IIJS Goa Opens Amid Hesitant Market

The IIJS Signature Show opened Friday at the Kala Academy in the laidback resort city of Panjim, Goa. Fifty exhibitors and more than 300 invited buyers from India and around the world converged to mix business with pleasure in the optimistic atmosphere, or, as GJEPC Chairman Vasant Mehta describes it, during a time when “the clouds have parted.”

The first day of the show saw last minute preparation by some of the exhibitors and widespread anticipation for the buyers to arrive. The buyers - from Iran, Russia, Azerbaijan, the U.S., Dubai, Saudi Arabia, Uzbekistan, Turkey and Bangladesh – trickled in slowly. Local Indian buyers, however, arrived on time and sporadic business was reported as a result.

One thing that stood out was the low presence of Anant in the exhibitor's stalls. Anant is the GJEPC’s concentrated effort to drive diamond jewelry sales by promotion among retailers and consumers alike. Manufacturers subscribe to the program, which includes an advertising campaign and a branded jewelry design. Anant’s dismal presence at the booths was surprising, but alleviated by the end of the day, and on Saturday, when the Anant logo became visible in the booths.

In a meeting with the press, Mehta stated that India is now the global hub for diamonds, raising its share to the U.S. market and becoming the largest supplier to Japan, the two leading global diamond markets.

The industry is still reeling from a difficult year and cautious behavior is still prevalent. Testimony to that is the turnout at the invitation-only event: of the 240 invited international buyers, only 80 arrived at the show. Of the 400 invited Indian buyers, 350 decided to attend.

Among the issues facing the industry, Mehta noted the high cost of bank financing, with interest rates higher for the Indian diamond traders than for the Belgian or Israeli traders. The industry is also seeking to revise the Indian taxation system from a regular tax on profit to a turnover tax. Such a tax should operate under the assumption that, on average, diamond traders profit is about 3 percent, and that a flat tax should be applied across the board to all diamond traders, regardless if their profit is higher, or even if they ended the year with a loss, according to Mehta.

For the first time, the IIJS show includes loose diamonds, with a row of booths set aside for large and mid-sized companies such as Venus Jewels, Suashish and Ketan Diamonds (formerly of Mahendra Bros.)

Both jewelry and loose diamonds saw a pickup in demand on Saturday, though traders continued to hope for more interest to stimulate business.

Show organizers made sure that the attendees enjoyed the special city of Goa. This included typical Goan food at lunch, including seafood at a floating restaurant that docked at a pier off the academy grounds, and live entertainment and gambling on a yacht commissioned by the GJEPC.

On a lighter note, Kala students created a series of smart interactive visual effects triggered by people walking the halls that responded to them. They included a display of a school of fish projected on the floor of one of the hallways that scattered away when walking through the pool of light (on the first day), or following a passersby's shadow (on the second day). A student promised that each day they will have a new surprising display.