‘City of Gold conference’ focuses on integration of jewellery trade

Opening the day’s proceedings, Tawhid Abdullah, Managing Director of the Dubai Gold & Jewellery Group called on gold retailers to learn from the flexibility, marketing acumen and unity the watch industry has displayed in moving to the forefront of retail and fashion. “We have big names but we don’t have a unified voice. We need to join forces and speak in a single, loud and clear voice,” he added.

Taking a cue from Abdullah’s call, Bijou Kurien, President & Chief Executive – Lifestyle Division of India’s Reliance Retail, and V.Govind Raj, Vice President (Retail & Marketing of Tanishq, the largest player in the organised jewellery retail segment in India detailed how the enormous jewellery market in the country is consolidating its act.

“Organised jewellery retail in India now stands at 4% with an unbranded mass market commanding $14bn of a total of $20bn. But with social, economic and political transformations and a relatively young, demanding population the picture is changing in favour of the organised sector. Corporates are venturing into jewellery retail and industry bodies as well as government are promoting initiatives in design, marketing, quality and an enhanced customer experience,”

Kurien said.

Speakers also shared their insights into the diverse sectors of the jewellery trade and the increasing demand for diamonds and coloured stones.

“The diamond industry in the world is expected to grow annually by 5% till 2015 and this growth could be a catalyst for the integration of the jewellery trade. However, the industry is still in an evolutionary phase as stocks remain high and costly. Manufacturing is also bogged down by thin margins. The bright spot is the wealth creation, especially in the BRIC countries and growing demand in Europe. Middle East & Africa,” Victor Van der Kwast, Corporate Executive Vice President & CEO of International Diamond & Jewellery Group – ABN Amro observed.

Van der Kwast also cautioned that scarcity of credit and capital could pose a challenge for the diamond industry at this growing stage.

Dr Emmanuel Fritsch from the University of Nantes, France pointed to the need for research in gemology and how development of this industry can sustain demand for jewellery, ongoing efforts to bring together the gems and coloured stones industry worldwide to launch effective marketing campaigns and liaise with governments as well as other industry bodies were explained by Andrew Cody, President – International coloured Gemstone Association (ICA)

The 6th City of Gold Conference is being held in association with the Dubai Multi Commodities Centre, with Transguard and ABN Amro as key sponsors and Standard Bank, HSBC and National Bank of Dubai as support sponsors. The conference has adopted ‘Value Chain & Integration’ as its theme in view of the diversification of the industry and the recent developments in global economy.