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Post By : IJ News Service On 05 May 2015 11:19 PM
{{|*The talk of the town in jewel land is the sky rocketing prices – of precious metals, diamonds and coloured gemstones. And they continue on their upward trajectory. The vast majority of people are certainly feeling the pinch.%% On the other hand, the consumer has evolved over time into a person with a different lifestyle, different approach and different needs. What has this meant in terms of the jewellery product? How has it changed in recent times? How are manufacturers and retailers coping with the rising raw material cost on the one hand, and a demanding and discerning clientele on the other? %% As she goes in search of answers, Nilan Singh finds that the hardy jewellery industry has come up with a variety of methods to face the situation, some obvious, some interesting. *|}}%% There have been few issues about which there has been such unanimity in the jewellery industry, as there is about the soaring prices of raw materials – gold and diamonds mainly – and the widespread impact this is having on the trade. It’s not that consumers are not buying jewellery, it’s not that jewellers don’t have sales or profits; but it is turning the business topsy turvy, and throwing up challenges not encountered before. To buy or not to buy raw materials? To book orders or not to book? How do you price the products? What to stock? Where to source from? What sort of designs to develop? To add to this, the consumer today is cast in a different mould from previous generations. She is imbued with greater awareness, has greater knowledge and greater access to information. She is more demanding and more exacting. Faced with a challenging situation, the jewellery industry has come up with some “crafty” solutions – literally. They are going back to the drawing board and the factory to create a different kind of product – jewellery that will be more appealing to both, the consumer’s pocket and palate.
“Prices have been increasing phenomenally – especially over the last year – and were initially being absorbed by the consumer,” says Harshad Ajoomal, designer and the man behind the eponymous retail brand, with a boutique in the tony Palladium mall in central Mumbai. “Today, a piece which earlier cost say Rs. 1.0 lakh to Rs. 1.5 lakh, could cost upwards of Rs 2 lakh. Or, in the same budget, the consumer will get a piece which looks smaller, has less gold and diamonds and gemstones. And neither option is appealing to the consumer today.” %% Umesh Rastogi of Dehradun-based Kamal Jewellers has a different clientele, but he too bemoans the “lack of choice” left to the consumer. “Earlier we had three levels of jewellery, which also reflected the different segments of consumers” says Rastogi. “Now we have only two levels left – one which has a set of about 12-15 gms of gold and another level which has a set of 100-150 gms of the metal. One entire section in-between seems to have gone out of the market.” However, he feels that earlier no one really went in for diamonds, but now “diamonds are everywhere and in demand from everyone”. Narrating his experience, Jeet Mordani of Jewelry Unlimited, a wholesaler and retailer operating out of Mumbai, says, “There are two types of consumers: the rich class, who, as a result of the various developments in the country, have become richer and to whom these prices make little difference. But they are not interested in the normal, ordinary jewellery. They want high-end goods. The middle class, on the other hand, finds it increasingly difficult to make purchases. I have so many people who come again and again to look at jewellery, but keep going away without buying anything as they just can’t afford it.” %% Kishor Seth of Batukbhai Sons Jewellers of Nagpur reflects another facet of the consumer today. “The importance of design has increased tremendously,” observes Seth. “Consumers feel, “if we are paying so much money, we want something special, something different”. It’s not quantity (investment) buying, so they want something stylish. So much so that we have had to set up an entire design studio on the first floor of our showroom, and designers are always available to cater to our clients on-the-spot.” %% This is also true of customers in other places particularly in metros like Delhi, where Ajay Leekha of Adamus, a design-led jeweller, is based. “Unlike earlier generations, today’s consumers are not buying jewellery strictly for investment,” he says. “Also, there are more and more people who do not ask for break-ups. They are, first and foremost, interested in design, about%% which they are very conscious and aware. In that sense we are not competing with each other locally, we are competing with international jewellers.”
Whether the consumer is making a casual purchase or a wedding purchase, one important factor underlying it, as all jewellers agree, is that jewellery bought should be cost effective and give the consumer a feeling of having obtained value for money. Meaning, it should look large and glittering, but not cost as much as the large look would otherwise have dictated. This look has been defined differently, and achieved in different ways by jewellers as well. %% “We have to create volume – achieve a spread, especially in terms of gold – without increasing gold or diamond content” explains Ajoomal. There are several measures that he has taken, which he rattles off in a spate. What is amazing, and actually indicates how much effort has gone into thinking this through, is that the final effect of his jewellery remains unchanged – stunningly creative. “We have begun using CAD for some aspects of the jewellery. Through precise and efficient planning, it helps us reduce gold wastage,” Ajoomal says. “We also use silver or brass for model making so we don’t lose gold in the design development stage, by making and melting down a product. We’ve tried to reduce the use of too much pavé and use prong setting instead which gives a fuller look – also I think people have had too much of pave so it makes for a change. We use less channel and bezel setting as that tends to cover a larger portion of the diamonds; use baguettes less as they don’t have so much sparkle and you need to use many of them together to achieve an impact; use less white diamonds, and more coffee and black diamonds; and use a variety of coloured stones including lesser known ones which are far less expensive but are extremely stylish. For example, I’ve been using pieterside from Africa. We’re also using more opals, jade, amethyst and so on.” %% Colouredstones, Ajoomal says, are back as a trend in a major way in the international market, from which Indian jewellers take their cue. Apart from the three biggies – emerald, ruby and sapphire – there is a host of stones available which are lower priced and can be used in larger sizes to create an impact, like agates, carnelians, amethysts and of course rubelite and tanzanite which are really catching on, but whose prices are also fairly high. Enamel, too, has found popular use to introduce colour at a lower cost. %% Leekha affirms the increase in the use of colouredstones in jewellery. “I don’t do diamond jewellery anymore,” he says. However, he feels that though consumers place a keen emphasis on design, Indians are not yet ready to take a leap in that respect. “They don’t want anything really wild,” he explains. “At IIJS you see some wood based pieces and so on. But our consumers are not, in general, ready to go in for alternative materials to any great extent. We use mother-of-pearl, but it has now become part of the list of semiprecious stones. Then we use beryls, and even conch shells. But that is to emphasise the design aspect. Otherwise for the Indian consumer, you have to keep it precious.” Leekha also says that through greater control and discipline on the manufacturing process, they have managed to increase efficiencies. “India is fortunate to have extremely skilled craftsmen and they can achieve a great deal,” he says. %%
Mordani, who mainly deals in diamond studded jewellery – embellished of course with with colouredstones – talks of creating a “jaali” look, using the element of “vacant spaces” in the design to reduce gold and diamond content, while still maintaining a “chunky” feel, as one method of dealing with the situation. He is another one who has shifted to using CAD-CAM with good results. “Two years ago, when we saw that the gold prices kept rising, we stopped doing purely handmade jewellery and shifted to CAD-CAM,” he informs us. “We have managed to reduce our gold wastage by 15 per cent to 17 per cent, as a result.” Needless to say, this has made a significant impact on the pricing. %% Reflecting upon another impact of high prices, Mordani says that as a wholesaler he has found that for the last couple of years – particularly since 2008 – the North Indian market has begun using 14k gold to a large extent. “About 60 per cent to 70 per cent of my sales to clients in the North are of 14k jewellery,” he says. Interestingly, last year at the IIJS when booking new orders, he says he was able to “convert” some new clients to 18k. “I explained to them how, by using CAD-CAM, I was able to control the prices. And that they could get 18k jewellery at comparative and competitive rates,” he says. “And they preferred to opt for 18k pieces.” %% Batukbhai has taken yet another approach to give the consumer the satisfaction of having got value for money. “We have introduced ‘changeable’ jewellery, with ’folding’ systems,” Seth says. This means that jewellery is designed in a manner which will allow consumers to mix and match, use it in part or whole, the effect being of having more pieces of jewellery for the price of one. “In one design we have introduced a centre stone which can be unscrewed and changed by consumers,” he explains. “They can buy different coloured centre stones so one day they can wear a red stone, another time they can use a green stone to match it to different outfits.” Batukbhai has also changed the typical kundan jewellery by adding diamonds and pearls in the design. “Suppliers have understood the changing pattern of consumer demand, and have adjusted accordingly, supplying both lighter pieces as well as different designs,” Seth adds. %% The general consumer for gold is no different. Rastogi also emphasises that it was necessary to provide a larger look but maintain prices. Interestingly, Rastogi reveals that the high prices have even impacted his sourcing pattern. “Earlier we carried a lot of jewellery from Kolkata, which is very heavy,” he elaborates. “Today, we are replacing much of that with jewellery from Ahmedabad, as their thapa-work is much lighter than Kolkata jewellery.” %%
However, it’s obvious that Kolkata is not taking this lying down and has created its own answer – chowmien. Might sound strange but read on. “Thash Paktar is one of Kolkata’s popular styles,” explains Pankaj Parekh, Senior Partner of Alankar and GJEPC’s Chairman - Eastern Region. “It is basically a composition of multiple wires composed together in different designs. It tends to be heavy as a result of a large number of wires used. Now, there is a tendency of using less wires – say you were using 23-24 in an area, now you use only 12 or 11 – and also place them in such a way – banka, teda, banka, teda – that a volume look is achieved keeping the weight down. It creates a mesh effect and looks decent.” Then, he adds on a lighter note, laughing, “We call it ‘chowmien’ jewellery.” %% Parekh introduces another aspect into the discussion, something to ponder upon. “Gold sale is increasing in volume, but sale of jewellery by volume is not. Artisan sale has reduced,” he says. “However, retailers’ cash registers are ringing, their turnovers are increasing in rupee terms. And the sale of bullion - of bars and coins – has increased.” %% The increased off-take of bullion, both gold and silver, is due to rising metal prices, he feels. In a way, he feels, the gold jewellery market is being eroded by a three-way pull in other directions – gold bullion, silver and diamonds. %% Chandrakanta Roy Chowdhury of M.P. Jewellers of Kolkata, elaborates on some measures that they have been taking. “We have made adjustments in some areas like lowering the gauge of the frame used for some types of jewellery, or introducing the use of materials like plastic and other metals for these frames too in certain cases,” he says. “Also, in Kolkata the white and red bangles in demand for weddings were earlier made of ivory and coral. Today of course ivory is banned. But we can create a good design effect by using shell for the white ones and a plastic mould for the red. Then there is the use of enamel to introduce colour which reduces the price.” He is yet another jeweller who stresses the importance of control over the fabrication aspect. “Our artisans are very capable but they have to be counseled and taught how to produce say a 45 gm design in 25 gms.” %% Another aspect Roy Chowdhury highlights is the change in the karatage of gold usage, the trading down effect that has taken place. With diamond jewellery taking off in a big way in the country, a segment of the wedding jewellery market is moving from 22k to 18k (the general karatage for diamond set jewellery), and some types of diamond jewellery are moving from 18k to 14k gold. “We now have the technology to make good quality 14k jewellery, which earlier was not so widely available,” Roy Chowdhury says. “The challenge lies in maintaining the sheen and the colour by using the right mix of alloys. Today there are so many alloys available commercially in the market that you can get virtually any colour for gold jewellery – green, purple, blue, you name it.” %%
The rising and high diamond prices, and the uncertainty whether these will come down or continue to climb is, however, confounding the trade, Roy Chowdhury feels. “There is an impact on the procurement part, and people are undecided about what to do,” he says. Another impact is on the quality of diamonds being bought and sold. Industry insiders say that there are some retailers who have not increased their diamond prices but simply lowered the quality they offer. And, as there is little transparency on diamond pricing unlike for gold, and even less awareness amongst consumers, these particular retailers get away with this. %% The dilemma lies for the mainstream retailer who has built his reputation on transparency, full disclosure, and absolute honesty both on the gold and diamond front. Some of them have even prided themselves on working only with the better end of diamonds – G-H / VVS. Now buyers – both retailers and consumers are asking for jewellery with slightly lower rung of colour and clarity. Mordani, Ajoomal and Roy Chowdhury all confirm this. While so far they have held out, the consensus as articulated by Roychoudhury seems to be, “Well if there is a demand for trading down in diamonds, we can consider doing that,” he says, “but only with full disclosure to the consumer and at their request.” So much for all the steps that are being taken to mould the product to better suit the consumers’ pocket and palate. But when we try to question the guru of “uncommon” sense of this industry, he bowls us a googly and introduces a totally different, seemingly tangential, but ponderous aspect. “There is simply no innovation in the jewellery product,” says Hemant Shah, Director of Global Marketing, Hammer Plus. “And I am not here speaking at the level of rings and earrings and necklaces and so on. I am speaking of the category as a whole. And that is a big challenge for us. When the consumer goes to buy other products, he has vast choice, he has a variety of options.” %% At another level, Shah points out to the lack of identifiable branding within the industry. “Jewellery is not visually identifiable, as other brands are like Gucci, Louis Vuitton etc,” he avers. “There are some international jewellery brands which have been able to achieve this, like Tiffany’s, Cartier, Van Cleef & Arpels and Mont Blanc. And these brands then popularise the ‘motif’ through a spend on advertising and promotions (which again is an aspect the Indian industry is sorely deficient in). It is then that the brand really comes into its own. Indian jewellery lacks the ‘Oomph value’, the flaunt value that successful brands have.” Of course, as everyone knows, for the jewellery product, this is not easily achieved. Shah readily agrees. “It is a difficult proposition, but then, if one wants success with all that comes with it, one has to put in the effort.” %%
Going back to the aspect of “innovation”, Shah feels that this can be done at every level. He cites the example of a project of Navvya Jewellery Pvt. Ltd, of which he is a part, for Rio Tinto’s Nazraana programme. Nazraana targets the wedding gifting segment – but differently. It is not about individual gifts; but gifts purchased by the bride or groom’s family in bulk; to distribute to family, or exchange between the families of the two. For this, Navvya worked at two levels – to introduce new categories of jewellery; and to use the wedding story as inspiration for design. For the former, apart from the regular pendants, judaa pins and cufflinks, they developed button caps – which can be placed over an ordinary shirt button; and phone, watch and belt enhancers, which can raise these everyday objects to a glam level on special occasions. Taking the cue from various ceremonies like the mehendi, sangeet and the main religious marriage ceremony, they developed designs to evoke elements of these functions. “The response was fantastic and we booked orders from each and every one of the retailers we met,” says Shah. This clearly was because Navvya was offering retailers something which was different, something not offered by others. %% Jewellers are rising magnificently to meet the immediate challenges posed by the situation and to satisfy consumer demand, by making changes in the product. But it may be as well for this industry to begin also thinking of how to take the category as a whole ahead, how to further innovate its product. So that instead of merely reacting, it can actually lead the market. So that the jewellery category as a whole stays on top of the charts, and the consumer is not enticed to stray away from the glittering path.
Harshad Ajoomal
{{We have to create volume – achieve a spread – without increasing gold or diamond content. - Harshad Ajoomal}}%%
Hemant Shah
{{There is simply no innovation in the jewellery product. And that is a big challenge for us - Hemant Shah}}%%
Kishor Seth
{{Consumers feel, ‘if we are paying so much money, we want something special, something different’. - Kishor Seth}}%%
Kamal Rastogi
{{Earlier we had three levels of jewellery, which also reflected the different segments of consumers. Now we have only two levels left. - Kamal Rastogi}}%%
Pankaj Parekh
{{Gold sale is increasing in volume, but sale of jewellery by volume is not. Artisan sale has reduced. - Pankaj Parekh}}%%
{{Our consumers are not, in general, ready to go in for alternative materials – for the Indian consumer, you have to keep it precious. - Ajay Leekha}}%%
{{We now have the technology to make good quality 14k jewellery, which earlier was not so widely available. - Chandrakanta Roy Chowdhury}}%%
{{We shifted to CAD-CAM and reduced our gold wastage by 15 per cent to 17 per cent, as a result. - Jeet Mordani}}%%
{{|*The talk of the town in jewel land is the sky rocketing prices – of precious metals, diamonds and coloured gemstones. And they continue on their upward trajectory. The vast majority of people are certainly feeling the pinch.%% On the other hand, the consumer has evolved over time into a person with a different lifestyle, different approach and different needs. What has this meant in terms of the jewellery product? How has it changed in recent times? How are manufacturers and retailers coping with the rising raw material cost on the one hand, and a demanding and discerning clientele on the other? %% As she goes in search of answers, Nilan Singh finds that the hardy jewellery industry has come up with a variety of methods to face the situation, some obvious, some interesting. *|}}%% There have been few issues about which there has been such unanimity in the jewellery industry, as there is about the soaring prices of raw materials – gold and diamonds mainly – and the widespread impact this is having on the trade. It’s not that consumers are not buying jewellery, it’s not that jewellers don’t have sales or profits; but it is turning the business topsy turvy, and throwing up challenges not encountered before. To buy or not to buy raw materials? To book orders or not to book? How do you price the products? What to stock? Where to source from? What sort of designs to develop? To add to this, the consumer today is cast in a different mould from previous generations. She is imbued with greater awareness, has greater knowledge and greater access to information. She is more demanding and more exacting. Faced with a challenging situation, the jewellery industry has come up with some “crafty” solutions – literally. They are going back to the drawing board and the factory to create a different kind of product – jewellery that will be more appealing to both, the consumer’s pocket and palate.
“Prices have been increasing phenomenally – especially over the last year – and were initially being absorbed by the consumer,” says Harshad Ajoomal, designer and the man behind the eponymous retail brand, with a boutique in the tony Palladium mall in central Mumbai. “Today, a piece which earlier cost say Rs. 1.0 lakh to Rs. 1.5 lakh, could cost upwards of Rs 2 lakh. Or, in the same budget, the consumer will get a piece which looks smaller, has less gold and diamonds and gemstones. And neither option is appealing to the consumer today.” %% Umesh Rastogi of Dehradun-based Kamal Jewellers has a different clientele, but he too bemoans the “lack of choice” left to the consumer. “Earlier we had three levels of jewellery, which also reflected the different segments of consumers” says Rastogi. “Now we have only two levels left – one which has a set of about 12-15 gms of gold and another level which has a set of 100-150 gms of the metal. One entire section in-between seems to have gone out of the market.” However, he feels that earlier no one really went in for diamonds, but now “diamonds are everywhere and in demand from everyone”. Narrating his experience, Jeet Mordani of Jewelry Unlimited, a wholesaler and retailer operating out of Mumbai, says, “There are two types of consumers: the rich class, who, as a result of the various developments in the country, have become richer and to whom these prices make little difference. But they are not interested in the normal, ordinary jewellery. They want high-end goods. The middle class, on the other hand, finds it increasingly difficult to make purchases. I have so many people who come again and again to look at jewellery, but keep going away without buying anything as they just can’t afford it.” %% Kishor Seth of Batukbhai Sons Jewellers of Nagpur reflects another facet of the consumer today. “The importance of design has increased tremendously,” observes Seth. “Consumers feel, “if we are paying so much money, we want something special, something different”. It’s not quantity (investment) buying, so they want something stylish. So much so that we have had to set up an entire design studio on the first floor of our showroom, and designers are always available to cater to our clients on-the-spot.” %% This is also true of customers in other places particularly in metros like Delhi, where Ajay Leekha of Adamus, a design-led jeweller, is based. “Unlike earlier generations, today’s consumers are not buying jewellery strictly for investment,” he says. “Also, there are more and more people who do not ask for break-ups. They are, first and foremost, interested in design, about%% which they are very conscious and aware. In that sense we are not competing with each other locally, we are competing with international jewellers.”
Whether the consumer is making a casual purchase or a wedding purchase, one important factor underlying it, as all jewellers agree, is that jewellery bought should be cost effective and give the consumer a feeling of having obtained value for money. Meaning, it should look large and glittering, but not cost as much as the large look would otherwise have dictated. This look has been defined differently, and achieved in different ways by jewellers as well. %% “We have to create volume – achieve a spread, especially in terms of gold – without increasing gold or diamond content” explains Ajoomal. There are several measures that he has taken, which he rattles off in a spate. What is amazing, and actually indicates how much effort has gone into thinking this through, is that the final effect of his jewellery remains unchanged – stunningly creative. “We have begun using CAD for some aspects of the jewellery. Through precise and efficient planning, it helps us reduce gold wastage,” Ajoomal says. “We also use silver or brass for model making so we don’t lose gold in the design development stage, by making and melting down a product. We’ve tried to reduce the use of too much pavé and use prong setting instead which gives a fuller look – also I think people have had too much of pave so it makes for a change. We use less channel and bezel setting as that tends to cover a larger portion of the diamonds; use baguettes less as they don’t have so much sparkle and you need to use many of them together to achieve an impact; use less white diamonds, and more coffee and black diamonds; and use a variety of coloured stones including lesser known ones which are far less expensive but are extremely stylish. For example, I’ve been using pieterside from Africa. We’re also using more opals, jade, amethyst and so on.” %% Colouredstones, Ajoomal says, are back as a trend in a major way in the international market, from which Indian jewellers take their cue. Apart from the three biggies – emerald, ruby and sapphire – there is a host of stones available which are lower priced and can be used in larger sizes to create an impact, like agates, carnelians, amethysts and of course rubelite and tanzanite which are really catching on, but whose prices are also fairly high. Enamel, too, has found popular use to introduce colour at a lower cost. %% Leekha affirms the increase in the use of colouredstones in jewellery. “I don’t do diamond jewellery anymore,” he says. However, he feels that though consumers place a keen emphasis on design, Indians are not yet ready to take a leap in that respect. “They don’t want anything really wild,” he explains. “At IIJS you see some wood based pieces and so on. But our consumers are not, in general, ready to go in for alternative materials to any great extent. We use mother-of-pearl, but it has now become part of the list of semiprecious stones. Then we use beryls, and even conch shells. But that is to emphasise the design aspect. Otherwise for the Indian consumer, you have to keep it precious.” Leekha also says that through greater control and discipline on the manufacturing process, they have managed to increase efficiencies. “India is fortunate to have extremely skilled craftsmen and they can achieve a great deal,” he says. %%
Mordani, who mainly deals in diamond studded jewellery – embellished of course with with colouredstones – talks of creating a “jaali” look, using the element of “vacant spaces” in the design to reduce gold and diamond content, while still maintaining a “chunky” feel, as one method of dealing with the situation. He is another one who has shifted to using CAD-CAM with good results. “Two years ago, when we saw that the gold prices kept rising, we stopped doing purely handmade jewellery and shifted to CAD-CAM,” he informs us. “We have managed to reduce our gold wastage by 15 per cent to 17 per cent, as a result.” Needless to say, this has made a significant impact on the pricing. %% Reflecting upon another impact of high prices, Mordani says that as a wholesaler he has found that for the last couple of years – particularly since 2008 – the North Indian market has begun using 14k gold to a large extent. “About 60 per cent to 70 per cent of my sales to clients in the North are of 14k jewellery,” he says. Interestingly, last year at the IIJS when booking new orders, he says he was able to “convert” some new clients to 18k. “I explained to them how, by using CAD-CAM, I was able to control the prices. And that they could get 18k jewellery at comparative and competitive rates,” he says. “And they preferred to opt for 18k pieces.” %% Batukbhai has taken yet another approach to give the consumer the satisfaction of having got value for money. “We have introduced ‘changeable’ jewellery, with ’folding’ systems,” Seth says. This means that jewellery is designed in a manner which will allow consumers to mix and match, use it in part or whole, the effect being of having more pieces of jewellery for the price of one. “In one design we have introduced a centre stone which can be unscrewed and changed by consumers,” he explains. “They can buy different coloured centre stones so one day they can wear a red stone, another time they can use a green stone to match it to different outfits.” Batukbhai has also changed the typical kundan jewellery by adding diamonds and pearls in the design. “Suppliers have understood the changing pattern of consumer demand, and have adjusted accordingly, supplying both lighter pieces as well as different designs,” Seth adds. %% The general consumer for gold is no different. Rastogi also emphasises that it was necessary to provide a larger look but maintain prices. Interestingly, Rastogi reveals that the high prices have even impacted his sourcing pattern. “Earlier we carried a lot of jewellery from Kolkata, which is very heavy,” he elaborates. “Today, we are replacing much of that with jewellery from Ahmedabad, as their thapa-work is much lighter than Kolkata jewellery.” %%
However, it’s obvious that Kolkata is not taking this lying down and has created its own answer – chowmien. Might sound strange but read on. “Thash Paktar is one of Kolkata’s popular styles,” explains Pankaj Parekh, Senior Partner of Alankar and GJEPC’s Chairman - Eastern Region. “It is basically a composition of multiple wires composed together in different designs. It tends to be heavy as a result of a large number of wires used. Now, there is a tendency of using less wires – say you were using 23-24 in an area, now you use only 12 or 11 – and also place them in such a way – banka, teda, banka, teda – that a volume look is achieved keeping the weight down. It creates a mesh effect and looks decent.” Then, he adds on a lighter note, laughing, “We call it ‘chowmien’ jewellery.” %% Parekh introduces another aspect into the discussion, something to ponder upon. “Gold sale is increasing in volume, but sale of jewellery by volume is not. Artisan sale has reduced,” he says. “However, retailers’ cash registers are ringing, their turnovers are increasing in rupee terms. And the sale of bullion - of bars and coins – has increased.” %% The increased off-take of bullion, both gold and silver, is due to rising metal prices, he feels. In a way, he feels, the gold jewellery market is being eroded by a three-way pull in other directions – gold bullion, silver and diamonds. %% Chandrakanta Roy Chowdhury of M.P. Jewellers of Kolkata, elaborates on some measures that they have been taking. “We have made adjustments in some areas like lowering the gauge of the frame used for some types of jewellery, or introducing the use of materials like plastic and other metals for these frames too in certain cases,” he says. “Also, in Kolkata the white and red bangles in demand for weddings were earlier made of ivory and coral. Today of course ivory is banned. But we can create a good design effect by using shell for the white ones and a plastic mould for the red. Then there is the use of enamel to introduce colour which reduces the price.” He is yet another jeweller who stresses the importance of control over the fabrication aspect. “Our artisans are very capable but they have to be counseled and taught how to produce say a 45 gm design in 25 gms.” %% Another aspect Roy Chowdhury highlights is the change in the karatage of gold usage, the trading down effect that has taken place. With diamond jewellery taking off in a big way in the country, a segment of the wedding jewellery market is moving from 22k to 18k (the general karatage for diamond set jewellery), and some types of diamond jewellery are moving from 18k to 14k gold. “We now have the technology to make good quality 14k jewellery, which earlier was not so widely available,” Roy Chowdhury says. “The challenge lies in maintaining the sheen and the colour by using the right mix of alloys. Today there are so many alloys available commercially in the market that you can get virtually any colour for gold jewellery – green, purple, blue, you name it.” %%
The rising and high diamond prices, and the uncertainty whether these will come down or continue to climb is, however, confounding the trade, Roy Chowdhury feels. “There is an impact on the procurement part, and people are undecided about what to do,” he says. Another impact is on the quality of diamonds being bought and sold. Industry insiders say that there are some retailers who have not increased their diamond prices but simply lowered the quality they offer. And, as there is little transparency on diamond pricing unlike for gold, and even less awareness amongst consumers, these particular retailers get away with this. %% The dilemma lies for the mainstream retailer who has built his reputation on transparency, full disclosure, and absolute honesty both on the gold and diamond front. Some of them have even prided themselves on working only with the better end of diamonds – G-H / VVS. Now buyers – both retailers and consumers are asking for jewellery with slightly lower rung of colour and clarity. Mordani, Ajoomal and Roy Chowdhury all confirm this. While so far they have held out, the consensus as articulated by Roychoudhury seems to be, “Well if there is a demand for trading down in diamonds, we can consider doing that,” he says, “but only with full disclosure to the consumer and at their request.” So much for all the steps that are being taken to mould the product to better suit the consumers’ pocket and palate. But when we try to question the guru of “uncommon” sense of this industry, he bowls us a googly and introduces a totally different, seemingly tangential, but ponderous aspect. “There is simply no innovation in the jewellery product,” says Hemant Shah, Director of Global Marketing, Hammer Plus. “And I am not here speaking at the level of rings and earrings and necklaces and so on. I am speaking of the category as a whole. And that is a big challenge for us. When the consumer goes to buy other products, he has vast choice, he has a variety of options.” %% At another level, Shah points out to the lack of identifiable branding within the industry. “Jewellery is not visually identifiable, as other brands are like Gucci, Louis Vuitton etc,” he avers. “There are some international jewellery brands which have been able to achieve this, like Tiffany’s, Cartier, Van Cleef & Arpels and Mont Blanc. And these brands then popularise the ‘motif’ through a spend on advertising and promotions (which again is an aspect the Indian industry is sorely deficient in). It is then that the brand really comes into its own. Indian jewellery lacks the ‘Oomph value’, the flaunt value that successful brands have.” Of course, as everyone knows, for the jewellery product, this is not easily achieved. Shah readily agrees. “It is a difficult proposition, but then, if one wants success with all that comes with it, one has to put in the effort.” %%
Going back to the aspect of “innovation”, Shah feels that this can be done at every level. He cites the example of a project of Navvya Jewellery Pvt. Ltd, of which he is a part, for Rio Tinto’s Nazraana programme. Nazraana targets the wedding gifting segment – but differently. It is not about individual gifts; but gifts purchased by the bride or groom’s family in bulk; to distribute to family, or exchange between the families of the two. For this, Navvya worked at two levels – to introduce new categories of jewellery; and to use the wedding story as inspiration for design. For the former, apart from the regular pendants, judaa pins and cufflinks, they developed button caps – which can be placed over an ordinary shirt button; and phone, watch and belt enhancers, which can raise these everyday objects to a glam level on special occasions. Taking the cue from various ceremonies like the mehendi, sangeet and the main religious marriage ceremony, they developed designs to evoke elements of these functions. “The response was fantastic and we booked orders from each and every one of the retailers we met,” says Shah. This clearly was because Navvya was offering retailers something which was different, something not offered by others. %% Jewellers are rising magnificently to meet the immediate challenges posed by the situation and to satisfy consumer demand, by making changes in the product. But it may be as well for this industry to begin also thinking of how to take the category as a whole ahead, how to further innovate its product. So that instead of merely reacting, it can actually lead the market. So that the jewellery category as a whole stays on top of the charts, and the consumer is not enticed to stray away from the glittering path.
Harshad Ajoomal
{{We have to create volume – achieve a spread – without increasing gold or diamond content. - Harshad Ajoomal}}%%
Hemant Shah
{{There is simply no innovation in the jewellery product. And that is a big challenge for us - Hemant Shah}}%%
Kishor Seth
{{Consumers feel, ‘if we are paying so much money, we want something special, something different’. - Kishor Seth}}%%
Kamal Rastogi
{{Earlier we had three levels of jewellery, which also reflected the different segments of consumers. Now we have only two levels left. - Kamal Rastogi}}%%
Pankaj Parekh
{{Gold sale is increasing in volume, but sale of jewellery by volume is not. Artisan sale has reduced. - Pankaj Parekh}}%%
{{Our consumers are not, in general, ready to go in for alternative materials – for the Indian consumer, you have to keep it precious. - Ajay Leekha}}%%
{{We now have the technology to make good quality 14k jewellery, which earlier was not so widely available. - Chandrakanta Roy Chowdhury}}%%
{{We shifted to CAD-CAM and reduced our gold wastage by 15 per cent to 17 per cent, as a result. - Jeet Mordani}}%%
{{|*The talk of the town in jewel land is the sky rocketing prices – of precious metals, diamonds and coloured gemstones. And they continue on their upward trajectory. The vast majority of people are certainly feeling the pinch.%% On the other hand, the consumer has evolved over time into a person with a different lifestyle, different approach and different needs. What has this meant in terms of the jewellery product? How has it changed in recent times? How are manufacturers and retailers coping with the rising raw material cost on the one hand, and a demanding and discerning clientele on the other? %% As she goes in search of answers, Nilan Singh finds that the hardy jewellery industry has come up with a variety of methods to face the situation, some obvious, some interesting. *|}}%% There have been few issues about which there has been such unanimity in the jewellery industry, as there is about the soaring prices of raw materials – gold and diamonds mainly – and the widespread impact this is having on the trade. It’s not that consumers are not buying jewellery, it’s not that jewellers don’t have sales or profits; but it is turning the business topsy turvy, and throwing up challenges not encountered before. To buy or not to buy raw materials? To book orders or not to book? How do you price the products? What to stock? Where to source from? What sort of designs to develop? To add to this, the consumer today is cast in a different mould from previous generations. She is imbued with greater awareness, has greater knowledge and greater access to information. She is more demanding and more exacting. Faced with a challenging situation, the jewellery industry has come up with some “crafty” solutions – literally. They are going back to the drawing board and the factory to create a different kind of product – jewellery that will be more appealing to both, the consumer’s pocket and palate.
“Prices have been increasing phenomenally – especially over the last year – and were initially being absorbed by the consumer,” says Harshad Ajoomal, designer and the man behind the eponymous retail brand, with a boutique in the tony Palladium mall in central Mumbai. “Today, a piece which earlier cost say Rs. 1.0 lakh to Rs. 1.5 lakh, could cost upwards of Rs 2 lakh. Or, in the same budget, the consumer will get a piece which looks smaller, has less gold and diamonds and gemstones. And neither option is appealing to the consumer today.” %% Umesh Rastogi of Dehradun-based Kamal Jewellers has a different clientele, but he too bemoans the “lack of choice” left to the consumer. “Earlier we had three levels of jewellery, which also reflected the different segments of consumers” says Rastogi. “Now we have only two levels left – one which has a set of about 12-15 gms of gold and another level which has a set of 100-150 gms of the metal. One entire section in-between seems to have gone out of the market.” However, he feels that earlier no one really went in for diamonds, but now “diamonds are everywhere and in demand from everyone”. Narrating his experience, Jeet Mordani of Jewelry Unlimited, a wholesaler and retailer operating out of Mumbai, says, “There are two types of consumers: the rich class, who, as a result of the various developments in the country, have become richer and to whom these prices make little difference. But they are not interested in the normal, ordinary jewellery. They want high-end goods. The middle class, on the other hand, finds it increasingly difficult to make purchases. I have so many people who come again and again to look at jewellery, but keep going away without buying anything as they just can’t afford it.” %% Kishor Seth of Batukbhai Sons Jewellers of Nagpur reflects another facet of the consumer today. “The importance of design has increased tremendously,” observes Seth. “Consumers feel, “if we are paying so much money, we want something special, something different”. It’s not quantity (investment) buying, so they want something stylish. So much so that we have had to set up an entire design studio on the first floor of our showroom, and designers are always available to cater to our clients on-the-spot.” %% This is also true of customers in other places particularly in metros like Delhi, where Ajay Leekha of Adamus, a design-led jeweller, is based. “Unlike earlier generations, today’s consumers are not buying jewellery strictly for investment,” he says. “Also, there are more and more people who do not ask for break-ups. They are, first and foremost, interested in design, about%% which they are very conscious and aware. In that sense we are not competing with each other locally, we are competing with international jewellers.”
Whether the consumer is making a casual purchase or a wedding purchase, one important factor underlying it, as all jewellers agree, is that jewellery bought should be cost effective and give the consumer a feeling of having obtained value for money. Meaning, it should look large and glittering, but not cost as much as the large look would otherwise have dictated. This look has been defined differently, and achieved in different ways by jewellers as well. %% “We have to create volume – achieve a spread, especially in terms of gold – without increasing gold or diamond content” explains Ajoomal. There are several measures that he has taken, which he rattles off in a spate. What is amazing, and actually indicates how much effort has gone into thinking this through, is that the final effect of his jewellery remains unchanged – stunningly creative. “We have begun using CAD for some aspects of the jewellery. Through precise and efficient planning, it helps us reduce gold wastage,” Ajoomal says. “We also use silver or brass for model making so we don’t lose gold in the design development stage, by making and melting down a product. We’ve tried to reduce the use of too much pavé and use prong setting instead which gives a fuller look – also I think people have had too much of pave so it makes for a change. We use less channel and bezel setting as that tends to cover a larger portion of the diamonds; use baguettes less as they don’t have so much sparkle and you need to use many of them together to achieve an impact; use less white diamonds, and more coffee and black diamonds; and use a variety of coloured stones including lesser known ones which are far less expensive but are extremely stylish. For example, I’ve been using pieterside from Africa. We’re also using more opals, jade, amethyst and so on.” %% Colouredstones, Ajoomal says, are back as a trend in a major way in the international market, from which Indian jewellers take their cue. Apart from the three biggies – emerald, ruby and sapphire – there is a host of stones available which are lower priced and can be used in larger sizes to create an impact, like agates, carnelians, amethysts and of course rubelite and tanzanite which are really catching on, but whose prices are also fairly high. Enamel, too, has found popular use to introduce colour at a lower cost. %% Leekha affirms the increase in the use of colouredstones in jewellery. “I don’t do diamond jewellery anymore,” he says. However, he feels that though consumers place a keen emphasis on design, Indians are not yet ready to take a leap in that respect. “They don’t want anything really wild,” he explains. “At IIJS you see some wood based pieces and so on. But our consumers are not, in general, ready to go in for alternative materials to any great extent. We use mother-of-pearl, but it has now become part of the list of semiprecious stones. Then we use beryls, and even conch shells. But that is to emphasise the design aspect. Otherwise for the Indian consumer, you have to keep it precious.” Leekha also says that through greater control and discipline on the manufacturing process, they have managed to increase efficiencies. “India is fortunate to have extremely skilled craftsmen and they can achieve a great deal,” he says. %%
Mordani, who mainly deals in diamond studded jewellery – embellished of course with with colouredstones – talks of creating a “jaali” look, using the element of “vacant spaces” in the design to reduce gold and diamond content, while still maintaining a “chunky” feel, as one method of dealing with the situation. He is another one who has shifted to using CAD-CAM with good results. “Two years ago, when we saw that the gold prices kept rising, we stopped doing purely handmade jewellery and shifted to CAD-CAM,” he informs us. “We have managed to reduce our gold wastage by 15 per cent to 17 per cent, as a result.” Needless to say, this has made a significant impact on the pricing. %% Reflecting upon another impact of high prices, Mordani says that as a wholesaler he has found that for the last couple of years – particularly since 2008 – the North Indian market has begun using 14k gold to a large extent. “About 60 per cent to 70 per cent of my sales to clients in the North are of 14k jewellery,” he says. Interestingly, last year at the IIJS when booking new orders, he says he was able to “convert” some new clients to 18k. “I explained to them how, by using CAD-CAM, I was able to control the prices. And that they could get 18k jewellery at comparative and competitive rates,” he says. “And they preferred to opt for 18k pieces.” %% Batukbhai has taken yet another approach to give the consumer the satisfaction of having got value for money. “We have introduced ‘changeable’ jewellery, with ’folding’ systems,” Seth says. This means that jewellery is designed in a manner which will allow consumers to mix and match, use it in part or whole, the effect being of having more pieces of jewellery for the price of one. “In one design we have introduced a centre stone which can be unscrewed and changed by consumers,” he explains. “They can buy different coloured centre stones so one day they can wear a red stone, another time they can use a green stone to match it to different outfits.” Batukbhai has also changed the typical kundan jewellery by adding diamonds and pearls in the design. “Suppliers have understood the changing pattern of consumer demand, and have adjusted accordingly, supplying both lighter pieces as well as different designs,” Seth adds. %% The general consumer for gold is no different. Rastogi also emphasises that it was necessary to provide a larger look but maintain prices. Interestingly, Rastogi reveals that the high prices have even impacted his sourcing pattern. “Earlier we carried a lot of jewellery from Kolkata, which is very heavy,” he elaborates. “Today, we are replacing much of that with jewellery from Ahmedabad, as their thapa-work is much lighter than Kolkata jewellery.” %%
However, it’s obvious that Kolkata is not taking this lying down and has created its own answer – chowmien. Might sound strange but read on. “Thash Paktar is one of Kolkata’s popular styles,” explains Pankaj Parekh, Senior Partner of Alankar and GJEPC’s Chairman - Eastern Region. “It is basically a composition of multiple wires composed together in different designs. It tends to be heavy as a result of a large number of wires used. Now, there is a tendency of using less wires – say you were using 23-24 in an area, now you use only 12 or 11 – and also place them in such a way – banka, teda, banka, teda – that a volume look is achieved keeping the weight down. It creates a mesh effect and looks decent.” Then, he adds on a lighter note, laughing, “We call it ‘chowmien’ jewellery.” %% Parekh introduces another aspect into the discussion, something to ponder upon. “Gold sale is increasing in volume, but sale of jewellery by volume is not. Artisan sale has reduced,” he says. “However, retailers’ cash registers are ringing, their turnovers are increasing in rupee terms. And the sale of bullion - of bars and coins – has increased.” %% The increased off-take of bullion, both gold and silver, is due to rising metal prices, he feels. In a way, he feels, the gold jewellery market is being eroded by a three-way pull in other directions – gold bullion, silver and diamonds. %% Chandrakanta Roy Chowdhury of M.P. Jewellers of Kolkata, elaborates on some measures that they have been taking. “We have made adjustments in some areas like lowering the gauge of the frame used for some types of jewellery, or introducing the use of materials like plastic and other metals for these frames too in certain cases,” he says. “Also, in Kolkata the white and red bangles in demand for weddings were earlier made of ivory and coral. Today of course ivory is banned. But we can create a good design effect by using shell for the white ones and a plastic mould for the red. Then there is the use of enamel to introduce colour which reduces the price.” He is yet another jeweller who stresses the importance of control over the fabrication aspect. “Our artisans are very capable but they have to be counseled and taught how to produce say a 45 gm design in 25 gms.” %% Another aspect Roy Chowdhury highlights is the change in the karatage of gold usage, the trading down effect that has taken place. With diamond jewellery taking off in a big way in the country, a segment of the wedding jewellery market is moving from 22k to 18k (the general karatage for diamond set jewellery), and some types of diamond jewellery are moving from 18k to 14k gold. “We now have the technology to make good quality 14k jewellery, which earlier was not so widely available,” Roy Chowdhury says. “The challenge lies in maintaining the sheen and the colour by using the right mix of alloys. Today there are so many alloys available commercially in the market that you can get virtually any colour for gold jewellery – green, purple, blue, you name it.” %%
The rising and high diamond prices, and the uncertainty whether these will come down or continue to climb is, however, confounding the trade, Roy Chowdhury feels. “There is an impact on the procurement part, and people are undecided about what to do,” he says. Another impact is on the quality of diamonds being bought and sold. Industry insiders say that there are some retailers who have not increased their diamond prices but simply lowered the quality they offer. And, as there is little transparency on diamond pricing unlike for gold, and even less awareness amongst consumers, these particular retailers get away with this. %% The dilemma lies for the mainstream retailer who has built his reputation on transparency, full disclosure, and absolute honesty both on the gold and diamond front. Some of them have even prided themselves on working only with the better end of diamonds – G-H / VVS. Now buyers – both retailers and consumers are asking for jewellery with slightly lower rung of colour and clarity. Mordani, Ajoomal and Roy Chowdhury all confirm this. While so far they have held out, the consensus as articulated by Roychoudhury seems to be, “Well if there is a demand for trading down in diamonds, we can consider doing that,” he says, “but only with full disclosure to the consumer and at their request.” So much for all the steps that are being taken to mould the product to better suit the consumers’ pocket and palate. But when we try to question the guru of “uncommon” sense of this industry, he bowls us a googly and introduces a totally different, seemingly tangential, but ponderous aspect. “There is simply no innovation in the jewellery product,” says Hemant Shah, Director of Global Marketing, Hammer Plus. “And I am not here speaking at the level of rings and earrings and necklaces and so on. I am speaking of the category as a whole. And that is a big challenge for us. When the consumer goes to buy other products, he has vast choice, he has a variety of options.” %% At another level, Shah points out to the lack of identifiable branding within the industry. “Jewellery is not visually identifiable, as other brands are like Gucci, Louis Vuitton etc,” he avers. “There are some international jewellery brands which have been able to achieve this, like Tiffany’s, Cartier, Van Cleef & Arpels and Mont Blanc. And these brands then popularise the ‘motif’ through a spend on advertising and promotions (which again is an aspect the Indian industry is sorely deficient in). It is then that the brand really comes into its own. Indian jewellery lacks the ‘Oomph value’, the flaunt value that successful brands have.” Of course, as everyone knows, for the jewellery product, this is not easily achieved. Shah readily agrees. “It is a difficult proposition, but then, if one wants success with all that comes with it, one has to put in the effort.” %%
Going back to the aspect of “innovation”, Shah feels that this can be done at every level. He cites the example of a project of Navvya Jewellery Pvt. Ltd, of which he is a part, for Rio Tinto’s Nazraana programme. Nazraana targets the wedding gifting segment – but differently. It is not about individual gifts; but gifts purchased by the bride or groom’s family in bulk; to distribute to family, or exchange between the families of the two. For this, Navvya worked at two levels – to introduce new categories of jewellery; and to use the wedding story as inspiration for design. For the former, apart from the regular pendants, judaa pins and cufflinks, they developed button caps – which can be placed over an ordinary shirt button; and phone, watch and belt enhancers, which can raise these everyday objects to a glam level on special occasions. Taking the cue from various ceremonies like the mehendi, sangeet and the main religious marriage ceremony, they developed designs to evoke elements of these functions. “The response was fantastic and we booked orders from each and every one of the retailers we met,” says Shah. This clearly was because Navvya was offering retailers something which was different, something not offered by others. %% Jewellers are rising magnificently to meet the immediate challenges posed by the situation and to satisfy consumer demand, by making changes in the product. But it may be as well for this industry to begin also thinking of how to take the category as a whole ahead, how to further innovate its product. So that instead of merely reacting, it can actually lead the market. So that the jewellery category as a whole stays on top of the charts, and the consumer is not enticed to stray away from the glittering path.
Harshad Ajoomal
{{We have to create volume – achieve a spread – without increasing gold or diamond content. - Harshad Ajoomal}}%%
Hemant Shah
{{There is simply no innovation in the jewellery product. And that is a big challenge for us - Hemant Shah}}%%
Kishor Seth
{{Consumers feel, ‘if we are paying so much money, we want something special, something different’. - Kishor Seth}}%%
Kamal Rastogi
{{Earlier we had three levels of jewellery, which also reflected the different segments of consumers. Now we have only two levels left. - Kamal Rastogi}}%%
Pankaj Parekh
{{Gold sale is increasing in volume, but sale of jewellery by volume is not. Artisan sale has reduced. - Pankaj Parekh}}%%
{{Our consumers are not, in general, ready to go in for alternative materials – for the Indian consumer, you have to keep it precious. - Ajay Leekha}}%%
{{We now have the technology to make good quality 14k jewellery, which earlier was not so widely available. - Chandrakanta Roy Chowdhury}}%%
{{We shifted to CAD-CAM and reduced our gold wastage by 15 per cent to 17 per cent, as a result. - Jeet Mordani}}%%

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