The way forward for the industry!
GJEPC organized a thought-provoking webinar on ‘The Way Forward for the Industry Post Covid-19’ on April 20. The panel comprised of Global Industry Leaders - Stephen Lussier, Executive Vice-President, Consumer & Brands, De Beers; David Kellie, Managing Director, Diamond Producers Association (DPA); David Tait, CEO, World Gold Council; and Ajoy Chawla, CEO, Tanishq. The esteemed Panel was moderated by Colin Shah Vice Chairman, GJEPC. The session was attended by 1844 participants from India and globe!
Some key highlights from the expert panel discussions were:
1: There was enough reason for the industry to be optimistic given the huge potential of gold and diamond jewellery, and the historic precedent of a build-up of pent-up demand when people are denied the ability to purchase.
2: The weakening of global economies and the doubling or tripling of government debt may give an incredible boost to gold’s prospects as an asset class. 3: Some positive news coming out of China, where diamond jewellery self-purchases in March had raised post the lifting of the lockdown in some areas.
4: People have a tendency to gravitate towards authenticity in times of crisis, so natural diamonds should be well positioned to benefit from this behavioural shift. 5: There will be a renewed focus on health and reconnection with friends and family, and this will create an opportunity for products that are associated with those positive emotions. Natural diamonds should be well positioned post the pandemic, and consumers will go back to luxury consumption -- albeit cautiously.
6: Consumers will be the answer to 99% of challenges the industry is facing today. 7: Respect for nature, sustainability, and a move towards digital, were among the dominant themes that could play out on the consumer front.
8: The Indian diamond industry needs to have confidence in diamonds and believe that they will come through this crisis. Consumers in India will look for authentic and trustworthy brands, which are purposeful. 9: Gold will be viewed as an attractive financial instrument in investors' portfolios, as it has a more trustworthy lustre.
10: The gold industry should come together and be less partisan and have conversations with supply chain stakeholders for the long-term benefit of everyone. 11: De Beers will work towards ensuring consumer expenditure on diamonds in the second half of 2020. 12: Rough diamond stocks in the pipeline will be in sync with market demand.
13: The US market could start to recover in the June-September period; China is already on the way back; and India would see a turnaround by Q4 on account of the wedding and festive season.
