The All India Gems and Jewellery Trade Federation (GJF), a nodal agency representing 300,000 jewellers across the country, has set a 25 per cent growth target for domestic gems and jewellery sales over the next two to three years.
The Rs 80,000-crore domestic gems and jewellery industry has recently seen a 10-15 per cent decline in sales due to the global economic crisis. Exports have declined over 25 per cent as destination countries, mainly the US, are going through one of the worst global economic crises.
However, in the domestic market, sales have been extremely good occasionally. Unlike overseas markets where jewellery is bought for fashion, Indian consumers see it as an investment option too.
“Domestic sales will help us achieve our growth target of 25 per cent to Rs 125,000 crore in the next 2-3 years,” said Vinod Hayagriv, newly-appointed chairman of GJF here.
GJF, in consultation with the World Gold Council (WGC), is planning to intensify promotional efforts through consumer awareness and trust-building programmes along with generic advertising to attract customers to jewellery stores.
Ashok Minawala, former chairman of GJF, said the domestic jewellery market is growing 20-25 per cent even in the current market scenario. This is likely to grow in the coming weeks with extensive efforts of the WGC. Occasions like Akshaya Tritiya, Dhanterus, Lucky Laxmi and the like are set to give jewellery sales a boost in India, he added.
The federation is planning to organise the “India Jewellery Week” in Mumbai this fiscal where participants will display their innovative designs.
“We have taken up a herculean task to build customer trust with uniform pricing across the country,” said Minawala.
Meanwhile, consumers are lured by the 30-35 per cent fall in diamond prices. Urban customers are opting for diamond instead of gold.
However, gold’s demand will continue, especially from rural India, he said.
GJF is working “Trust Mark” — a grading certification of jewellers. The membership of GJF for this mark grade jewellers based on their size and other business ethics. However, hallmarking of gold will remain mandatory.
The federation is also working on Smart Card Programme which, if implemented, will identify jewellers maintaining ethical practices. Once consumers’ trust is built, business will automatically follow.
