The jewellery industry is going through a rough patch as both the business and the customer are reeling under a grim financial situation. Everybody associated with the industry is affected by the market condition. As a result, we have enough of dim and dark news to ponder and cry over. But, the need of the hour is not crying over the spilled milk, rather the time demands a unanimous effort by the industry to think and act positive. Here we talk about the various changes in attitude, approach and vision that the industry needs to tackle the present and secure the future.Gold Star Diamond Pvt Ltd is a name to reckon with in the field of gold and jewellery industry’s manufacturing sector. The firm has secured a good position in the market with its good performance in terms of innovative designs and customer friendly policy. Despite the fluctuating market condition posing a major threat to the manufacturer, and an already low margin for manufacturer because of high prices of roughs, Gold Star has constantly been making efforts on both macro and micro level to deal with the situation and in the process it has only been successful, but has set examples for others to follow. The following interview with Sanjay Satish Shah, director, Gold Star Diamonds Pvt Ltd, might prove contagious and force many worried minds to tighten up their belts and take control of the market.%% “Haven’t we had enough of sad talks about the market fluctuations, minimisng margin of manufacturer, inflation and so on? If talking about them is of any use then it’s certainly the best and the easiest thing to do. Unfortunately, been talking about will not solve the problem, unless we discuss it with an attitude of solving it. And according to me there is lot more good things to talk about,” said Shah.%% “I understand that the situation is just too bad to ignore and for most of the industry people, it’s the first thing that occupies their mind. But, I believe this is the worst that industry can see. We have already hit the rock bottom and henceforth whatever happens will happen for the good of the industry, it cannot get worse now. For example, look at the US market, which is quite stable now. Indian market is though suffering but, after all it’s all related and soon India too will recover,” he said.%%

Pointing out about the change in taste of people, he said, “Isn’t it good news for the industry that people are now thinking about diamonds more than gold. Though gold cannot be replaced but diamonds jewellery is now people’s first choice now. Gold market is down because of high prices, but diamond is making up for the loss and helping jewellers. And because of both general and technical factors, people buying diamonds is good news for industry. Moreover, correction in diamond prices has come as a respite to many jewellers.”%% Pointing out the problem, Shah said that there is a cut-throat competition among the jewelers in the market leading to competitive prices thereby lowering the final cost. “We are competing among ourselves, and it’s not a healthy competition. We should stop cutting each other. The industry created desire among people through extensive advertisement, this lead to high demand and now to cash in on that demand we are competing among each other, thereby creating a problem for ourselves. We should rather create value in product.”%% Suggesting a solution, Shah said, “According to me, something needs to be done at retail level. Customer should see the value of the jewellery piece as a whole. Rest technical details like clarity, colour is for us, not for customer. We should be giving them certified jewellery to customers and that should suffice. This would promote diamond as a brand. For example, when we buy phone, not many of us are aware of its technicalities, but we buy it for brand and usage. Even diamond jewellery must be looked at like that.”%% Talking about the parallel market of artificial jewellery, Shah said that though it is true that availability of imitation jewellery has affected gold and diamond, but this is nothing to worry about. “Due to high prices, gold is exceeding the budget set by people and hence they choose imitation jewellery to gold. If we look at the market history, five yaer back, imitation jewellery was not very common. This situation has come due to high fluctuation of prices. However, there is no return value of imitation jewellery and this is the only reason that is saving the gold business. A steep increase in gold prices leaves the customer confused, as they understand the reason behind the increase, instead, I suggest, small but constant increase in prices per year will not scare the customers and will also keeps market steady.”%%

He suggests that industry needs to know how customer behaves not only in terms of choice of design but also in terms of investment. “We need to know what makes a customer buy jewellery and what stops him from doing so. If we know this we can work out a strategy which is beneficial for both the customer and the business. Gold is not perishable it recycles in the market so controlling the price is very much possible. We cannot say that because of dearth of gold the prices are increasing.” %% In a scientific approach, Shah explained how the industry can achieve stability and control over the situation. “There are certain controllable and uncontrollable but avoidable factors that have lead us to this disastrous situation. Among the controllable factors are the banking practice and speculations. Banks have been giving loans to individuals for business at extremely low rates, and this promises good profits, consequently we have lot of players in the market leading to cut throat competition and inflation of diamond prices. Speculation also adds to the problems and it cannot be taken lightly. People are manipulating and before we realise the damage is already done.”%% Shah also suggests that a change in attitude would help industry go a long way. “People in the industry need to opt out of the rat race. Adjectives like ‘leading’ firm, ‘biggest’ business suggest that how much space competition is occupying in our minds. The work culture also contributes significantly to the business. We train people and many businesses just poach them. They don’t want to spend money in training people, which is important because the worker will grow with the organisation and this will reflect in their performance.”%%

In the retail sector, Tanishq has not only emerged as the leading player, but has also very well maintained a stable outlook even during difficult times. Call it a market genius, positive approach or plain and simple business graph, Tanishq has always been a brand to learn from and to look up to. What better than finding out from Sandeep Kulhalli, vice-president, retail and marketing, Tanishq. %% “Given the fact that gold jewellery in India has a lot of sentiments attached to it and it is more than just ornaments to them. Gold is essential in Indian traditional occasion like wedding, where, irrespective of community or place, gold becomes unavoidable. So, despite the Consumers will have to procure gold jewellery despite rising prices; hence we have not seen much affect in the business as such. However, there has been a drastic change in tastes and preferences of the consumer. Unlike past, now we have personal choices hence one cannot pin point what kind of jewellery one would go for. The preference is not confined to designs, but also in terms of material.”%% He said that old will be gold despite all challenges. Pointing towards an outwards challenge that the market is facing, Kulhalli said that costume jewellery or any other substitute of gold is a gradual but definitely a concern. “Blame it to the sky rocketing prices of gold or inflation, people have been opting for artificial jewellery in a big way. Sales volume of artificial jewellery has been increasing enormously in the recent times. But the good news is that gold will not lose its luster, thanks to the importance that gold enjoys. Gold is an essential metal for wedding and other traditional occasions. While artificial jewellery might be a temporary solution, in the long run it cannot replace gold, given reasons like durability and resale value. So it would not be able to fulfill the purpose. Another fact is that gold does not only have ornamental value, but it is also looked at as investment, while artificial jewellery is confined to being ornaments with no resale value.”%%

However, Kulhalli insists that there should not be any compromise on making gold more desirable. “Consumer preferences are ever changing, so it is more important to experiment and develop on the product that we are offering to our customers. And while doing this a lot of factors have to be kept in mind. Being a retail giant, we are more organised and have all the facilities for research and development in this segment, as giving the customer the product that is they desire for is our priority. We also have different segments of jewellery for a better and hassle-free shopping experience. Hence, such volatility might affect growth of other jewellery, but yellow gold will remain dear without any effect on retail.”%% Suggesting some changes that are needed to pass through the ongoing dull phase, Kulhalli said that a little change in terms of attitude, work culture and procedure can help bring back the good times, or at least that would help the industry sail though this disturbed times. %% “Good or bad, changes are a welcome thing, because it has a greater motive than what meets the eye. So firthig is that we should develop an attitude of being more receptive about the changes. Rather than being worried, we may channelise our effort and thoughts to analyse the situation and prepare ourselves to tackle the situation. As it is rightly said –larger goals and objectives involve bigger challenges—so, when we reap good benefit, we should also be ready to face losses without losing our mind. We should aim to increase the percentage share of retail/organised jewellery segment in India. At this juncture the rising prices of gold is a big challenge for retailers, but we will overcome this gradually while we focus on the overall objective and utilise all our resources aptly to strive sustainable innovation in this segment and win consumer’s confidence. Consumer is much more aware now, and this is no secret that jewellery market is in bad shape. But this fact can work in our favour, as the same customer would also acknowledge our effort towards keeping them happy. This would not only help us sail through the rough time, but also help gain confidence and respect of our customer, which is the most important thing for a retail house in this business.%%

After over 72 years of experience in domestic and foreign marketis not new to Kirtilals Kalidas Jewellers. The company was found in 1938 by Shri Kirtilal Kalidas Mehta who started his business by selling diamonds in Coimbatore. In 1939, the first ever Kirtilals retail store was established in Coimbatore and then added gold jewelry also into its product portfolio. Kirtilals was the first jeweler to introduce the unique marketing strategy of “DIRECT TO HOME – DTH” for their customers which is the USP of Kirtilals till date. This created an uprising among customers in Coimbatore and Kirtilals as a brand became the most trusted jeweler in South India. Within short span of time, with the tag of the most trusted brand, Kirtilals emerged to be one of the leading jewelers in South India by expanding their business from one store to multiple stores across various parts of South India and also North India. Kirtilals have 10 exclusive stores in India which are located in Chennai, Madurai, Coimbatore, Bangalore, Vijayawada, Hyderabad, Vizag, Kochi and in the North at Ludhiana. Kirtilals designs are not a mere expression of creative excellence but firmly grounded in the belief of understanding the emotional and aspirational need of consumers to provide them their requirements. Carrying forward the same belief in the current market scenario, let see what comes straight from the horse’s mouth. Suraj Shantakumar, Director, Kirtilals Kalidas Jewelers in conversation with Indian Jeweller, explains the current tough economic situation and its effect on diamond industry. %% “Over the past few years, a tremendous accounting of financial services and national economies has been forthcoming through various media forms. Markets that include stocks, bonds, precious metals, commodities, and so on, have been raked over the coals, so to speak, with the onset of what some may claim as an under the table business plan”, said Suraj Shantakumar. However it is touted, the retail community has taken a serious blow to its bottom line. Economies that have plummeted recently have taken their business partners down with them leaving a wake of job loss and bankruptcy filings. Even so, there seems to be some resilience that has risen from the dust cloud. More specifically he underline and stated, “jewelry retailers took an initial hit around the world, at various times, but overall has maintained a fair amount of business allowing them to keep their heads above water”. %%

With a large amount of the market affected stemming from the retail medium group, meaning those who sold some high-end items along with a majority of medium class jewelry, the Ultra-fine Guild or Provenance Retail Type took a lesser hit from market down-turns. Taking the same plot for considering, youth is now more into buying gadgets than buying jewellery, has thus contributing decrease gold sale. He commented, “If dainty creative designs are presented to the youth, then there is still good potential even with their changing preferences. The youth segment will be an important one for the future growth of the industry. The present youth segment is also very conscious about investments and certainly buying gadgets and buying jewelry are not comparable purchases”. With further to this Suraj Shantakumar also added, Price rise has resulted in the per capita quantity of buying by each customer reducing. However, with increased number of customers in the market, the price rise has not affected the business significantly. %% He also explained as Women were the major diamond customers across the world. But modern market finds male customers craving for diamond impregnated watches, rings and even pens. The outrageously wealthy customers are the major success of the diamond market. But the people with a serious investment or buying will always opt for solid gold or pure diamonds. He said, “The substitute and costume jewelry form a different segment of the market and will be in existence in the future. However, the buyers of natural diamonds and gold will always be aware of the investment value and will not be switching over to the other alternatives”%% While we are witnessing a slowdown in the industry, the scenario is by no means grim. He stated, “The controllable factors such as maintaining transparency in quality and manufacturing light weighted jewelry with lower price points should be addressed properly”. He also said, “Uncontrollable factors like the current situation in the global economy can be addressed only by the regulatory authorities, and the representation can be made from the industry about their requirements”. %% As shrewd as it may appear, it makes complete business sense to advance a financial portfolio when the terms are in the favor of one with the capacity to purchase and close a deal. The aftermath of such times may leave some destitute and others in a better position with additional leverage at their disposal. Sating on the changes to suggest to bring back the good times, he said, “In order to increase credibility of the industry, it is important to bring in awareness and adherence for transparency, quality standards and best practice principles, which all have to be followed consciously”. %%

The jewellery industry is going through a rough patch as both the business and the customer are reeling under a grim financial situation. Everybody associated with the industry is affected by the market condition. As a result, we have enough of dim and dark news to ponder and cry over. But, the need of the hour is not crying over the spilled milk, rather the time demands a unanimous effort by the industry to think and act positive. Here we talk about the various changes in attitude, approach and vision that the industry needs to tackle the present and secure the future.Gold Star Diamond Pvt Ltd is a name to reckon with in the field of gold and jewellery industry’s manufacturing sector. The firm has secured a good position in the market with its good performance in terms of innovative designs and customer friendly policy. Despite the fluctuating market condition posing a major threat to the manufacturer, and an already low margin for manufacturer because of high prices of roughs, Gold Star has constantly been making efforts on both macro and micro level to deal with the situation and in the process it has only been successful, but has set examples for others to follow. The following interview with Sanjay Satish Shah, director, Gold Star Diamonds Pvt Ltd, might prove contagious and force many worried minds to tighten up their belts and take control of the market.%% “Haven’t we had enough of sad talks about the market fluctuations, minimisng margin of manufacturer, inflation and so on? If talking about them is of any use then it’s certainly the best and the easiest thing to do. Unfortunately, been talking about will not solve the problem, unless we discuss it with an attitude of solving it. And according to me there is lot more good things to talk about,” said Shah.%% “I understand that the situation is just too bad to ignore and for most of the industry people, it’s the first thing that occupies their mind. But, I believe this is the worst that industry can see. We have already hit the rock bottom and henceforth whatever happens will happen for the good of the industry, it cannot get worse now. For example, look at the US market, which is quite stable now. Indian market is though suffering but, after all it’s all related and soon India too will recover,” he said.%%

Pointing out about the change in taste of people, he said, “Isn’t it good news for the industry that people are now thinking about diamonds more than gold. Though gold cannot be replaced but diamonds jewellery is now people’s first choice now. Gold market is down because of high prices, but diamond is making up for the loss and helping jewellers. And because of both general and technical factors, people buying diamonds is good news for industry. Moreover, correction in diamond prices has come as a respite to many jewellers.”%% Pointing out the problem, Shah said that there is a cut-throat competition among the jewelers in the market leading to competitive prices thereby lowering the final cost. “We are competing among ourselves, and it’s not a healthy competition. We should stop cutting each other. The industry created desire among people through extensive advertisement, this lead to high demand and now to cash in on that demand we are competing among each other, thereby creating a problem for ourselves. We should rather create value in product.”%% Suggesting a solution, Shah said, “According to me, something needs to be done at retail level. Customer should see the value of the jewellery piece as a whole. Rest technical details like clarity, colour is for us, not for customer. We should be giving them certified jewellery to customers and that should suffice. This would promote diamond as a brand. For example, when we buy phone, not many of us are aware of its technicalities, but we buy it for brand and usage. Even diamond jewellery must be looked at like that.”%% Talking about the parallel market of artificial jewellery, Shah said that though it is true that availability of imitation jewellery has affected gold and diamond, but this is nothing to worry about. “Due to high prices, gold is exceeding the budget set by people and hence they choose imitation jewellery to gold. If we look at the market history, five yaer back, imitation jewellery was not very common. This situation has come due to high fluctuation of prices. However, there is no return value of imitation jewellery and this is the only reason that is saving the gold business. A steep increase in gold prices leaves the customer confused, as they understand the reason behind the increase, instead, I suggest, small but constant increase in prices per year will not scare the customers and will also keeps market steady.”%%

He suggests that industry needs to know how customer behaves not only in terms of choice of design but also in terms of investment. “We need to know what makes a customer buy jewellery and what stops him from doing so. If we know this we can work out a strategy which is beneficial for both the customer and the business. Gold is not perishable it recycles in the market so controlling the price is very much possible. We cannot say that because of dearth of gold the prices are increasing.” %% In a scientific approach, Shah explained how the industry can achieve stability and control over the situation. “There are certain controllable and uncontrollable but avoidable factors that have lead us to this disastrous situation. Among the controllable factors are the banking practice and speculations. Banks have been giving loans to individuals for business at extremely low rates, and this promises good profits, consequently we have lot of players in the market leading to cut throat competition and inflation of diamond prices. Speculation also adds to the problems and it cannot be taken lightly. People are manipulating and before we realise the damage is already done.”%% Shah also suggests that a change in attitude would help industry go a long way. “People in the industry need to opt out of the rat race. Adjectives like ‘leading’ firm, ‘biggest’ business suggest that how much space competition is occupying in our minds. The work culture also contributes significantly to the business. We train people and many businesses just poach them. They don’t want to spend money in training people, which is important because the worker will grow with the organisation and this will reflect in their performance.”%%

In the retail sector, Tanishq has not only emerged as the leading player, but has also very well maintained a stable outlook even during difficult times. Call it a market genius, positive approach or plain and simple business graph, Tanishq has always been a brand to learn from and to look up to. What better than finding out from Sandeep Kulhalli, vice-president, retail and marketing, Tanishq. %% “Given the fact that gold jewellery in India has a lot of sentiments attached to it and it is more than just ornaments to them. Gold is essential in Indian traditional occasion like wedding, where, irrespective of community or place, gold becomes unavoidable. So, despite the Consumers will have to procure gold jewellery despite rising prices; hence we have not seen much affect in the business as such. However, there has been a drastic change in tastes and preferences of the consumer. Unlike past, now we have personal choices hence one cannot pin point what kind of jewellery one would go for. The preference is not confined to designs, but also in terms of material.”%% He said that old will be gold despite all challenges. Pointing towards an outwards challenge that the market is facing, Kulhalli said that costume jewellery or any other substitute of gold is a gradual but definitely a concern. “Blame it to the sky rocketing prices of gold or inflation, people have been opting for artificial jewellery in a big way. Sales volume of artificial jewellery has been increasing enormously in the recent times. But the good news is that gold will not lose its luster, thanks to the importance that gold enjoys. Gold is an essential metal for wedding and other traditional occasions. While artificial jewellery might be a temporary solution, in the long run it cannot replace gold, given reasons like durability and resale value. So it would not be able to fulfill the purpose. Another fact is that gold does not only have ornamental value, but it is also looked at as investment, while artificial jewellery is confined to being ornaments with no resale value.”%%

However, Kulhalli insists that there should not be any compromise on making gold more desirable. “Consumer preferences are ever changing, so it is more important to experiment and develop on the product that we are offering to our customers. And while doing this a lot of factors have to be kept in mind. Being a retail giant, we are more organised and have all the facilities for research and development in this segment, as giving the customer the product that is they desire for is our priority. We also have different segments of jewellery for a better and hassle-free shopping experience. Hence, such volatility might affect growth of other jewellery, but yellow gold will remain dear without any effect on retail.”%% Suggesting some changes that are needed to pass through the ongoing dull phase, Kulhalli said that a little change in terms of attitude, work culture and procedure can help bring back the good times, or at least that would help the industry sail though this disturbed times. %% “Good or bad, changes are a welcome thing, because it has a greater motive than what meets the eye. So firthig is that we should develop an attitude of being more receptive about the changes. Rather than being worried, we may channelise our effort and thoughts to analyse the situation and prepare ourselves to tackle the situation. As it is rightly said –larger goals and objectives involve bigger challenges—so, when we reap good benefit, we should also be ready to face losses without losing our mind. We should aim to increase the percentage share of retail/organised jewellery segment in India. At this juncture the rising prices of gold is a big challenge for retailers, but we will overcome this gradually while we focus on the overall objective and utilise all our resources aptly to strive sustainable innovation in this segment and win consumer’s confidence. Consumer is much more aware now, and this is no secret that jewellery market is in bad shape. But this fact can work in our favour, as the same customer would also acknowledge our effort towards keeping them happy. This would not only help us sail through the rough time, but also help gain confidence and respect of our customer, which is the most important thing for a retail house in this business.%%

After over 72 years of experience in domestic and foreign marketis not new to Kirtilals Kalidas Jewellers. The company was found in 1938 by Shri Kirtilal Kalidas Mehta who started his business by selling diamonds in Coimbatore. In 1939, the first ever Kirtilals retail store was established in Coimbatore and then added gold jewelry also into its product portfolio. Kirtilals was the first jeweler to introduce the unique marketing strategy of “DIRECT TO HOME – DTH” for their customers which is the USP of Kirtilals till date. This created an uprising among customers in Coimbatore and Kirtilals as a brand became the most trusted jeweler in South India. Within short span of time, with the tag of the most trusted brand, Kirtilals emerged to be one of the leading jewelers in South India by expanding their business from one store to multiple stores across various parts of South India and also North India. Kirtilals have 10 exclusive stores in India which are located in Chennai, Madurai, Coimbatore, Bangalore, Vijayawada, Hyderabad, Vizag, Kochi and in the North at Ludhiana. Kirtilals designs are not a mere expression of creative excellence but firmly grounded in the belief of understanding the emotional and aspirational need of consumers to provide them their requirements. Carrying forward the same belief in the current market scenario, let see what comes straight from the horse’s mouth. Suraj Shantakumar, Director, Kirtilals Kalidas Jewelers in conversation with Indian Jeweller, explains the current tough economic situation and its effect on diamond industry. %% “Over the past few years, a tremendous accounting of financial services and national economies has been forthcoming through various media forms. Markets that include stocks, bonds, precious metals, commodities, and so on, have been raked over the coals, so to speak, with the onset of what some may claim as an under the table business plan”, said Suraj Shantakumar. However it is touted, the retail community has taken a serious blow to its bottom line. Economies that have plummeted recently have taken their business partners down with them leaving a wake of job loss and bankruptcy filings. Even so, there seems to be some resilience that has risen from the dust cloud. More specifically he underline and stated, “jewelry retailers took an initial hit around the world, at various times, but overall has maintained a fair amount of business allowing them to keep their heads above water”. %%

With a large amount of the market affected stemming from the retail medium group, meaning those who sold some high-end items along with a majority of medium class jewelry, the Ultra-fine Guild or Provenance Retail Type took a lesser hit from market down-turns. Taking the same plot for considering, youth is now more into buying gadgets than buying jewellery, has thus contributing decrease gold sale. He commented, “If dainty creative designs are presented to the youth, then there is still good potential even with their changing preferences. The youth segment will be an important one for the future growth of the industry. The present youth segment is also very conscious about investments and certainly buying gadgets and buying jewelry are not comparable purchases”. With further to this Suraj Shantakumar also added, Price rise has resulted in the per capita quantity of buying by each customer reducing. However, with increased number of customers in the market, the price rise has not affected the business significantly. %% He also explained as Women were the major diamond customers across the world. But modern market finds male customers craving for diamond impregnated watches, rings and even pens. The outrageously wealthy customers are the major success of the diamond market. But the people with a serious investment or buying will always opt for solid gold or pure diamonds. He said, “The substitute and costume jewelry form a different segment of the market and will be in existence in the future. However, the buyers of natural diamonds and gold will always be aware of the investment value and will not be switching over to the other alternatives”%% While we are witnessing a slowdown in the industry, the scenario is by no means grim. He stated, “The controllable factors such as maintaining transparency in quality and manufacturing light weighted jewelry with lower price points should be addressed properly”. He also said, “Uncontrollable factors like the current situation in the global economy can be addressed only by the regulatory authorities, and the representation can be made from the industry about their requirements”. %% As shrewd as it may appear, it makes complete business sense to advance a financial portfolio when the terms are in the favor of one with the capacity to purchase and close a deal. The aftermath of such times may leave some destitute and others in a better position with additional leverage at their disposal. Sating on the changes to suggest to bring back the good times, he said, “In order to increase credibility of the industry, it is important to bring in awareness and adherence for transparency, quality standards and best practice principles, which all have to be followed consciously”. %%

The jewellery industry is going through a rough patch as both the business and the customer are reeling under a grim financial situation. Everybody associated with the industry is affected by the market condition. As a result, we have enough of dim and dark news to ponder and cry over. But, the need of the hour is not crying over the spilled milk, rather the time demands a unanimous effort by the industry to think and act positive. Here we talk about the various changes in attitude, approach and vision that the industry needs to tackle the present and secure the future.Gold Star Diamond Pvt Ltd is a name to reckon with in the field of gold and jewellery industry’s manufacturing sector. The firm has secured a good position in the market with its good performance in terms of innovative designs and customer friendly policy. Despite the fluctuating market condition posing a major threat to the manufacturer, and an already low margin for manufacturer because of high prices of roughs, Gold Star has constantly been making efforts on both macro and micro level to deal with the situation and in the process it has only been successful, but has set examples for others to follow. The following interview with Sanjay Satish Shah, director, Gold Star Diamonds Pvt Ltd, might prove contagious and force many worried minds to tighten up their belts and take control of the market.%% “Haven’t we had enough of sad talks about the market fluctuations, minimisng margin of manufacturer, inflation and so on? If talking about them is of any use then it’s certainly the best and the easiest thing to do. Unfortunately, been talking about will not solve the problem, unless we discuss it with an attitude of solving it. And according to me there is lot more good things to talk about,” said Shah.%% “I understand that the situation is just too bad to ignore and for most of the industry people, it’s the first thing that occupies their mind. But, I believe this is the worst that industry can see. We have already hit the rock bottom and henceforth whatever happens will happen for the good of the industry, it cannot get worse now. For example, look at the US market, which is quite stable now. Indian market is though suffering but, after all it’s all related and soon India too will recover,” he said.%%

Pointing out about the change in taste of people, he said, “Isn’t it good news for the industry that people are now thinking about diamonds more than gold. Though gold cannot be replaced but diamonds jewellery is now people’s first choice now. Gold market is down because of high prices, but diamond is making up for the loss and helping jewellers. And because of both general and technical factors, people buying diamonds is good news for industry. Moreover, correction in diamond prices has come as a respite to many jewellers.”%% Pointing out the problem, Shah said that there is a cut-throat competition among the jewelers in the market leading to competitive prices thereby lowering the final cost. “We are competing among ourselves, and it’s not a healthy competition. We should stop cutting each other. The industry created desire among people through extensive advertisement, this lead to high demand and now to cash in on that demand we are competing among each other, thereby creating a problem for ourselves. We should rather create value in product.”%% Suggesting a solution, Shah said, “According to me, something needs to be done at retail level. Customer should see the value of the jewellery piece as a whole. Rest technical details like clarity, colour is for us, not for customer. We should be giving them certified jewellery to customers and that should suffice. This would promote diamond as a brand. For example, when we buy phone, not many of us are aware of its technicalities, but we buy it for brand and usage. Even diamond jewellery must be looked at like that.”%% Talking about the parallel market of artificial jewellery, Shah said that though it is true that availability of imitation jewellery has affected gold and diamond, but this is nothing to worry about. “Due to high prices, gold is exceeding the budget set by people and hence they choose imitation jewellery to gold. If we look at the market history, five yaer back, imitation jewellery was not very common. This situation has come due to high fluctuation of prices. However, there is no return value of imitation jewellery and this is the only reason that is saving the gold business. A steep increase in gold prices leaves the customer confused, as they understand the reason behind the increase, instead, I suggest, small but constant increase in prices per year will not scare the customers and will also keeps market steady.”%%

He suggests that industry needs to know how customer behaves not only in terms of choice of design but also in terms of investment. “We need to know what makes a customer buy jewellery and what stops him from doing so. If we know this we can work out a strategy which is beneficial for both the customer and the business. Gold is not perishable it recycles in the market so controlling the price is very much possible. We cannot say that because of dearth of gold the prices are increasing.” %% In a scientific approach, Shah explained how the industry can achieve stability and control over the situation. “There are certain controllable and uncontrollable but avoidable factors that have lead us to this disastrous situation. Among the controllable factors are the banking practice and speculations. Banks have been giving loans to individuals for business at extremely low rates, and this promises good profits, consequently we have lot of players in the market leading to cut throat competition and inflation of diamond prices. Speculation also adds to the problems and it cannot be taken lightly. People are manipulating and before we realise the damage is already done.”%% Shah also suggests that a change in attitude would help industry go a long way. “People in the industry need to opt out of the rat race. Adjectives like ‘leading’ firm, ‘biggest’ business suggest that how much space competition is occupying in our minds. The work culture also contributes significantly to the business. We train people and many businesses just poach them. They don’t want to spend money in training people, which is important because the worker will grow with the organisation and this will reflect in their performance.”%%

In the retail sector, Tanishq has not only emerged as the leading player, but has also very well maintained a stable outlook even during difficult times. Call it a market genius, positive approach or plain and simple business graph, Tanishq has always been a brand to learn from and to look up to. What better than finding out from Sandeep Kulhalli, vice-president, retail and marketing, Tanishq. %% “Given the fact that gold jewellery in India has a lot of sentiments attached to it and it is more than just ornaments to them. Gold is essential in Indian traditional occasion like wedding, where, irrespective of community or place, gold becomes unavoidable. So, despite the Consumers will have to procure gold jewellery despite rising prices; hence we have not seen much affect in the business as such. However, there has been a drastic change in tastes and preferences of the consumer. Unlike past, now we have personal choices hence one cannot pin point what kind of jewellery one would go for. The preference is not confined to designs, but also in terms of material.”%% He said that old will be gold despite all challenges. Pointing towards an outwards challenge that the market is facing, Kulhalli said that costume jewellery or any other substitute of gold is a gradual but definitely a concern. “Blame it to the sky rocketing prices of gold or inflation, people have been opting for artificial jewellery in a big way. Sales volume of artificial jewellery has been increasing enormously in the recent times. But the good news is that gold will not lose its luster, thanks to the importance that gold enjoys. Gold is an essential metal for wedding and other traditional occasions. While artificial jewellery might be a temporary solution, in the long run it cannot replace gold, given reasons like durability and resale value. So it would not be able to fulfill the purpose. Another fact is that gold does not only have ornamental value, but it is also looked at as investment, while artificial jewellery is confined to being ornaments with no resale value.”%%

However, Kulhalli insists that there should not be any compromise on making gold more desirable. “Consumer preferences are ever changing, so it is more important to experiment and develop on the product that we are offering to our customers. And while doing this a lot of factors have to be kept in mind. Being a retail giant, we are more organised and have all the facilities for research and development in this segment, as giving the customer the product that is they desire for is our priority. We also have different segments of jewellery for a better and hassle-free shopping experience. Hence, such volatility might affect growth of other jewellery, but yellow gold will remain dear without any effect on retail.”%% Suggesting some changes that are needed to pass through the ongoing dull phase, Kulhalli said that a little change in terms of attitude, work culture and procedure can help bring back the good times, or at least that would help the industry sail though this disturbed times. %% “Good or bad, changes are a welcome thing, because it has a greater motive than what meets the eye. So firthig is that we should develop an attitude of being more receptive about the changes. Rather than being worried, we may channelise our effort and thoughts to analyse the situation and prepare ourselves to tackle the situation. As it is rightly said –larger goals and objectives involve bigger challenges—so, when we reap good benefit, we should also be ready to face losses without losing our mind. We should aim to increase the percentage share of retail/organised jewellery segment in India. At this juncture the rising prices of gold is a big challenge for retailers, but we will overcome this gradually while we focus on the overall objective and utilise all our resources aptly to strive sustainable innovation in this segment and win consumer’s confidence. Consumer is much more aware now, and this is no secret that jewellery market is in bad shape. But this fact can work in our favour, as the same customer would also acknowledge our effort towards keeping them happy. This would not only help us sail through the rough time, but also help gain confidence and respect of our customer, which is the most important thing for a retail house in this business.%%

After over 72 years of experience in domestic and foreign marketis not new to Kirtilals Kalidas Jewellers. The company was found in 1938 by Shri Kirtilal Kalidas Mehta who started his business by selling diamonds in Coimbatore. In 1939, the first ever Kirtilals retail store was established in Coimbatore and then added gold jewelry also into its product portfolio. Kirtilals was the first jeweler to introduce the unique marketing strategy of “DIRECT TO HOME – DTH” for their customers which is the USP of Kirtilals till date. This created an uprising among customers in Coimbatore and Kirtilals as a brand became the most trusted jeweler in South India. Within short span of time, with the tag of the most trusted brand, Kirtilals emerged to be one of the leading jewelers in South India by expanding their business from one store to multiple stores across various parts of South India and also North India. Kirtilals have 10 exclusive stores in India which are located in Chennai, Madurai, Coimbatore, Bangalore, Vijayawada, Hyderabad, Vizag, Kochi and in the North at Ludhiana. Kirtilals designs are not a mere expression of creative excellence but firmly grounded in the belief of understanding the emotional and aspirational need of consumers to provide them their requirements. Carrying forward the same belief in the current market scenario, let see what comes straight from the horse’s mouth. Suraj Shantakumar, Director, Kirtilals Kalidas Jewelers in conversation with Indian Jeweller, explains the current tough economic situation and its effect on diamond industry. %% “Over the past few years, a tremendous accounting of financial services and national economies has been forthcoming through various media forms. Markets that include stocks, bonds, precious metals, commodities, and so on, have been raked over the coals, so to speak, with the onset of what some may claim as an under the table business plan”, said Suraj Shantakumar. However it is touted, the retail community has taken a serious blow to its bottom line. Economies that have plummeted recently have taken their business partners down with them leaving a wake of job loss and bankruptcy filings. Even so, there seems to be some resilience that has risen from the dust cloud. More specifically he underline and stated, “jewelry retailers took an initial hit around the world, at various times, but overall has maintained a fair amount of business allowing them to keep their heads above water”. %%

With a large amount of the market affected stemming from the retail medium group, meaning those who sold some high-end items along with a majority of medium class jewelry, the Ultra-fine Guild or Provenance Retail Type took a lesser hit from market down-turns. Taking the same plot for considering, youth is now more into buying gadgets than buying jewellery, has thus contributing decrease gold sale. He commented, “If dainty creative designs are presented to the youth, then there is still good potential even with their changing preferences. The youth segment will be an important one for the future growth of the industry. The present youth segment is also very conscious about investments and certainly buying gadgets and buying jewelry are not comparable purchases”. With further to this Suraj Shantakumar also added, Price rise has resulted in the per capita quantity of buying by each customer reducing. However, with increased number of customers in the market, the price rise has not affected the business significantly. %% He also explained as Women were the major diamond customers across the world. But modern market finds male customers craving for diamond impregnated watches, rings and even pens. The outrageously wealthy customers are the major success of the diamond market. But the people with a serious investment or buying will always opt for solid gold or pure diamonds. He said, “The substitute and costume jewelry form a different segment of the market and will be in existence in the future. However, the buyers of natural diamonds and gold will always be aware of the investment value and will not be switching over to the other alternatives”%% While we are witnessing a slowdown in the industry, the scenario is by no means grim. He stated, “The controllable factors such as maintaining transparency in quality and manufacturing light weighted jewelry with lower price points should be addressed properly”. He also said, “Uncontrollable factors like the current situation in the global economy can be addressed only by the regulatory authorities, and the representation can be made from the industry about their requirements”. %% As shrewd as it may appear, it makes complete business sense to advance a financial portfolio when the terms are in the favor of one with the capacity to purchase and close a deal. The aftermath of such times may leave some destitute and others in a better position with additional leverage at their disposal. Sating on the changes to suggest to bring back the good times, he said, “In order to increase credibility of the industry, it is important to bring in awareness and adherence for transparency, quality standards and best practice principles, which all have to be followed consciously”. %%