This presentation shows a thorough analysis of global jewellery market and Sri Lankan jewellery industry. This will be highly beneficial for a small & medium enterprise to decide whether to go international or not, being in the Sri Lankan jewellery market.
4.
As of 2012 global jewellery industry was worth $275 billion
87% were fine jewellery and 13% costume jewellery
Fine jewellery – highest ever growth rate (46% during the last 5
years)
Gold and Diamonds accounts for more than 75% of fine
jewellery
Platinum and Palladium are becoming popular in recent years
5.
3 key value additions (Sourcing, Fabrication and Retailing)
6.
Gold and Diamonds together accounts for more than 75% of global fine
jewellery
Majority of the Diamond supply (Nearly 90%) comes from 7 countries
(Botswana, Russia, Angola, South Africa, Canada, Australia, and Dem. Rep.
of Congo).
Gold too is supplied by 7 countries, more than half of the gold comes from
South Africa, USA, Australia, China, Russia, Peru and Indonesia. The rest
from nearly 60 countries
Gold is also sourced from scrap recovery and through central bank sales
7.
8.
9.
Fine Jewellery 87% Costume Jewellery 13%
Fine Jewellery – Plain Metal and Gem Studded
Traditionally Italy, USA, Thailand, China/Hong Kong have been the leading players in
fabrication of fine jewellery
However India and Turkey have become significant in fabrication; India has even
overtaken Italy to become the world’s leading gold jewellery exporter.
India, China and USA, the current leading fabricators in the world also have other
advantages, such as having a large domestic market, skilled labour etc.
Price fluctuations of precious metal has led the search for alternatives. Palladium has been
the best option so far.
10.
11.
US has always been the biggest jewellery market
Asia, regionally, is the biggest market (India and China
contributing more than half)
Traditionally there was no branding, but more recently branded
jewellery is increasingly becoming popular
12.
13.
Controlled supply of precious metal and stones.
Large part of world’s Gold and Diamond production is split between just
11 countries
Controlling the price using supply
Carat Differences
Us and Europe 9 – 18 carats (Gold)
Asia 22 – 24 Carats
14.
Illegal Activities
Money laundering, illegal trade and human exploitations
Blood Diamonds
Evading tax and money laundering
Human rights violations, mainly when mining
15.
Hallmarking
Marking the carat value
Performed by an independent assay office
Widely used in US, Europe and China, but at only a small level in India
KPCS - The Kimberley Process Certification Scheme
Agreement between producer, trader countries and leading players to
confirm the origins of the diamonds, Backed by United Nations
To prevent Blood Diamonds
Not 100% successful, but significantly increased transparency in the
industry
16.
Ethical Mining
Encourages responsible mining practices
No Dirty Gold initiative by not only social groups, but also including
leading brands and large retailers
It aims to
reduce the environmental impacts
ensure healthy and safe working condition for workmen
reduce negative impact on communities such as, forced displacement, child
labour, public health, prostitution etc
(KPMG, 2006)
18.
The start and Early stage
Employment
3 basic segments
Reasons for the low progress
Steps taken to promote jewellery industry
19.
Industry growth perspective?
negative or positive or static!!!
Price increase and attractiveness.
Main demanded products?
Locally – foreign
Firm size diversity and its effectiveness.
Revenue of the industry.
21. •
•
•
•
•
•
•
•
•
•
Tariffs
Specified license and certifications
Start-up costs
Distribution Challenges
Inventory costs
Existing players in the market
Investment risk and losses
Insurance costs
Need of highly skilled employees
Different rules and regulations in different countries
22.
Total of 100 countries
14 consistent buyers
Currently generates
95% of the total revenue
US $
26. Revenue from Jewellery exports to USA
8,000,000
6,000,000
4,000,000
USA
2,000,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenue from Jewellery exports to
Switzerland
0
2013
2012
2011
2010
2009
2008
2007
500,000
2006
1,000,000
germany
2005
1,500,000
switzerland
2004
2,000,000
2003
2,500,000
2002
3,000,000
2001
3,500,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2000
4,000,000
Revenue in US $
Revenue from Jewellery exports to Germany
Revenue in US $
Revenue in US $
10,000,000
27.
Revenue = 7676816.523+0.823 total value of the exports to
Switzerland + 1.310 total value of exports to USA
R value 0.861a
Adjusted R value 0.720
F value of 85.736
Coefficientsa
Standardized
Unstandardized Coefficients
Model
1
B
(Constant)
total value of the exports
Std. Error
7676816.523
.106
1.310
.387
Coefficients
B
Beta
t
984911.209
.823
95.0% Confidence Interval for
Sig.
Lower Bound Upper Bound
7.794
.000 5648353.916 9705279.130
.793
7.790
.000
.605
1.040
.344
3.383
.002
.512
2.107
to switzerland
total value of exports to
USA
a. Dependent Variable: Revenue
34.
what is a strategy?
Cross cultural assessment
Distribution channel
Risk assessment
Strategic time
Market intelligence
35. Incentives on high tech machinery
Separate department
Training and development programs
Branding
I.e. Sri-Lankan blue sapphire
Emphasize on collecting and providing more data
Notes de l'éditeur
Photos are for the last point
Photos are for the last point
Photo is for the 2nd point
Photo with a vessel is for the 3rd point, Letter of credit photo is for the 4th one