Diamond industry down in the dumps post Nirav Modi scam: Assocham study
Mumbai: The market confidence of the diamond industry has taken a hit after the alleged scam by Nirav Modi as buyers are concerned about the purity of jewellery, which has led to decline in business, according to a survey.
While the well-known branded jewellery makers issue certificates of purity, bulk of the trade is still concentrated in the unorganised market, which is based on faith between consumers and jewellers, a survey by industry body Assocham said.
“This has been shaken and the consumers are not willing to take chances following massive adverse publicity about the sector. Besides, the branded show rooms issuing certificates of purity are largely restricted to big cities, even as there are enough purchasing power in the smaller cities,” it added.
The survey was conducted among 350 jewellers based in Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun. Assocham also interacted with about 500 working and non-working women in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai.
The survey was done in major cities, where 65% of jewellers are unorganised, and are shifting to traditional pure play gold and silver ornaments over diamond jewellery as consumers are losing confidence in the purity of the precious stone. Most jewellers also said there is an increase in the number of enquiries from customers for getting their pre-purchased diamond jewellery re-checked for quality and authenticity.
The demand for diamond jewellery seems to have decreased by 10-15% within two months, the survey added.