Known for their love for gold jewellery, Indian consumers now prefer to buy diamond jewellery as well. Read on to know about the factors fuelling the growing demand and prevalent trends in diamond jewellery retail in India.
For some, diamonds are symbol of eternal love and for others they stand for elegance, glitz and glamour or prestigious lifestyle. Whatever be the motivation, diamonds are desired by one and all, especially women. Their everlasting passion for diamond jewellery inspires several brands to offer a wide range of an incredible jewellery designs that suit different tastes and preferences. Earlier, people bought gold and diamonds only to stock their money or as a mark of wealth. However, today, the motive of buying jewellery has changed. Now as consumers are inclined towards light-weight jewellery for daily wear, design and style are gaining importance as purchase drivers. Also, with entry of reputed organised players in the market ensures that consumers get best quality and trendy diamond jewellery.
Quick to tap the growing demand for diamond jewellery in India, retailers are leaving no stone unturned to reach out to their potential customers as the rise of modern retail has made it easier the brands to build their sale and distribution channels.
Current market scenario
As per industry estimates, India is world largest diamond polishing and cutting industry with more than 1 million processors handling over 57 percent of the world’s rough diamonds by value. It also accounts for 90 percent of the volume of diamonds processed in the world.
Diamond jewellers have a significant share in the Indian jewellery market and they have made inroads into the traditional jewellery industry. Due to the instability in gold prices, diamond jewellery has become the new mantra for retailers to earn profits. Several key players are selling their diamond jewellery in new ways. Due to the instability in gold prices, diamond jewellery has become the new mantra for retailers to earn profits. They are building up their consumer base. To satisfy their targeted clients’ need of fashionable, trendy and modern diamond jewellery they are on expanding their online and offline retail footprints through both company-owned as well as franchised stores.
Market drivers- Diamond Jewellery
There are a number of factors responsible for the growth of the branded diamond jewellery. In the past few years, Indian consumers, especially the young buyers with enhanced purchasing power, modern lifestyle are swiftly shifting from buying plain gold jewellery to more sophisticated diamond jewellery. The trend has been witnessed not only in metros but also in smaller cities. Women buyers’ constitute a major part of the market. Besides, many people buy diamonds jewellery for its astrological importance. As brands provide the ‘trust factor’ in terms of quality, for this reason consumers prefer to buy the branded jewellery. They offer a wide range of designer jewellery for all occasions as well as daily wear at affordable price. Thus, the brands that are able to combine all these factors are enjoying high popularity and earnings.
Key brands in fray
There are a number of diamond jewellery retailers who have presence in Indian market through organised mass retail chains. A number of renowned brands like Nakshatra, Tanishq, D’Damas, Asmi, Nirvana, Gili, Kiah, Sparkles, Orra, Sangini and Adora have established presence across country. The reason for their success is their amazing designs, combined with the reasonable price range. Most of these brands are planning to expand their business in jewellery retail operations within the larger luxury-lifestyle space.
Current retail trends
As discussed, the Indian branded diamond jewellery market is growing more rapidly than the overall jewellery market. Initially the market was stronger in metros and big cities, but now there has been a strong growth opportunities across India through franchised/non franchised business models. Now-a-days many gold jewellery brands are also offering diamond jewellery products. Several brands, having acquired a niche for them, tend to cater to their customers through their wide extended retail networks. They exploit multiple avenues to retail their products. They may sell diamond jewellery and other related products through online stores and offline venues like art shows, craft fairs, jewellery parties, trunk shows, galleries, shops and stores, and other offline venues.
However, as most Indian consumers prefer to feel and touch the product before buying, a diamond jewellery outlet is a perfect fit in the current retail market scenario.
Franchising adds sparkle to biz
India is the world's second largest consumer of diamonds and offers lucrative business opportunities for investors wanting to be the part of this industry especially. As several brands have opted for franchise route to expand their presence, interested entrepreneurs and franchisees can join their growing network. Franchisees have advantage of already established brand name and set up. They are provided all kind of support from the company at every step of their business and store operations to ensure franchisee’s profitability. Most of brands also offer advertising, marketing and promotional assistance to their partners. This business usually needs higher investment from franchisee’s end. For most brands, the vital criteria for selecting partners is that they should be committed and able to understand what it takes to run this business to grow the brand name.
The everlasting charm of diamonds will continue to entice more and more people to buy them.Considering the strong demand for diamond jewellery in India, the industry retail trends are expected to remain positive in the long run. Moreover, as the industry continues to become more organised it will offer sparkling and profitable business opportunities for brands and as well as other business owners.