The Israel Diamond Manufacturers Association (IsDMA) represents all of the diamond manufacturers in Israel. It is a member of the Israel Diamond Institute (IDI), umbrella organization of Israel diamond industry. The Association plays a key role in representing the interests of the manufacturers. Hong Kong Jewellery has interviewed president Avraham B Traub, who has more than forty years of experience and contribution to the Israel diamond industry. The interviewer sees how a great association optimizes the service and helps the industry in global marketing.
HKJM: Hong Kong Jewellery
ABT: Avraham B Traub
HKJM: IsDMA represents hundreds of diamond manufacturers in Israel’s diamond industry. How do you see IsDMA’s advantage in terms of service for their members when operating the Association’s global strategy?
ABT: The diamond industry is going back to the heart of Israel Diamond Center (IDC). We have worked for many years to make the diamond centre a capital. The heart of the diamond center is the Israel Diamond Exchange (IDE). It is actually a four-tower complex, protected by a tight security system. Inside the bourse, we have thousands of offices and the largest diamond trading floor in the world. We also have all of the services and amenities that diamond traders and buyers need. Within this complex we have banks, insurance companies, shipping companies, customs office, post office, the fitness center, restaurants, a barber, a synagogue and even a medical clinic. We provide all of the services you need under one roof. We are partnering with the government to open a new area to teach industry players especially small and medium sized companies on how to manufacture diamonds with the combination of our tradition and new technology. All the technology inside is up-to-date. We also want to mention that the World Diamod Council (WDC) was created in Tel Aviv. We are one of the major supporters of the Kimberly Process. All the rough diamonds come with Israel Kimberly certificate.
HKJM: What kind of measures the Association is taking to keep a stable rough supply for the members?
ABT: We are organizing the delegations to visit mines. We encourage people to go out and look for rough suppliers. We create a tender house which opens every day in the year. Today more and more rough suppliers come to us and show the rough diamonds to our members. We host tenders especially for the small and medium sized manufacturers.
HKJM: How do you see the rough supply in the future?
ABT: Buying from tenders is the future of the world diamond industry. Rough diamond producers have never made such a big fortune than the past few years. Thus they will not stop making tenders. The Diamond Trading Company (DTC), which uses the sight system today takes about 35 percent of the world share. But tenders are the future for the diamond business.
HKJM: 2013 Israel polished diamond exports was up by 12 percent; what is your outlook for 2014?
ABT: 2014 will be a good year. The global economy was in the bottom in 2008, but that year was not the worst for the diamond industry. If you want to see how strong the Israel diamond industry is, look back to 2008 when everybody collapsed around, We stood stable and none of our big company lost money. Ninety-nine percent of the companies grew smoothly during the economy crisis. Now they are on the way up. Thus 2014 will be very optimistic. Now the young generation in China is our future for the diamond jewellery consumption. But it takes time for such a big country to be a complete free market.
HKJM: A number of Israeli diamond manufacturers have relocated back to their home country when facing the surging labour cost in China and India. Can you give me an update on this trend? : The labour cost is indeed becoming higher. But we are glad to see cheap labour time has gone. India will take longer time because they are mostly working with small stones.
HKJM: In terms of diamond promotion and marketing, what are your strategies in the global market in 2014?
ABT: We are looking around the world for new outlets. China is a good market for diamonds. Today, no doubt we will focus on three markets, the United States, China and India. Also we are participating in shows in Europe such as Vicenzaoro and Baselworld. We also have a big and nice pavilion in Freiburg which is a new show in Germany held by UBM. You may find we are everywhere. We are leading our companies to the main stream markets and to the new markets as we learn about them.
Today I think 30 percent from our export is to China. In the past, that export only accounted for 10 percent. The United State represents about 40 percent of our exports. We can see the main markets are in both the East and the West.
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