The current Covid19 crisis has created lots of uncertainty and the Diamond industry is also getting affected by the same. Here are the ways to overcome losses post corona.
Never in the past, have we experienced a fear of death and meltdown of wealth, both at the same time. We are experiencing severe demand and supply shock. Manufacturing and sales are shut all across the world. In the middle of this Covid19 crisis, we are trying to find out recovery options. We are trying to figure out how as the jewellery industry, we can recover.
From production to reaching jewellery retailers, diamond has to pass through many stages. But the current situation demands strategies to overcome losses. There is something called a diamond pipeline, which includes processes starting from mining to reaching retailers. This should go smooth, in order to get good returns. We all should use the Corona crisis as a turning point and build a better future.
Another important point for the Indian Jeweler community is that it is at risk of losses as they don’t know the market value of the polish. They need a higher margin. Indian diamond jewellery business owners are great entrepreneurs and are skilled.
There are 3 different parameters of the current crisis. We have a supply chain that is being affected by the crisis. Many people are postponing their weddings and hence, no demand. Prices are not going to be the same, post corona.
The question here is – how to recover? Well, nobody is sure about the “new normal” post corona. First and foremost, business owners must focus on creating new demands by keeping the prices stable.
Once the situation starts coming back to normal, we need to raise some liquidity and also the interest payments. This immediate liquidation of inventory is basically to raise the money.
In the absence of migrant workers, the production may not be the same but the demand is expected to be restored in 2021. Though they are all assumptions, it is possible that the demand for smaller certified diamonds will start.
What will be the impact on the labor force?
It is still not clear what pct of contract workers will be back, all depends on the stock and the financial capacity. The strength of contract workers also depends on the duration of the Covid19 crisis.
What we can do?
The need of the hour is to be together and face the crisis. We need to focus more on digital marketing, Advertisement, E-commerce, and most important, employees. Be confident and we’ll emerge stronger together.