The Hindu Business Line : Look who's buying... <br>Indian jewellery

Jewellery stores actively woo foreign buyers drawn to the unique designs and low mark-up prices in the country. And NRIs, especially from the UK and US, are significant buyers too.

Padmaja adds a bit of sheen to every nostalgic homecoming in Anantapur, Andhra Pradesh. Besides catching up with relatives, she squeezes in some time to pick up a selection of gold chains and pearl earrings for a whopping Rs 50,000 from local jewellers. "It's very convenient, since we know the jewellers personally," explains the Washington-DC based software professional.

Dr Vimala takes back a collection of gold and diamond bangles and earrings during her journey from South India to the US. This New Yorker usually goes in for contemporary designs for her children while shopping at Chennai's jewellery stores. For some extra sparkle, she occasionally tops off her shopping cart with platinum. Though her average budget goes up to $2,000, she observes that the making charges are cheaper in India. US-based jewellers jack up prices according to seasonal changes in fashion, she says.

As the treasure hunt by hordes of homesick NRIs and PIOs intensifies, Lady Luck smiles on India's jewellery players. Cartier and Tiffany's are not the only brands on Westerners' wish list and some of them are willing to deck up with Indian ornaments.

Tanishq, the jewellery business group of Titan Industries Ltd, has witnessed a steady growth in overseas clientele in recent years. "NRIs and foreigners make up five per cent of our total footfall," says Tanishq COO C.K. Venkatraman. During December and January, a large number of NRIs, mostly from the UK and US, turn up at this chain's outlets.

Renu Kapoor, Director of the Indian Institute of Jewellery, points out that India is a shopping destination for traditional uncut diamonds as well as diamond-heavy sets, which can be passed from one generation to another. Southern jewellers too are adorning overseas clients.

Vummidi Amarendhra, Partner, Vummidi Bangaru Jewellers (VBJ) in Chennai, cites a 25 per cent sales contribution from foreigners and NRIs, who make up 10 per cent of its clientele.

Similarly, Chennai-based Prince Jewellery has seen a rising number of NRI and European buyers. About 15-20 foreigners and 35-45 NRI families shop at the chain every month. "Some foreigners come on a package tour and hence have a shoestring budget. But many French and German customers are interested in purchasing diamonds," observes S. Umapathy, the HR Manager. For NRIs, jewellery buying constitutes a very small part of their expense on the trip and most pay with their credit card, he adds.

Gili, promoted by Geetanjali Exports, stocks its higher-end jewellery at its Baroda and Ahmedabad outlets where there are more NRI shoppers. "Towards the North, we keep more large-sized jewellery," says Tushar Mehta, CFO of Gili.

Upbeat on international buyers, T. Shantha Kumar, Managing Director of Kirtilals, which exports diamonds and jewellery, says NRIs and foreigners (including visitors from Western Europe and Australia) belonging to the Sec A and Sec B income groups are driving up sales significantly. Designers are also going the distance to track the latest preferences in the jewellery market.

"Our teams constantly travel abroad, visit jewellery shows and infuse a lot of inputs into our organisation," says Shantha Kumar. With inputs from international jewellery festivals such as Basel and IIJS, Tanishq designers have created stilettos and chandelier earrings (currently popular designs worldwide). Its Collection-G and the oxidised range of 22-karat jewels have many takers among foreign buyers, says Venkatraman.

Gili is also in touch with fashion trends abroad and has launched an international product mix for local and foreign clients. As the white look has become the rage in jewellery worldwide, many Europeans and NRIs are flaunting their platinum-clad necks and diamond-decked fingers.

All that glitters for Tanishq's overseas buyer is not plain gold but solitaires, platinum and diamonds. "Preferences amongst foreigners are mostly coloured beads, small diamond items like finger rings or pendants," says Venkatraman.

"Mostly lightweight and trendy designs are preferred by NRIs, while foreigners prefer our traditional and classic designs in lightweight," says Shantha Kumar of Kirtilals. Diamond-studded and antique gold jewellery pieces have also been a draw among its foreign buyers.

At Prince Jewellery, necklace sets, studs and bracelets in offbeat designs are drawing more NRIs. "They look for fusion and ethnic designs, which are rarely available abroad," says Umapathy. Some time ago, the head of Prince Jewellery's design department had even won an international award for a diamond-set pattern. Several NRIs had visited the antique jewellery exhibitions organised by the chain across various metros.

The jewellery retailers are not only honing cuts but also soft skills to keep customers satisfied. Prince Jewellery's Umapathy says US-based NRIs look for simple and hassle-free transactions and the sales personnel have been specially trained to handle overseas clients. "We train the sales personnel to give such clients more privacy," he adds. Tanishq has also been training its sales force to cater to overseas clientele. It has re-designed its showrooms to reflect international standards. However, there are still many overseas buyers who appear uncomfortable with the idea of buying Indian jewellery.

"The finish of platinum and gold is definitely less desirable, as here we prefer more muted matte finish versus the bold shiny finish," rues Dr Vimala. R. Ramesh, an NRI working in Abu Dhabi, is chary of dealing with Indian jewellers and says, "Even those supplying hallmarked jewellery tend to compromise on the purity of gold." He and his family usually opt for gem-studded pieces from Chennai's famous jewellery stores and shop for gold necklaces with chic designs in the Gulf.

The absence of hallmarking is holding back many buyers. For instance, foreigners tend to be suspicious about the purity of solitaires or the amount of lac in Jaipuri pieces. As IIJ's Renu puts it, "There are several factual stories about how well-known jewellers have backtracked from giving the market price of a high investment jewellery by denying that the purchase was from them. Hallmarking of jewellery will be a major step in giving confidence to foreign buyers."

Tanishq's Venkatraman feels that the non-availability of a visible brand or a standard professional approach also puts off foreign buyers. However, Kirtilals is more optimistic, as the Bureau of Indian Standards has made hallmarking compulsory for jewellers. The outlet gives "quality assurance" to its clients, says Shantha Kumar.

While some jewellers may have compromised on quality for a few dollars more, there are others pitching for overseas buyers on the strength of superior quality and designs. The low labour cost and mark-up lend an extra sparkle to Indian jewellery in the international marketplace.

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