New Delhi, Aug 22, 2004
IANS
Once the adornment of only the rich, diamonds have caught
the fancy of the average Indian, making the domestic market lucrative
for jewellery manufacturers who are cashing in on this fad.
"Over the last couple of years we have been noticing
that 25 percent of our customers who never bought diamonds are doing
so. They start with buying diamond studded jewellery worth Rs.10,000
($215) to Rs.15,000 ($323) and then go up," said Upkaran Singh
Chawla of Mumbai-based Dolsun Jewels.
A non-resident Indian, Chawla shifted operations here
to cash in on the growing craze for diamonds in India. He now exports
to the US and Canada, where his father had started a jewellery business
20 years ago.
"We specialise in personalised diamond jewellery
for which there is a good demand here. In fact, the domestic market
is growing faster than the export market," Chawla told IANS.
"The phobia about diamonds being affordable by
only the elite class is gone," said Ajay Kapoor of the leading
New Kapoor Jewellers. "In the last few years we have been recording
over 60 percent growth in sale of diamond jewellery."
The middle class choice varies from Rs.5,000 ($108)
piece jewellery for everyday wear to Rs.100,000 ($2,155) sets and above.
India is a major diamond cutting and polishing hub,
accounting for nine out of ten stones sold in the world market. With
a 17 percent share in the export basket, India exports around $8 billion
worth of diamonds and jewellery.
The high-profile celebrity promotion of Diamond Trading
Company, the gems marketing arm of De Beers, have made Nakshatra, Asmi
and premium range of solitaires Arisia household names.
The fact that some of these are very affordable ranges
of designer jewellery is luring Indian housewives and working women
to buy diamonds for normal wear
The quality certification from Diamond Trading Company
(DTC) and International Gemmological Institute (IGI) is an added incentive.
To help people learn more about the four Cs - carat,
clarity, cut and colour, the IGI is running courses in India that are
not only being attended by youngsters but also many young jewellers.
Some of the jewellers provide their own certification
of quality, but increasingly the demand is for globally recognised certification
where high worth diamonds are concerned.
"With the trend towards showing off personal affluence,
everyone is getting into the grove of buying diamonds - whether lower
value studded jewellery in the north or high worth solitaire in the
western region," said Chawla.
The shift towards precious stones can be seen even in
traditional jewellery like kundan, minakari and mina-kundan, which have
brilliant enamelled designs on the reverse.
"There is less demand for minakari and more for
kundan with uncut diamonds replacing white crystals in polki cutting,"
said Shubhang Mittal of Jaipur based Shree Jee Jewellers, who export
considerable amount of traditional jewellery to the US.
"The domestic demand is more than exports though
people here want new designs and better quality stones as there is more
awareness now," said Mittal.
"The trend is for studded jewellery with the younger
generation seeking precious stones even in traditional settings,"
said Devang Jhaveri of Mumbai-based Keshavlal Dalpatbhai Zaveri &
Co.
Despite the price of gold escalating in the last two
years, India continues to be a major importer and consumer of the precious
metal.
Trade experts said the demand for custom designed gold
and diamond jewellery has seen the emergence of several training institutes
and talented entrepreneurs like Nidhi Chawla who markets her jewellery
under Glitz brand.
"In Delhi the preference is for jewellery with
lots of stones while in Mumbai high-value stones and more delicate work
is in demand," said Chawla who is happy with the success witnessed
by her wedding jewellery range.
Designer jewellery has even caught the fancy of tourists
and non-resident Indians who shop here for diamond jewellery, said trade
leaders.
"Such is the demand that in less than two years
of starting operations we have had to double our shop area to meet customer
demand," said Poonam Kashyap, designer with Diamond Hut, one of
the new popular ventures.