IIJS Traffic Strong, Yet Prices Resistance AboundsAugust 10, 08
Indian jewelry retailers and manufacturers flocked from all across the country this weekend to attend the 25th edition of the India International Jewellery Show (IIJS). Exhibitors noted strong interest from buyers, but strong resistance to high polished diamond prices.
Belgium and Israel Pavilion exhibitors had mixed reactions. While several of them had good orders, the repeated mantra was ‘price resistance.’ Buyers say the prices of polished diamonds are too high and are therefore being selective in their purchases. Most of the buyers at these booths were local Indian traders.
Halls five and six were bustling with activity that for some reason did not spill into the adjacent hall one. It’s possible that one of the reasons for that is that hall one hosted some of the biggest names in the diamond industry – the likes of Rosy Blue, Suashish, Dimexon and Venus Jewels – and that smaller jewelers feel they are not in the same league to do business with them.
If that is the case, they are missing out on a great opportunity. The companies mentioned above were in fact looking forward to seeing smaller companies come in, happy, even eager, to serve them.
The concern expressed by many is that the woes of the U.S. market may also be seen in the Indian consumer market as well. After the Bombay Stock Exchange crashed, the local real estate business has sunk, leaving many potential consumers with less discretionary money to spend.
The upcoming Indian gifting holiday of Diwali will be when this situation may come to a head. With many diamond dealers also invested in the stock market and the local real estate market, if they do not see an inflow of cash, their financial situation may be extremely difficult.