Israeli Diamond Portal Reports: India 2008 – The Shape of Things to Come

June 2, 2008 - PRLog -- India has been declared the strategic target of the Israeli Diamond Industry in 2008. The Indian economy appears to be booming and the business opportunities seem to be unlimited. In addition, the Indian market is multifaceted, almost like the diamond.



The Indian economy, particularly the diamond and jewelry industries, have recently been facing various difficulties, including the appreciation of the rupee, the soaring gold prices, and the lack of sufficient incentives for the local diamond manufacturer or jeweler.  



How can Israeli diamantaires and jewelers gain access to the Indian market? What are the best areas for cooperation? What kind of merchandise is best suited to the Indian market?



We met with two Israeli diamond companies that are active in India in order to gain more information about the elusive but highly attractive Indian market.



SWA Trading is an Israeli diamond company owned by Abe Hazan and Danny Wilheim who in 2006 formed a three way partnership with Shrenuj and Co. Ltd., an Indian manufacturer and exporter of diamonds and jewelry. Shrenuj, a DTC sightholder and public company, exports via its offices located throughout the world.



Added Value and Global Reach



Abe states: “We formed a partnership with Shrenuj because we wanted to show added value and increase our global reach. What we have been able to form is the perfect synergy – we provide forward-thinking marketing and an excellent brand, Trapz, while they provide the manufacturing facilities for smaller-sized pairs.”



He continues: “In addition, this partnership has allowed us to achieve three important goals; facilitate a consistent supply of rough to our three factories, establish a manufacturing center in India for sizes that were too small to be cut in Israel, and accelerate our expansion for the Trapz brand overseas, especially in India.”



Trapz’s ability to produce a unique range of products has allowed Shrenuj to offer its customers in India a unique range of products that has no competition there. The sophistication of the upcoming middle class and the high-end consumer’s desire for brand names will enable Shrenuj to gain an ever-greater market share.



Elona Bilet, Sales Director of Trapz , predicts that in the future, “India will be a  stronger market than China. The foundation of the British judicial and educational systems as well as the fact that far more people speak and understand English produce an openness to Western culture that is still lacking in China.”



She continues: “The model that we have created in India - whereby each partner complements the other’s strength - is a perfect formula for Israeli diamond companies to follow in the future.”



The Indian Market is More Pragmatic

Dalumi is a leading Israeli sightholder active in many international markets. So why India?, we asked. Yuval Kemp, Director of Marketing and Business Development at Dalumi, replies: “We produce off-color polished stones, including warm whites and yellow shaded goods in sizes ranging between 0.10 and 5 carats. India is the ideal market for our merchandise.”



The off-color diamonds are relatively inexpensive in comparison to white diamonds. Kemp notes: “The Indian market is more pragmatic than the American one. In America, buyers insist on purchasing pure white colored stones but they do not mind if the stone is flawed. But the Indians don’t mind if the color is off-white as long as the stone is flawless.”



He continues: “The difference in color is not visible to the naked eye, but the flaws are. So the Indian end consumer actually gets better value for his money. If you take into account that the market there is huge, the opportunities there are infinite.”



When asked if his company would consider manufacturing jewelry in India, he replies: “It would be very difficult to compete with the local jewelry manufacturers in India. They have strong technical capabilities and are well acquainted with their market. But there is the possibility of cooperating with local manufacturers if the demand for our merchandise rises significantly.”



India - A Unique Synergy

Kemp adds: “If India continues to grow at the current rate, and considering the emerging middle class, this country will become a major market for Dalumi. We are working on plans to open an office there.”

How does one make contacts in India? Kemp replies: “It is important to participate in trade shows such as the IIJS and the upcoming show in Mumbai. Indian diamantaires also attend the Hong Kong shows, so that is also a good place to meet Indian buyers.”



When asked if sales have been affected by economic fluctuations in India, he says: “We haven’t noticed any slowdown, but the point is that in India even if one costumer buys less, there are always new costumers who will compensate immediately for the loss.”



Without a doubt, synergy is the name of the game in India.


By: Rachel Lieberman

Website: www.israelidiamond.co.il