The Indo-US Business Development Conference, organised by the Gem & Jewellery Export Promotion Council (GJEPC) kicks off on Sunday, September 7th. The conference, which is only the second of its kind, having been tried for the first time last year, is basically a setting for a series of one-to-one closed door buyer-seller meetings between a group of Indian diamond, gemstone and jewellery manufacturers and a group of invited American retailers.
The participating Indians have collectively paid for the conference, including the travel and stay of the invited Americans. Almost all the Indians are repeat participants – though several from last year’s meeting have dropped out this time round. That says a lot about the outlook of these participants.
Most Indian firms are looking around feverishly for alternate markets and are not too enthusiastic about trying to develop new relationships with US clients. Russia, the countries of the erstwhile Soviet Union, the Middle East, China, the Asian ‘tiger’ countries – the Indians are seeking entry all over the place.
Of course, those with existing US clients are steadily servicing them, but seeking new American clients? Not many takers. They do have a number of valid arguments. Even given the positive atmosphere of such a sponsored meeting, it will be difficult for both sides to come to mutually satisfactory agreements. The Indians will want firm prices, given the high cost of inputs – rough diamonds, gold, platinum. The Americans will find these demands tough as they struggle to keep selling in a really difficult economic situation.
But I believe that those participating are people with strategic vision. Yes, the situation is difficult on both sides. Yes, it might seem impossible to come to a satisfactory agreement. But the Americans know they need to source products that will continue to sell in these times and where better to do this than India, which has a lock-hold on diamond manufacturing and also produces a wide variety of polished coloured gemstones. And dealing with a jewellery manufacturer who also cuts and polishes diamonds or coloured gemstones means the product can be sourced that much more competitively and come with the guarantee of assured supply. The participating Indians, on the other hand, know that the US is still the world’s single largest jewellery consumer and that the downturn won’t last forever. They might be willing to settle for slimmer margins to be able to open up a new customer base in the US.
This meeting is about laying the groundwork for tomorrow, when the economic climate improves. Good luck to them.
