Reasons behind rapid expansion of imitation jewellery market

Ornaments made of gold is the most used and most in-demand jewellery in the world. There is no country in the world where there is no demand for gold jewellery. Especially women have always been fond of gold jewellery. Gold jewellery not only enhances women's beauty but is also considered a valuable asset; but now the users of gold jewellery are going through a crisis. Due to the abnormal rise in the price of gold in the international market, the price of gold jewellery has recently increased significantly in the local market. At the same time, due to the instability of the gold market, many people are now unable to use gold jewellery despite their wishes. Although the price of gold jewellery has increased, the pursuit of beauty by enthusiasts has not stopped. Therefore, they have leaned towards imitation jewellery as an alternative to gold jewellery.

Imitation jewellery is seen being sold in most markets across the country, including the capital. Due to attractive designs and comparatively lower prices, the demand for imitation jewellery is rapidly increasing. A huge demand for imitation jewellery can be observed in various markets of the capital. Women are using a large amount of imitation jewellery. But how many of us know where the imitation jewellery available in the markets of the capital comes from? Many will be surprised to know that the eye-catching imitation jewellery of various colours and designs available across the country, including in markets of the capital, mainly comes from Bhakurta village located on the outskirts of the capital. Bhakurta village has become a grand gathering place for imitation jewellery. Many people there are making a living by being involved in this industry. Seeing the imitation jewellery crafted by the skilled hands of the artisans of Bhakurta, it is hard to believe that these are made by the uneducated and semi-educated artisans of our country. The imitation jewellery made by the artisans of Bhakurta is of international standard.

I had heard about the imitation jewellery made by the artisans of Bhakurta a long time ago; but somehow, I never managed to go there. Finally, on the morning of 23 June, I, Professor Md. Zahirul Haque Bhuiyan and literary figure Kazi Enayet Hossain started our journey towards Bhakurta village. After passing the Gabtoli bus terminal in the capital and heading some distance west, a narrow, paved road turns south from the Dhaka-Aricha highway; we had to proceed along that road. After going approximately 6 kilometres, we reached Bhakurta market. From there, inquiring around, we first went to the house of Dulal Rajbongshi, the young entrepreneur and owner of Tanbi Jewellers.

Dulal Rajbongshi is the president of Bhakurta Imitation Jewellery Cooperative Association. Dulal Rajbongshi’s factory is located in his own home. He was quite pleased to see us. He warmly showed us the imitation jewellery produced in his factory. We were deeply impressed by the imitation jewellery made in his factory. These imitation pieces, crafted by skilled hands, are bound to attract anyone’s attention. Dulal Rajbongshi informed us that a total of 250 small enterprises, including members and non-members of the Bhakurta Imitation Jewellery Cooperative Association, are involved in producing imitation jewellery. The artisans of the imitation jewellery here are highly skilled and have been involved in this craft for generations. The imitation jewellery industry has become localised in the Bhakurta market. Around 100 establishments here are regularly producing imitation jewellery.

The imitation jewellery industry in Bhakurta essentially began in 2000. Initially, a few small entrepreneurs started making imitation jewellery. As it was considered profitable, many others later joined the imitation jewellery industry. The SME Foundation has recognised Bhakurta’s imitation jewellery industry as a cluster industry. When there are 50 or more factories of the same nature in an adjacent area, it is recognised as a cluster industry. After visiting Dulal Rajbongshi’s imitation jewellery factory, we went to Bhakurta market. There we talked to the workers employed in the factories and witnessed the range of imitation jewellery made by them.

A small entrepreneur mentioned that the imitation jewellery produced here is of very high quality and reasonably priced; but those engaged in making imitation jewellery lack training in marketing their products. As a result, they face problems in marketing their products. This opens opportunities for middlemen to become active. A class has emerged that buys imitation jewellery from small-scale industrial owners at relatively low prices. Later, they sell those at high prices in different parts of the country, including the capital. If the industrial owners had received training and could directly market the imitation jewellery they produce, both buyers and sellers would benefit.

There are many people who make imitation jewellery at home. They make imitation jewellery themselves, and sometimes they take orders from different factories to make jewellery and supply them. More than 40 percent of those working in the imitation jewellery industry are women workers. Women are quite skilled at making imitation jewellery. Their craftsmanship is praiseworthy. The main raw materials of the imitation jewellery industry are copper and brass. They collect these materials from Old Dhaka. Regardless of gender, imitation jewellery workers are satisfied with a daily wage of Tk 300 to Tk 400. One of the workers mentioned that the wage they are paid daily is not satisfactory at all. It is not possible to meet household expenses with such a small amount; but due to lack of employment opportunities, they are forced to work for minimal wages.

Dulal Rajbongshi stated that there is an opportunity to export imitation jewellery produced in Bhakurta to foreign countries. Many Bangladeshis living in various countries of Europe personally take some imitation jewellery with them. They sell those there. However, large-scale export of imitation jewellery has not yet begun. It is not possible for them to fulfil the formalities required for exporting imitation jewellery. Because most of the entrepreneurs in this industry are semi-educated and not familiar with export laws and regulations. He also mentioned that he has personally travelled to several countries including India and China. It is possible to expand the market of Bangladeshi imitation jewellery in these countries. He used to take some imitation jewellery with him. Foreign buyers showed considerable interest upon seeing these. If this interest could be utilised, imitation jewellery could be exported to these countries. For this, a planned initiative by the government is necessary.

The entrepreneurs of the Bhakurta imitation jewellery industry are plagued with various problems. Their biggest problem is the lack of capital. Those who are making imitation jewellery on a small scale here are not financially well-off. Therefore, they are unable to expand their factories even if they want to. Conventional loans are still not provided from banks to the imitation jewellery industry. Collateral is required to obtain loans; but most industrial entrepreneurs are unable to provide collateral. Dulal Rajbongshi stated that if loans were provided by banks at relatively low interest and under easy conditions, there could have been significant expansion in the imitation jewellery industry. Currently, the demand for imitation jewellery is somewhat low; but under normal circumstances, a significant demand for imitation jewellery can be observed. Many involved in this industry are becoming frustrated due to the lack of necessary support from the government level.

The new generation does not want to involve themselves in the imitation jewellery industry. Some entrepreneurs are withdrawing themselves from the profession of making imitation jewellery and turning to other professions. A senior official of the SME Foundation stated that the Bhakurta imitation jewellery industry has been included in the list of cluster industries. In future, arrangements will be made to provide loans from banks under relatively easy terms and at low interest for this industry.

If arrangements are made to provide bank loans on a priority basis under easy terms and at relatively low interest, the development of this industry could be accelerated. The imitation jewellery industry owners of Bhakurta claim that the products they make are of very high quality and visually appealing. However, if the working labourers were trained, the quality of work could have improved even further.

There is no doubt that the imitation jewellery displayed in the showcases of various exhibition centres of factories in Bhakurta market will attract the attention of any beauty enthusiast. Anyone who appreciates beauty can visit Bhakurta market and observe the imitation jewellery industry. I hope this visit will be worthwhile. It is expected that the concerned authorities of the government will adopt effective plans for the development of Bhakurta’s imitation jewellery industry.

MA Khaleque: Former General Manager, Bangladesh Development Bank PLC and writer on economic issues