India and China to emerge equal to US in jewellery, says KMPG study

Mumbai, Dec 12 (UNI) India and China together will emerge as a market equivalent to the US market by 2015, says a study by KPMG, a global firm providing Audit, Tax and Advisory services.

A copy of the study was released by Gems and Jewellery Export Promotion Council (GJEPC) Chairman Sanjay Kothari, at a function here last evening.

India's share of the diamond processing industry pie will drop from 57 per cent today to around 49 per cent (in value terms) by 2015. However, China will emerge as a strong player with 21.3 per cent of the diamond processing share by the same year, says the KPMG report titled as 'The global jems&jewellery: Vision 2015: Transforming for Growth'.

While releasing the report, Mr Kothari urged the entire industry and trade organisations worldwide such as World Federation of Diamond Bourses, International Diamond Manufacturers Association, Jewellers of America, etc, to play a pivotal role as facilitators and work in synergy for betterment of the industry. The study gives insight on the current size and scale of the value chain, identifying trends that will have an impact on the future, predicting the likely state of the industry by 2015.

Expressing satisfaction over the findings of the report, KPMG India Advisory Services Director Neelesh Hundekari said ''To realise this potential by 2015, the industry will have to focus on the growing demand for jewellery as a category and strengthen industry-level and enterprise-level capabilities.'' These programmes need to be initiated within the next 12-18 months for its benefits to be realised over the next 10 years, he added.

Global jewellery sales is expected to grow at 4.6 per cent year-on-year to touch USD 185 billion in 2010 and USD 230 billion in 2015.

Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together accounting for 82 per cent. Diamond jewellery will be the slowest growing segment at a CAGR of 3.3 per cent.

Growth in the industry will be slow as compared to that expected in other luxury goods categories such as watches and perfumes, says the report.

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