Jewellery is a niche segment and holds potential for aspiring entrepreneurs. But keeping the latest demands along with understanding the mindset of the new-age customers could improve the scenario.
The Indian gems and jewellery industry is among the fastest-growing sectors in the modern time, contributing around 7 per cent to the nation's Gross Domestic Product (GDP). In fact, the gems and jewellery industry is responsible for India's total merchandise exports, which is nearly 15 per cent, as per the latest report.
The sector was initially categorised as an unorganised sector. But, the rapid penetration of new business ideas along with efforts of passionate and enthusiastic entrepreneurs, the industry is now growing into a well-organised sector, seeding opportunities for aspiring investors.
In an email interaction with Franchise India, Rishabh Kothari - Founder & CEO, Talisman, talks about the current status of the Indian jewellery industry and its future in the nation.
Technology Playing an Upper Hand in Transforming the Industry
There is not a single industry in today's time that has not been affected by technology. Entrepreneurs have been using technology as a major tool for revamping any business industry, including the jewelry industry in India.
Kothari says, "The Indian jewellery industry is vibrant and we're seeing a lot of niche designers come to the forefront. Since I have a manufacturing background, I can say that there are new features and upgrades in technology being introduced every year that are giving manufacturers the opportunity to innovate."
Opportunity for Potential Entrepreneurs
Kothari adds, "Jewellery is a niche segment and holds potential for aspiring entrepreneurs. But keeping the latest demands along with understanding the mindset of the new-age customers could improve the scenario. Entrepreneurs could focus on personalisation, authenticity, and affordable luxury in order to throttle this industry in the near future.
In fact, according to a recent study by the World Diamond Council, 89% of US millennial-aged women rank authentic as the key-value when they consider making luxury purchases such as diamonds. If you can create a proposition that ticks these boxes, then yes there is a huge potential."
Women: The All-time Jewellery Consumer
"Women are looking for jewelry that's not just a fashion statement but also has an emotional connect and is able to reflect their personality. Even with weddings, women are no longer limited to traditional jewelry that is given to them by their mothers or grandmothers.
They are opting for personalised pieces that they can hold onto forever. The customised mangalsutras are a great example of the modern woman moving towards experimentation and greater personalisation," explains Kothari.
The Upcoming Phase of the Indian Gems & Jewellery Industry
"Gold and diamond jewelry have always been an investment and will continue to be so in the future. Silver jewelry, on the other hand, has become a fashion accessory in recent years due to market awareness.
Women of today want to wear jewelry that is affordable and minimal with designs unique to their fashion taste and preferences. So, five years down the line, I'm predicting fashion jewelry with precious metal and semi-precious gemstones to come to the forefront,” highlights Kothari.
Therefore, entrepreneurs can invade this industry with new business ideas. Along with the existence of franchising, this sector can go a long way, transforming itself from an unorganised sector into an organised one.