CM of Gujarat Refuses SOPs to Diamond Industry

CM of Gujarat Refuses SOPs to Diamond Industry Dec 29, 2008
- Says it is an unhealthy practice, Diamond Companies should look after Employees

The Economic Times reported that Gujarat Chief Minister Narendra Modi refrained from announcing any direct relief package for the troubled diamond polishing industry, addressing the diamond companies he said “You have earned enough, now give it back to your people.”

The industry, which was hoping for subsidy on power and relief package for its skilled workers, instead got a rather crisp round up on how they could help themselves. As far as the relief packages go, the CM said that he could only ‘talk to the Centre’

He said that he would provide alternative employment, training programme and relief to the affected workers directly. “We are the only state to give VAT respite to the diamond industry. And who is the biggest beneficiary of the government’s Jyotigram Yojana (24-hour electricity supply to villages)? It’s the diamond industry. The state government is ready to work as a catalyst, but it is upon the industry to get out of the trouble by modernising itself and add value to its products,” he advised.
He said sops and incentives were not the way to get out of the present crisis. Instead, the industry should sit together and discuss how to move ahead in such turbulent times.

He also suggested a common branding for the Surat diamonds, its marketing and linkage so that it could carve a place in the market. “It is for the industry to identify existing strength in linkages and branding. The government is ready to help them in human resources development and planning. We are also ready to help diamond workers get out of the trouble by absorbing jobless under the Gram Rojagar Yojana,” he said.

how-to-tell-if-your-diamond-is-a-fake

how-to-examine-a-diamond

E-Commerce Is Recession Proof

Most businesses would not think that customers being cheap would be a good thing for business. In most cases this is true. However, typically during a recession, people don’t stop spending, they spend smarter. This is beneficial for e-commerce websites because people believe that they get better deals online and are more likely than ever to make purchases online. This is for a few reasons.

Customers can compare prices online (make sure your prices are competitive).
They can save gas (this is actually a factor in this day and age).
Online transaction security has greatly improved recently, increasing customer trust.
Some customers feel that buying online helps save the environment.
Buying online is simply more convenient for most customers.
Product imaging has improved greatly. Customers can now view hi-res product images and videos in seconds online.
Product reviews are now prevalent online. Customers are more likely to buy a product if they can read reviews about it.

Low Overhead Costs
Cutting overhead costs is one of the first thing many businesses do to survive a recession. E-Commerce websites enjoy some of the lowest overhead costs of any business operating today. For small e-commerce businesses you are looking at very low overhead costs each month. Typically the only bills you HAVE to pay as an e-commerce merchant are:

Your internet bill - it’s fairly hard to run an online business without an internet connection.
Your electricity bill - same as above.
Your hosting bill - your e-commerce website probably needs to be online to get sales.
Any monthly fees your payment processor may charge
For many e-commerce merchants that’s it!

So don’t worry too much about cutting overhead costs. You are already enjoying some of the lowest operating costs of any business model in existence.