Signature makes its mark on India’s jewellery industry
By Peter Saunders
When Jewellery Business first visited the India International Jewellery Show’s (IIJS’s) spinoff Signature event in 2009, the invitation-only, high-end showcase of diamonds, gold jewellery, and precious stones featured 72 exhibitors and was held at Kala Academy in Goa, far from the hustle and bustle of India’s big cities.
The following year, however, the Gem & Jewellery Export Promotion Council (GJEPC) moved the event to Mumbai—also the site of IIJS—allowing Signature to grow in both size and stature.
The effect has been significant. At this year’s sixth annual event, which took place from Feb. 22 to 25 at the Bombay Convention & Exhibition Centre, more than 570 exhibitors with 1083 booths welcomed approximately 7000 visitors from across India and abroad, with intricate enamel work, Indian motifs, and filigree dominating the style of the season.
In comparison, the facilities in Goa could only have accommodated up to 225 booths, a far cry from the convention centre’s more than 30,000 m2 (322,917 sf) of floor space for Signature 2013, including expanded sections for gold and studded jewellery, plus the addition of grading labs.
“We’re proud to inaugurate the largest Signature exhibition yet,” said Haresh Zaveri, GJEPC’s convener of national exhibitions. “We look forward to more milestones in the future.”
A different model
In the face of such rapid growth, it has taken careful positioning to distinguish Signature from the main attraction of IIJS. Signature’s show floor is still much more compact, India’s leading manufacturers are favoured as exhibitors, and most buyers from the retail sector arrive in groups, including foreign delegations from China, Turkey, Russia, Bangladesh, Thailand, Nepal, Uzbekistan, Saudi Arabia, Iran, and the United Arab Emirates (UAE).
“I have been attending Signature since 2008,” said Zhang Qi, representing China-based Gemdem Diamond. “Over the years, there is a much better choice of good suppliers.”
According to Ipsos Business Consulting, Signature 2012 generated $128 million in business, a figure the 2013 show was expected to top.
“Signature is a platform where international and national retailers and manufacturers come together to forge long-lasting relations that enable business transactions year-round,” said GJEPC chair, Vipul Shah. “A couture show has evolved into a significant sourcing event for premium retailers.”
International exhibitors included the Israel Diamond Institute (IDI), for the third year in a row, and the Antwerp World Diamond Centre (AWDC), which called Signature a successful opportunity to meet with prospective buyers, governmental organizations, and leaders of the world’s most important jewellery companies.
“Signature’s growth is somewhat fuelled by the waiting list for IIJS,” Sanjay Khotari, former chair of GJEPC, explained to Jewellery Business, “but it’s still a different model, as all the guests are here by invitation. They enjoy more attention being paid to them, while the exhibitors like the smaller crowd because of these visitors’ buying power. And most buyers prefer to come to Mumbai than Goa, as here they can also visit the Opera House diamond-trading district.”
Made in India
Indeed, Signature’s growth has mirrored the increasing sophistication of India’s jewellery industry. Currently, GJEPC reports diamonds account for 54.5 per cent of the country’s total jewellery exports, followed by gold jewellery at 38.6 per cent, rough diamonds at four per cent, and coloured gemstones at nearly one per cent. Additional bourses are being considered to further develop India’s status as an international diamond trading hub.
“We’re also working to get more rough diamonds sent here direct,” said Khotari. “There is also a need to brand jewellery as ‘Made in India,’ first locally and then around the world.”
To reduce dependence on North American and Western European markets, GJEPC has focused in recent years on sales to China (especially Hong Kong), the UAE, and the former Soviet republics in the Commonwealth of Independent States (CIS). The council also organizes ‘India pavilions’ at other jewellery exhibitions around the world.
“In an industry that has been nurtured over generations, I am happy to see the level of modernization, awareness of certified products, and regulatory framework that have been exhibited,” said Rita Menon, chair and managing director of the India Trade Promotion Organization (ITPO). Menon attended as a guest of honour and is now working with GJEPC to launch its first business-to-consumer (B2C) initiatives and to network with other trade promotion councils in Asia. “ITPO will leave no stone unturned to promote the industry, which has a great future.”
Sold in India
Not only is India the fastest-growing jewellery exporter in the world, averaging 15 to 20 per cent growth in each of the past 10 years, but its domestic market is also burgeoning, as economic growth has led to greater local buying power.
“India over the last decade has been the fastest-growing diamond jewellery market, even surpassing China,” said Stephen Lussier, chief executive officer (CEO) of De Beers’ Forevermark Diamonds business, which entered the Indian market in 2011. “As that demand continues to grow, Signature is becoming one of the most significant industry events in the world.”
Economic growth also poses challenges, however, as local costs rise across the board.
“Labour costs are bound to go up, but in relative terms, the devaluation of the Indian rupee has helped keep them low,” Pankaj Parekh, vice-chair of GJPEC, told Jewellery Business.
Recently, GJEPC joined the All India Gems & Jewellery Trade Federation (GJF) in lobbying against a government-proposed increase in the import duty on gold.
“Gold exporters do not have to pay an import tax, but when the bank provides duty-free gold, they have to export it within a certain period and pay for a bond,” Parekh explained. “The bank guarantee used to be three per cent and recently became six per cent. So, even an exporter’s costs go up.”
The lobbying was successful. By the end of February, India’s government announced the import tax would not be raised.
