Akansha Kumari 4A

Kumar Gaurav 22A

Shainky Govil 44A
IMITATION JEWELRY
(7117)
Industry Analysis



MBA
2013-15
Table of Contents
1. Objective..3
2. Research Methodology..3
a. Supply Side...3
b. Demand Side........3
3. Competitive Performance.....4
4. Why to buy imitation jewelry.......4
5. Indian Market Overview .....6
6. Raw Material.......7
7. Production Hubs In India.....8
8. Important manufacturing hubs........8
9. Suppliers Present In India.....9
10. Value Addition Chains....11
11. Process of production of imitation jewelry...12
12. Costing of imitation jewelry...13
13. Workforce......14
14. Imitation Jewelry Market14
15. SWOT Analysis.15
16. The Road Ahead...15
17. The Challenges..17
18. Export Destinations from India..19
19. Major Importers....20
20. Demand Fact Sheet...22
21. Initiatives Taken.......22
22. Strategies to boost Exports......25
23. Recommendations25



















Objective

The objective of the project is to evaluate the export competitiveness of commodity
under chapter 61(HS code 7117) of Indian imitation jewelry sector. This study would look
at the entire value and its exports from India.


1. Research Methodology
a. Supply Side
To assess the supply-side factors of export competitiveness, a secondary research was
conducted to find the supply-side bottlenecks that they are facing in India. The supply-
side framework is based more on opinions than on data/ numbers
b. Demand Side
In order to evaluate the demand-side, the study has analyzed the competitive
performance of Indian exports of the commodity (HS code 7117) in the primary market
(US, UAE, Gemany, UAE, and France).

2. Competitive Performance
A product is said to be export-competitive if:
1. The growth rate in unit value of the product imported from India exceeds average
growth rate in unit value of the product from all suppliers in a market, and
2. Its market share grows over the period 2008-2012.
3. To the extent market share is a function of quotas, market share of some county may
decline over time only because their exports are constrained by quotas.

Definition: Can also be known as cubic zirconia jewelry, faux jewelry or costume
jewelry. They are generally inexpensive versions of popular, more expensive brand name
jewelry.




Why buy imitation jewelry

Jewelry is every womans best friend and yet, whether you agree or not her worst
enemy. Why enemy? The answer is simple; the price tag just makes her shun away the
thought of owning jewelry. But then this is the case with expensive jewelry set in gold or
platinum, embedded with precious stones. After all anything genuine does come with a
price tag. While real jewelry may not be affordable, an absolutely wallet friendly option
is imitation jewelry. This is available in a wide range from what we call junk jewelry to the
gold- coated jewelry. It is far cheaper than anything genuine. In fact the gold coated or
what we also called gold plated jewelry looks so real that anyone would think you have
paid a packet for it.

Not only gold, but also even diamonds are available in its cheaper option called American
Diamonds. These are actually pieces of glass that are polished and cut in a way to give
the sheen and look of a diamond. American diamond jewelry cost less than half of what
actually diamonds cost.

Genuine jewelry has its limited wearabilty, which means that what you pick up may not
go with every outfit you own. And because of its cost it is not possible to own a piece of
jewelry to match up to your wardrobe. But with the option of imitation jewelry, you
could possibly afford to own a piece that could match with every dress you have. The
range of colors and styles span over a wide variety. In fact there are designers who
specialize in imitation jewelry. Right from feathered earrings to ivory pendants, from
glass bangles to beaded anklets, it is probably available. In fact using your imagination
and artistic and craft skills you could create your own range of imitation jewelry at home
with beads and strings.


Indian Market Overview
Indian jewelry business has undergone a drastic transformation over the years. Original
diamond and gold jewelry has now made a way forward for artificial jewelry. The sky
rocketing prices of the traditional jewelry whether it is gold, diamond or silver, have
encouraged people to opt for affordable imitation jewelry.
Indian Imitation jewelry market has witnessed tremendous growth in the past few years.
In 2012, the market grew around 85% compared to the previous year. The imitation
jewelry market was estimated to reach INR 98.5 Billion by the end of 2013 due to rising
demand.
Imitation jewelry such as fashion jewelry is very much prevalent, especially amongst the
college going teenagers. Since the prices are cheap, they can get a wide variety and also
keep up with the changing fashion. Indian fashion jewelry industry is growing in
quantum, patronized mainly by the youngsters.
In future, the imitation jeweler market is expected to grow further with soaring gold and
silver prices, rising consumer preference, availability of more innovative designs and
variety etc. Considering these factors, the imitation jewelry market in India is anticipated
to grow at a CAGR of around 23.5% during 2013-2017.











Raw Materials
These are a few of the raw materials that are used as inputs for the Imitation Jewelleries:
1. ZIRCON: Is a mineral occurring as prismatic crystals, typically brown but
sometimes in translucent forms of gem quality. It consists of zirconium silicate
and is the chief ore of zirconium. Zircon occurs in many colors, including red,
pink, brown, yellow, hazel, or black. It can also be colorless. The color of zircons
can sometimes be changed by heat treatment. Depending on the amount of heat
applied, colorless, blue, or golden-yellow zircons can be made.

Major procurement centers:
Domestic: Tamilnadu , Kerela , Odisha
International :China , Indonesia , Malaysia , Ukraine , Brazil , Australia ,
South Africa
2. AMERICAN DIAMONDS: is the cubic crystalline form of zirconium dioxide (ZrO
2
).
The synthesized material is hard, optically flawless and usually colorless, but may
be made in a variety of different colors. It should not be confused with zircon,
which is a zirconium silicate (ZrSiO
4
). It is sometimes erroneously called "cubic
zirconium".
Because of its low cost, durability, and close visual likeness to diamond, synthetic
cubic zirconia has remained the mostgemologically and economically important
competitor for diamonds since commercial production began in 1976. Its main

2011 2012 2013 2014f 2015f 2016f

2017f
competitor as a synthetic gemstone is the more recently cultivated material,
synthetic moissanite.
Major procurement centers:
Domestic: Panna mines , Rajasthan
International: China , Japan , USA , Germany

3. STAINLESS STEEL: In metallurgy, stainless steel, also known as inox
steel or inox from French "inoxydable", is a steel alloy with a minimum of
10.5%
[1
chromium content by mass.
Stainless steel does not readily corrode, rust or stain with water as ordinary steel
does, but despite the name it is not fully stain-proof, most notably under low-
oxygen, high-salinity, or poor-circulation environments. There are different
grades and surface finishes of stainless steel to suit the environment the alloy
must endure. Stainless steel is used where both the properties of steel and
resistance to corrosion are required

Domestic procurement : Rajkot, Jamashedpur, Hyderabad, Pune, New
Delhi, Chennai
International: India is self sufficient in the production of stainless steel.

4. Cup Chains
5. Rondels Procured mostly from SMEs located around
6. Metallic Balls production houses.
7. Stones in settings


Production Hubs in India
Imitation jewelry such as: Bangle, Bangles, Costume Jewelry (also called artificial jewelry,
replica jewelry, junk jewelry, fake jewelry, or fallalery), Bracelets, Kada, Chain, Mangal
Sutra, Mala, Necklace Set, Pendant Set, Anklet, Nose pin, Nose ring, Earring, Ring, hair
accessories
Manufacturer, Wholesaler, Supplier at: Rajkot, Gujarat, Mumbai, Maharashtra, Delhi,
Moradabad, Sambhal, Jaipur, Kohima

Important manufacturing Hubs
Here is a non-exhaustive list of major centers for manufacturing Imitation jewelry:
Mumbai
New Delhi
Rajkot
Jaipur
Noida
Kolkata
Ahmedabad
Chennai
Hyderabad
Coimbatore
Bengaluru
Moradabad
Pune Surat

The thing to be noted is that Imitation Jewelry market is flourishing in Tier 1
& Tier 2 cities but is yet to make its mark felt in lower wrung cities and towns.





Address 8, PLATINUM
PLAZA, OPP. INDIAN
OIL PETROL PUMP, NR.
JUDGE BUNGLOW
ROAD, BODAKDEV,
Ahmedabad - 380015,
Gujarat, India


ISABELLE EXPORTS Member duration 6 years
With an aim to stand tall on the expectations of patrons, we
are engaged in providing them with attractive range of
imitation jewelry. We are highly in demand for our quality
assured products such as 3 Binder Case in Ring, 3 Ring Binder
and 3 Ring Recipe Binder and more. Our Export
Markets: Germany, Europe, China, Munich and Miami

Rhodolite Overseas Member duration 5 years
Established in the year 2012, we are a trusted business entity in the domain of exquisite
collection of cnc machine cutting imitation jewelry bangles. Our dedication towards work
has gained us enviable reputation in the market. Our collection gives a very appealing
look and is in accordance to the latest market trends. Our product range comprises
imitation jewels gold plated, imitation bangles, imitation necklace sets and checker
imitation jewelry
Address: 'GANDHI SMRUTI' 3, PEDACK ROAD, Rajkot - 360003, Gujarat, India




Shree Parshavnath Creations (Fashion-Art) (Estb 1890) Member 9 years
(Online Catalog)

Suppliers Present in India:
We are acknowledged as a top manufacturer, supplier and exporter of the competitive
domain of imitation jewelry. All these products are exclusively designed, keeping in mind
the latest trends & varied needs of the clients. At the same time, it is affordable and
exquisitely designed. Our wide range of bridal bangles includes brass bangles, metal
bangles, glass bangles aluminum bangles, metal bangles and stone bangles
Address: 99, Swadeshi Market, Sadar Bazar, Delhi - 110006, India




Address 2994/2-A,
STREET NO. 17,
RANJIT NAGAR,
New Delhi - 110008,
India


TRANSWORLD TRADING INC. Member Duration 13 years
With a mission to establish ourselves as a leading organization,
we started off 22 years ago, and soon our Imitation Jewelry
collection started receiving great appreciations from the clients.
We have maintained excellent track record in both the domestic
and international market. The wide assortment we are dealing in
comprises antique wooden boxes, decorative antique pet urn
boxes, handicrafts, wooden handicrafts, equestrian products,
saddles, fashion jewelry and even more

ArihantTouch Member 1 year
Exporter, supplier, & trading comany offering wide range of american diamond
neclace set diamond neclace set neclace set american diamond c bangles
stylish diamond c bangles designer bangles american diamond endant set
diamond endant sets , stylish cz necklace sets , diamond pendants, designer
pendant sets, bridal jewellery, diamond kundan necklace set, kundal bridal set,
fashionable pendant set, diamond stylish pendant set, American diamond czkada,
American diamond
Address : 110, Kakakua Bldg., 3rd Bhoiwada, Shop No.-3, Bhuleshwar, Mumbai -
400002, Maharashtra, India


RoyalNx Member 2 years
Based in Mumbai, India, they are a manufacturer and trader of a wide range of imitation
jewelry and jewelry stones.

Competitive Market Advantages:
Global export market
Quality assured products
Sophisticated infrastructure
In house designing and quality checking team
Address : 61 - 63, SutarChawl, 1st Floor, Near Zaveri Bazar, Mumbai - 400002,
Maharashtra, India
FusionArts Member 3 years
Manufacturer, Exporter, Distributor, Supplier and Trader of Imitation Jeweleries,
Designer Pendant Jewelary Imitation Jeweleries, Designer Made Brown Gemstone
Traditional Jhumka Earrings , Designer Mathaa Patti, Designer Necklace Jewelry, Designer
Necklace Set, Designer Necklace Set For Women, Designer Necklace Set For Womens,
Designer Necklace Sets, Designer Necklaces Set., Designer Net Patern Earring, Designer
Pearl Necklace Set, Designer Pearl Studded Hair Brooch , Designer Pearl Studded Kada,
Designer Pendant
Address : 312/314, Abdul Rehman street, Opp. Crawford Market, Mumbai - 400003,
Maharashtra, India

Zorba Logistics Pvt. Ltd.
imitation jewelery...Trader and Exporter of Fashion garments, dust woolen coat, fashion
accessories, handicrafts, jute bags, imitation jewelery, spices, eatables, logistics Service
Provider of Freight forwarding, import, exports, custom house agent, transportations, air
freight
Address : I S-23, Sej Plaza, 2nd Floor, Off. S.V.Road, Malad (West), Mumbai - 400067,
Maharashtra, India
Shree Ambica Novelty
Distributer and Supplier of Imitation jewelery-ring, bracelet Trader of Imitation jewelery-
ring...Distributer and Supplier of Imitation jewelery-ring, pendent, bangles, set,
necklaces, bracelet Trader of Imitation jewelery-ring, pendent, bangles, set, necklaces,
bracelet
Address: No 1112/16, Toy Market, Pankore Naka, Ahmedabad - 380001, Gujarat, India







Value Adding Chain in Imitation Jewelry (Handicraft Industry)

Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs

Entrepreneurial hiring, training, managing

Production, quality control and packaging

Costing and pricing

Physical distribution

Export market development: Handicraft overview
In the changing world scenario, craft products exported to various countries form a part
of lifestyle products in international market. The impact is due to the changing consumer
taste and trends. In view of this it is high time that the Indian handicraft industry went
into the details of changing designs, patterns, product development, and requisite
change in production facilities for a variety of materials, production techniques, and
related expertise to achieve a leadership position in the fast growing competitiveness
with other countries.
The 6 million craft persons who are the backbones of Indian Handicraft Industry as
provided with inherent skill, technique, traditional craftsmanship but that is quite
sufficient for primary platform. However, in changing world market these craft persons
need an institutional support, at their places i.e. craft pockets for value addition and for
the edge with other competitors like China, Korea, Thailand etc.

Imitation jewellery is largely made of brass, cast iron, nickel, plastic beads and stones,
instead of precious metals and gems. It does not have much resale value and prices
range between Rs 100 and Rs 30,000, the study said.
India is the second largest manufacturer of imitation jewellery after China. Indian
costume jewellery has a huge demand in the US, Europe, Canada, Australia and many
Asian countries.

Process of Production of Imitation Jewelry

The process is essentially ambiguous and depends on the type of jewelry to be made.
Some common steps for imitation jewelry are: Basic techniques for bending wire,
attaching clasps and closing crimps. And also usage of the different types of stringing
materials such as tiger tail and thread.
Basic tools required to make jewelry are round rose pliers, chain nose pliers, crimp pliers,
a wire cutter and bead board
Jewelry making supplies include stringing wire, clasps, crimps (used to hold the wire in
place) and ear wires for earrings
There are many different types of beads including glass, semi-precious stone, crystal,
silver, gold, metal and ceramic. Also use charms and various size chains to make jewelry.
It is a good idea to consider the use of jewelry presentation boxes and pouches for the
display and selling of your jewelry. Not only do they enhance the beauty of your jewelry
pieces but they also help increase your sales. Not only would the box protect the jewelry
piece, but it also allows your customer to present it as a gift.

Costing Of Imitation Jewelry
Again as per the ambiguity in the manufacturing and raw material supply even the
costing of this industry is very vague. Some of the common methods deployed for pricing
imitation jewelry are:
Simple jewellery pricing formula - Price = material costs x 3 + pro-rated hourly labour
rate. For example the necklace made cost Rs. 5 in jewellery supplies and took 30 minutes
to make. Using the formula Price = Rs. 5 material costs x 3 + Rs. 10 labour (30 minutes of
labour equals half an hour. So half of Rs. 20 hourly labour rate equals Rs. 10 of labour on
this necklace)
This gives you a selling price of Rs. 25.
An additional step in using the jewellery pricing formula above is to take into account the
following to adjust the resulting price:
(a) What will your target market be prepared to pay;
(b) How unique is the jewellery made;
(c) What do shops charge for similar pieces?

Indian Custom Duty of Products

HS-Code Item Description Basic Duty CVD SPL. CVD
71171100 Cuff-links and studs 10.00 % 6 % 0%
71171910 Bangles 10.00 % 6 % 0%
71171920 German Silver Jewellery 10.00 % 6 % 0%
71171990 Other 10.00 % 6 % 0%
71179010 Jewellery studded with imitation pearls
or imitation or synthetic stones
10.00 % 6 % 0%
71179090 Other 10.00 % 6 % 0%
CVD Countervailing Duties
Generally, imitation jewellery comes in four different varieties

Costume jewellery,
Fashion jewellery,
Rold gold and
Cubic Zirconia jewellery

Workforce
Though imitation jewellery industry is unorganized, it provides employment to many
people, say merchants. About 70 per cent of employees working in the industry are
illiterate women and they work from home. India may leverage its traditional craft-skills,
low-cost labour, and fabrication techniques in some of the jewellery products (such as
processing of small-sized diamonds), and replicate such advantages in the production of
other products, and thereby become a global player across the gems and jewellery
segments.

Imitation Jewellery Market

Imitation jewellery (HS 7117): The Asian and European countries dominated the export
of imitation jewellery Hong Kong, China, Austria and France. Major importers of
artificial jewellery include USA, Germany, France, UK and Italy in 2007. Hong Kong was a
major source country for all the major importers, followed by China and Austria.

Indias exorts under this roduct category amounted to US $ 117.46 million. Though
India is also one of the major exporters of artificial jewellery, Indias roducts are mainly
sourced by UK. Other major export destinations for India include: USA, UAE, Spain and
Saudi Arabia; however, the volumes are insignificant as compared to the potential.

India needs to target these markets through various strategies (Cuff links & studs of
base metal w/n plated with precious metal (HS 711711): Major importers of products
under this category include: USA, UK, Japan, France, and Hong Kong; major source
countries for products under this category include: Thailand, UK, Hong Kong, China, and
Germany in 2007. Thailand served as a source country for all major importers of the
world (Table 37).

Indias exorts under this roduct grou amounted to US $ 2.58 million. Though India
was not a major exporter under this category, India was a major source country for USA
contributing 8.1% of the total imorts by the USA. In value terms Indias exort to USA
was US $ 2.09 million a share of 81 % of Indias total exorts under this roduct grou.

SWOT ANALYSIS














The Road Ahead
Strength
Excellent Innovation styles
Cheap Labour
Changing consumer
preferences
Value for money
Weakness
Lack of skilled workers
Unorganised
Lack of high end
technology
Low penetration
Oppurtunitie
s
Product Diversification
Rising prices of Gold and
Silver
Young untapped Indian
population
Advent of online marketing
Threats
Cheap imports from China
Entry of MNC Online
portals
Lack of customer
preference
Big penny marketing by
traditional jewellers
These are some of the key concerns that this industry faces in the wake of
globalization and changing marketing landscape:

The jewelry industry in India adds a distinctive feature with high domestic and
international demand. With rising gold and silver prices, imitation jewelry market has
been witnessing significant growth over the past few years.

Moreover, Indian imitation jewelry making is emerging as the next big market which has
been pre-dominantly driven by its indigenous designs and local demand. In addition, the
perspective of manufacturers, wholesalers, traders and retailers of the imitation jewelry
industry holds much more capability than the conventional offering.

The industry dynamics and consumer behavior atterns have made India the worlds
second-largest manufacturer of imitation jewelry after China. Rajasthan, Uttar Pradesh,
West Bengal, Bihar and Madhya Pradesh are some of the important states known for
such products.

Further, with the entry of large organized players, the market will become more
competitive and people have more choices among branded and quality products.

Beside, Indian imitation jewelry has a huge potential for exports and enjoys huge
demand in the foreign markets. The demand is also rising in many Asian countries
which will help further the industry to accelerate in the near future.

However, there are also certain challenges such as cheap imports from China, costly
labor, etc. which needs to be addressed as these can affect the growth of the industry.

Considering the above factors, the future of Indian imitation jewelry market seems quite
bright
The Challenges Ahead
Market Driving Factors
Here we discuss in detail the propellants for the rising market of Imitation jewellery in
detail:

High Demand: The demand for imitation jewellery has surged by over 85% in the last one
year. People, especially women have adopted better standards of grooming after being
influenced by daily soaps. They ape the jewellery and the costumes which are worn by the
television stars. Moreover with the rise in standard of living and disposable income
customers undoubtedly prefer to go in for branded products.

Consumer preferences: The changing outlook of people regarding jewellery as a daily
wear commodity rather than an asset for life has made imitation jewellery more popular.

Variety and Affordability: Due to affordable range of the artificial jewellery, it is much
easier to make a collection for regular as well as formal occasions. Generally working
women prefer to change their jewllery (earrings, neck-pieces, rings etc) according to their
dresses.

Drastic hike in gold and silver price - With the prices of gold raising sharply, the
popularity of imitation jewellery has further increased.

Security purpose: Imitation jewellery is safer to wear as compared to the authentic
jewellery. In the pre-sent day when theft and crime is increasing in society, customers feel
more secure wearing fake jewellery.

Excellent innovative designs: Imitation jewellery comes with unlimited and exquisite
designs which can be easily purchased.

Value for money: Traditional jewellery cannot be changed according to latest fashion.
However imita-tion jewellery can be worn and discarded according to latest trends due to
their low cost benefit.

Lack of gender bias: In the past jewellery was exclusively for the fairer sex but in the
recent times men have also initiated an interest in adorning themselves with this. One can
easily come across specially de-signed fashion jewellery like bracelets, rings, chains,
pendants, earrings for the males also.

Cheap Imports from China: Imitation jewellery from China is flooding the Indian market
and imports from China have already catured 30% of the countrys domestic maret.
It is also hurting imitation jewellery manufacturers, as Indian traders are now importing
finished goods from China.
According to data from the ministry of commerce, India imported Imitation jewellery
worth about INR 1.3 Billion in 2011-12. During the period April-September 2012, 0.6 bn
worth of finished imitation jewellery was imported from China. However, this figure
underestimates the actual level of imports, which are believed to be 10 times higher.

Accessibility
Besides metros and tier one cities, accessibility of standardized imitation jewellery is a big
issue, and therefore, a significant portion of the consumer segment is underserved.

Highly Unorganized
Indian Imitation jewellery market is highly unorganized with the organized market is nearly
three-fourth of unorganized sector. In addition, the number of organized players is also
less in the sector Indias gems and jewellery industry is highly unorganied and fragmented
with more than 90% of the players having family owned businesses. According to a FICCI
study, the gold processing industry has around 15,000 players, with only around 80 units
having revenues of over US $ 5 million. India is also home to around 450,000 goldsmiths,
over 100,000 gold jewellers, about 6,000 diamond-processing players, and 8,000 diamond
jewellers. The unorganized and small-scale nature of the sector hampers the ability of
Indian gems and jewellery industry to innovate, upgrade technologies, and emerge as a
world-class supplier.

Lack of Customer Awareness
The customers need to be educated on the basic artificial jewellery care to maintain the
quality or the olish of the roduct. Also Indian customers need to be informed that
certain regions in India have humid weather which adversely affects the shine and the
plating of the product.

Costly Labour
For the artificial jewellery industry labor is very expensive. In addition, there is a lot of
attrition due to which the manufacturers have to continuously increase the wages of the
labor, which adds to the overhead costs.

Low Quality Jewellery

In case of imitation jewellery, same designs are available in low quality material at low cost
which is affecting the growth of the market.

Export Destinations from India

The following table represents the top ten major export destination of Imitation
jewelry from India: (all data in US$ thousands)
Importers 2008 2009 2010 2011 2012

World 157362 176373 162907 324817 348983
Afghanistan 623 2095 1494 41847 67213
United States
of America
27777 27938 33221 44861 51448
United Arab
Emirates
16027 30641 13582 88055 47557
United
Kingdom
34601 35788 28171 34380 26721
Spain 8750 11046 11118 14469 16618
Saudi Arabia 6487 5113 7192 11819 12472
Thailand 270 108 28 68 11418
Malaysia 1256 1330 1854 2129 7865
Iran (Islamic
Republic of)
623 494 778 3801 7476
Sri Lanka 357 289 467 1477 6207


We can analysis the change in exporting trend by observing the following graph:


A global map wise representation of Indian Imitation jewelry presence:



Major importers of India

Here is a list of major countries from which India imports Imitation jewelry:

E20 Imported
value in 2007
Imported
value in 2008
Imported
value in 2009
Imported
value in 2010
Imported
value in 2011
World 9216 10833 12064 16373 24153
China 3751 4948 6981 11165 14991
Hong Kong,
China
1055 1266 1270 719 1648
Austria 2356 928 467 1258 1515
Germany 616 732 355 380 904
United
Kingdom
84 259 146 437 749
Philippines 0 3 3 65 632
Italy 107 156 164 175 512
France 146 528 344 305 496
Thailand 323 225 282 328 460
United States
of America
108 124 405 306 451

The graph below shows the import footprint of India.






















Demand Fact Sheet
Demand for imitation jewelry has suddenly gone up by over 85% due to drastic hike in
gold and silver price and increased interest in gems & stones during wedding and
current festive season as per the quick survey undertaken by ASSOCHAM-Social
Development Foundation (ASDF).
The exports have seen a rise of 35%, reveals the Associated Chamber of Commerce and
Industry of India (ASSOCHAM) survey.
The imitation jewelry market is about Rs 8,000 crore (growing at the CAGR of 20% y-o-y)
in India and expected to touch Rs 15,000 crore by 2015.
Consumers between the age group of 18 to 35 amount for about 78% of the total
demand.
Major demand centers in India are: Delhi, Mumbai, Kolkata, Gurgaon, Lucknow,
Bangalore.

Promotional Schemes to boost the sector
The government has launched various promotional schemes under its FTP to help the
SMEs and SMSEs to incentivie the imort and exort of sunrise and hitherto.
Some of these schemes are :
1)Focus Market Scheme : Exporters of all products to notified countries shall be entitled
for Duty Credit scrip equivalent to 2.5% of FOB value of exports for each licensing year
commencing from 1st April, 2006.However New additional Markets notified in
Appendix 37C of HBP v1 shall be entitled for Duty Credit scrip on exports w.e.f
1.4.2008.Exports made by EOUs / EHTPs / BTPs who do not avail direct tax benefits /
exemption shall be eligible.
2) ASIDE : Jems and jewellery unites located in SEZ can now receive semi precious
metals prior to export or after export equivalent to the value of jewellery exported .
Wastage for subcontracting/exchange of gems and semi precious stones between SEZ
and DTA is allowed
3)Focus Product Scheme : Under this scheme the exemption re import duty for
imitation jewellery sent to USA for exhibition has been increased from 60 to 90 days .
Duty free export has been allowed for Canada .
4) Market access scheme : Financial assistance under the existing Scheme is provided to
exort or trade romotion organisations / exorters etc. for enhancing Indias exorts
through accessing new markets or through increasing the share in the existing markets.
Financial assistance is also provided under the scheme for various activities such as
participation in trade fairs abroad, opening of showrooms and warehouses etc.


Initiatives Taken

Government Initiatives:
The strategy to achieve the vision for imitation jewellery is as follows:

Product development and production: The product development strategy focuses on
developing demand-driven products based on market requirements. The strategy builds
upon already existing skills and cultural heritage, coupled with inputs from new
designers, training in core business areas, horizontal and vertical linkages, ensuring
access to raw materials and the fostering of entrepreneurship. The core of this strategy
lies in the successful implementation of the design development, compliance, quality
control and capacity building components that have been introduced in the schemes.

Marketing and compliance: The overall marketing strategy focuses on the steps needed
to enhance the marketing efforts of the sector to capture a larger market share, and to
seize the opportunities associated with the expanding tourism and corporate
investments being made. One of the key areas entwined at each step in this strategy are
addressing the compliance issues, so that the products are acceptable internationally.
The marketing strategy focuses on identification of the most appropriate market niches,
ensuring quality and standardization of products, ensuring proper market access,
branding, and marketing of the products efficiently. Sales of imitation jewellery continue
to be confronted by obstacles in meeting the quantity, quality, and cost demands of
different segments of the market. For producers to be able to take advantage of new
economic opportunities and capture new market segments they need assistance in
expanding their production capacity, in upgrading the quality of their products to the
standards demanded by buyers, and in overcoming the many obstacles they face in
meeting the requirements of the targeted markets.

Infrastructure Development: This strategy seeks to respond to the main challenge faced
in the availability of infrastructure and latest technologies in the sector and suggests
solutions to these challenges by ensured focused interventions. A new scheme of
Infrastructure and Technology Develoment will be critical in filling the institutional
gaps in the sector.

Livelihood and working environment: The strategy for livelihood and working
environment bases itself on providing social security to the artisans and their families. It
also makes provisions for financial/ policy support and the necessary regulatory
framework that fosters the development of viable entities which enable artisans micro
enterprises (individually and collectively). Provisions have also been made for supply of
tools and technologies, designs and marketing at the grass root level through the cluster
approach.

Export Initiatives

A three-day fair, organised by the Export Promotion Council for Handicrafts (EPCH),
would be inaugurated by Textiles Minister K Sambasiva Rao. The objective of the fair is
to increase the country's share in the USD 16.3 billion global fashion jewellery market.

The council has been organising IFJAS on an annual basis and the export fortunes of this
segment have got a significant boost. The year-on-year growth of fashion jewellery
alone over the last three years has been a noticeable factor.

At Indian Fashion Jewellery and Accessories Fair, the buyers will have the opportunity to
discover the finest in the Indian craftsmanship and artistic finish in perfect harmony
with modern designs, contemporary colours and new product development under one
roof, the release said.

The country's fashion jewellery and accessories exports increased to Rs 2,007 crore in
2012-13 from Rs 1,237 crore in th previous fiscal.



Other Steps Taken
The Gems and Jewelry Export Promotion Council (GJEPC) and the Indian Diamond
Institute (IDI) are to set up common facility centers in Surat and 12 other diamond-
producing places in the state.
No import duty on rough diamonds
Government has sanctioned 300 cr rupees to set up 12 Indian Diamond Institute
IDI will launch some of the key courses such as diamond grading, computerized diamond
planning, jewelry casting and manufacturing, jewelry model making, gold assaying and
refining, advanced jewelry designing, jewelry model making, jewelry business
management etc
Duty free import entitlement of commercial samples shall be Rs. 300,000
Duty free re-import entitlement for rejected jewelry shall be 2% of FOB value of exports


Imitation Jewelry Manufacturers Association (IJMA) and New Media Communication
collaborates to host India's first ever interactive 'Fashion Jewelry and Accessories Show'


Private Initiatives:
Imitation Jewelry Association of India
Established in 1986, Imitation Jewelry Manufacturers Association (IJMA) is a non-profit
organization dedicated to the growth and progress of the imitation jewelry industry of India. It's
single, virtuous motives is to promote the Indian imitation jewelry market through events,
exhibition and making presentation to the government on the various issues faced by the
industry, and to promote trading. With a little over 1500 members under its wings, the role of
IJMA involves highlighting the importance of global trading and encouraging manufacturers to
compete with international markets through various initiatives - "Fashion Jewelry and
Accessories Show" (FJAS).


The Gem & Jewelry Export Promotion Council
Established in 1966, the GJEPC has over the years effectively molded the scattered efforts of
individual exporters to make the Gem and Jewelry sector a owerful engine driving Indias
export-led growth. With more than 5,300 members spread all over the country, the Council is
primarily involved in introducing the Indian Gem & Jewelry products to the international
market and leverage their international relationships to promote exports. To achieve this, the
Council provides market information to its members regarding foreign trade enquiries, trade
and tariff regulations, rates of import duties, and information about jewelry fairs and
exhibitions. This apex body of the Gem & Jewelry Industry is continuously working towards
creating and retaining a pool of artisans, designers that are trained as per international
standards so as to consolidate the Indian jewelry industry and establish it as a prominent global
player in the jewelry segment.




















Strategies to boost exports

Export to France (and other European countries):

Existing and potential trade between India and France in 2012
Product: 7117 Imitation jewellery
Sources: ITC calculations based on UN COMTRADE statistics
India's exports have been reported by India
France's imports have been reported by France

Produc
t Code
Product
Label
India's exports to France France's imports from world India's exports to world
Indicative
potential
trade, USD
thousand
Value
in
2012,
USD
thous
and
Annual
growth
in value
between
2008-
2012, %,
p.a.
Share
in
India's
exports
, %
Equivalen
t ad
valorem
tariff
applied
by France
to India

Value in
2012,
USD
thousand
Annual
growth
in value
between
2008-
2012, %,
p.a.
Share in
world
imports
, %

Value in
2012,
USD
thousand
Annual
growth
in value
between
2008-
2012, %,
p.a.
Share in
world
exports, %
711790
Imitation
jewellery nes
4,002 -1 1.7 10

131,213 6 4.9

232,048 23 13.2 127,211
711719
Imitation
jewellery nes
of base metal
whether o
not platd w
2,157 -4 1.9 10

465,457 6 8.3

116,457 28 2.9 114,300
prec metal
711711
Imitation
jewellery
cuff-
links&stud of
base metal
w/n platd w
prec met
24 18 5 10

7,413 9 4.2

477 -28 0.3 453

Frances total imorted value in 2012 for imitation jewellery is 604083 USD thousand. India
contributed only 6183 thousand USD out of the total imports by France. From the above table,
Indias exort to France has witnessed a negative growth rate of -1 %, -4% and 18% in the
period 2008-12 in products 711790, 711719 and 711711 respectively. But the overall increase
in imports of France is 6%, 6% and 9% in these products. Hence, there is an opportunity to
increase trade with France and increase exports of imitation jewellery from India. European
region is the biggest trade market for India, therefore total ad valorem equivalent tariff in the
European region is very low as seen in the below table.
Importing
country Year
No. of
corresponding
national tariff lines
India's
export(USD
Thousand)
Total ad
valorem
equivalent tariff
France 2013 4 8,851 10%
Belgium 2013 4 1,995 10%
Germany 2013 4 8,431 10%
Greece 2013 4 961 10%
Italy 2013 4 5,669 10%

There is a huge potential to increase trade with France and its neighboring countries.


Recommendations
The growing markets to be focused: The US is the largest importer, while the UK
continues to be the second largest buyer. EPCH Chairman Lekhraj Maheshwari says that
this sector has tremendous potential to expand further,
Anti-Dumping Intervention by Government: A growing concern voiced by the traders is
that illegal import of imitation jewellery has increased from China, thereby hurting not
only the industry. "Due to dumping from China, Indian manufacturers have lost almost
25-30 per cent business. We must stop it, otherwise it will inflict major damage to the
industry," said Nagendra Mehta, secretary of Imitation Jewellery Manufacturers
Association of India (IJMA).
The domestic market is not doing well due to higher cost of production and overall
inflation, which restricts the buying of imitation jewellery. Factor such as higher inflation
is hurting the industry and should be dealt with.
Better branding of the Indian Imitation Jewelry giving it better credibility and equity should
be done.
Training for increased efficiency and quality can be provided to the handicraft industry.

References:
http://www.trademap.org/
http://commerce.nic.in/
http://www.icrier.org/
http://www.aepcindia.com/
http://dgft.gov.in/
https://wits.worldbank.org/
http://data.gov.in/
http://www.unido.org/
http://www.cci.in/
http://www.unescap.org/