Retailers have already returned a lot of gold jewellery the manufacturers, who are melting these into bars and selling in the market. They are using this money to reduce the interest cost on bank borrowing. In the process, import of gold is also coming down.
The world's biggest cosmetics companies have been selling a fairy tale that often goes something like this: If your husband's lost interest in you, if your colleagues dismiss you at work, if your talents are ignored, whiten your skin to turn your love life around, boost your career and command center stage.
Almost every leading cosmetics company from Procter & Gamble and Emami to Nivea and Johnson & Johnson focused on whiteness or fairness variants. But now, companies don’t have a choice but to change course, said industry executives.
The goods exported from Hong Kong will now be considered goods made in China for duty purposes. With tension between the US and China increasing over the spread of Covid-19, Indian jewellers and diamond traders who have offices in Hong Kong are worried over the flow of exports of gems and jewellery from China to the US.
Gems and Jewellery Export Promotion Council (GJEPC) officials said with China imposing the national secuirty law on Hong Kong, the USA has given indication of raising duty on goods from there to 7.5 per cent from 3.3 per cent. Without going into the nuances of the US move, I feel it will possibly create opportunities for India in gems and jewellery trade," GJEPC chairman Colin Shah told.
“Major exports were happening to Hong Kong and China only in the current scenario. But if a lockdown is announced, it will majorly impact our exports,” said Mavji Patel, managing director of Kiran Gems, a leading diamond exporting firm.
Most of the artisans, or karigars, who work at jewellery manufacturing hubs in the country hail from West Bengal. Jewellers are ready to take them to work only if they take half of their salaries for at least three months till Diwali, when the industry is expecting sales to pick up.
The World Gold Council in a report titled 'Online gold market in India' said the COVID-19 disruption has caused jewellery retailers in India to re-evaluate their existing business model and noted that online retail adoption accelerated during COVID-19 across categories.
"In view of COVID-19 pandemic situation, the government today extended relief to gems and jewellery sector by relaxing the requirement of re-import of cut and polished diamonds, which have been sent abroad for certification and grading, by three months," it said.
Arvind Fashions has been restructuring its businesses for about a year, by trimming its global brands portfolio and pruning unviable outlets. Last year, it exited marketing arrangements with loss-making global labels including Izod, Gant, Nautica and Ed Hardy to focus on US Polo, Aeropostale, Gap, Flying Machine, and other labels.