Indian jewellers - who took over the global leadership from Italians - urged their rivals to leave hard feelings behind and work together, sharing manufacturing and design skills to conquer world markets.
India, which benefits from low labour costs, has recently boosted the quality of its jewellery and overtaken Italy as the world's number one jewellery producer and exporter.
Italian jewellers, especially in the middle and low market segments, have been struggling to stay ahead of rivals from lower cost Turkey, China and other Asian countries. But senior members of India's government-backed industry body, the Gem and Jewellery Export Promotion Council, said on Tuesday there was room for everyone on the global markets and instead of fighting, India and Italy should join forces in expanding around the world.
"Let's create a win-win situation," Sabyasachi Ray, the Council's exhibition director told Reuters on the sidelines of the international jewellery fair Vicenzaoro in Italy. "The markets of the future are India and China. Let's work together to expand in China, in other markets," he said.
Bakul Mehta, head of the Diamond Panel at the Council, said the Indian jewellery sector's strength was not only in the cheap labour but also a strong tradition of cutting and polishing diamonds and in availability of rough diamonds. Italian jewellers can benefit from outsourcing part of their business to India and some, but so far few, have been doing so, Council members said.
Mehta said Indian jewellers have managed to boost output and exports because they appealed to the middle class and broke a stereotype that gold and diamonds were only for rich people. "Indian jewellers have created new markets. We have democratised diamonds, made them affordable for the middle class," he said.
Indian jewellers can learn a lot about high quality manufacturing and style from Italians, but were not aiming to compete with top-end Italian jewellery designers who create exclusive pieces and have groomed loyal clients for years, Mehta said.
"I do not think Indians can take it over," he said. "But why do we have to talk about competition? We should think a little bit broader. There is place for everyone on the market."
He said Indian and Italian jewellers can join forces in jewellery promotion campaigns aiming to boost consumer demand to their mutual benefit and working together to bring down international trade barriers to create a homogeneous market. But some Italian jewellers said efforts to work with Indian counterparts and expand there have often run into problems, like lack of satisfactory distribution infrastructure in the country.
"Their intentions are very good, but very little has materialised so far," said Pilar Cabo Coin, marketing director at her husband Roberto Coin's jewellery group.
Indian jewellery exports have increased to $16.7 billion in 2005/2006 marketing season from $15.7 billion in 2004/2005, according to the Council's data.
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