The G & J industry has witnessed a sharp spike in demand, and manufacturers are flooded with orders, thanks to IIJS 2021, which acted as a catalyst in reviving the fortunes of the industry, discovers Suneeta Kaul

It has taken almost two years for the gems and jewellery (G & J) industry to transition from a period of gloom to a season of plenty, but now that the floodgates have opened, the deluge of orders is proving to be overwhelming. Manufacturers are endeavouring to grapple with the high demand as best as they can, while retailers are on tenterhooks, wondering whether the jewellery for which they have placed orders will be delivered in time for the approaching festive and wedding seasons. To put things in perspective, the talking points in the industry just about a month ago were the pandemic, the lockdown, their impact on the trade, dealing with the slowdown, and so forth. Then came IIJS Premiere 2021 – and the industry scenario metamorphosed so completely, it’s as if there never had been a problem.

IIJS Premiere 2021, the catalyzing force

The first physical large-scale trade event of the industry held after almost two years, IIJS 2021 happened at a time when the G & J sector was on the cusp of recovery. The mega show proved to be a catalyst, completely reversing the fortunes of the industry, with all stakeholders unanimously hailing it as the saviour of the sector.

Says Karan Garodia of Sanskriti Jewels, Mumbai, “IIJS has changed the overall market scenario of the gems and jewellery industry greatly. All players, from the smallest to the biggest, no matter how they are associated with the industry, have benefitted tremendously from the event. In fact, it has been an overwhelming experience, and the impact on companies has been so great that the worry is now about delivering orders in time.”

This sentiment is being expressed by industry players across the board. Agrees Abhishek Raniwala of Raniwala Jewellers, Jaipur, “IIJS Premiere 2021 gave a huge impetus to the industry. The impact of the event was felt not only on sales, but on other aspects as well. The industry situation has transformed completely, and there is optimism and enthusiasm all around now. Things are looking up.”

The sheer scale and magnitude of the event always turbo-charges the industry, but this year, the impact has been much greater than in previous years. “IIJS has always been a benchmark for shows in the jewellery industry. But this edition has been special – it was held after a long gap, and it was much-anticipated and eagerly awaited. At one go, it has changed the fortunes of the industry completely, and its success has given a much-needed boost to both retailers and manufacturers. It has brought back the look, touch and feel experience for visitors who came from all across India and abroad in such large numbers,” says Suken Shah, Sparsh Jewellers, Mumbai.

Such has been the response to IIJS that it has created problems of plenty! Manufacturers are finding it challenging to cope with the sudden rush. According to Hasmukh Kakadia, Sheetal Group, Mumbai, “After last year’s pandemic problem, I thought demand would slow down, but after the lockdown was lifted, it has been increasing day by day. And then IIJS happened, and now, everyone is experiencing a sudden rush. To meet the demand, we have doubled our factory capacity. We are working day and night. Actually, for the first time in our history, we have refused orders.”

Agrees Nikunj Mittal of Shri G K Chudiwalas, Jaipur, “An event of the magnitude of IIJS was held in the physical form after a long gap. Everyone is happy with the response and excited about the coming days. There are huge orders, and it is quite a challenge to make deliveries on time. Clients are in a hurry, and to meet the demand, we are overpaying our workers.”

The sheer volume of orders received by manufacturers has not only breathed new life into the industry, it has also ensured that the industry remains busy with work for not just this festive and wedding season, but subsequent ones as well. Says Jinesh Mehta, Kaamya Jewels, “IIJS was a fantastic show, it was super successful. Even though we did not attend it, but it is obvious that it was just what the industry needed. Thanks to it, the industry will be booked for the next one-and-a-half years.”

An event of the magnitude of IIJS was held in the physical form after a long gap. Everyone is happy with the response and excited about the coming days. There are huge orders, and it is quite a challenge to make deliveries on time. Clients are in a hurry, and to meet the demand, we are overpaying our workers Nikunj Mittal, Shri GK Chudiwalas, Jaipur

Spurt in demand comes with its own challenges

While all this is good news, the deluge of orders has created problems of its own. Apart from shortage of raw materials and scarcity of skilled workers, paucity of time is a major issue. Says Manish Bhindi of Manish Bhindi Jewels, Rajkot, “The sudden surge in demand and the sheer number of orders has created a problem in terms of delivery. Time is a big problem. Our karigars are working overtime, doing night shifts. We have also increased the number of workers in order to meet the deadlines of delivery, but come what may, we will not compromise on quality.”

Besides, shortage of raw materials and price fluctuations are adding to the challenges. According to Ashish Kotawala of Kotawala Fine Jewellery, Delhi, “Demand is pretty good, but we are facing acute shortage of loose diamonds. Moreover, prices have increased by 10%- 15%, and still, the right kind of goods are not available. It is becoming quite a challenge. Now the season is at its peak and we are really working very hard to meet the demands.”

Agrees Vatsal Mittal of Shri G K Chudiwalas, “Procuring raw material is a challenge. While gold is always available, gemstones are a bit of an issue. When it comes to diamonds, we face the problem of price fluctuation. Prices are going up. So, it is difficult to deliver. Prices of gemstones such as emeralds have also gone up. Supply is limited, and so, sourcing becomes a challenge. We have to match the right kind of sourcing with the right price points.”

Apart from shortage of raw materials and price fluctuations, several players are facing problems of shortage of skilled workers. “Because of the surge in demand, there is a shortage of raw materials. Add to this the fluctuation in prices of colour stones, diamonds and gold. The other problem is limited availability of skilled workforce. Even so, we are competent enough to deliver our orders in time. Not many are able to meet this kind of a heavy rush, but we are ready,” says Abhiyant Raniwala of Raniwala Jewellers.

Looking ahead
Even as industry players enumerate the challenges facing them, they are Procuring raw material is a challenge. While gold is always available, gemstones are a bit of an issue. When it comes to diamonds, we face the problem of price fluctuation. Prices are going up. So, it is difficult to deliver. Prices of gemstones such as emeralds have also gone up. Supply is limited, and so, sourcing becomes a challenge.We have to match the right kind of sourcing with the right price points Vatsal Mittal, Shri G K Chudiwalas, Jaipur unanimously upbeat about the future. And it is not just about one festive season or one wedding season.

“We have been getting a lot of orders from Tier 2 and Tier 3 cities, which is very encouraging. More and more retailers have started buying couture jewellery, which, very clearly, reflects the upcoming trends. The industry is back on its feet. In fact, I would say, it has adapted and come up with new and innovative ways to tackle situations. Besides, vaccination has proven to be a reviver and that confidence was seen among people visiting trade shows in large numbers. All in all, we, at Sparsh, are considering difficult COVID times to be a thing of the past and are very optimistic about the future,” says Shah.

Most manufacturers say they foresaw that IIJS would bring glad tidings, and they prepared for the boom in advance. Garodia says there is now a problem of plenty. “Demand is huge. We are scaling up and increasing our inventory.We lost business in the first half of last year, but we have already recovered it. The industry is on track. Those companies that foresaw the situation and prepared accordingly will not have a problem, but those reacting to it now will not be able to manage. Whoever will offer something new will prosper,” he points out.

Reiterating the positivity factor, Kakadia says,“The industry has already moved ahead of where it was in the prepandemic era. Our turnover has doubled. We expect sustained growth now. Consumers are also feeling positive. They want colourful jewellery, bigger and more colourful stones, diamonds in sizes of 10 ct and above. We are very hopeful about the coming days.”

While much of the optimism stems from the response to IIJS and the ensuing boom, some of it also has to do with revenge buying seen among consumers. Says Abhishek Raniwala, “We are definitely witnessing rebound buying. There is optimism among buyers as well as sellers, and IIJS has a lot to do with that. In fact, the event also brought out the difference between us and our peers. We stand out on the basis of the five parameters of design, product, price point, terms and conditions of service, and commitment.”

We have been getting a lot of orders from Tier 2 and Tier 3 cities, which is very encouraging. More and more retailers have started buying couture jewellery, which, very clearly, reflects the upcoming trends. The industry is back on its feet. In fact, I would say, it has adapted and come up with new and innovative ways to tackle situations. Besides, vaccination has proven to be a reviver and that confidence was seen among people visiting trade shows in large numbers. All in all, we, at Sparsh, are considering difficult COVID times to be a thing of the past and are very optimistic about the future Suken Shah, Sparsh Jewellers, Mumbai

The overall robustness of the G & J industry is also underlined by the current consumer tastes and trends. “The young generation wants statement pieces and high-end jewellery,” says Vatsal Mittal, adding, “Consumers are in a mood to spend, which augurs well for the industry.” Talking about consumer preferences, Mehta says, “Consumer tastes have changed. Millennials don’t mind spending on classy items. They would rather have fewer, but classier jewellery pieces. They go for classy as against showy, and prefer quality over quantity.

These trends are reflective of the overall optimism in the industry, and while most players agree that it might take a while before the industry recovers fully, others are of the view that the recovery is well underway. Bhindi sums it up best, saying, “A proper recovery will take time, but the future is bright.”

IIJS was a fantastic show, it was super successful. Even though we did not attend it, but it is obvious that it was just what the industry needed. Thanks to it, the industry will be booked for the next one-and-a-half years. Jinesh Mehta, Kaamya Jewels, Mumbai