‘Sri Lanka yet to penetrate even 10 percent of sizeable US gem market’

Anjana Samarasinghe

Gems: Sri Lanka has not penetrated even 10 percent of the gem market in the US.

Leading gem exporter and proprietor of Anura Wijemanne Associates, Anura Wijemanne, said at a seminar organised by the National Gem and Jewellery Authority (NGJA) on “How to be successful in USA market” that USA is a huge potential market for local gem and jewellery. But Sri Lanka has not absorbed even 10% of the USA market.

Sri Lanka needs to focus more on the niche market in US and increase the customer base. At the moment there is a huge demand for blue sapphires from 1k to 5k. Most of the US consumers have buying power to purchase on this scale. There is a market for heat treated coloured stones too.

There are certain standards and qualities adopted by the USA gem and jewellery traders. Local gem and jewellery traders who expect to venture out to the US market need to accept those standards, he said.

There are three segments of buyers in the US gem market. Whole sellers, jewellery manufacturers and retailers. Each of these segments are needed to be handled differently.

Honesty and the trustworthiness is an initial aspect in venturing in to the US market and behaviour of each local trader during dealings with US buyers will reflect on the local industry and also impact future business.

Meeting US buyers through local agents in Sri Lanka is the most cheapest method of entering to US market. “But when dealing with US buyers let your gems talk for you and prevent unwanted explanations about the stones. Declaring stable prices during dealings too is important when dealing with US buyers.

Though advertisements in trade magazines is costly there is a good response for magazine advertisements in the US market. Local traders need to identify the most potential magazines through the EDB and NGJA.

Advertisements revealing true details is important. Many traders use pictures of gem cutting factories in other countries in their advertisements which will mislead the buyers, he said.