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India, US become top Gold jewelry exporters
World’s largest gold consumer India and the United States overtake Italy as world’s largest gold jewelry exporters.
World’s largest gold consumer India and the United States overtake Italy as world’s largest gold jewelry exporters.
According to reporters, production costs and higher competitions are the major reasons for the setback the Italians suffered while tariff barriers also played a key role.
Italy’s biggest customers such as China, have imposed import duties, and low cost competitors have grown all around the market, making the native Italian brands tough to compete with them.
With rising paypackets of workers, slowdown in the European economy, and rising price of the precious metal have done their bit to damage the Italian gold jewelers.
According to World Gold Council, 15% sales volumes dip was noticed this year as compared to the earlier year. Some estimations also revealed that gold jewelry sales in Italy was down 20-25% as compared to last year’s figures.
The biggest advantage for the Indian jewelry makers is, that they can export a certain volume to the United States without having to pay any import duty, but the Italians have to cough up stiffer import duties.
Low price alternatives are springing up in China, Hong Kong, and Thailand making it tougher for the Italians. The only route they see now, is that they concentrate on markets like the UAE and Switzerland which are fast growing export markets.
But till they reach for Asian alternatives, the Italians certainly would need a revamp of their strategy to ease things for the gold industry. For years Italy was the world’s biggest manufacturer and exporter of mass-produced and crafted gold jewellery.
Bulgari, Damiani and Roberto Coin are Italian luxury brands celebrated worldwide for their opulent use of gold and precious gemstones and cutting-edge designs.
But the Italian goldsmith sector is fighting an uphill battle against punitive import duties imposed by markets such as China, and competition from lower cost producers benefiting from improving design skills and the latest technology.
Sales of gold jewellery in Italy were down 15 percent in volume terms (to 4.8 tonnes) and fell 9 percent in value terms year on year in the second quarter, figures from the World Gold Council showed.
The Italian industry flourished on the expertise and skills built up by family-owned businesses over generations and the international prestige of “Made in Italy” design and manufacturing.
Italy is seen as an international trend-setter in jewellery design. Italy exports about 70 percent of its manufactured gold jewellery, with the remainder sold domestically.
