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Indian gems regain luster

By FashionUnited

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Indiamart Knowledge Services has just concluded a comprehensive survey on the gems

and jewelry sector in India, comprising a large number of small and medium size enterprises. The analysis is out and shows that prospect for this sector is bright. The survey was conducted to ascertain if the recovery in the global markets is benefiting SMEs in the gems and jewelry sector and the answer is yes, it is.

On the upbeat side, 50 per cent or more of the respondents found the market in 2010 faring better than in 2009. Likewise, 47.9 per cent reported an increase in sales of up to 20 per cent. However, only 16.7 per cent said that it had risen beyond expectations as consumer sentiment did not reflect greater change. Half, however, found only an average increase in consumer sentiment. 14.6 per cent stated sales had increased by more than 20 per cent in 2010, vis-a-vis 2009. 28.8 per cent stated that prices increased significantly and about 46.15 per cent found product prices stable, and 17.9 per cent reported a marginal improvement. Export demand picked up, with 56 per cent of SMEs reporting an increase in export demand which augurs well for the industry.

On the flip side, about 27.1 per cent saw the market drop further in 2010, and the remaining 22.9 per cent reported no change in the market scenario.  About 33.3 per cent continued to find it negative in 2010. Some 37.5 per cent of SMEs experienced a decline in sales, though only 7.7 per cent concluded that their product prices decreased in the year.

With respect to input costs, most (51.28 per cent) said they increased significantly and only 5.13 per cent said they had decreased. Overall, the news was met with enthusiasm albeit cautiously. Despite the changing market scenario, the SMEs in the sector continue to grapple with challenges. More than half (51.28 per cent) feel that poor response from customers is a major worry.
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Indiamart Knowledge Services