Israeli diamantaires set sights on India
April 04, 2008
By Teresa Novellino
Basel, Switzerland—Last year, the Israeli diamond industry focused on growing business in China to keep its fortunes thriving. This year, India will be the new darling of an industry whose challenges include a slowing economy in its prime market, the United States, and tighter rough supplies.
"Diamond industries all over the world have had to rethink their selling methods," said Eli Avidar, managing director of the Israel Diamond Institute (IDI), speaking at the IDI 's annual breakfast press conference at BaselWorld.
The IDI opened an office in Hong Kong last year, a move that helped extend business into the Asia Pacific region, and also created a Chinese language Web portal for trade.
One roadblock in China that Israel hopes will change is the country's tax on diamonds.
"Once taxes are withdrawn, the gateways will be open for the diamond business," Avidar said.
In India, the IDI will push for additional business for Israel's small and medium-size diamond companies, and hopes to tap into India's growing middle class by promoting diamonds to consumers and educating them on the stones. Efforts in India include setting up an IDI pavilion for the first time this year at the jewelry show in Mumbai.
The IDI will also launch an advertising campaign in the Chinese market.
In 2007, net polished-diamond exports from Israel reached a record $7.1 billion, with the United States accounting for 53 percent of total exports, Hong Kong 19 percent, Belgium eight percent and Switzerland six percent.
In the recent sightholder cuts by the Diamond Trading Co., Israel lost five sightholders but gained two new ones. While the IDI was not happy about the cuts, Avidar said, Israeli diamantaires get less than 20 percent of their rough from De Beers through the sightholder system. At one time, that figure was as high as 90 percent, Avidar said.
"I believe that it will not hurt the Israeli diamond industry because we moved beyond that long ago," he said.
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