Abstract
Synopsis
Indian G&J ........Making a Steady Headway
India is the world' s largest diamond-processing centre, cutting and polishing
more rough diamonds than any other country. A significant proportion of these
polished diamonds are then exported to markets like the UAE, USA, Hong Kong
and the European countries. Diamond export contributes substantially to
India' s total exports and is supported by favourable initiatives from the
government
The Indian G&J industry can be classified into various sub-segments like
diamonds, coloured gem stones, gold and silver jewellery, pearls, etc.
However, the two major segments in India are gold and diamonds.
The industry is characterised by a significantly large unorganised sector,
labour-intensive operations, high working capital & raw material
intensiveness, gold price volatility and export orientation. The demand for
gold and diamond jewellery is driven by festivals, weddings and gifts during
special occasion; the increasing affluence of the middle class population and
the increase in per capita spend on luxury items.
Though India plays a dominant role in the G&J industry in terms of processing
and consumption, mining of gold and diamond is amongst the lowest in the
world. India imports gold and rough diamonds along with other precious metals.
Gold is purchased from countries like Switzerland, South Africa, Australia and
UAE and rough diamonds are sourced from Belgium, UK, Israel and UAE. Despite
record high prices of gold in the last couple of years, consumers have
remained bullish on the precious metal and there is an increased
investment-related demand for gold. The same can be attributed to buying safe
heaven asset and inflation hedge.
In terms of value chain, India is quite low currently but is constantly
striving to move up the ladder to designer and branded jewellery segment where
there is higher profitability and potential. Another factor that is driving
India to move up the value chain is other low cost countries like China are
trying to carve their niche and clinch market share from India' s current areas
of strength.
CARE Research expects organised retail to grow because of the changing buying
preference of the increasing younger population through the introduction of
hallmarking and certifications. The key drivers for growth in the industry are
rise in disposable income, conscious marketing efforts and increasing working
population with the urge to spend on jewellery since it' s regarded a fashion
accessory. Branded jewellery consumption is increasing in line with increase
in number of jewellery brands in the country. High-end luxury jewellery sales
is also increasing due to many factors such as availability of talented pool
of jewellery designers, low-cost but quality base and understanding the likes
and dislikes of end-user market.
Indian G&J players are recognizing the importance of diversifying their
business to emerging markets like Far-East and the Middle East and not
completely relying on the US as was the case before the financial crisis. We
now expect emerging market countries to be the engines of future growth for
the diamond market as the demand from developed countries will remain subdued
for some time to come.
Based on the gradual recovery in the global markets, CARE Research has
analysed some of the leading indicators that signal a growing momentum in the
Indian G&J sector. Factors like significantly lower inventory levels as
compared to the period of financial crisis, a huge jump in export numbers,
lower unemployment levels and increase in branded retail jewellery segment,
all reveal a steady headway in the sector which was so critically impacted
during the financial crisis when demand from developed countries plummeted.
For an in-depth analysis and CARE Research' s forecast of this sector, please
refer to the exhaustive Report on the Indian Gems and Jewellery Industry by
CARE Research.
Table of Contents
Index
Section - I
- 1. Overview of Global G&J Industry
- 2. Overview of Indian Gems & Jewellery Industry
- 3. Outlook and Key concerns
- Changing trend in Indian G&J Industry
- 4. Industry Characteristics
- Raw Material Intensive Diamonds & Gold
- Labour Intensive
- Working Capital Intensive
- Export Oriented
- Domestic Retail Jewellery, largely an unorganized sector
- Certification
- Branding
- 5. Cost Analysis
- 6. Demand Drivers for G&J industry
- 7. Gems & Jewellery Industry Scenario
- Market size of G&J industry
- Share of diamond and gold jewellery
- Gold and Diamond Demand Geographically
- Pricing analysis of gold and diamond
- Export-Import in G&J
- 8. Supply dynamics
- 9. Value Chain Analysis
- 10. Retail Industry in India
- Luxury retail in India
- Retailing in G&J industry
- Luxury Retailing in G&J Industry
- Key jewellery retail industry demand drivers
- 11. Competitive Landscape
- 12. Government Support and Policies 13. Company Profile
Section - II
Index Figures
Section - I
- 1. Key World Markets for G&J
- Global Jewellery Segmentation by CY2015e
- 5 Cost Chart for key Export Oriented companies (FY10-11)
- Cost Chart for key domestic organised retail companies (FY10)
- 6. Average Households Savings Pattern
- Increasing Disposable Income in India
- 7. Indian G&J Exports (US$ bn)
- Indian G&J domestic market (US$ bn)
- Indian Jewellery Segmentation FY2010
- Indian Jewellery Segmentation FY2016e
- Region-wise Market Segmentation Gold (India)
- Geographical Segmentation - Diamonds
- Gold Price and Volatility Chart
- Gold price trend in India- Rs. Per 10 grams
- Polished Diamond Price Indexation
- Major G&J export Destination for the year 2010-11
- 8. Top 6 Gold producing companies in world
- Top 6 Gold producers by Proven and Probable Gold Reserves (million
ounces)
- Total World Rough Diamond Production (CY basis)
- Gold mining countries share (By Volume)
- 9. Moving up the value chain
- 10. Organised Retail Market size & % penetration estimates segment-wise
- Segment-wise break-up of Indian Luxury market
Section - II
- 14. Types of diamond cut
- Diamond properties and Facet Names
Section - I
- 6. Average per capita GDP (at constant prices) FY05-10
- 7. Diamond Pricing Review
- Diamond rounds price premium by size
- Export of Gems and Jewellery sector segment wise
- Country wise Exports (G&J)
- Import of RM for Gems and Jewellery
- 8. Global Gold Supply (tonnes)
- Total World Rough Diamond Production
- 10. Market size of Luxury brands in 2009
- Income Distribution of the Households
- 11. Peer comparison Snapshot Export Oriented players
