"This Committee will develop a Global Strategy, which uses our collective resources to create a campaign & a positioning that builds a relevant as well as an appealing image to younger audiences and modern consumers," he added.
"The Committee has been constituted a assist the industry to put in place the specific industry infrastructure required to add value to our respective businesses," says Dr. Walker. "We are all here with a unified purpose - to convene, interact, debate and, as a result, to set new global standards in production, marketing and regulation across all areas of our business. I feel that we have succeeded to do all this over the last couple of days and are now in a position to consider the creation of a worldwide jewellery marketing body," he added.
DTC Assurance:
"Every single person in the value chain is thinking about innovation - a responsibility that should be assumed by the industry as a whole. I'm more than delighted to participate in this initiative and as a group DTC is willing to create a platform for the benefit of all," commented Jonathan Chippindale.
Branded Jewellery Lagging:
On the second day of the Conference, while speakers were focussing the need to boost jewellery, one of them revealed the surprising fact that so far branded jewellery claims only a 5.5% (US$ 7 billion) share of the nearly $ 130 billion global jewellery sales, while perfumes and watches have switched over to branded varieties by 80%!
Jignesh Shah M.D. of Multi Commodity Exchange of India briefed the Conference about India's experience about multi commodity dealings.
Highlighting the strategic importance of this event to the jewellery industry, key sponsors included WGC, Standard Bank and global industry leaders including American Express, DCB, Diamond Trading Company, Fiera Di Vicenza, Perles de Tahiti, National Bank of Dubai-Scotia Mocatta and UNOAERRE. It was organized with the support of the Dubai Metals & Commodities Center.
After observing Dubai's current precious position, I went about assessing its progressive future prospects. In this exercise I found Rosy blue's Harshad Mehta very well-informed and helpful. He views the future of Dubai optimistically and foresees progress by leaps and bounds. Somewhat surprisingly he predicted that soon this fast track Emirate will be known as not only the Gold City but also 'Gold and Diamond City'.
Cavalieri Lauds Abdullah's Initiative
Gaetano Cavalieri, President of CIBJO, The World Jewellery Confederation, has praised the pledge made by
Tawhid Abdullah, the head of the Dubai Gold and Jewellery Group, at the Third Dubai Conference to raise the equivalent of US$ 1million to advance an integrated, global plan for marketing jewellery in the luxury product consumer markets. "This is a tremendous step forward in the global effort to promote jewellery sales worldwide," Cavalieri stated. "As the President of CIBJO's Marketing Commission, which was formed at the CIBJO Congress in 2004, Abdullah has shown great leadership.
Committee for Global Initiatives:
At the third Dubai City of Gold Conference participants agreed to establish a committee that would endorse a single, focused initiative to help in market jewellery effectively. Paul Walker, CEO of Gold Field Mineral Services, was selected to chair the Committee, which was charged positioning jewellery against other lifestyle options in the market and achieving real growth. The Conference agreed that a unique opportunity had been presented for all segments of the precious metals, gemstone and jewellery value chain to act together.
Emphasis on More Publicity:
Cavalieri was one of the main speakers in a session dedicated to "Global Jewellery Marketing." In his speech, the CIBJO President warned that the new-and often quite young-consumer markets may need special attention, in order to convince its consumers to purchase jewellery. "In this information age, the younger consumers especially may be losing interest in jewellery products. Not only are they being enticed by other products that are highly appealing to them but they may not even find the marketing message of jewellery appealing enough," Cavalieri noted.
Harshad Mehta predicted that up to 2007 more diamonds will be sold in Dubai than India through tourist business. Here retail business is very flourishing. Out of 800 retail jewellery store 60% are now offering diamond jewellery.
He revealed that diamond jewellery is retailed cheaper in Dubai compared to USA or any other place. The credit available to the jewellery manufacturer on diamonds is from 6 to 9 months but the money involved is secure.
Harshad Mehta opined that gold jewellery in Dubai has purity, good designs and competitive, the margins are limited, hence customers get good value; the retailers also have more turnover.
Much More Advertising Needed
Realizing that traditional gold jewellery in losing ground gradually, the big wigs of the sector had to sit up and take note at Dubai, to fuel a global remedial thrust. One may ask - Why is drastic action needed? Because if they don't act today, the potential customers of tomorrow will be lost to the luxury goods industry forever, confining gold to history as a relic of a bygone age.
The problem is young Indian women. Traditionally, this group has driven the world's gold jewellery industry. At weddings, Diwali and birthdays, Indian damsels aspire to receive as much ornate jewellery as their friends and relatives could afford.
Jewellery makers have assumed this passion for precious metal would last forever. It has not. Abdullah is the first to admit that his chain of gold shops is struggling to attract customers in the 15 to 25 age bracket.
He says that globally, the gold jewellery business spends 0.1 per cent of its revenues on advertising. Compare that with the likes of Louis Vuitton who spend around ten per cent of their revenues on advertising - 100 times more than jewellers!
The World Gold Council has run a global marketing campaign specifically targeting younger women. And the industry is designing contemporary jewellery in 18 and 22 karat gold - less yellow than the pure 24 karat gold cherished by older generations of Asians - to win over a younger audience.
It has enjoyed some success. Figures from the Council will show that global jewellery demand increased in 2004, for the first time since 1997. But still jewellers must not get complacent and believe that the job is done.`
According to Harshadbhai, Indian jewellery has no market in Dubai, because local jewellery is better than Indian products. Additionally, jewellery from Turkey and Italy is also coming to Dubai, with which India is not in a position to compete.
Harshad Mehta expects Dubai to be the next main diamond trading center which would also sell rough from various sources to diamantaires. In this context he noted that most of India's rough diamond buyers travel to distant Antwerp. But after Dubai's Almas Tower is commissioned and rough is offered to them here, Indian buyers would prefer to fly to Dubai which is only 3 hours away from Mumbai by air. He added that Dubai is destined to achieve much more than presently foreseen. The present Capital of Gold is to become the Capital of Gold and Diamonds!
Fabulous Royal Purchases!
royal_purchase
Harshad Mehta revealed an interesting exceptional fact of the growing diamond jewellery trade in Dubai. He recalled that the Royal family places huge orders amounting to millions, sometimes for as many as 50 or 100 sets of diamond jewellery! Whenever there is a birthday celebration or some other function in the Royal household, diamond jewellery sets are gifted to near and dear ones to commemorate the occasion and share the joy generously.
He added that because of the growing diamond market; Indian nobles like Super Gems, Rosyblue, J.B. Jewellery, Diasqua, etc. have already branched out to Dubai and many more are planning to join the expansion.
deven_vakil
Gradual decline in gold as the dominating commodity has been noticed lately. Much gold used to be smuggled to India from Dubai. Additionally the large number of Indians employed in Dubai used to carry gold when returning home. But lowering of duty on gold in India has reduced the price differential, therefore demand for gold has declined sharply, with the result that those dealers who were offering only gold jewellery, had to take on diamonds & colored gems studded jewels for survival.
I also had a chat with a dealer of the Gold Souk area, who has started retailing diamond jewellery as well. He disclosed that most of his customers are Europeans. When they find the price level cheaper here, they prefer to purchase diamond jewellery. He added that the publicity undertaken by De Beers since last year has boosted diamond jewellery sales. Deven Vakil of J.B. Jewellery was happy to report that his jewellery sales have doubled over the last 2 years.
Good Going on the Business Front
hareshbhai_ashok_sakaria
who has been running an office in Dubai for the last 3 years, said that in Dubai his firm's main focus is jewellery made in India and Thailand. We doing very good business and our customers too are very satisfied. We are selling mostly to wholesalers. We are selling commercial range. In Dubai we are getting good facilities. Every year we are increasing our sales", he told me.
Our current plans are to develop jewellery manufacturing with new technology.
New Factory
He added that in India they have just started a factory with 150 workers. This number will eventually go up to around 400. They are exporting to Europe also.
"In Dubai we are selling diamonds on credit basis while jewellery is offered on cash terms", he said.
Hareshbhai Sakariya is the Managing Director of H. Vinodkumar & Co. while Dinesh Sakariya is managing the Dubai office.
Indian jewellers at Dubai generally acknowledged that they are fearing keener competition with jewellery from Lebanon and Turkey because their jewellery designs are more Arabic which appeal to the connoisseurs of Dubai. Jewellers here generally stock two categories of good. One category for catering to European taste moves in wholesale business. The other conforming to Arabic taste is exclusive, of high range and best quality. It is for the Royal family or sold at selected stores at malls. Jewellers selling Arabic jewellery here are usually those who are also doing jewellery business at Kuwait, Abu Dhabi, Muscat, Qatar, etc. In Saudi-Arabia, these big operators have about 15,000 showrooms & enjoy brisk jewellery sales.