The Hong Kong September Jewellery and Gem Fair 2011 opened Monday, with notable presence by the Israeli Diamond Industry.
The Israeli pavilion is the largest at the show in terms of the number of exhibitors. Special effort has been put into the Israel Diamond Institute’s two 1,500-square-meter booths, in which 105 diamond companies are showing, to attract buyers to the Israeli booths.
The IDI also sponsored the official opening event, at which IDI Chairman Moti Ganz presented Diamond Trading Company CEO Varda Shine with the League of Honor and presented the new president of the Israel Diamond Exchange, Yair Sahar.
Sahar congratulated Shine in the name of the Israeli Diamond Industry for her work on behalf of Israel’s diamond sector and gave her an IDI brooch designed by Yehuda Kassif, curator of the Harry Oppenheimer Diamond Museum. The brooch tells the story of a diamond from the moment it is mined to the moment it is polished.
Tuesday, September 20, 2011
Titan Aims For Annual Sales of $3B in Two Years
Titan Industries Ltd., a lifestyle and jewelry company from Tata Group, expects to achieve annual turnover of $3 billion by fiscal year 2014-2015 as it looks to expand.
''Plans are for aggressive growth in our existing business. We are exploring the footwear segment, but nothing is concrete yet,'' said Bhaskar Bhat, the managing director of Titan Industries, which operates nearly 700 retail stores.
The company sells its jewelry under Tanishq, Goldplus and Zoya brands, while its eyewear brands include Titan, Eye+ and Dash. It sells watches under Titan, Xylys, Sonata, Fastrack brand and also has a precision engineering division.
Titan is planning to open one or two more stores of its mass market jewelry retail brand, Goldplus, in this fiscal year that ends on March 31, 2012, Bhat said on the sidelines of a conference, after Tata Sons' chairman Ratan Tata unveiled the world’s first "gold jewelry" car that was crafted by Goldplus. The company currently has 30 Goldplus retail stores.
This past week, Muthoot Finance Ltd., a non-banking financing firm, and Goldplus entered into a partnership to finance and sell jewelry in the southern Indian state of Andhra Pradesh.
''We have covered pretty much of Tamil Nadu and Andhra Pradesh is the focus now,'' Bhat explained. He added that Titan is planning to spend about $50 million (INR 2.38 billion) on expansion in fiscal 2012 and the expenditure could be around the same level next year. Bhat said that during the festive season, which runs from September to December, the company expects sales growth of about 25 percent to 30 percent.
''I think sales should be normal during Diwali season. High gold prices always affect volume but consumers will come back as soon as festive season starts,'' he added.
Due to higher prices people limit their purchases to the amount of money that they have, but they still buy gold in preference to many other goods as it is seen as an investment, Bhat explained. ''So there will be less volume but consumers would still buy gold. It is the most preferred category.''
Bhat stated the company expects fiscal 2012 sales to be around $2 billion (INR 90 billion), up from $1.39 billion (INR 65.90 billion) one year earlier.
Titan reported sales rose 62.5 percent year on year to $463.65 million (INR 20.48 billion) during its first-fiscal-quarter of 2012 that ended on June 30, 2011. The company attributed strong growth to improved sales across all its divisions and retail chains, mainly the jewelry business.
''Plans are for aggressive growth in our existing business. We are exploring the footwear segment, but nothing is concrete yet,'' said Bhaskar Bhat, the managing director of Titan Industries, which operates nearly 700 retail stores.
The company sells its jewelry under Tanishq, Goldplus and Zoya brands, while its eyewear brands include Titan, Eye+ and Dash. It sells watches under Titan, Xylys, Sonata, Fastrack brand and also has a precision engineering division.
Titan is planning to open one or two more stores of its mass market jewelry retail brand, Goldplus, in this fiscal year that ends on March 31, 2012, Bhat said on the sidelines of a conference, after Tata Sons' chairman Ratan Tata unveiled the world’s first "gold jewelry" car that was crafted by Goldplus. The company currently has 30 Goldplus retail stores.
This past week, Muthoot Finance Ltd., a non-banking financing firm, and Goldplus entered into a partnership to finance and sell jewelry in the southern Indian state of Andhra Pradesh.
''We have covered pretty much of Tamil Nadu and Andhra Pradesh is the focus now,'' Bhat explained. He added that Titan is planning to spend about $50 million (INR 2.38 billion) on expansion in fiscal 2012 and the expenditure could be around the same level next year. Bhat said that during the festive season, which runs from September to December, the company expects sales growth of about 25 percent to 30 percent.
''I think sales should be normal during Diwali season. High gold prices always affect volume but consumers will come back as soon as festive season starts,'' he added.
Due to higher prices people limit their purchases to the amount of money that they have, but they still buy gold in preference to many other goods as it is seen as an investment, Bhat explained. ''So there will be less volume but consumers would still buy gold. It is the most preferred category.''
Bhat stated the company expects fiscal 2012 sales to be around $2 billion (INR 90 billion), up from $1.39 billion (INR 65.90 billion) one year earlier.
Titan reported sales rose 62.5 percent year on year to $463.65 million (INR 20.48 billion) during its first-fiscal-quarter of 2012 that ended on June 30, 2011. The company attributed strong growth to improved sales across all its divisions and retail chains, mainly the jewelry business.
Sunday, September 18, 2011
US Net Rough Diamond Imports Drop 56.7% in July
Net rough diamond imports by the US declined sharply in July, even though gross imports were on the rise. US net imports of 1,499 carats worth $10.9 million fell 56.7% by value.
Gross imports of 48,299 carats of rough diamonds worth $65.1 million increased year-over-year by 23.2% and 82.1%, respectively.
American diamond traders are more interested in the higher value goods, as evident by the average value of imports. Gross imports averaged $1,347.69 per carat while net imports averaged $7,258 p/c.
Most of the US imports were exported, 46,800 carats worth $54.2 million at an average value of $1,158.38 p/c.
The majority of rough imports were from Botswana, $20.8 million, followed by South Africa with $18.5 million. South Africa was the leading destination of exports, $13.5 million, followed by Belgium ($10.9 million).
Gross imports of 48,299 carats of rough diamonds worth $65.1 million increased year-over-year by 23.2% and 82.1%, respectively.
American diamond traders are more interested in the higher value goods, as evident by the average value of imports. Gross imports averaged $1,347.69 per carat while net imports averaged $7,258 p/c.
Most of the US imports were exported, 46,800 carats worth $54.2 million at an average value of $1,158.38 p/c.
The majority of rough imports were from Botswana, $20.8 million, followed by South Africa with $18.5 million. South Africa was the leading destination of exports, $13.5 million, followed by Belgium ($10.9 million).
Expectations Improve for Good Hong Kong Show
Hong Kong show may be better than expected. Strong Far East demand could result in higher trading volume as Indian suppliers adjust prices to meet their liquidity needs. Buyer’s market anticipated. U.S. retail sales stall in August as consumers cut spending amid growing economic turmoil. Rough buyers restrained as Firestone Diamonds reports weak demand for small stones at September tender. Petra Diamonds takes over Finsch mine. Swatch ends Tiffany partnership to develop watch brand.
Global Markets
United States: Polished demand is quiet but stable as dealers are trading in lower volumes than they did a year ago. The summer break is proving to be longer than usual as wholesalers and retailers are cautiously planning their Christmas inventories. Jewelry retail demand is stable, driven by the bridal sector, but trending toward lower price point items.
Belgium: There is some uncertainty in the market as polished dealers continue to struggle with prices. As a result, trading is relatively quiet and many expect next week’s Hong Kong Gem & Jewellery Fair to be a surer barometer of some price stability. There is some polished demand emanating from the Far East as well as from Europe and the U.S., particularly for 0.30-carat to 2.00-carat, F-H, VS-SI goods. There are some shortages reported in the VS-SI category stones. Rough trading remains slow and cautious.
Israel: Trading remains cautious as dealers and manufacturers are preparing, and waiting, for the Hong Kong show. Expectations for the show are relatively low despite the strong Israeli contingent participating in the event. While demand is stable, with many enquiries for goods as dealers seek out price levels, buying is limited to filling orders rather than making projections with large-volume purchases. Demand is focused on 0.30-carat to 0.70 carat and 1-carat to 1.5-carat, I+, VS-SI, triple Ex goods.
India: Local polished demand improved slightly from last week, particularly for small-size goods. Still, trading remains cautious due to price differentials and volatile currency and equity markets. There is a strong focus on next week’s Hong Kong show, which many are hoping will provide a clearer indication about price and demand trends. Indian dealers are hoping that strong demand from Chinese buyers will ensure steady activity at the show. The rough market remains slow and limited as price uncertainties persist. Tight liquidity continues to impact market sentiment and trading.
China: There has been cautious buying as retailers prepare for the coming National Day Golden Week festival, which starts on October 1. Buyers are looking for a clearer guideline regarding prices and are hoping the Hong Kong show will provide that. There is a sense that retailer’s inventories are relatively high after the strong growth period of the first half of the year spurred their buying activity. Diamond dealing at the Shenzhen show, which began September 14, was limited as the event is more focused on jewelry trading.
Hong Kong: Traders have been busy preparing for next week’s show even as expectations for the event are slightly subdued. There is lingering concern about the global economy and the impact that slow European and U.S. growth will have on the ar East region. Dealers are also concerned about unstable prices ahead of the show and are hoping for stability. There is good demand for larger stones above 3 carats, while demand for smaller goods appears relatively slow.
Global Markets
United States: Polished demand is quiet but stable as dealers are trading in lower volumes than they did a year ago. The summer break is proving to be longer than usual as wholesalers and retailers are cautiously planning their Christmas inventories. Jewelry retail demand is stable, driven by the bridal sector, but trending toward lower price point items.
Belgium: There is some uncertainty in the market as polished dealers continue to struggle with prices. As a result, trading is relatively quiet and many expect next week’s Hong Kong Gem & Jewellery Fair to be a surer barometer of some price stability. There is some polished demand emanating from the Far East as well as from Europe and the U.S., particularly for 0.30-carat to 2.00-carat, F-H, VS-SI goods. There are some shortages reported in the VS-SI category stones. Rough trading remains slow and cautious.
Israel: Trading remains cautious as dealers and manufacturers are preparing, and waiting, for the Hong Kong show. Expectations for the show are relatively low despite the strong Israeli contingent participating in the event. While demand is stable, with many enquiries for goods as dealers seek out price levels, buying is limited to filling orders rather than making projections with large-volume purchases. Demand is focused on 0.30-carat to 0.70 carat and 1-carat to 1.5-carat, I+, VS-SI, triple Ex goods.
India: Local polished demand improved slightly from last week, particularly for small-size goods. Still, trading remains cautious due to price differentials and volatile currency and equity markets. There is a strong focus on next week’s Hong Kong show, which many are hoping will provide a clearer indication about price and demand trends. Indian dealers are hoping that strong demand from Chinese buyers will ensure steady activity at the show. The rough market remains slow and limited as price uncertainties persist. Tight liquidity continues to impact market sentiment and trading.
China: There has been cautious buying as retailers prepare for the coming National Day Golden Week festival, which starts on October 1. Buyers are looking for a clearer guideline regarding prices and are hoping the Hong Kong show will provide that. There is a sense that retailer’s inventories are relatively high after the strong growth period of the first half of the year spurred their buying activity. Diamond dealing at the Shenzhen show, which began September 14, was limited as the event is more focused on jewelry trading.
Hong Kong: Traders have been busy preparing for next week’s show even as expectations for the event are slightly subdued. There is lingering concern about the global economy and the impact that slow European and U.S. growth will have on the ar East region. Dealers are also concerned about unstable prices ahead of the show and are hoping for stability. There is good demand for larger stones above 3 carats, while demand for smaller goods appears relatively slow.
GIA GemFest at Hong Kong September to Focus on Diamonds, Pearls
The spotlight at the GIA (Gemological Institute of America) GemFest 2011 in Hong Kong will fall on two featured events – a pearl seminar and a presentation on diamonds.
Kenneth Scarratt, managing director of GIA Southeast Asia and director of the GIA Laboratory in Bangkok, Thailand, will present “Natural Pearling from P. Maxima off Western Australia” at 11 am September 20 at the AsiaWorld-Expo.
On September 22, following a breakfast, President of De Beers’ Diamond Institute Andrew Coxon and Chairman of Suwa & Son Inc. Yasukazu Suwa are scheduled to present “A New Way of Looking at Diamonds.” Coxon and Suwa will also provide an overview of their book, Diamonds: Rough to Romance.
For further information, visit www.giahongkong.com. To RSVP, contact (852) 2303 0075 by phone or email giahk@netvigator.com.
Kenneth Scarratt, managing director of GIA Southeast Asia and director of the GIA Laboratory in Bangkok, Thailand, will present “Natural Pearling from P. Maxima off Western Australia” at 11 am September 20 at the AsiaWorld-Expo.
On September 22, following a breakfast, President of De Beers’ Diamond Institute Andrew Coxon and Chairman of Suwa & Son Inc. Yasukazu Suwa are scheduled to present “A New Way of Looking at Diamonds.” Coxon and Suwa will also provide an overview of their book, Diamonds: Rough to Romance.
For further information, visit www.giahongkong.com. To RSVP, contact (852) 2303 0075 by phone or email giahk@netvigator.com.
Thursday, September 1, 2011
Global Markets
United States: Wholesale trading has further quieted as low consumer confidence, price uncertainties and the traditionally slow summer season combined to take their toll. Demand remains focused on stones suitable for the engagement and bridal market, with rounds, 0.50-carat to 1.99-carat, G-H, VS-SI goods leading the way. However, it appears difficult to sell these goods as buyers are resisting higher price points. Demand for larger goods above 3.00 carats remains weak. Retailers appear most concerned about economic trends ahead of the fourth-quarter selling season.
Belgium: Trading activity remains slow as price uncertainties and economic concerns persist. In addition, many Antwerp-based Indian dealers were still on holiday through this week’s Jain festival. There is demand for polished as sellers are offering less for their goods while buyers are holding back until price stability sets in. Rough trading is slow with price declines more apparent in the secondary market than at the mining company source.
Israel: Trading has slowed as dealers are cautious but are hoping for price stability ahead of the Hong Kong show, which starts on September 19. Despite the uncertain outlook for the show, there is a strong emphasis on further penetrating the Far East market where the strongest growth opportunities lie. At the same time, sellers appear willing to compromise on price, even at the expense of incurring a slight loss, in order to maintain partnerships with their strong retail partners. Rough dealers are pushing for greater discounts.
India: Activity in both the polished and rough markets has been restrained due to the ongoing Jain religious festival of Paryushan, one of India’s major holidays. Polished buyers are not in a hurry to purchase as they expect prices could fall still further and overall demand remains poor as a result. Tight liquidity issues continue to hurt traders’ confidence. Sentiment in the rough market also remains weak. However, limited trading is taking place as some Diamond Trading Company (DTC) boxes are selling at discounts.
China: Polished dealers are cautious about buying large volume of new goods until prices stabilize. Rather, they appear focused on selling existing inventories to keep cash flows moving. Still, buying activity this week has increased slightly from last week as buyers have begun preparations for the National Day Golden Week holiday, which starts on October 1. Retailers are expected to increase their buying to fill their inventories in the coming weeks.
Hong Kong: Trading is slower than expected for this time of year, which generally involves early buying for China’s Golden Week celebrations. Wholesalers appear unsettled by the recent downtrend in prices and buyers are holding back until they see signs of greater stability in the market. There is some concern that the slow trading will extend through the Hong Kong show, which may impact the winter trading season.
Belgium: Trading activity remains slow as price uncertainties and economic concerns persist. In addition, many Antwerp-based Indian dealers were still on holiday through this week’s Jain festival. There is demand for polished as sellers are offering less for their goods while buyers are holding back until price stability sets in. Rough trading is slow with price declines more apparent in the secondary market than at the mining company source.
Israel: Trading has slowed as dealers are cautious but are hoping for price stability ahead of the Hong Kong show, which starts on September 19. Despite the uncertain outlook for the show, there is a strong emphasis on further penetrating the Far East market where the strongest growth opportunities lie. At the same time, sellers appear willing to compromise on price, even at the expense of incurring a slight loss, in order to maintain partnerships with their strong retail partners. Rough dealers are pushing for greater discounts.
India: Activity in both the polished and rough markets has been restrained due to the ongoing Jain religious festival of Paryushan, one of India’s major holidays. Polished buyers are not in a hurry to purchase as they expect prices could fall still further and overall demand remains poor as a result. Tight liquidity issues continue to hurt traders’ confidence. Sentiment in the rough market also remains weak. However, limited trading is taking place as some Diamond Trading Company (DTC) boxes are selling at discounts.
China: Polished dealers are cautious about buying large volume of new goods until prices stabilize. Rather, they appear focused on selling existing inventories to keep cash flows moving. Still, buying activity this week has increased slightly from last week as buyers have begun preparations for the National Day Golden Week holiday, which starts on October 1. Retailers are expected to increase their buying to fill their inventories in the coming weeks.
Hong Kong: Trading is slower than expected for this time of year, which generally involves early buying for China’s Golden Week celebrations. Wholesalers appear unsettled by the recent downtrend in prices and buyers are holding back until they see signs of greater stability in the market. There is some concern that the slow trading will extend through the Hong Kong show, which may impact the winter trading season.
Zale Diamond Retailer's Q4 Revenue Up 9.4%
Zale Corporation has posted revenue of $377 million for the fourth quarter (ending July 31, 2011), a 9.4% year-on-year increase.
The US diamond retailer's gross margin on sales for the quarter was $193 million, a 6.4% increase over the fourth quarter of 2010.
However, the fourth quarter still represented a net loss of $33 million, and the company's outstanding debt rose to $395 million compared to $296 million in the corresponding quarter of 2010.
For the fiscal year ending July 31, Zale generated a total $1.74 billion in revenue, a 7.8% increase over the previous year, and a net loss of $112 million, compared to $96 million in 2010.
In related news, the diamond company, which operates over 1,830 jewelry boutiques throughout North America and Puerto Rico, announced that was expanding its options for customer financing through a partnership with Monterey Financial Services, which will offer financing possibilities for Zale customers whose credit has been rejected by Citibank.
"We are pleased to be able to expand our financing options so that even more guests can affordably purchase beautiful jewelry," said Ken Brumfield, Vice President of Financial Products.
The US diamond retailer's gross margin on sales for the quarter was $193 million, a 6.4% increase over the fourth quarter of 2010.
However, the fourth quarter still represented a net loss of $33 million, and the company's outstanding debt rose to $395 million compared to $296 million in the corresponding quarter of 2010.
For the fiscal year ending July 31, Zale generated a total $1.74 billion in revenue, a 7.8% increase over the previous year, and a net loss of $112 million, compared to $96 million in 2010.
In related news, the diamond company, which operates over 1,830 jewelry boutiques throughout North America and Puerto Rico, announced that was expanding its options for customer financing through a partnership with Monterey Financial Services, which will offer financing possibilities for Zale customers whose credit has been rejected by Citibank.
"We are pleased to be able to expand our financing options so that even more guests can affordably purchase beautiful jewelry," said Ken Brumfield, Vice President of Financial Products.
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