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 wo
uld 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 secondar
y research was
conducted to find the supply-side bottlenecks that they are facing in
India. The supplyside 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 comp
etitive
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 coun
ty 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 bran
d 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 frien
dly option
is imitation jewelry. This is available in a wide range from what we call junk j
ewelry to the
gold- coated jewelry. It is far cheaper than anything genuine. In fac
t 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 cu
t 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 ma
y 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 imitati
on jewelry, you
could possibly afford to own a piece that could match with every dre
ss 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 usin
g your imagination
and artistic and craft skills you could create your own range of imitation jewel
ry 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 j
ewelry. The sky
rocketing prices of the traditional jewelry whether it is gold, diamon
d 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. T
he 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 amo
ngst 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 innovati
ve 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 J
ewelleries:
1. ZIRCON: Is a mineral occurring as prismatic crystals, typically bro
wn but
sometimes in translucent forms of gem quality. It consists of zirconiu
m silicate
and is the chief ore of zirconium.
Zircon occurs in many colors, i
ncluding 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 , Aus
tralia ,
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, synth
etic
cubic zirconia has remained the mostgemologically and economically import
ant
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 mate
rial,
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 o

f
10.5%
[1
chromium content by mass.
Stainless steel does not readily corrode, rust or stain with water as ordinary s
teel
does, but despite the name it is not fully stain-proof, most notably
under lowoxygen, high-salinity, or poor-circulation environments. There are differe
nt
grades and surface finishes of stainless steel to suit the environment
the alloy
must endure. Stainless steel is used where both the properties of ste
el 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
round
6. Metallic Balls
7. Stones in settings

Procured mostly from SMEs located a

production houses.

Production Hubs in India

Imitation jewelry such as: Bangle, Bangles, Costume Jewelry (also called artific
ial 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, Maharasht
ra, Delhi,
Moradabad, Sambhal, Jaipur, Kohima
Important manufacturing Hubs
Here is a non-exhaustive list of major centers for manufacturing Imitation jewel
ry:
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
are engaged in providing them with attractive range
imitation jewelry. We are highly in demand for our
assured products such as 3 Binder Case in Ring, 3
and 3 Ring Recipe Binder and more. Our Export
Markets: Germany, Europe, China, Munich and Miami

patrons, we
of
quality
Ring Binder

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 towa
rds 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 r
ange 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 t
he competitive
domain of imitation jewelry. All these products are exclusively designed, keepin
g 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 d
iamond
neclace set diamond neclace set neclace set american diamond c bangl
es
stylish diamond c bangles designer bangles american diamond endant set
diamond endant sets , stylish cz necklace sets , diamond pendants, desi
gner
pendant sets, bridal jewellery, diamond kundan necklace set, kundal bri
dal set,
fashionable pendant set, diamond stylish pendant set, American diamond
czkada,
American diamond
Address : 110, Kakakua Bldg., 3rd Bhoiwada, Shop No.-3, Bhuleshwar, Mum
bai 400002, Maharashtra, India
RoyalNx Member 2 years
Based in Mumbai, India, they are a manufacturer and trader of a wide range of im
itation
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 Jewe
leries,
Designer Pendant Jewelary Imitation Jeweleries, Designer Made Brown Gemsto
ne
Traditional Jhumka Earrings , Designer Mathaa Patti, Designer Necklace Jewelry,
Designer
Necklace Set, Designer Necklace Set For Women, Designer Necklace Set F
or Womens,
Designer Necklace Sets, Designer Necklaces Set., Designer Net Patern Ea
rring, Designer
Pearl Necklace Set, Designer Pearl Studded Hair Brooch , Designer Pear
l 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, transportat
ions, 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 Imitatio
n jeweleryring...Distributer and Supplier of Imitation jewelery-ring, pendent, bangle
s, set,
necklaces, bracelet Trader of Imitation jewelery-ring, pendent, bangles, s
et, necklaces,
bracelet
Address: No 1112/16, Toy Market, Pankore Naka, Ahmedabad - 380001, Gujarat, Indi
a

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 p
ackaging
Costing and pricing
Physical di
stribution
Export market development: Handicraft overview
In the changing world scenario, craft products exported to various countries for
m a part
of lifestyle products in international market. The impact is due to the changin
g consumer
taste and trends. In view of this it is high time that the Indian ha

ndicraft industry went

into the details of changing designs, patterns, product development, an
d 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 Handicraf
t Industry as
provided with inherent skill, technique, traditional craftsmanship but t
hat is quite
sufficient for primary platform. However, in changing world market thes
e craft persons
need an institutional support, at their places i.e. craft pockets for value addi
tion and for
the edge with other competitors like China, Korea, Thailand etc.
Imitation jewellery is largely made of brass, cast iron, nickel, plast
ic beads and stones,
instead of precious metals and gems. It does not have much resale va
lue 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, Austra
lia and many
Asian countries.
Process of Production of Imitation Jewelry
The process is essentially ambiguous and depends on the type of jewel
ry to be made.
Some common steps for imitation jewelry are: Basic techniques for bend
ing 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, c
rimp 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 th
e 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 supp
ly 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-ra
ted 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 o
f 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 employme
nt 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 cra
ft-skills,
low-cost labour, and fabrication techniques in some of the jewellery p
roducts (such as
processing of small-sized diamonds), and replicate such advantages in the produc
tion of
other products, and thereby become a global player across the gems an
d jewellery
segments.
Imitation Jewellery Market
Imitation jewellery (HS 7117): The Asian and European countries dominated th
e export
of imitation jewellery Hong Kong, China, Austria and France. Major im
porters of
artificial jewellery include USA, Germany, France, UK and Italy in 2007. Hong Ko

ng 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 milli
on. 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 potentia
l.
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; m
ajor source
countries for products under this category include: Thailand, UK, Hong Kong, Chi
na, and
Germany in 2007. Thailand served as a source country for all major i
mporters 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 f
or 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 gr
ou.
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 jew
elry market has
been witnessing significant growth over the past few years.
Moreover, Indian imitation jewelry making is emerging as the next big market whi
ch has
been pre-dominantly driven by its indigenous designs and local demand. In additi
on, the
perspective of manufacturers, wholesalers, traders and retailers of the imitatio
n jewelry
industry holds much more capability than the conventional offering.
The industry dynamics and consumer behavior atterns have made India th
e worlds
second-largest manufacturer of imitation jewelry after China. Rajasthan, Uttar P
radesh,
West Bengal, Bihar and Madhya Pradesh are some of the important state
s known for
such products.
Further, with the entry of large organized players, the market will b
ecome 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 Asi
an 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 in
dustry.
Considering the above factors, the future of Indian imitation jewelry market see

ms quite
bright
The Challenges Ahead
Market Driving Factors
Here we discuss in detail the propellants for the rising market of I
mitation jewellery in
detail:
High Demand: The demand for imitation jewellery
st one
year. People, especially women have adopted
g after being
influenced by daily soaps. They ape the jewellery
n by the
television stars. Moreover with the rise in
sposable income
customers undoubtedly prefer to go in for branded

has surged by over 85% in the la

better standards of groomin
and the costumes which are wor
standard of living and di
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 p
opular.
Variety and Affordability: Due to affordable range of the artificial j
ewellery, 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) accordi
ng to their
dresses.
Drastic hike in gold and silver price - With the prices of gold rai
sing 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, cu
stomers feel
more secure wearing fake jewellery.
Excellent innovative designs: Imitation jewellery comes with unlimited a
nd 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 trend
s due to
their low cost benefit.
Lack of gender bias: In the past jewellery was exclusively for the f
airer sex but in the
recent times men have also initiated an interest in adorning themselves with thi
s. 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 Ind

ian 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 Imitat
ion jewellery
worth about INR 1.3 Billion in 2011-12. During the period April-Septem
ber 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 hi
gher.
Accessibility
Besides metros and tier one cities, accessibility of standardized imitation jew
ellery is a big
issue, and therefore, a significant portion of the consumer segment is underserv
ed.
Highly Unorganized
Indian Imitation jewellery market is highly unorganized with the organized marke
t is nearly
three-fourth of unorganized sector. In addition, the number of organize
d players is also
less in the sector Indias gems and jewellery industry is highly unorganied and fr
agmented
with more than 90% of the players having family owned businesses. Acc
ording to a FICCI
study, the gold processing industry has around 15,000 players, with on
ly around 80 units
having revenues of over US $ 5 million. India is also home to aroun
d 450,000 goldsmiths,
over 100,000 gold jewellers, about 6,000 diamond-processing players, and 8,000 d
iamond
jewellers. The unorganized and small-scale nature of the sector hampers
the ability of
Indian gems and jewellery industry to innovate, upgrade technologies, a
nd emerge as a
world-class supplier.
Lack of Customer Awareness
The customers need to be educated on the basic artificial jewellery c
are 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 th
e shine and the
plating of the product.
Costly Labour
For the artificial jewellery industry labor is very expensive. In addi
tion, 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 materi

al 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 follow
ing 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 d
rastic 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 ASSOCHAMSocial
Development Foundation (ASDF).
The exports have seen a rise of 35%, reveals the Associated Chamber of Commerc
e 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% o
f the total
demand.
Major demand centers in India are: Delhi, Mumbai, Kolkata, Gurgaon, L
ucknow,
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 b

e 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 notifie
d 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 expo
rted .
Wastage for subcontracting/exchange of gems and semi precious stones b
etween 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 pro
vided to
exort or trade romotion organisations / exorters etc. for enhancing In
dias exorts
through accessing new markets or through increasing the share in the existing ma
rkets.
Financial assistance is also provided under the scheme for various act
ivities 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 fo
cuses on
developing demand-driven products based on market requirements. The strategy bui
lds
upon already existing skills and cultural heritage, coupled with inputs
from new
designers, training in core business areas, horizontal and vertical lin
kages, ensuring
access to raw materials and the fostering of entrepreneurship. The core of this
strategy
lies in the successful implementation of the design development, compli
ance, quality
control and capacity building components that have been introduced in the scheme
s.
Marketing and compliance: The overall marketing strategy focuses on the steps n
eeded
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 corpo
rate

investments being made. One of the key areas entwined at each step in this strat
egy 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 jeweller
y continue
to be confronted by obstacles in meeting the quantity, quality, and c
ost demands of
different segments of the market. For producers to be able to take a
dvantage of new
economic opportunities and capture new market segments they need assist
ance in
expanding their production capacity, in upgrading the quality of their
products to the
standards demanded by buyers, and in overcoming the many obstacles the
y face in
meeting the requirements of the targeted markets.
Infrastructure Development: This strategy seeks to respond to the main challeng
e faced
in the availability of infrastructure and latest technologies in the s
ector 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 wo
rking
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 th
e cluster
approach.
Export Initiatives
A three-day fair, organised by the Export Promotion Council for Handi
crafts (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 fortune
s of this
segment have got a significant boost. The year-on-year growth of fashi
on jewellery
alone over the last three years has been a noticeable factor.

At Indian Fashion Jewellery and Accessories Fair, the buyers will have the oppo
rtunity to
discover the finest in the Indian craftsmanship and artistic finish in
perfect harmony
with modern designs, contemporary colours and new product development u
nder one
roof, the release said.
The country s fashion jewellery and accessories exports increased to R
s 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 1
2 other diamondproducing 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 d
iamond
planning, jewelry casting and manufacturing, jewelry model making, gold
assaying and
refining, advanced jewelry designing, jewelry model making, jewelry busi
ness
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 o
f exports
Imitation Jewelry Manufacturers Association (IJMA) and New Media Communi
cation
collaborates to host India s first ever interactive Fashion Jewelry and Accesso
ries 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 indus
try of India. It s
single, virtuous motives is to promote the Indian imitation jewelry ma
rket through events,
exhibition and making presentation to the government on the various is
sues faced by the
industry, and to promote trading. With a little over 1500 members under its wing
s, the role of
IJMA involves highlighting the importance of global trading and encoura
ging manufacturers to
compete with international markets through various initiatives - "Fashio
n 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 eng
ine driving Indias
export-led growth. With more than 5,300 members spread all over the cou
ntry, 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 tr
ade 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 continuo
usly 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
20082012, %,
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
20082012, %,
p.a.
Share in
world
imports
, %
Value in
2012,
USD
thousand
Annual
growth
in value
between
20082012, %,
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
cufflinks&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, the
re 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 valore
m 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 coun
tries.
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 th
e traders is
that illegal import of imitation jewellery has increased from China, the
reby 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 Manufac
turers
Association of India (IJMA).
The domestic market is not doing well due to higher cost of product
ion and overall
inflation, which restricts the buying of imitation jewellery. Factor such as hig
her inflation
is hurting the industry and should be dealt with.
Better branding of the Indian Imitation Jewelry giving it better credibility an
d 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/