th5 City of Gold Conference closes with call for industry to unite under single marketing banner
Focus on improving retail experience, building emotional connect, building consumer
confidence and tapping new segments, retailers told
Dubai, April 24, 2007 – The global gems and jewellery industry is losing ground in the
worldwide luxury market and will continue to do so unless it quickly develops and
implements a unified marketing program, analysts and industry representatives said at ththe close of the 5 City of Gold Conference in Dubai yesterday.
Four keynote conference speakers cited the need for prompt action based on a new
KPMG study on the future of the USD 146 billion global gems and jewellery industry.
The study, commissioned by the Gem and Jewellery Export Promotion Council of India
(GJEPC), predicts a drop in the industry’s current compound annual growth rate (CAGR) from the current 5.2 per cent to 4.6 per cent over the next 10 years.
The report suggests gems and jewellery will lose ground to other luxury goods. The USD
100 billion luxury apparel market, for example, is estimated to grow at 10 to 15 per cent
over the next seven years.
GJEPC Chairman Sanjay Kothari told conference delegates the industry needs to focus
its attentions on retail and on consumers by creating emotional connects, inspiring
consumer confidence and rethinking the retail experience.
“It is time for retailers to take the initiative to grow the market,” Kothari said during the
two-day global jewellery meet’s closing panel discussion. “We need to look into new markets, identify new segments and new value propositions. Most of all, we need to
contribute to creating a single unified global marketing masterplan that we can then tailor
to the regions of the world.”
Tawhid Abdullah, Managing Director of the Dubai Gold and Jewellery Group, likened
both the unified marketing plan and revamped retail operations to a rising tide that lifts all
“We have struggled to do this alone, but the truth is that we need a global marketing
body. None of us operates in isolation,” Abdullah said. “We need to transform our retail thinking, create role model stores, give people tools they can use to understand the
market, create product innovation and, most of all, focus on the emotional value of our
Gaetano Cavalieri, President of the World Jewellery Confederation (CIBJO) and Philip
Olden, Managing Director, Marketing and Jewellery, World Gold Council, also
participated in the closing panel discussion with Abdullah and Kothari.
In mature markets, Kothari said, the industry must look to new segments and identify
new uses for precious metals and gems, including integration into luxury electronics. He
also recommended an increased focus on jewellery for men, children and the over-65,
all non-traditional markets.
The KPMG-GJEPC Vision 2015 industry report also suggests palladium will establish
itself as an alternative metal for jewellery fabrication; a change in traditional consumption
markets, with China and India emerging as a market equivalent to the United States by
2015, and the rising importance of the Middle East market.
The two-day jewellery meet, organized by the Dubai Gold and Jewellery Group in
association with the Dubai Multi Commodities Centre, also discussed social
responsibility in the gemstone trade and the changing face of gold jewellery marketing
during yesterday’s special session on marketing.
thMore than 380 delegates registered for the 5 City of Gold Conference, making it the largest such conference in its history. The conference ran April 22 and 23, 2007, at the
Park Hyatt in Dubai.
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For further info, please contact: Lisa George, ASDA’A PR. Tel: 9714 3355969. E-