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| Jewellery promo in Dubai postponed |
| Dilip Kumar Jha / Mumbai Dec 01, 2009, 21:24 IST |
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GJEPC was planning to showcase its range in Dubai and Sharjah.
Gems & Jewellery Exports Promotion Council (GJEPC), the apex body under the aegis of the Union ministry of commerce, has deferred its Rs 200-crore ‘Anant’ jewellery promotion plan in West Asia, due to the collapse of Dubai World.
Anant, the first jewellery brand by GJEPC, was being promoted in about 200 outlets since late August in India. By early next year, GJEPC was planning to commence showcasing it primarily in Dubai and Sharjah, for which it was in talks with local jewellers.
The Council was planning to raise the required fund from local retailers and the Indian government. The government was said to be keen on the effort. “But, the plan stands deferred due to the uncertain response anticipated by the Council after Dubai’s economic collapse,” said Sanjay Kothari, convenor of Promotion Marketing and Business Development for GJEPC.
It was also in talks with several Indian and other local retailers in West Asia, but these forward plans are now frozen, said Kothari. The United Arab Emirates (of which Dubai is a part) constitutes 32 per cent of India’s jewellery exports, primarily gold jewellery items meant for re-exports to Russia, Iran, Iraq, CIS and African countries.
Talking about the very limited success of Anant in India, Kothari said: “Many retailers introduce innovative brands during Dussera and Diwali festivals that remain in consumers’ focus extensively. The launch coincided with other brands from individual retailers.”
But, the ongoing wedding seasons will evoke better response, he hoped.
Indian jewellery exporters, meanwhile, are planning to expand presence in Indian as well as Chinese markets. Since, the gold price has hit a record high, diamond exporters are finding a good opportunity to lure away gold consumers in India. Many jewellery makers have launched diamond-studded gold jewellery items with low caratage of the precious metal, to sell in an affordable price range, largely in the Rs 2,500- 5,000 segment.
GJEPC Executive Director Sabyasachi Ray feels the collapse of Dubai’s economy will have no impact on jewellery exports from India, as the local consumption in Dubai is hardly five per cent of the total. However, jewellery retailers with exposure in real estate will be affected badly, as their flow of receivables will be affected likewise. Also, if local banks stops serving customers out there, retails will be hit, Ray added.
With the year’s most promising - Christmas and New Year - season around the corner, India’s jewellery industry was expecting a speedy recovery in exports, which contracted 32 per cent because of the global economic slowdown last year. But, Kothari believes, overall exports will remain rangebound at around $25.5 billion this year.
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