Ashen kumarasena
Husnun Nazeeyl
Kavindu Hapuarachchi
Bhanuka Gunatilleke
Prabath Ariyapala
Global Jewellery Industry


As of 2012 global jewellery industry was worth $275 billion



87% were fine jewellery and 13% costume jewellery



F...


3 key value additions (Sourcing, Fabrication and Retailing)


Gold and Diamonds together accounts for more than 75% of global fine

jewellery


Majority of the Diamond supply (Near...


Fine Jewellery 87% Costume Jewellery 13%



Fine Jewellery – Plain Metal and Gem Studded









Traditionally It...


US has always been the biggest jewellery market



Asia, regionally, is the biggest market (India and China
contributi...


Controlled supply of precious metal and stones.


Large part of world’s Gold and Diamond production is split between j...


Illegal Activities


Money laundering, illegal trade and human exploitations



Blood Diamonds



Evading tax and mo...


Hallmarking






Marking the carat value
Performed by an independent assay office
Widely used in US, Europe and Ch...


Ethical Mining


Encourages responsible mining practices



No Dirty Gold initiative by not only social groups, but a...


Agriculture
Industries
Tourism
Exports



Reasons for the development of economy










The start and Early stage
Employment
3 basic segments
Reasons for the low progress
Steps taken to promote jewel...






Industry growth perspective?
negative or positive or static!!!
Price increase and attractiveness.
Main demanded p...


Geographical diversity.



Flexibility.



Competition.



Chain reaction.



Use for religious activities.
•
•
•
•
•
•
•
•
•
•

Tariffs
Specified license and certifications
Start-up costs
Distribution Challenges
Inventory costs
E...





Total of 100 countries
14 consistent buyers
Currently generates
95% of the total revenue

US $
Total Revenue
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000...
•Switzerland
•United States
•Germany
Revenue by percentage
12%
16%
50%
22%

germany




Switzerland
United States
Germany
Revenue from Jewellery exports to USA
8,000,000
6,000,000
4,000,000

USA

2,000,000
0
2000 2001 2002 2003 2004 2005 2006 2...






Revenue = 7676816.523+0.823 total value of the exports to
Switzerland + 1.310 total value of exports to USA
R va...


History








Present







Pre-colonial stage
Population growth and Immigration
1787 constitution
Discov...








33 billion dollar industry
Industry growth
67,622 businesses
172,889 employees
Fragmented
Market share
Reco...






Bargaining power of the customersThreat of new entrants
Rivalry
Threat of substitutes
Bargaining power of the s...





Political factors
Economical factors
Social factors
Technological factors






Diamonds
Precious stones (other than diamonds) and semi-precious stones
Synthetic or reconstructed precious or ...






Introduction
Best possible mode- Exporting
Advantages
Disadvantages
Limitations in other modes







what is a strategy?
Cross cultural assessment
Distribution channel
Risk assessment
Strategic time
Market inte...
Incentives on high tech machinery
 Separate department
 Training and development programs
 Branding
I.e. Sri-Lankan blu...
Jewellery Industry in Sri Lanka
Jewellery Industry in Sri Lanka
Jewellery Industry in Sri Lanka
Jewellery Industry in Sri Lanka
Jewellery Industry in Sri Lanka
Jewellery Industry in Sri Lanka
Jewellery Industry in Sri Lanka
Upcoming SlideShare
Loading in …5
×

Jewellery Industry in Sri Lanka

1,617 views

Published on

This presentation shows a thorough analysis of global jewellery market and Sri Lankan jewellery industry. This will be highly beneficial for a small & medium enterprise to decide whether to go international or not, being in the Sri Lankan jewellery market.

Published in: Business
  • Be the first to comment

Jewellery Industry in Sri Lanka

  1. 1. Ashen kumarasena Husnun Nazeeyl Kavindu Hapuarachchi Bhanuka Gunatilleke Prabath Ariyapala
  2. 2. Global Jewellery Industry
  3. 3.  As of 2012 global jewellery industry was worth $275 billion  87% were fine jewellery and 13% costume jewellery  Fine jewellery – highest ever growth rate (46% during the last 5 years)  Gold and Diamonds accounts for more than 75% of fine jewellery  Platinum and Palladium are becoming popular in recent years
  4. 4.  3 key value additions (Sourcing, Fabrication and Retailing)
  5. 5.  Gold and Diamonds together accounts for more than 75% of global fine jewellery  Majority of the Diamond supply (Nearly 90%) comes from 7 countries (Botswana, Russia, Angola, South Africa, Canada, Australia, and Dem. Rep. of Congo).  Gold too is supplied by 7 countries, more than half of the gold comes from South Africa, USA, Australia, China, Russia, Peru and Indonesia. The rest from nearly 60 countries  Gold is also sourced from scrap recovery and through central bank sales
  6. 6.  Fine Jewellery 87% Costume Jewellery 13%  Fine Jewellery – Plain Metal and Gem Studded     Traditionally Italy, USA, Thailand, China/Hong Kong have been the leading players in fabrication of fine jewellery However India and Turkey have become significant in fabrication; India has even overtaken Italy to become the world’s leading gold jewellery exporter. India, China and USA, the current leading fabricators in the world also have other advantages, such as having a large domestic market, skilled labour etc. Price fluctuations of precious metal has led the search for alternatives. Palladium has been the best option so far.
  7. 7.  US has always been the biggest jewellery market  Asia, regionally, is the biggest market (India and China contributing more than half)  Traditionally there was no branding, but more recently branded jewellery is increasingly becoming popular
  8. 8.  Controlled supply of precious metal and stones.  Large part of world’s Gold and Diamond production is split between just 11 countries   Controlling the price using supply Carat Differences  Us and Europe 9 – 18 carats (Gold)  Asia 22 – 24 Carats
  9. 9.  Illegal Activities  Money laundering, illegal trade and human exploitations  Blood Diamonds  Evading tax and money laundering  Human rights violations, mainly when mining
  10. 10.  Hallmarking     Marking the carat value Performed by an independent assay office Widely used in US, Europe and China, but at only a small level in India KPCS - The Kimberley Process Certification Scheme Agreement between producer, trader countries and leading players to confirm the origins of the diamonds, Backed by United Nations  To prevent Blood Diamonds  Not 100% successful, but significantly increased transparency in the industry 
  11. 11.  Ethical Mining  Encourages responsible mining practices  No Dirty Gold initiative by not only social groups, but also including leading brands and large retailers  It aims to  reduce the environmental impacts  ensure healthy and safe working condition for workmen  reduce negative impact on communities such as, forced displacement, child labour, public health, prostitution etc (KPMG, 2006)
  12. 12.  Agriculture Industries Tourism Exports  Reasons for the development of economy   
  13. 13.      The start and Early stage Employment 3 basic segments Reasons for the low progress Steps taken to promote jewellery industry
  14. 14.    Industry growth perspective? negative or positive or static!!! Price increase and attractiveness. Main demanded products? Locally – foreign  Firm size diversity and its effectiveness.  Revenue of the industry.
  15. 15.  Geographical diversity.  Flexibility.  Competition.  Chain reaction.  Use for religious activities.
  16. 16. • • • • • • • • • • Tariffs Specified license and certifications Start-up costs Distribution Challenges Inventory costs Existing players in the market Investment risk and losses Insurance costs Need of highly skilled employees Different rules and regulations in different countries
  17. 17.     Total of 100 countries 14 consistent buyers Currently generates 95% of the total revenue US $
  18. 18. Total Revenue 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2000 2001 2002 2003 2004 2005 2006 Total Revenue 2007 2008 2009 2010 2011 2012 2013
  19. 19. •Switzerland •United States •Germany Revenue by percentage 12% 16% 50% 22% germany
  20. 20.    Switzerland United States Germany
  21. 21. Revenue from Jewellery exports to USA 8,000,000 6,000,000 4,000,000 USA 2,000,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenue from Jewellery exports to Switzerland 0 2013 2012 2011 2010 2009 2008 2007 500,000 2006 1,000,000 germany 2005 1,500,000 switzerland 2004 2,000,000 2003 2,500,000 2002 3,000,000 2001 3,500,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2000 4,000,000 Revenue in US $ Revenue from Jewellery exports to Germany Revenue in US $ Revenue in US $ 10,000,000
  22. 22.     Revenue = 7676816.523+0.823 total value of the exports to Switzerland + 1.310 total value of exports to USA R value 0.861a Adjusted R value 0.720 F value of 85.736 Coefficientsa Standardized Unstandardized Coefficients Model 1 B (Constant) total value of the exports Std. Error 7676816.523 .106 1.310 .387 Coefficients B Beta t 984911.209 .823 95.0% Confidence Interval for Sig. Lower Bound Upper Bound 7.794 .000 5648353.916 9705279.130 .793 7.790 .000 .605 1.040 .344 3.383 .002 .512 2.107 to switzerland total value of exports to USA a. Dependent Variable: Revenue
  23. 23.  History       Present      Pre-colonial stage Population growth and Immigration 1787 constitution Discovery of gold (1848) Major downfalls Growth rate (annual- 2.7) (Q4- 3.2) GDP BOP Investments Macroeconomic policies   Monetary policy Fiscal policy
  24. 24.        33 billion dollar industry Industry growth 67,622 businesses 172,889 employees Fragmented Market share Recovery
  25. 25.      Bargaining power of the customersThreat of new entrants Rivalry Threat of substitutes Bargaining power of the suppliers
  26. 26.     Political factors Economical factors Social factors Technological factors
  27. 27.      Diamonds Precious stones (other than diamonds) and semi-precious stones Synthetic or reconstructed precious or semi-precious stones Articles of jewellery Imitation jewellery
  28. 28.      Introduction Best possible mode- Exporting Advantages Disadvantages Limitations in other modes
  29. 29.       what is a strategy? Cross cultural assessment Distribution channel Risk assessment Strategic time Market intelligence
  30. 30. Incentives on high tech machinery  Separate department  Training and development programs  Branding I.e. Sri-Lankan blue sapphire  Emphasize on collecting and providing more data 

×