India and China are together expected to equal world's largest jewellery market, the United States, by 2015 when the global gems and jewellery trade is expected to touch $230 billion, states a new industry report.
The Gems and Jewellery Export Promotion Council of India commissioned report by global consultants KPMG estimates that "with collective action, the industry has the potential to grow to $280 billion by 2015 at a year on year growth of 6.7 percent."
"Global jewellery sales will grow at 4.6 percent year-on-year to touch $185 billion in 2010 and $230 billion in 2015. India and China together will emerge as a market equivalent to the US market by 2015," states the 'Global Gems and Jewellery: Vision 2015: Transforming for Growth' report.
Among the highlights of the report are projections that China would emerge as a strong player in the diamond-processing sector, while India's share is expected to dip from current levels of 57 percent in value terms.
"The structure of the diamond-processing industry will change considerably and India's share of the processing pie will drop from 57 per cent today to around 49 per cent (in value terms) by 2015. China will emerge as a strong player with 21.3
By 2015, around nine percent of the world's diamonds, in volume terms, will be processed locally by mining countries, with Angola, Namibia, and Botswana emerging as profitable centres in Africa, the report highlights.
India currently handles nine out of ten cut and processed diamonds globally traded.
With socio-economic and political forces driving the pace of change in the gems and jewellery industry, the report expects sluggish growth of global jewellery sales and also emergence of new markets.
"The industry needs to defend jewellery as a category and explore newer markets, while professionalising family businesses," stated Neelesh Hundekari, director advisory services of KPMG India
To realize its potential by 2015, the industry would 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, states the report.
