In an exclusive interview, Dinesh Lakhani, Director of Kiran Gems Pvt. Ltd., shares his insights on the diamond market in Hong Kong and the Chinese mainland. He discusses his experience at the recently concluded Hong Kong show, current market trends, new business relationships, and offers his perspective on the sustainability of the current boom in the diamond market and steps the company is taking to stay competitive in the global diamond market.
Tell us about your experience at the Hong Kong gem and jewellery show?
The experience was quite nostalgic. Hong Kong caters to the eastern market, and it is the most convenient and prominent show for this region. Since the exhibition did not take place for more than 3 years, everyone was looking forward to reconnect.
What did you observe about the current market trends for loose diamonds/diamond jewellery in Hong Kong and the Chinese mainland?
The trend seems to be quite promising and optimistic. We were excited to see so many clients (new & existing) visiting and showing interest. It might take a while for them to realign to the market prices, but we are sure there will be a surge in demand in the days to follow, especially in the smaller goods where the prices have been quite steady.
Can you tell us about any new business relationships that you were able to establish at the show?
For us the show has always been a perfect venue for developing relationships and meeting new clients. However, since this time the show has been (held) after almost 3 years, it was more about the existing clients who we could not meet for long time.
How do you plan to leverage the knowledge and insights you gained at the show to improve your business in India?
We have always tried our best to stay ahead in the game with our market insights and our strong team presence across the globe. We were quite positive about the market conditions given the fact that the rough prices in smaller sizes remained more or less upbeat even when China was hit with the covid wave. Now that the Chinese economy is open, we are sure about the surge in demand in across the size spectrum. We have been quite consistent in our manufacturing which will help us meet the new demand in the days to come.
Do you think the current boom in the diamond market in Hong Kong/China is sustainable? Why or why not?
I would like to answer this question a bit differently – We have been in business for past 28 years and despite all the ups and downs (including the lockdown in 2020) we have consistently grown at 15% per annum in turnover. Today we are $2.5 billion company in terms of sales and we continue to have a positive outlook for the market. There will always be slag and boom periods in the market and one has to be prepared for both to have a consistent growth graph.
What steps are you taking to stay competitive in the global diamond market?
We strongly believe that our biggest asset is our workforce. When other industries lay off and hire with changing market conditions, we tend to nurture our staff with training and education to keep them updated with changing times and trends. This helps us stay ahead of the competition.
What advice would you give to other diamond manufacturers who are looking to expand their business in international markets like Hong Kong?
My advice is for any market and not for any particular region. Every company has their own strengths and weaknesses and it is very important to know them. You cannot blindly follow another company as their strategy is based on their strength, which might completely differ from yours. For example, somebody who is manufacturing fancy shape might not succeed well in the China market, but will do well in the Middle Eastern market. We have always focused on consistency rather than sporadic growth.