India Pays Higher Prices for Same Rough Diamonds

The value of India's rough diamond imports and exports increased sharply in November, however the volume was largely unchanged from last year, based on provisional figures published by the GJEPC.

India's net rough diamond imports in November totaled 8.8 million carats worth $1.02 billion. This is a 6% decline in volume yet 42.1% rise in value compared to November 2010.

The value of India's gross rough diamond exports leaped 48.7% to $1.17 billion in November. The volume of exports made a less dramatic increase, up 2.4% to 11.2 million carats.

The disparity between the increased value and volume of exports is a result of a large overall increase in rough diamond prices over the past year. This is also reflected in the difference in the average value of imports. The average value of gross imports in November was $104.09 per carat, compared with $69.90 p/c in November 2010.

Rough diamond exports have leaped in November. India exported $146.3 million worth of rough, up 166.5% year-over-year. The volume of exports increased 50.1% to 2.38 million carats.

-Israeli Diamond Industry

Jeweler donates 20% of line's sales to fight autism

Bartow’s Jewelers here has announced that it will donate 20 percent of every purchase of select Sarah’s Hope Jewelry designs from the store this holiday season to Families Advocating Autism Now (FAAN), a local group dedicated to helping the families of children diagnosed with autism.

Sarah’s Hope Jewelry is a socially responsible jewelry line that helps provide microloans and small businesses training women in impoverished situations throughout the country and world.

“Through their purchases of Sarah’s Hope Jewelry, our customers have participated in the efforts to help life hundreds of women through small business ownership,” Lisa Barrote, owner of Bartow’s Jewelers, told northern California’s Times-Standard. “Now we’re thrilled to also help locally by giving back to the FAAN club of Humboldt.”

The promotion at Bartow’s Jewelers will run through Dec. 24. Customers can choose from a selection of Sarah’s Hope earrings, bracelets and pendants in sterling silver and colorful “E’Sperene” stones, the proceeds of which will benefit FAAN.

“We know there are many needs in our country, and we are excited that our customers will help by purchasing gifts that not only look good, but help do good for the families of children who have been diagnosed with autism,” Barrote said.

Sarah’s Hope Jewelry sales will also be helping another charity this holiday through the help of Jewelers Mutual Insurance Company. Jewelers Mutual is participating in a “Giving Back Locally” program by contributing $1,000 to charity in honor of the jeweler who raises the most money through sales of Sarah’s Hope line during the holiday season.

-National Jeweler

NASDAQ Reprimands Pandora Over Sales Forecasts

The NASDAQ OMX Copenhagen reprimanded Pandora on Dec. 22 for not informing the market that it would miss its annual revenue forecasts.

On Aug. 2, the Danish charm manufacturer announced it was dramatically scaling back its yearly projections—which originally foresaw a 30 percent jump in sales. But NASDAQ ruled that “it must have been clear to the company at an earlier stage” that its previous projections could not be reached.

The exchange noted the resetting of expectations led to a 70 percent drop in the company’s share price, and occurred only three and a half months after the positive guidance was issued.

In a statement, Pandora said it “acted properly” in response to “a swift and unexpected downturn in sales.”

“At the beginning of July 2011, year-to-date revenue was up 22 percent against the same period in 2010,” the company noted, adding that at the time it believed its prior forecast of 30 percent revenue growth would still hold.

However, “trading conditions significantly worsened in July 2011, with revenues in July 2011 being down by more than 30 percent against July 2010,” the company added.

At this time, executives “acted decisively and in a timely manner” by broadcasting the new projections, said the statement.

The company said it is in dialogue with the Danish Financial Supervisory Authority.

On Dec. 19, Pandora announced it had hired a new CEO.

-JCK Online

Crossworks to Cut De Beers Diamonds Worth C$35M Over 3 Years

Canada’s Sudbury-based Crossworks diamond manufacturer is expected to nearly double its workforce now that the company has won a three-year contract to cut some C$35 million from De Beers’ Victor Mine, the CBC reports.

According to the Ministry of Northern Development and Mines, De Beers Canada has an agreement to offer 10% of the rough diamonds produced at the Victor Mine for sale to be manufactured in Ontario.

Currently, Crossworks’ Sudbury plant employs a workforce of 29, a number that is expected to increase to 50. Due to a lack of qualified diamond cutters and polishers in Ontairo, the company will invest in training the new workers.

-Israeli Diamond Industry

Jaipur Jewellery Show Begins in India

The ninth edition of Jaipur Jewellery Show (JJS) kicked-off on Friday with only average visitor traffic, but exhibitors are expecting activity to pick up over the weekend. About 450 exhibitors are participating in the event, which runs until December 26.

"Our aim is to promote the domestic industry. This is also a consumer show and so we want to promote more of our Jaipur jewelry, Rajasthani jewelry and then Indian jewelry," said Rajiv Jain, the secretary of the JJS organizing committee and chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

Navin Dangi of ND Creation stated that visitor traffic is average since it’s the first day of the show. “We are getting mostly inquiries from retail consumers. Hopefully it will be better in the next two days as we expect visitor traffic to increase in the weekend,” he added.

Sitesh Hirawat, a director at DP Designs, said that visitor traffic is better than last year, but since it is the first day of the show it was unclear how inquiries would convert into actual business. An executive with exhibitor M.B. Sons (I) said, “The response is good from consumers for our jewelry. They have specific needs and it gets easily fulfilled during this kind of show.”

Aditya Kothari of Jaipur-based Daksh Jewellery said that traffic is light today, but that was okay as inquiries are being made and a few sales were also taking place.

JJS, also known as the December show, is considered as the second largest jewelry show in India, according to the organizers, who said 85 percent of the exhibitors are repeat exhibitors. Organizers expect around 25,000 to 30,000 visitors to participate in the show, mostly from various parts of the country. Some visitors are also coming from Thailand and Hong Kong.

The organizers, which promote one gemstone every year in the show, are promoting "Kundan-Meena" this year. Vimal Surana, convener of the organizing committee said that JJS will have “diamond jewelry-Jaipur adds color to it” as the theme for the next two years.

Vikram Merchant, the manager of Rio Tinto Diamonds’ Indian representative office in Mumbai and who inaugurated the show, said that the years ahead will see the emergence of India as a major diamond jewelry consumer and also as a major diamond producing country. He added that no other country in the world has the same potential as India to be a major producer, manufacturer and consumer of diamonds.

''The gifting market offers significant potential for diamond jewelry consumption growth,'' Merchant said.

-Rapaport

RapNet Suspends Member for Listing Marange Diamonds

Martin Rapaport reiterated RapNet’s policy against listing diamonds from the Marange region of Zimbabwe—and announced that the computer-trading network last week suspended a member believed to have listed those stones on the service.

“We are going to take extreme efforts to make sure that the diamonds we offer are not from Marange,” the chairman of Rapaport Corporation said on a Dec. 22 conference call. “We are committed, really committed [to not listing Marange diamonds]. I don’t believe we are going to be perfect right away. But we want to move in that direction rapidly.”

Rapaport said his network is thinking about banning green-tinted stones, since many Marange diamonds are known to be of that hue, and may also “offer rewards” to anyone who reports a member who violates the rules.

He urged RapNet members to ask their suppliers about the origin of their diamonds.

“You have to start digging deeper as to where the supply chain is,” he said. “We want members to honestly and responsibly and reasonably investigate where their diamonds are coming from.”

“Talk to your suppliers,” he added. “Get to know your customer really well, and make sure they are legitimate.”

He also wants members to “affirmatively state” that their diamonds are not from Marange.

“You can’t just say everything’s fine,” he said. “You really have to understand what is happening in your supply chain.”

“Some people are saying, ‘Rapaport, you are crazy. People don’t go and investigate.’ I have this strange idea that there are a lot of good diamond people out there. We want a good, safe, honest, legitimate, trading network. And if we lose members, I really don’t care.”

When one questioner noted that many suppliers say they have no idea where their diamonds are from, Rapaport responded, “I don’t know if diamonds go through that many hands. If you list on RapNet, I don’t know if you are one or two steps away from the mine.”

Rapaport argued that Maragne diamonds pose three problems for the industry. First, they are illegal in some countries due to OFAC and European Union sanctions against the Mugabe-linked entities involved in their production. Second, they raise “moral and ethical” quandaries because they are linked to reports of past human rights abuses. Third, they represent “reputational risk” for the industry, given greater social awareness among consumers.

In addition, Rapaport announced plans for a broad-based campaign that will ask jewelers to pledge that they are not buying diamonds from the region.

“This campaign will ask people to take a pledge that they will investigate their sources,” he said. “It’s for everyone who believes in this ethical idea."

And finally, Rapaport said he will move ahead with his plan to offer “ethical certification,” which will track where a diamond comes from, and then grade its provenance.

-JCK Online

Online Buyers of Jewelry, Luxury Goods Rise in India

The number of online shoppers in India searching for jewelry, luxury goods and accessories rose 36 percent year on year to 2.1 million in November 2011, comScore reported.

“The online channel is playing an increasingly important role in connecting retailers with potential customers in India,” said Kedar Gavane, comScore director for India. “To take advantage of this growing opportunity, retailers must ensure they are addressing the needs of potential customers, which include attractive pricing and the convenience of ordering online.”

A total of 27.2 million online users in India aged 15 and older accessed the retail category from a home or work computer, representing an 18 percent increase from the previous year. Consumers continue to turn to the web to shop for and purchase items and retailers continue to increase their online visibility through active marketing campaigns, comScore noted.

The company added that among the retail subcategories, coupons were the largest with 7.6 million visitors, a six-fold increase from the previous year. Consumer electronics ranked next with 7.1 million visitors growing 12 percent from November 2010, while 5.8 million online users visited comparison shopping sites, up 25 percent from last year.

“The rapid growth of online coupon sites suggests that consumers in India are looking for deals, highlighting the need for online retailers to adopt effective marketing and pricing strategies for their goods,” Gavane said.

The report noted that Amazon sites led as the top retail destination in India reaching 6.8 million visitors, representing 14.7 percent of the online population. Apple.com worldwide sites saw its audience reach 3.4 million visitors, followed by Samsung Group with nearly 2.8 million visitors. Other top retail destinations included Flipkart.com, HomeShop18.com and Naaptol.com.

-Rapaport