GJEPC looks to wipe the slate clean
The council launches a branding offensive in an effort to contain the fallout of recent scams
How does an industry that is largely an assortment of small and medium sized exporters fight its worst reputational crisis ever? The country’s Gems and Jewellery Exports Promotion Council (GJEPC) may well have a few answers for those looking for advice, but only in a few years from now, when the impact of its recently launched branding efforts is fully evident.
In its first ever campaign within the country, the council talks about the contribution that gems and jewellery exporters make towards the economy and the employment the sector generates. GJEPC says that it is keen to highlight the strengths of the industry, the positive impact that it has had on the lives of people and on the economy at large. It has also offered bankers and policy makers a white paper of its practices and has sought to bring about greater transparency by instituting a KYC (know-your-client) for international players and their Indian associates.
“We have been signing MoUs with overseas apex gem and jewellery trade bodies in countries like the US, UAE, Russia, Antwerp to get the KYC details of their members and the Indian players, which will be stored in a central repository. The information will be available to bankers and market participants,” says Colin Shah, vice chairman of GJEPC.
The council appointed Alok Nanda and Company (ANC), a Mumbai-headquartered agency, to address the issues its members faced in the aftermath of the massive scam run by Nirav Modi and Mehul Choksi and also to remedy the overall negative perception that the business has acquired over the years. According to the agency’s note, there was a need to elevate perceptions and change optics around the industry. The council says that while recent scams have compelled it to launch the advertising campaign, such an initiative has been on the anvil for a while now.
The campaign was designed to reinforce and underscore how the industry has stood the test of time and the incident, a singular act of aberration, never really reflected the ethos of the sector. Ronnie Wadia, senior partner and creative director, ANC, says, “We tried to humanise the ‘gem and jewellery industry’ by giving it a human face, thereby ‘softening’ its image and creating an emotional connect. The backbone of this industry was its five million skilled workforce comprising gemstone cutters and jewellery craftsmen. The ‘ karigar’ became the face of the campaign, through whom we told our story.”
It was important to humanise the industry given the magnitude of the scam and the manner in which Modi and Choksi fled the country early this year, after defrauding Indian banks, especially Punjab National Bank for over $2 billion. Bankers clamped down on lending to exporters, while the entire community faced a huge trust deficit from clients and policy makers.
The campaign aims to change the story of fraud and scamster members by focusing on what it calls, ‘the positive work’ being done. On the impact the sector has on revenues, on employees and their families and on the fact that it contributes 7 per cent to India’s over $2 trillion GDP and on such other aspects. The campaign does not dwell on the Nirav Modi-Mehul Choksi affair at all, talking about everything else but the damage done by the duo.
The campaign that was launched in print last month will be extended to OOH properties at airports and other places. According to Shah there is adequate support from members for a long term campaign. There is also a film on the sector that will be launched soon. Shah adds, “Bankers have realised (impact of their actions) and the idea is to see that genuine businesses get funding. However, awareness should be registered consistently.”
A white paper that offers a more detailed understanding of the industry is also being circulated. The council has proposed an informal arbitration body consisting of bankers, GJEPC and Bharat Diamond Bourse (BDB) members to be formed to find fair resolutions for NPA management, recovery and disputes. Besides, the KYC initiatives in partnership with international bodies, are meant to bring about greater transparency too.
Sohil Kothari, director, Fine Jewellery Manufacturing and one of the major exporters in the country sees the campaign as an important step in reassuring policy makers and bankers. “I am sure bankers must be revalidating the state of jewellery industry and the campaign initiated by the GJEPC will help,” he says.
For GJEPC, the problems faced by its members are not restricted to recent scams. They said that they were keen to offer a different perspective on the industry and portray it in a different light. The campaign that will run at least another six months will talk about philanthropic activities that some exporters undertake and the human stories that define the business.
According to the agency’s note, “Each breadwinner, a gem and diamond sector employee, is known to support between three and four dependent members.” Being a part of the gems and jewellery industry therefore helps not just one individual but an entire family and creates its own ecosystem of benefits it added.
Kothari says that the industry is a significant contributor to the economy. Also, the majority does not default on payments and it is unfortunate that the actions of a few have damaged the reputation of an entire industry, he adds. He has his hopes pinned on the ongoing image building campaign, but recovery is a long term play.