Premium diamond jewellery brands such as Gitanjali Group's D'damas, Nakshtra and Tata Group's Tanishq are all set to witness new competitors in the overseas markets as KIAH, a diamond jewellery brand owned by Surat-based Sheetal Diamonds, readies itself for a global foray. Another diamond jewellery marker Harikrishna Group, too, is gearing up to have its share the world diamond jewellery business by taking its KISNA brand globally.
Thanks to the Indian diamond jewellery designs gaining popularity overseas and a surge in the demand, more and more players are increasingly focusing on global expansion and branding of their diamond jewellery.
Sheetal Group plans to take on the global competition by taking its KIAH brand to the overseas markets. "We have already applied for the patents of our brand in countries like the US, Hong Kong, UK and also for the markets like European Union and the Middle East. Over past ten years, these markets have matured for branded diamond jewellery," says Govindbhai Kakadia, founder and chairman of Sheetal Group, which launched KIAH brand in 2004 with former miss universe, Sushmita Sen as its brand ambassador.
"The overseas markets are showing the signs of improvement for diamond jewellery business now. Non-traditional markets for the diamond jewellery like Middle East, China, East Asia and Europe have emerged as potential destinations for Indian branded diamond jewellery exports," he adds. However, it may take some time for the company to start marketing its brands in these markets.
So far, top diamond brands from Tanishq by Tata Group and Gitanjali Group, which owns premium diamond brands such as D'damas, Nakshtra and Stefan Hefnar, have enjoyed strong presence in the international markets. But now some of the latest entrants in the branded diamond jewellery segment from Gujarat including brands like KIAH and KISNA have started placing their brands on the global platform.
"People's perception about the Indian diamond jewellery is changing. Also, DTC's initiatives like brand launches and awareness campaigns for branded jewellery has proved to be a sentiment booster for brands like us. The third party certification of diamonds too has helped in attracting global customers," added Kakadia, who sells all types of diamond jewellery having small and large gemstones. Sheetal Diamonds is one of the largest diamond polishing companies in India with its facilities located in Surat.
Another Surat-based diamond jewellery maker, Savjibhai Dholakia of Harikrishna Group notes that the diamond jewellery demand from the US alone had risen by nearly 40 per cent in past one year. "Our exports to the US has seen a robust growth over past year. We sold diamond jewellery worth $ 15 million (approx. Rs 67 crore) in 2009-10, which rose to $ 25 million (approx. Rs 112 crore) in 2010-11. We expect this trend to continue and we may touch $ 100 million (approx. Rs 448 crore) mark over next three years," said Dholakia.
The group owns KISNA brand of diamond jewellery. The group has also roped in Sayali Bhagat, former Miss India World 2004 as the brand ambassador to endorse its diamond jewellery brand.
Commenting on the trend of India's branded diamond jewellery making inroads to the overseas markets, Tehmasp Printer, managing director, IGI India states, "Brands need to have some intrinsic value and if it is certified by a third party or an independent international agency, people get attracted towards them. Also, a large NRI community abroad makes it more convenient to market Indian brands overseas. They feel being associated with such brands, hence opens vast opportunity for business."
He is also of the view that the Indian design of diamond jewellery is distinctive from western world, which adds value to its marketing. IGI is a global diamond certifying agency.
India's diamond jewellery market as a whole is estimated at around Rs 2 lakh crore, of which the branded jewellery hold nearly 8-10 per cent with a combined sales of about Rs 20,000 crore.
This has seen a sharp rise from a mere 1-2 per cent share of branded jewellery a couple of years back.
