In order to compete in the world jewellery market, Indian jewellery manufacturers will have to modernise their products according to consumer needs, increase jewellery branding and explore options of entering into joint ventures with American and European producers, Christopher Corti, manager, international marketing of the World Gold Council said.
Speaking to Business Standard, he said: "The designs of Indian jewellery are very traditional and heavy, making them unacceptable as everyday wear. This is the reason that despite India being the largest consumer of gold, exports from the country is very little compared to Thailand, Indonesia and Turkey."
Although traditional Indian jewellery is accepted in various markets including the Middle Eastern market, Indian producer will have to adopt more commercial designs which are made economically, Corti said. "Jewellery manufacturers should enter into joint ventures with Italian and American companies in order to capture larger markets and enter into the retail segment in these countries," he added.
Organisations like the Gems and Jewellery Export Promotion Council (GJEPC) too would have to come forward to promote Indian jewellery as a brand overseas, he stated. The jewellery manufacturers should adopt the Sri Lankan and Maldives model and start selling in tourists areas and hotels, Corti added.
"The Indian industry needs to gear up for competition from China, Italy, and Thailand as sooner or later the tariff barriers against imported jewellery would be removed and cheaper and modern jewellery would enter the market," he said.
Saying that the Indian jewellery industry was plagued with bottlenecks like limited technology, lack of investment in infrastructure, very few joint ventures and multiple taxation, Corti added: "Manufacturers should move to special economic zones and the government should give tax incentives to jewellery manufacturers to make them competitive."
To increase gold consumption in industries the World Gold Council is also promoting the use of the yellow metal in cars engines as an auto catalyst to control pollution. "Gold holds an advantage as a catalyst as it operates at a much lower temperature, therefore as an auto catalyst it will work even when the engine is cold," Corti said.
The WGC is also exploring options of promoting gold in areas such as electronics, dental and health, he added.
