Back To Top
Easy Guide to the Report
Japan - What the Future Holds
IJT & The Indian Pavilion
Observations & Suggestions
Market Study / Statistical & Useful Information
Representatives at the Show
Ruban Hobday, Director and Kaushik Ghosh, Executive - Exhibitions represented the Council this year.
Japan - Economic climate
Despite his plans to step down as head of the Liberal Democratic Party (LDP) and thus prime minister in September, Junichiro Koizumi is pushing a reform agenda. In his most recent address to parliament Mr Koizumi promised to cut the government workforce, reduce Japan's municipalities from 3,200 to 1,800 and keep government bond issues below ¥30 trillion ($261 billion). But he will not want to upset Japan's nascent economic recovery and his government will continue to pressure the Bank of Japan to maintain its ultra-loose monetary policy. A group of forecasters polled predicts that GDP will grow by 2.4% in 2006, with prices rising by 0.3%. and North Korea will hold their first bilateral talks in three years beginning February 4th in Beijing. China and India have come to stay to propel the world economy. Mr Koizumi's 2006 budget contains the largest spending cut since 1950. Some observers are worried that too sharp a cut in spending could dampen consumer and business investment.
Sadakazu Tanigaki, the finance minister, has said that Japan is still suffering from “mild deflation”, but this may be part of the cabinet's effort to keep the Bank of Japan from ending its ultra-loose monetary policy. The prediction is that consumer prices will rise by 0.2% in 2006, 0.7% in 2007 and 1.2% in 2008.
Japan, the world's second largest economy, has suffered from a prolonged period of stagnation and malaise since 1991. Subpar growth, failing banks, plummeting real estate and stock prices, deflation, unprecedented unemployment, and huge government liabilities have persisted, despite extraordinary fiscal and monetary policy fixes. In Reviving Japan's Economy , 16 top American and Japanese experts analyze Japan's under performing economy, and develop and recommend policy solutions aimed at achieving Japan's growth potential, improving the quality of life for the Japanese people, and strengthening Japan's contribution to the global economy. A collaborative effort that grew out of a research project begun in 2002 and sponsored by the Center on Japanese Economy and Business at Columbia University and the Research Center for Advanced Science and Technology at the University of Tokyo, the book looks to the future while having as its foundation a careful analysis of Japan's recent economic history.
IJT – 2006 & Indian Pavilion
Asia's first major jewellery event of the year and Japan's largest, the 17th International Jewellery Tokyo (IJT) 2006 took place at the Tokyo Big Sight from January 25 to 28,2006. A record braking 1500 companies exhibited at IJT 2006, an increase of 160 exhibitors over last year. IJT 2006 was expanded to 6 halls at Tokyo Big Sight. Statistically the total area of IJT 2006 was 4 time. Of 1500 total exhibitors, 930 are from Japan, while 570 exhibitors or approximately 35% of total exhibitors, are overseas companies including representatives from 35 major markets Italy, France, Germany, turkey, Hong Kong, Thailand, Korea and India.
Australia, Austria, Belgium, Canada, China, Hong Kong, Finland, France, Germany, India, Iran, Israel, Italy, Japan, Korea, Lithuania, Myanmar, Nepal, New Zealand, Philippines, Poland, Russia, Singapore, Sri Lanka, Switzerland, Tahiti French Polynesia, Taiwan, Thailand, Turkey, UK, United Arab Emirates, USA, Vietnam
Special corners devoted to key domains of interest are the unique feature of IJT 2006. All the special corners expanded 30% of their space this year.
Special exhibit corner were attraction like the Diamond World which was started from 2004, Silver Jewellery Gallery & Costume Jewellery Corner, Design World, Designers & Craftsmen Pavilion, Jewellery Related Products Corner, Gemstones Plaza, Jewellery Related Products corner, Gemstone Plaza
The 17th Annual IJT Ribbon cut opening ceremony was held on the 25 th January 2006. Leaders from industry organizations, government representatives, leaders of overseas and domestic jewellery retail chains and retailers participated in the event. The other highlights were the Japan Best Jewellery Wearer Awards presented during the Reception Party on the 25 th Jan 2006 evening, along with the Seminars (Japanese Language Only).
India for the first had had India Pavilion at Hall B with 4 exhibitors.
Total Visitors 36,178
Total Number of Exhibitors 1,519
Increase over last year 160
Domestic Exhibitors 990
International Exhibitors 529
The Gem & Jewellery Export Promotion Council for the first time organized the India Pavilion with 4 exhibitors. With the vision to promote Indian gem & jewellery industry in the world market as the “quality sourcing center”, the Council took all the efforts in promoting the India Pavilion at IJT 2006. The following promotional activity was taken up for the same. Bags printed with IIJS Ad and India Pavilion Ad was distributed at the show · Press Release was made at the pressroom · Exhibitor catalog was distributed at the show. Advertisement in the IJT 2006 exhibitor handout · Interpreter service was provided for all the exhibitors. Though the pavilion was along with the other international pavilions not much traffic was seen during the 4 days of the show. The exhibitors felt that the location should be changed to Hall A next year. They also felt that more marketing of the India Pavilion could have been done. Some of them objected to the “food & drinks” area next to the pavilion, which was not informed to the Council by the organizers earlier.
Overall the entire exhibition was a bit slow this year with the flow of buyers quite lesser than the previous years. The India Pavilion did get some mileage as first time entrants. Business was average for the exhibitors who mainly exhibited loose emeralds and other stones in silver. One exhibitor was into loose diamonds and studded jewellery.
Though the pavilion was along with the other international pavilions not much traffic was seen during the 4 days of the show. The exhibitors felt that the location should be changed to Hall A next year. They also felt that more marketing of the India Pavilion could have been done. Some of them objected to the “food & drinks” area next to the pavilion, which was not informed to us by the organizers earlier.
M/s. Gitajali Jewels P Ltd, Mumbai who had problem in sending their goods into Japan had to be shifted to Customs Bonded Area because of the customs duty regulation at Japan. Hence his booth was vacant and closed for the entire 4 days. However as per the policy of the organizer the booth was not allocated to other existing exhibitor who had requested to be shifted to this booth. Hence the booth remained closed with a “board reading” shifted to the new booth.
Council's Promotional Booth
The Council was represented by Mr. Ruban Hobday, Director and Mr. Kaushik Ghosh, Executive Exhibitions at the promotional booth during the show at the Indian Pavilion.
The Council promoted IIJS 2006 with representatives meeting the potential buyers to visit IIJS 2006. The Council has proposed the buyer delegation visit of Japan Jewellery Association members to visit IIJS 2006. Solitaire International was displayed along with other publications, which attracted many visitors to the booth. The promotional films “India Your Choice”, IIJS 2004, Storm-Fashion Show 2004 were screened continuously during the 4 days attracting many foreign buyers present at the show. As part of the IIJS 2006 promotion a lucky draw (raffle draw) was conducted on the last day at the Council's booth wherein three winners drawn as part of the decision.
Jewellery Market Information
Japan is “aging”. This would be the right word when the average population in Japan is over 60. The aging population is without jobs, depending upon the Government to provide food and shelter. It is learnt that most of the “aging” population are lonely and end up in Government hospitals to be taken care by Government. Japan does not allow migrants into their country to lack of clear policy which means there is no flooding of new generation.
Jewellery market at this juncture looks the same since the age group which buys 60% of the jewellery is above 50 years in Japan. Jewellery industry in Japan covers a diverse range of products from precious metals and gems, to personal ornaments and decorative costume
The traditional sector of the market occupies 70 per cent, however, this is changing rapidly in accordance with the demand for unique and unusual designs to suit the younger generation (whose market occupies 16 per cent but is expected to increase rapidly over the coming years. Japan's jewellery industry relies on imports for virtually all of its raw material supplies. While pearls, quartz and onyx are produced in Japan, precious stones or metals used in jewellery are not. Japanese made jewellery is known for its precise and careful workmanship and jewellers mostly use 18 carat gold. 60 per cent of set jewellery is made of white precious metals such as platinum and white gold.
Tariffs, regulations and quotas
Consumption tax is calculated by adding together the cost, insurance and freight (CIF) and customs duty, then multiplying it by five per cent. If merchandise is defective or is not what was ordered, it can be sent back directly from a bonded warehouse without having to pay customs duties and consumption tax. The main tariffs in the Japanese jewellery industry are:
Consumption Tax of 5% is added on to the tariff.
Entry into Japan
A) Regular Import Entry
B) ATA Carnet Entry
C) Drawback Entry
A) Regular Import Entry : Exhibitors can sell merchandise. VAT and duty are to be paid to Brink`s Japan at the show site in cash (JP Yen) an on delivery. VAT and Duty are not refundable.
VAT: 5.00% of the invoice value (CIF)
Duty : As per the listed below
As of October 2003.
B) ATA Carnet Entry : Exhibitors can not sell merchandise. All merchandise must be re-exported.ATA Carnet documents must be obtained in the country origin before arrival.
VAT : NOT APPLICABLE
DUTY: NOT APPLICABLE
C) Drawback Entry : Exhibitor can sell merchandise. VAT and duty must be remitted to Brink's Japan before customs clearance
VAT and duty will be refunded to shippers in 2 months after re-export.
VAT : 5.00%,refundable in 2 months after re-export.
Duty : As per the list above, refundable within 2 months after re-export.
Drawback entry for loose diamonds requires a special arrangement. Loose diamonds must have a specific diamond grading report for drawback from one of the certified grading companies, Central Gem Laboratory, AGT Gem Laboratory or Gemological Association of all Japan. It is not just a grading report, but it is a specific report for drawback. Without this report drawback entry is impossible for loose diamonds. It depends on the certified grading company how long it will take to get the report, so each customer should enquire directly. This methods of entry is not recommended for loose diamonds.
Business etiquette and practices are important in Japan. The Japanese are extremely polite and place importance on respect and social rank. You will be showered with elaborate compliments while your host remains humble and plays down their achievements. Indians who show modesty will be well regarded by Japanese people.
Business hours are Monday to Friday from 9.00am to 5.00pm with one hour for lunch, usually 12 midday-1.00 pm, which is strictly observed. Breakfast meetings before 9.00am are not usually possible, although meetings after 5.00pm are more common. Most large companies will not meet on Saturdays but some medium to small sized companies will accept meetings on Saturday, although this should not be taken for granted. Retail stores operate from 10.00am to 7.00pm and are open all day on Saturday and Sunday.
English is not widely spoken in business and government, with some exceptions, such as in trading companies. If a meeting is conducted in English, be sure to speak slowly and clearly. Meetings in English are rare and an interpreter is generally required.
Product brochures and a company profile should be taken with you when you visit a Japanese company for the first time.
Business cards are handled in both hands and laid carefully on the table. You will need to bring at least 100 business cards with you to Japan. Business meetings invariably begin with the exchange of business cards. Don't place the card in your pocket or write on it. If time allows, have your business cards printed with your company name and name in Japanese. Don't have your business address translated to Japanese as this renders it meaningless.
Japan could rightly claim to have one of the most efficient and comprehensive transport networks in the world. Trains, buses and taxis form the backbone of the network. Japanese transport prides itself on running on time.
Within the city limits, the train or subway is the most efficient means of travel. Despite most train services stopping at midnight, they are convenient, readily accessible and cheap. It is worth obtaining subway and overhead train maps in English, which give you a comprehensive list of stations. Visitors who plan to use the subway system extensively during their visit are recommended to purchase prepaid subway tickets (valued at 1000 or 3000 yen). These tickets mean that travellers do not need to work out the exact cost of each subway journey as the ticket gate automatically deducts the value until the full value of the ticket is consumed.
As train stations in Japan have many stairs and limited storage space, small, compact luggage, preferably on wheels , is recommended for your visit. Should you need to transport large parcels between cities or out to the airport, the parcel delivery service or takkyubin offers a convenient alternative to carrying parcels yourself. Most hotels and convenience stores can assist you arrange a takkyubin pick-up.
For first-time visitors, taxis may be easier to use for short journeys. Flag fall in Tokyo and Osaka is approximately A$10 and less in some regional centres. Be aware that taxi doors open and close automatically.
Driving a car in Japan is not recommended, as streets are generally narrow, confusing and crowded.
Japan Rail (JR ) Passes allow free access to all JR train, bus and ferry services including the Bullet Train. For long distance travel, the best alternative to air travel is the Bullet Train. As the cost of the Bullet Train does not differ significantly from air travel, it is recommended that business travellers purchase a JR Pass in Australia from a travel agent before they arrive. JR Passes are valid for seven, 14 and 21 days and start at around A$300. As a return Bullet Train trip between Tokyo and Osaka costs over A$300, the JR Pass is a very economical way to travel around Japan. The following sites provide timetable and logistics information:
Narita International Airport is located 66 kilometres from Tokyo's city centre. There are two main transportation choices into the centre of Tokyo - a limousine bus service and the Narita Express Train. Taxis are available but will cost A$350.
The Limousine Bus leaves every 10-15 minutes from outside the departure hall for major Tokyo hotels and the Tokyo City Air Terminal (TCAT). Tickets are available from a booth in front of the exit from the customs hall. One-way travel costs approximately A$50 and takes about 90 minutes, depending on traffic. The Narita Express Train (N"EX):
The Gem & Jewellery Export Promotion Council - Southern Region
Telephone : 00-91-44-2815 5180/2815 0082 (D)
Fax : 00-91-44-2815 4526
Mobile : 00-91-98400 53930
E-mail : firstname.lastname@example.org / email@example.com
Website : www.gjepc.org