GJEPC to promote diamond jewellery in 16 cities

Rahul Kapoor - Televisionpoint.com | Mumbai
The Indian diamond industry is shoring up the recession-hit segment. For the first time, diamond jewellery sales in India will touch about Rs 25,000 crore this fiscal, which is a massive shift for the troubled industry as India has traditionally been a gold jewellery market.

The estimates for the fiscal year 2009-2010 are of paramount importance as last year the sales were in the range of Rs 18,000-19,000 crore. The 20 per cent growth in the business is being attributed to the growing popularity of diamonds along with the increasing acceptability of the precious stone among investors.

Diwali festival sales contribute more than 25 per cent to the total diamond jewellery sales. This festive season, the diamond jewellery demand will be 50 per cent higher compared to the last year, says Kundanlal Verma, chairman and managing director, Karni Jewellers, a leading exporter of diamond and antique jewellery.

The changing consumer preference towards diamond jewellery may be attributed to the rising gold prices. Gold is hovering around Rs 16,000 per 10 gm, a reason enough for buyers to go for light weight gold jewellery, studded with diamonds.

India's total jewellery business is around Rs 1.75 lakh crore. Gold prices are at their peak and consumers are purchasing diamond-studded gold jewellery in which the proportion of gold is minimised, points out Verma.

The Indian diamond industry has faced turbulent times after September 2008, when demand from the US and Europe touched its bottom. The industry has since been promoting Indian diamonds in China and the Middle East belts, apart from the domestic market.

Meanwhile, the Gem and Jewellery Export Promotion Council (GJEPC) will start a mass media campaign in 16 cities to promote diamond jewellery sales from September 2009 to February 2010. The ad spends are estimated to be in the bracket of Rs 18-20 crore. McCann Erickson handles the creative duties of GJEPC, and has been on the account for close to four years.

Recently, Optimum Media Direction (OMD) India has won the media duties for the GJEPC. The account was won after a multi-agency pitch involving OMD, Starcom and Lodestar Universal. There are no incumbents, as the Council has taken aboard a media agency for the first time.

"The Gem and Jewellery sector is largely unorganised and it is difficult to give exact figures on the growth trends. However, we expect good sales of diamond jewellery in the country this year," Sanjay Kothari, convenor of promotion, marketing and business development at GJEPC said.

The media vehicles chosen for the campaign includes dailies and magazines. This activity will cover major occasions in the festive season. All the advertisements will include the retailer panel to drive the consumer traffic to the participating retailers' stores. It will be supported by hoarding's and television will also be included in the media mix, informs Kothari.

Consumer awareness about diamond certification is increasing and it is helping branded players to gain more business. "Demand for diamond and colour stone studded gold jewellery is not increasing just in metros, but also in medium and semi-urban areas." says Kothari.

For the record, the GJEPC was set up in 1966, and over the years, it has effectively moulded the scattered efforts of individual exporters to make the gem and jewellery sector a powerful engine driving India's export-led growth. With 6,500 members spread all over the country, it is involved in introducing Indian gem and jewellery products to the international market and promote exports.