Surat Must Pivot to Marketing, Says Rapaport

RAPAPORT... Martin Rapaport has called on manufacturersin Surat to develop relationships with small US jewelers in an attempt toexpand their sales and marketing. The Indian diamond city, a hub for cuttingand polishing, remains highly traditional, and must advance its trade if it wishesto survive, the Chairman of the Rapaport Group (pictured) said in a speech at last week's Surat Diamond Expo. To that end, young people entering the industry there shouldfocus on trading and marketing as opposed to just manufacturing, he added. At present, most of the city's polished stonesgo to marketing units in Mumbai for distribution, meaning Surat has notdeveloped as a significant center for diamond sales. "Recognize that just because you know how tomake diamonds, doesn't mean you know how to sell them," Rapaport said. "So,just making the diamond and saying 'I'll wait for the customer to come to me'[is] not enough in the modern world." Smaller American jewelers should be thetargets for sales as they are more likely to be open to buying Surat companies' goods,Rapaport noted. Larger companies such as Signet Jewelers and Tiffany & Co.,comprising about 60% of US buyers, no longer source from smaller open-marketplayers because it is harder to trace the ethical origins of their diamonds, heexplained. "They buy very specifically, and they don'tbuy on the open market...they buy from big sellers," he added. "Maybe 40% of thedemand are small, independent jewelers." Surat manufacturers must establish globalonline marketing and distribution capabilities to create demand and meet buyers'needs, Rapaport said. Diamond buyers outside India seek detailed informationabout the diamonds, online access to them and ease of purchase, according to Rapaport.Cuttersshould also only manufacture goods if they can make profit from them, he added.