IIJS 2011: Price Concerns Cast Shadow Over Successful Show

The 28th edition of the India International Jewellery Show (IIJS) that concluded in Mumbai earlier this week saw significant business transactions across most segments, though volumes were impacted by buyer concerns related to the prices of raw materials – particularly gold and diamonds.

While figures of the final visitor count have not yet been made available by the organisers at the time of writing, there are indications that the numbers probably crossed 30,000 – a record for the show – and many of these were serious trade buyers.

Most of them however were cautious in their approach as the show opened against a backdrop of a sustained increase in the price of polished over the last few months and high gold prices. Confidence at the show was additionally hit by the uncertainty that struck financial markets due to the US credit rating crisis and the subsequent surge in gold prices.

The impact of this was seen in terms of lower volumes of business – exhibitors indicated that while retailers had made purchases, the quantities and value was not as big as in the past. However, almost all the exhibitors reported increased business, with the majority estimating a between 10-30% rise over last year, according to a survey conducted by Diamond World.

In the gold jewellery segment, exhibitors reported that orders were placed to cover about a month’s inventory, unlike in the past when buyers had bought enough goods to meet their needs right until the festive season.

Loose stones did not move very strongly, as the market anticipates some softening in prices, but diamond jewellery manufacturers, especially those using smaller sizes, reported that business was satisfactory. In the larger sizes there were many cases where retailers made tentative bookings subject to final confirmation of the price by their customers.

On a different note, IIJS continued to live up to its reputation as the perfect platform for networking between manufacturers and retailers from India. The Diamond World survey found that 74% of exhibitors reported doing new business at the show.