23204572 Jewelry Industry

8/6/2019 23204572 Jewelry Industry

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Outlin

e

Outlin

eHistory.History.Introduction.Introduction.

GDP Contribution.GDP Contribution.

Raw material.Raw material.

Pakistans scenario.Pakistans scenario.

Government.Government.

World scenario.World scenario.

Problems.Problems.

Conclusion.Conclusion.


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IntroductionIntroduction

Pakistans gems and jewelry sector is often described as a cottage industryPakistans gems and jewelry sector is often described as a cottage industry

Gems and jewelry have always held a magical appeal. They have been theGems and jewelry have always held a magical appeal. They have been thesign of power, prestige and wealth.sign of power, prestige and wealth.

Women of this sub-continent have always been the biggest buyersWomen of this sub-continent have always been the biggest buyers

the export of gems and jewelry has also gone up substantially.the export of gems and jewelry has also gone up substantially.

Entry of Pakistani exporters in some of the developed markets has alsoEntry of Pakistani exporters in some of the developed markets has alsoencouraged the local jewelers to introduce their branded jewelry.encouraged the local jewelers to introduce their branded jewelry.

Pakistan's main export markets are USA, the Gulf region and the UK.Pakistan's main export markets are USA, the Gulf region and the UK.

Pakistan mostly exports ethnic designs and hand-made jewelry. Lately exportPakistan mostly exports ethnic designs and hand-made jewelry. Lately exportof machine made jewelry has also increased.of machine made jewelry has also increased.


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IntroductionIntroduction

Pakistans gems and jewelry sector is often described as acottageindustry, a small and medium enterprise, with four- to five-personworkshops crafting pieces by hand or with outdated machinery.Most manufacturers cannot cater to international markets, which

prefer 14 to 18 karat gold, not the 22 or 24 karats populardomestically. Three-quarters of the $28 million in industry exports in2004 were rough stones: despite the countrys abundant mineralreserves, processors lack the expertise to cut stones toglobalstandards. Manufacturers usually attended global trade fairsasindividuals, failing to garner much buyer attention. Unleashing theindustrys tremendous potential would increase export revenues,entrepreneurship and employment, and reduce the level of poverty.


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GDP ContributionGDP Contribution

Jewelry industry contributes 4% of our GDPJewelry industry contributes 4% of our GDP

R t i l b iR t i l b i


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Raw material beingRaw material beingimportedimported

GoldGolda)a)

Jewellery casting powderJewellery casting powderb)b)

Molding rubbersMolding rubbersc)c)

Injection waxInjection waxd)d)

Rhodium plating solution concentratesRhodium plating solution concentratese)e)

Bright & ChromeBright & Chromef)f)

Laquering solutionsLaquering solutionsg)g)


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World scenarioWorld scenario

Global trade for gems and jewelry has shown a positive trendGlobal trade for gems and jewelry has shown a positive trend

showing increasing demand for these valuable fashion articles inshowing increasing demand for these valuable fashion articles in

international market. for jewelry the total trade expended form US$international market. for jewelry the total trade expended form US$

15.9 billion to US$ 43.5 billion in 200215.9 billion to US$ 43.5 billion in 2002

Pakistans pink topaz and Kashmir ruby are unique items all overPakistans pink topaz and Kashmir ruby are unique items all over

the worldthe world

Top ten world jewelerTop ten world jeweler


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Top ten world jeweler

importing

Top ten world jeweler

importingcountriescountries (source: international trade center)in

us(source: international trade center)in

us millionmillion

2000 2001 2002Country

USA 6553 6359 7221

United 1627 1988 2321kingdom

Switzerland 1183 1174 1393

Hong Kong 1262 1236 1435

Japan 1177 1373 1328

Germany 861 792 844

France 848 948 950UAE 1195 1441 -

Singapore 582 552 539

Italy 374 408 431

Pakistans scenarioPakistans scenario


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Pakistan has emerged as the5

largest country for thePakistan has emerged as the5

largest country for thethth

occurrence of gemstones on the world map, but it has beenoccurrence of gemstones on the world map, but it has been

unable to penetrate the international market, as its averageunable to penetrate the international market, as its average

market share is only .31% of total world wide exports.market share is only .31% of total world wide exports.

Major buyers of Pakistani gemstones are:Major buyers of Pakistani gemstones are:

USA 33%USA 33%

Hong Kong 25%Hong Kong 25%

Germany 20%Germany 20%

Uk 5%Uk 5%

France 4%France 4%

UAE 4%UAE 4%

India 3%India 3%Thailand 2%Thailand 2%

Others 4%Others 4%

P ki t iP ki t i


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The global trade of gemstones is around $40.7 billion per anum,The global trade of gemstones is around $40.7 billion per anum,

Pakistan's export market share declined from $7.7 million in 1989-Pakistan's export market share declined from $7.7 million in 1989-

90 to $5.8 million in 1997-98.the export further declined to $3.790 to $5.8 million in 1997-98.the export further declined to $3.7

million in 2003-04.million in 2003-04.

The export of gemstone from Pakistan is insignificant as comparedThe export of gemstone from Pakistan is insignificant as compared

to large potential that exists in the country therefore there is a needto large potential that exists in the country therefore there is a need

to increase not only the quality of gemstones exported but also theto increase not only the quality of gemstones exported but also the

quality .this cam be achieved buy setting a cutting n polishingquality .this cam be achieved buy setting a cutting n polishing

industry in Pakistan, by adding value to rough stonesindustry in Pakistan, by adding value to rough stones

Pakistan has low cost labor as compared to other countriesPakistan has low cost labor as compared to other countries

Government to encourageGovernment to encourage


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Government to encourageGovernment to encourage

jewelry sectorjewelry sector

The govt is encouraging the gems and jewelry industry, as it had aThe govt is encouraging the gems and jewelry industry, as it had a

huge potential of providing employment and increasing growth. thehuge potential of providing employment and increasing growth. the

USAID and Smeda are working together to help this industry to findUSAID and Smeda are working together to help this industry to find

its true potential. Pakistan is fortune enough to be strategicallyits true potential. Pakistan is fortune enough to be strategically

located close to some of major markets such as Thailand &located close to some of major markets such as Thailand &

Srilanka.besides it has one of the largest deposits ofgemstonesSrilanka.besides it has one of the largest deposits ofgemstonesvariety including high priced stone like Emerald and ruby.variety including high priced stone like Emerald and ruby.

Pakistans export of gemsPakistans export of gems


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Pakistan s export of gemsPakistan s export of gems

& jewelry& jewelry

Year Precious Jewellery (in $stones million)

1989-90 2.2550 15.059

2000-01 2.170 23.930

2001-02 1.501 26.980

2002-03 2.170 22.601

2003-04 3.690 24.489

2004-05(jul- n/a 17.682

mar)

Problem Faced By TheProblem Faced By The


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Problem Faced By TheProblem Faced By TheIndustryIndustry

Lack of infrastruc turesupport

Lack of infras tructuresupport

Lack of political support: (no recognition at policylevel)

Lack of political support: (no recognition at policylevel)

Resource mobilization was the major issue to get short-term wins Resource mobilization was the major issue to get short-term wins

Lack of ownership & commitment of Development agencies involved Lack of ownership & commitment of Development agencies involved

Lack of technologyLack of technology

Unavailabi li ty of rawmaterialUnavailabil ity of rawmaterial

Branding of products loca lly andinternationallyBranding of products loca lly andinternationally

l il i


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conclusionconclusion

Gems and jewellry is anemergingGems and jewellry is anemergingsector of Pakistan with

immense

sector of Pakistan with

immenseexport potential. The current levelofexport potential. The current leveloftrade, including the vastinformaltrade, including the vastinformalsector that is exceptive to bemoresector that is exceptive to bemorethan $50 million annually in futureifthan $50 million annually in futureifappropriate measures aretaken.appropriate measures aretaken.


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23204572 Jewelry Industry