Impact of Corona Virus on Diamond Industry
Under the leadership of Bhuvan, the company has gained a huge clientele PAN India.
In the dynamic world of fashion and jewellery, where every trend surpasses each other, the ongoing situation of COVID-19 has hit the market badly. With the sinking economical conditions, sacking of employees and stagnant market, things might not look very pleasing. But as they say, where there is hope, everything happens. The diamond jewellery industry is also relying on the same. Many brands in India have anticipated 2020 to be a doorway to a plethora of business opportunities.
Early June with a drop of 15 percent of diamond exports were already under pressure as compared to the last financial year 2018-19 but after COVID-19 the Indian diamond industry is feeling real tremors from COVID.
With the fall of over 50 percent in exports & 70 percent in domestic business losses are imminent and many traders and units n factories are facing liquidity issues n are on the verge of shutdown.
With bills overdue from over four months at retailers end, the payment cycle has gone in a complete lockdown phase and financial crunch seems to create an even bigger hurdle. Though fresh sales are seen at domestic retail counters as compared to pre-COVID months the sales are down by more than 70 percent.
No marriage season in sight and weak demand from the consumer end, the supply and credit chain is badly affected. Many factories have resumed operation in June but the shortage of labor has crippled the operations and crisis seems to get bigger day by day. As more laborers and workers moving back to their hometowns n no signs of coming back.
Most of the units are working partially or even reeling to get production started. Many factories have re-shut their operations due to staff testing positive for corona. Late June some Demand coming from retail stores but most of the lightweight budget diamond jewelry. We hope a rise in upcoming two-three weeks as more n more people start coming out of lockdown n resuming usual lives. Post corona there shall be a bigger shift in consumer behavior n buying patterns. We can see a shift to lightweight n ultra-lightweight jewelry.
Heavy jewelry or high ticket items will take time to get back on the platter. Only after the next wedding season buying kicks in which is expected from September we can see markets moving towards more stability, we are already working on ultra-lightweight designs and getting prepared for the challenges that we foresee.
In the dynamic world of fashion and jewellery, where every trend surpasses each other, the ongoing situation of COVID-19 has hit the market badly. With the sinking economical conditions, sacking of employees and stagnant market, things might not look very pleasing. But as they say, where there is hope, everything happens. The diamond jewellery industry is also relying on the same. Many brands in India have anticipated 2020 to be a doorway to a plethora of business opportunities.
Early June with a drop of 15 percent of diamond exports were already under pressure as compared to the last financial year 2018-19 but after COVID-19 the Indian diamond industry is feeling real tremors from COVID.
With the fall of over 50 percent in exports & 70 percent in domestic business losses are imminent and many traders and units n factories are facing liquidity issues n are on the verge of shutdown.
With the sinking economical conditions, sacking of employees and stagnant market, things might not look very pleasing
With bills overdue from over four months at retailers end, the payment cycle has gone in a complete lockdown phase and financial crunch seems to create an even bigger hurdle. Though fresh sales are seen at domestic retail counters as compared to pre-COVID months the sales are down by more than 70 percent.
No marriage season in sight and weak demand from the consumer end, the supply and credit chain is badly affected. Many factories have resumed operation in June but the shortage of labor has crippled the operations and crisis seems to get bigger day by day. As more laborers and workers moving back to their hometowns n no signs of coming back.
Most of the units are working partially or even reeling to get production started. Many factories have re-shut their operations due to staff testing positive for corona. Late June some Demand coming from retail stores but most of the lightweight budget diamond jewelry. We hope a rise in upcoming two-three weeks as more n more people start coming out of lockdown n resuming usual lives. Post corona there shall be a bigger shift in consumer behavior n buying patterns. We can see a shift to lightweight n ultra-lightweight jewelry.
Heavy jewelry or high ticket items will take time to get back on the platter. Only after the next wedding season buying kicks in which is expected from September we can see markets moving towards more stability, we are already working on ultra-lightweight designs and getting prepared for the challenges that we foresee.
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