Russian jewelry industry goes ahead In the expectation of a new season in jewelry industry, the analysts study a situation on the market and make forecasts of the diamond-brilliant industrydevelopment for the short-term and long-term periods. The JSC PA «Crystal» does not keep out. In 2009 there was a stabilization of the market after the crisis and since September the moderate growth of demand and increase in the prices of diamonds and brilliants was observed. It has raised positive expectations of market participants in 2010 and was a main factor of improvement of the situation on the market. The world prices for diamond raw materials have increased by 26 %, having overcome pre-crisis heights. Generalized price index PolishedPrices for brilliants have increased by 13,8 % in 2010, having exceeded all forecast values. Jewelry sales on the primary market– in the USA - have increased by 7,7 %. The American Consumer Price Index for jewelry put a new record in April, 2011. It has increased by 9,6 % in yearly comparison, taken 175,49 points, having noted, thus, four months running with level more than 170 points and 39 months running with level above 150 points. As a whole everything looks like we stand in rather positive way in view of lower bank debts, moreeconomical industrial activity, expected growth of the gross national product on all important markets, and also recently had an economic trauma. Anyway, it is possible to assert that the industry goes out from the crisis in global understanding though there are some elements of gambleon the market, especially as for the turnover of diamond raw materials. Now the most important thing for the diamond industry to work in a direction of reduction of risks, inducing the companies to become more and more transparent within the limits of their operations As a rule, Russia exports expensive and high-quality production, including brilliants of so-called «Russian facet». The major customers of the Russian brilliants are Israel, the USA and Belgium. The internal market of brilliants actively develops. However because of the limitedpaying capacity of the population the demand is formed for the account relatively cheap production with the small stones delivered, basically, from India where their manufacture is more profitable. The jewelry enterprises get brilliants of the Russian manufactureonly in small volumes. Two tendencies are observed in sector of retail jewelry trade. On the one hand, retailers in the mass segment do not actually raise the prices for gold products, intending to receive the capital turnover as faster as possible, but they continue to adaptmarketing ploy, increasing the price for products only to offer the buyer seasonal discounts. On the other hand, retailers in the premium segment raised retail prices for their products, following the market. As a whole it is possible to make a conclusion that the instability element remains on the market of gold jewelry. Development of the jewelry market in Russia depends on qualitative improvement of the economic situation and of the recovery of a pre-crisis level of demand. It is a good reason to emphasize primary tendencies on the Russian jewelry market: 1. The struggle for a buyer has become tougher on the market; the consumer behavior became rigidly selective. The tendency of product differentiation in favor of light-weighted goldware and silverware remains. The jewelry market becomes the consumer market, manufacturers aspire to stimulate demand and develop new offers already taking demand into account. 2. Process of rotation of the principal participants of the market continues, the federal jewelry networks tend to keep the consumer, some operators continue to extend their presence at regions. 3. The majority of trading companies for a basis of the marketing policy accepted concentration of efforts on special the pricing facitities and on the rough optimization of the assortment. Thus the number of intermediaries between the manufacturer and the retail operator was considerably reduced. 4. Jewelry business gradually began to be restored after crisis, the large jewelry companies began to think about long-term projects. Popularity and recognition of a trading brand on the Russian market becomes important criterion of trading network development. 5. Large federal retailors occupy a wait-and-see position on the market, counting on stabilization of market sales. The companies tend to consolidation and to creation of alliances for the purpose of forming of the united price policy, for optimization of advertising expenses and so forth. In sum, it is possible to tell that development of the Russian jewelry market goes in full accordancewith economic realities of the country. In the presence of a favorable economic background – a low rate of inflation, growth of human wellbeing, support of jewelry industry at the state level, –there is every reason to believe that one of the most "luxury" sectors of economy, at last, will take the worthy place in Russia, becoming full, civilized and popular. The text: Elena Shebetkova, market analyst of JSC PA «Crystal».