From The Desk of Rajesh Bajaj
Mark over to Makeover!
This is the time to gaze on the horizon of 2020, the New Year! Every year brings a blossom, a fresh, breezy resolution for the year! Companies try to chase their mark of the year! Collectively industry & trade try to attempt their targets to push industry-n-trade to a new milestone!
Time to time gem-n-jewelry industry talked much about to attain the global stature of gem-n-jewelry trading hub, diamond trading hub, designing destination, and brand India jewellery, jewellery design hub… I think all these big resolutions have taught us many lessons!
On the back of lessons that we have learned in the past is demanding now to go for a makeover of the gem-n-jewelry industry & trade! Because the jewellery fraternity wants; good sales, adequate bank finance, hassle-free business, and favorable government policy too!
Millennials, GenX & even a GenZ prefer our gem-n-jewelry, and they are buying too! This means there should not be any trouble in jewellery sales! Time and again, banking & financing institutions have said they are ready to finance! This ongoing government is known for its endeavor to improve its global ranking in EoDB. Yet! Industry & trade is not thriving! What the industry & trade is lacking?
Ernie Blom, WFDB President, said for the just past year 2019, “…not a year to remember!” The latest report of Bain & Co said, ‘Midstream revenues to fall as much as 25% in 2019.’ By learning industrial behavior, they said, “Bain & Co expects 2020 to be a better year for the industry as the midstream gradually clears its current inventory backlog!”
It means, the past year was not thriving & this, the year 2020 is to remain busy in clearing inventory backlog. From the India perspective, yet there is no active program to hike up jewellery exports, which has a scope in the global arena!
Global jewellery market size was estimated at about US$ 275bn in the year of 2018, and it is expected to be of about US$475bn by 2025. In the year 2018, India exported gold & silver jewellery worth of about 13bn which share less than 5% of the total global jewellery market! Now the question is why India could not hike up jewellery exports even after the decade? Why our jewellery export share percentage could not grow?
At the domestic front, India's gem & jewellery market is contributing about 29% in the basket of total gem-n- jewellery consumption! Domestic jewellery market worth US$ 75bn in the year of 2017 & now is expected to be of US$ 100bn by 2025. Yet! This local jewellery market is also not arousing! Most of the retailers have a lower sentiment!
I think this is the time to makeover the gem-n-jewelry industry & trade! Domestic buyer wishes to buy jewellery with ensured purity, cutting edge of finishing, clear return policy, fresh designs! And the million-dollar question is quality and claimed about 350K jewellers of India! Very fewer jewellers’ wishes to offer quality jewels, and the majority of the jewellers cries over tumbling jewellery demand at their doorsteps! They are losing their business share!
Out of so-called 350K jewellers just 26,019 jewellers are offering Hallmark jewellery, an ensured quality that claimed! Why rest are avoiding & crying over poor buying sentiment? Be clear this is the time for a makeover of the business, trade & industry as a whole.
If rest these about 325K jewellers’ would not go for the makeover way, they would be pushed to peril! Sooner many of them may be an outdated & irrelevant player because swiftly organised players and jewellery chain stores are growing in a pace! They are growing at a rate of 11% CAGR with their brand.
It is estimated that the organized jewellers’ & jewellery chain stores companies are acquiring more-n-more market share. They would enjoy over 35% of the total jewellery market share by 2020 and it is likely to grow around 42% by 2023! Sooner they may acquire about 50% of the jewellery market share in India by 2025!
Jewellers, those who would be failed to makeover, would be scrapped in the presence of a big brand, chain stores & organized player, and its’ a peril point for about 200K jewellers! And at the export front, if they wish to attain the exports of the gem-n-jewelry target of US$75bn by 2025, should hike up exports at least by 10% p a where the net trading to be worth of US$44bn in FY 2020-2021. I think GJEPC must write an active policy to hike up jewellery exports share would be beneficial even in the long run for India gem-n-jewelry exports!