Jewellers mean business against all odds

Jewellers of South Asian descent have recently formed their own association to have a platform from there they can collectively do something for the betterment of their business environment. UK Jewellers Association has more than 100 members, who mainly come from Indian, Pakistani and Bangladeshi background. The Asians interviewed association‘s founder/chairman Chaudry Nasir Ali.

The Asians: What are the main issues of jewellers?
Nasir Ali: There are host of issues we are facing and trying to resolve them through UKJA. There are banking issues, VAT problem and insurance hassles. Jeweller cannot claim insurance in case of theft of jewellery. Likewise, jeweller has to face music even if a customer makes a wrong transaction. Banks declare jeweller responsible and take away credit machines from their outlet. On the other hand, if a customer changes their mind after making purchases they will have to pay VAT again. We think this isn’t fair.

The Asians: Is setting up jewellery business here in the UK easy?
Nasir Ali: No, not that easy. One must have some experience before starting this business besides having patience and knowledge of trade regulations. Getting insurance cover is too difficult and risky. Even here the jewellers do their business under the fear of thefts and robberies. It has happened several times that robbers took jewellers at gunpoint while they were on way home and looted the shop after making them to reopen them. Claiming insurance after such incidents is quite a daunting task.

The Asians: What measures the government is taking to protect jewellery shops?
Nasir Ali: Nothing mentionable. It seems the government doesn’t want us to do business.

The Asians: So, is your association taking any steps for security of its members?
Nasir Ali: We are in negotiations with boroughs for manning of the street where there mostly are jewellery shops. Jewellers of that street will collectively pay salary to the security guard. Some other measures are also under consideration.

The Asians: Has the jewellery business been also affected due to recession?
Nasir Ali: We are also undergoing through a recessionary period but the business of scrap jewellery is getting better. Business of gold bars is also going good because it is a kind of investment. Gold bars’ online business is making it mark quite significantly.

The Asians: Jewellers are sometimes accused of swindling customers by selling artificial jewellery in the name of original. How much true is this allegation?
Nasir Ali: I think this might have happened in India or Pakistan but here in the UK it isn’t possible. Instead of haggling, we have to tell customers everything from the amount of gold (or whatever precious metal is used) to its making of a piece of jewellery.  Gold here carries a seal of authenticity which is acceptable every where in the world.

The Asians: Which one of the Asian communities dominates jewellery business here?
Nasir Ali: Indians are more established in this business and then come Pakistanis. One of the reasons for Indians’ success is that most of them are educated and know how to run their business (in a regulated market), while the Pakistanis who came here didn’t have a strong background - neither they were educated nor they brought fortune to start business. On the other hand Indians and Kenyans brought with them a substantial amount of wealth.

The Asians: Which country is better for gold business?
Nasir Ali: Singapore. It is because gold there is relatively cheap and far better in quality. Importing jewellery from Singapore is easy and their making is cheap despite being superior in designs.

The Asians: Where do you think jewellers can earn more?
Nasir Ali: Pakistan is better whereas profit margin is concerned. Jewellers there mislead their customers about gold’s price besides not giving guarantee of its purity. Here in the UK profit margins are low. But at the moment jewellers are facing crisis everywhere owing to mindboggling prices of gold. People don’t have resources to buy gold. In twenty years of my business I didn’t see as many people selling their gold jewellery as they are doing now.  It is however not possible to go all the way from here to set up business in Pakistan, especially because of rampant incidents of theft and robberies there. Culprits can not be apprehended in 95 per cent of the cases and people are killing often on very trivial issues.

The Asians: How does your association work for the welfare of its members?
Nasir Ali: We hold a meeting of our executive committee after every three months to deliberate upon problems of our members and their solutions. The executive committee is comprised on seven members and every one of them expresses their point of view freely. We are thinking to constitute a fund to help any of our members who’s been victim of theft or robbery.

The Asians: What is the state of affairs at Pakistan’s jewellery industry?
Nasir Ali: The truth is that our jewellers seem weary of hard work while Indians put themselves out even for a small fee and standard of their jewellery is also better compared to their Pakistani counterparts. Pakistani people just want to make money and have nothing to do with quality. They don’t do long-term planning to make a permanent place in the market. But we can say that Karachi is the best place for stone and gem jewellery of international standard. But irony is that Pakistani jewellers are importing jewellery instead of making it in the country. In fact, the artisans there are quite bigheaded. They will sit idle but cannot compromise on their asking price. Therefore, India is the single largest jewellery exporter in the world owing to low cost of production. Indian government is also facilitating its jewellery industry.

The Asians: How much an Asian woman on an average spends on jewellery?
Nasir Ali: I think around £ 5000 per annum.

The Asians: which is the best season for jewellery business?
Nasir Ali: Period from March to August.

The Asians: Is next generation of jewellers taking interest in the trade?
Nasir Ali: Yes, they are joining the business but they have their own way to do it.

The Asians: Would you like to give business community any message?
Nasir Ali: I would say that we must act like a team and try to find out solutions to our problems rather than trying to bring others down.