Geovana Pagel
São Paulo – The jewelry industry in Brazil, which employs almost 350,000 people, is currently expecting business expansion. Last year, the precious metal and gem industry had a turnover of US$ 700 million in export, a 5% growth when compared to the previous year. The market intends to increase exports to US$ 1 billion by 2006. With its eye on new markets, the sector is aiming at various Arab countries.
"Over the past three years the Brazilian jewelry industry has participated in international jewelry trade fairs in Dubai, United Arab Emirates", says Edmundo Calhau, development director of the Brazilian Institute of Gems and Precious Metals (IBGM).
According to Calhau, the trade fair pavilion was covered in golden jewels and stone artifacts, a lot of them in mineral form and uncut, used for decoration. "Arabs like hawks and horses and have placed many orders, mainly for black hawks made of black stone (absinth rocks)", explains the executive.
Calhau goes on to say that the Arabs prefer jewelry made of pure gold, possibly incremented with diamonds. "They normally do not wear colorful stones, although hey know the oriental sapphires and rubies", he explains. "They are also used to buying large quantities of machinery produced jewels by weight, reducing cost."
Brazilian jewels are made manually, with very careful design and with precious stones, making the jewel more expensive. "This is the differential we must present and maintain".
"A company needs to persist so as to conquer new markets", explains Calhau, pointing out that some companies which went to a trade fair in Dubai did not sell, something he considers very common. "Not always does the first contact guarantee the closing of deals".
There are currently 9 groups in Brazil searching for new export markets. Calhau explains that "there are 4 jewel companies (2 in the state of São Paulo and 2 in the state of Minas Gerais), 1 stone artifacts company (in the state of Rio Grande do Sul), and 4 precious metal plating companies (3 in state of São Paulo and 1 in the state of Rio Grande do Sul)".
He also said that the there have been initiatives in the Bahrain markets, like that by company Vancoux, from Belo Horizonte (the capital of the state of Minas Gerais), which will be participating in a trade fair to take place between October 14 and 18".
"This work in Bahrain, which began due to the efforts of two companies, made Brazil request to be inserted in the trade fair calendar."
About IBGM
Established in 1977, the Brazilian Institute of Gems and Precious Metals (IBGM) is a Brazilian non-profit entity with head offices in Brasília (the Brazilian political capital), which represents the entire productive chain, from mining, through cutting and smelting to the final product: stone artifacts, precious metals plated products and jewels, both in the industrial and commercial sectors.
Currently there are 48 greatly representative companies affiliated to the institute. These companies are from the states of São Paulo, Minas Gerais, Rio de Janeiro, Bahia, Rio Grande do Sul, Paraná, Goiás and Amazonas. Other members include various state entities connected to the sector of precious stones, jewels, precious metals and the like.
IBGM works as a federation, giving technical support to institutions and companies, associations and unions in an attempt to strengthen the sector.
The entity represents the sector at the National Congress and represents Brazil in the International Jewelry Confederation, currently established in Italy.
Brazilian Brands
A fact that deserves mentioning is the growth in the Export Program developed in a partnership between IBGM and the Brazilian Export Promotion Agency (Apex), currently containing 210 companies – most of them small. The initiative makes it possible for them to gain international visibility.
Through the Program for Support to Export, Brazil has participated in the main gem and jewel fairs abroad. Brazilian products have gained visibility through companies who represent the country by themselves or in specific pavilions promoting the Brazilian brand.
In August, the 37th edition of the largest Latin American trade fair for the sector, which took place in São Paulo, did business totaling around US$ 35 million. The event counted on over 150 exhibitors, presenting the most recent releases in terms of Brazilian jewels, considered the lightest, most daring and creative on the international market.
Jewelry Segment Data
Throughout the country, there are around 1300 companies, including stone cutting (350), precious metal plating companies (450) and suppliers of gold and silver (500). The jewel trade consists of over 16,000 establishments. The entire productive process generates around 350,000 direct jobs.
