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In an exclusive with Kalpesh Vaghani, Director - KAPU

GEMS, The New Jeweller Bureau got an insight into the

importance of Innovation in the Diamond Industry for a

sustainable future as he opines on the key factors that will

help the sector grow steadily in time to come. Excerpts:

KAPU GEMS has been an integral part of Antwerp’s Diamond

business. According to you, what are those important factors

that have led to Antwerp becoming the Diamond centre for the

world?

Antwerp is the hub for Rough diamonds, for last many years.

With 85% of the world's rough diamonds and 50% of polish

diamonds passing through, the city attracts

international traders seeking the highest quality

diamonds. Antwerp is home to all major diamond

mining companies, which fulfils sourcing needs of

thousands of diamond dealers across the globe.

Antwerp has been known for the quality diamond in

the industry and it will remain the undisputed diamond

capital of the world.

How do you look at the post PANDEMIC era for Antwerp,

especially servicing big buying markets such as the US

and China from Antwerp. Will the said markets sustain

buying patterns through the year 2021 as well? What

are the challenges if any that you foresee?

The effect of Covid-19 on traveling attracted people to

spend more on luxury goods, and Diamond being the

most demanded luxury product, there is a huge

opportunity for Diamond sale to grow. The price of

Diamond was quite stable for the last 7 - 8 years, but

within the last 2 quarters, the price of polished

diamonds has increased 20 - 30 %. The increase in

pricing were driven by the recovery in the US and

China markets, as well as supply shortages emerging

due to current restrictions on manufacturing. Due to

these factors I think this price rise would continue for

another 2 – 3 years, as demand would be quite on the higher

side compared to supply.

Recently, we have witnessed some of the biggest business

deal in the luxury products is from Diamond industry, that

indicates the potential our industry holds to grow in the

future and become a luxury buyer’s primary choice to spend.

We have many opportunities in the industry, and the way

forward is to capitalize on the current and prospects.

Change is always a challenge, especially in such turbulent

times. Courage, Innovation, and Agility are the key factors

for growth that will driving the sector forward.

Director - KAPU GEMS

Kalpesh Vaghani

ANTWERP

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Antwerp has recently concluded a successful business

delegation to Angola. How do you see the relationship

strengthening with time and what would be your expectations

from the strategic partnership with Angola as a leading

manufacturer of High end Diamonds?

Angola is opening up slowly for the business world by

implementing a series of reforms to create a more

transparent and sustainable diamond industry. Transparency

is key to a successful business, as the world’s largest

diamond trade hub, Antwerp is fully aligned with Angola’s

reforms to increase transparency and to create added value

for the diamond industry in Angola. Antwerp can contribute

and support Angola, by sharing knowledge, expertise,

technology, and network, to build a sustainable diamond

industry from the huge potential it holds.

The AWDC promotes strict adherence to anti-money

laundering regulations, it can help Angola to streamline its

diamond valuation procedures, whether in the form of

expertise, training programs, exchange of diamond experts,

and sustainable beneficiation initiatives.Antwerp is the

world's largest diamond centre and Angola is one of the

largest producers in the world, If they work together, it will

boost the sector and will bring more business opportunities,

both for the local and the world diamond fraternity.

Digitization is the ‘New Norm’ as the diamond industry is

embracing digitization be it online bidding, tendering, selling

or using block chain. What is your opinion on this and do you

think digitization and innovation is the way ahead?

Kapu gems have been one of the early adapters of high end

technological business platforms and have always been

promoting the usage of such online platforms. With

extensive use of I.T. in all spheres of Business, we have

achieved complete Information Technology governance.

Our Website and Mobile Application (Android and iOS ) has

been designed and developed to give the best user-friendly

interface and advanced features, so customers can access

real-time diamond-inventory, from anywhere, anytime. We

strive to offer the best diamonds along with innovative long-

term beneficial services; and we are committed to provide an

utmost quality with appropriate technology and excellent

workmanship.

In this COVID-19 time, with all the restrictions on physical

meetings and travelling, our online business model not only

helped us to maintain the regular sale but also helped us to

grow further. We were able to connect with the unexplored

regions and initiated business with new clients through by

reaching out though our Website and Mobile app.

As business world awakens to a new norm we are hopeful of

improvisation in market scenarios. Digitisation &

Innovation will be the key to business growth and

productivity. As Digitization brings everyone closer to the

end consumer, we have to strive to elevate our e-commerce

capabilities to enhance the overall buying experience.

KAPU GEMS has been in the business of Diamond

manufacturing for the last 4 decades or more. What are those

fundamental values that have made Kapu Gems a leading

company in the world of Diamonds? Do share with us in brief

the ''Unique Value Proposition'' that your customers see?

Established on solid foundation of sound principles and high

values by Mr. Diyalbhai Patel, today Kapu Gems proudly

forges ahead with the same determination and principles,

without compromising its ideology of ethical business and

an unfaltering dedication to perfection. Each of our business

aspects right from sorting, manufacturing, pricing to sales is

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unique and a true reflection of our core values and

principles. Developing human value is our motto; We are

keen to maintain the health & safety standards. Kapu Gems

has always put ‘care and well-being’ of the staff as the

topmost priority. Our workers are assets for us and their

loyalty is a reward for us.

Kapu Gems as a brand signifies premium quality, absolute

transparency, accurate pricing and diamonds manufactured

according to the highest ethical standards, sourced from a

broad range of legitimate primary suppliers. The credibility

of our grading, pricing and other services provide our

customers with absolute confidence, which can be seen from

the fact, around 79% of our sales are through our Website

and Mobile Application (Android and iOS). All the stones

we sell are manufactured in our factory, resulting in

optimum quality consistantly. With access to all the leading

mines, we can guarantee regular supply of natural

polished diamonds to our customers. We have

maintained highest level of honesty and

transparency with our clients by following the path

of legitimate business practices and Responsible

Jewellery Council’s standards.

We always strive to offer the best diamonds along

with innovative long term beneficial services, and are

committed to provide an utmost quality with appropriate

technology and excellent workmanship.

KAPU GEMS has formulated a first of its kind “Kapu Loyalty

System” program. What are the salient features of this

program and how have your existing customers benefited

from this?

Kapu Loyalty System is an innovative Loyalty scheme,

exclusively for KAPU GEMS Website members, where

customers can avail amazing benefits at every loyalty level

which includes the lucrative discounts. Once you register on

our website, depending on your monthly/annual purchase

you will fall in a particular loyalty category from BASIC,

SILVER, SILVER+, GOLD, GOLD+, DIAMOND,

DIAMOND+. Buyer will get additional loyalty discounts as

per the slab. On each purchase done, you can move up on a

higher slab as per total business done. Higher the slab, the

higher the discount.

What would you as a leading Diamond manufacturer

recommend to the Industry members for sustainability and

profitability in the “New post PANDEMIC era”? Important

factors that will work.

Due to the Covid-19 pandemic, there is a positive effect on

demand for luxury goods.

Times are tough, however,

t h e o t h e r s i d e h o l d s

positivity in itself. As the

business world awakens

f r o m t h e C o v i d - 1 9

pandemic, s teadily the

market will improve. The

industry - be it miners,

manufacturers, retailers or

wholesalers - will have to

gear up for a world where the

o ld no rms have to be

reframed. Within 5 years, the

Diamond industry will be in a

much fulfilling position.

People will move towards

buying high-end jewelry

instead of gadgets. Diamond

is categorized as an Asset

class and we will see its value

in this class in years to come. In this “New Norm era”

survival and growth will be mostly depended on digital

Innovation, Customer Engagement, Emphasis on

sustainability, in particular environmental issues. Together

the industry will be required to effectively incorporate these

factors to enhance the overall buying experience for

customer.

Volume 14 Issue 2 - 2021

ANTWERP DIAMOND INDUSTRY

Special Report