Rand Refinery is one of the top five gold refining companies in the world. What kind of leverage does this offer your company?
It gives us a degree of confidence, a level of status that only four or five other refineries in the world have. It's extremely important as it emphasises the level of accuracy we work to, the degree of integrity that we have and the level of service that we provide. We are one of the five referees nominated by the London Bullion Market Association (LBMA) and the first refinery to be recognised by the Dubai Metals and Commodities Centre (DMCC).

India is a key market for Rand Refinery. What do you feel about the potential here and your strategy to increase your presence?
Our commitment in terms of sponsoring this design competition is a move forward for us. We want people who ultimately use the gold to become more aware of Rand Refinery - the brand. Many of the major jewellery manufacturers may soon be able to import gold themselves. We want to build up a reputation for integrity, accuracy and service during that period, so that when they are able to purchase gold directly, they look to Rand Refinery as their number one choice. We want to develop products and services that are required by the Indian market as legislation changes.

Does the new interest in branded and alternative jewellery set with diamonds, coloured stones, platinum, etc. have any effect on gold sales?
It may have some effect, but I see the materials being used in association with gold and not necessarily as a substitute. In some of the designs entered in the competition, I particularly favour those that do use slightly different materials like wood, rubber, etc. that lend a contemporary twist on ethnic designs, used in association with gold.

What other markets are you looking at?
We produce roughly 400 tonnes of gold each year and apart from India, which currently is our major market, we also have a large market share in both Turkey and Dubai in the Middle East and to some extent in Europe. We're not currently selling large volumes in China, but that is a potential target market for us and we're looking to change our strategies to meet the increasing demand.

What is the Gold Zone at your South African plant all about? How much beneficiation is actually taking place at Rand Refinery?
In South Africa, there is a concern that we export our raw materials without beneficiating or adding value to them. The government is very keen to increase levels of jobs in the gold industry by producing more fabricated products and thereby earn larger revenues. The Gold Zone is an area of land immediately adjacent to the refinery, which we've donated free of charge. We're aiming to build a local jewellery fabricating hub there and already have a major South African commercial jewellery manufacturer based at the site. We are also talking to a consortium associated with a jewellery training school to establish a hub for start-up projects targeted at disadvantaged citizens. They will have an opportunity to learn about jewellery manufacturing techniques and launch small start-up operations. We also have ideas for a design centre and we're looking to attract foreign jewellery manufacturers.

South Africa will soon have to pass a portion of its diamonds through a State Diamond Trader. Will you have a similar problem with exporting gold?
I don't think so. The acts awaiting final parliamentary approval are the Diamond Bill and a Precious Metal Bill which are quite separate. I think some of the regulations on diamonds are a little bit more prohibitive. We see the Gold Zone specifically as an idea whereby we will enable access to gold for citizens within South Africa, and which will result in value addition within the country. We are a large producer of gold we need to be able to export freely to all the consuming markets.

What do you think about Indian designers and their potential to match international trends?
Judging this competition was quite tricky in balancing the ethnic side of it with the contemporary side. You want to add a modern twist while retaining an indigenous element, and I've seen about seven or eight outstanding examples. As an uninitiated observer of jewellery, compared to some of the other judges who are designers themselves, my expertise is less. But there are some really interesting ideas.

BUILDING CREDIBILITY

The Dubai Gold and Jewellery Group (DGJG) is a key sponsor of the Dubai shopping festival, which contributes to the emirate's image and economic well-being. Here in Mumbai to kick start the promotional campaign for the 2006 event, Tawhid Abdullah, chairman, DGJG, expressed optimism about promoting Dubai not only as a 'City of Gold', but also as a 'Jewellery Destination of the World.'

How has the association of the Dubai Gold and Jewellery Group with the Dubai Shopping Festival been beneficial?
The Group was established in 1996 mainly to support the first Dubai Shopping Festival, in the capacity of a key sponsor. Since then, the joint partnership has created many innovative promotions that have developed and reinforced and sustained Dubai's status as the 'City of Gold'. There are several lessons in the success of the partnership - that of a government and trade body working seamlessly for a common purpose. Also, we are taking several steps to enhance its positioning as the 'Jewellery Destination of the World'.

What are your immediate plans for promoting Dubai in its new avatar as 'jewellery destination of the world'? Have you identified any specific regions?
Since the last two years, we have been aggressively promoting the 'jewellery destination of the world' positioning. Not only are we changing our identity to reflect the change, much of our promotion includes giveaways and prizes that cover the entire gamut - such as diamonds and precious metals.
Moreover, our promotions are available not only with 22 karat gold sellers, but in general the entire retail jewellery trade within Dubai. We host the City of Gold conference, which also highlights the need to market jewellery in its entirety.

Apart from being the 'city of gold', Dubai is also emerging as a sunrise diamond market. Please comment.
Indeed it is. The market size amongst Arab locals alone within the Gulf Co-operation Council countries is $1.87 billion and within the UAE market, it is $138 million. The market growth in select countries is even more impressive with 14 per cent in 2004 in Saudi Arabia and 17 per cent in the UAE for the same period.

The Dubai Metals and Commodities Centre has built a diamond exchange and also recently started a gem certification service. How will these ventures help Dubai's gold and jewellery trade?
Building trust and credibility is key to establishing ourselves as a strong retail and trading hub. Any certification scheme will impact us positively, in the context of consumer trust. Dubai Gem Certification is an initiative to ensure that the gems and jewellery trade in the region is provided with the means to apply international standards in our markets. It will promote ethical and transparent trade practices and provide that competitive edge to regional businesses. The reputation of our members will be enhanced further as they will be seen to set and maintain the highest possible standards of business ethics and professionalism in the jewellery industry.

The Dubai Gold and Commodities Exchange (DGCX) believes in providing end-to-end solutions for the commodities markets and thus contribute to the already vibrant economy of the region. The launch of the commodities exchange will be one more very good reason for international players to set up shop in Dubai.
Customers with high purchasing power are increasing their spending on luxury goods - fashion accessories, mobiles, etc. How are you planning to attract attention to gold jewellery?

The City of Gold conference, a joint initiative of the Dubai Gold and Jewellery Group, the World Gold Council and the DGCX is a serious initiative from our side to drive purchases towards gold instead of other luxury goods. We are currently in the process of setting up a joint funding for an umbrella marketing campaign that will provide compelling reasons to buy jewellery. The marketing bodies have already considered some of our proposals. The recent youth oriented campaigns by the WGC and DTC are some examples of this.

(The Dubai Shopping Festival, which was to be held in January 2006, has been deferred to December 2006)