $10-billion mark for the first time ever in 2003 on the strength of higher unit value realisation for cut & polished diamonds –– a segment dominated by Indian industry. Interestingly, India has managed to retain its numero UNO position in export of cut & polished diamonds despite fall in volumes while its main rivals –– Belgium and Israel have struggled to keep pace.

The strong growth in gem & jewellery exports, estimated at 22.3% during 2003, is significant since the rupee has gained nearly 10% against the dollar in the past two years and the US happens to be the main market for India. Picking up strongly during the third and fourth quarters, exports during 2003 touched $10,646 million, crossing the $10-billion mark for the first time. Of this cut & polished diamonds accounted for $8,023 million compared to $6,909 million during 2002.