With the prices of gold and silver skyrocketing, consumers have turned to a more affordable avenue for their jewellery requirements, ensuring that the fashion jewellery industry keeps making phenomenal profits.
The Indian fashion jewellery market has emerged as one of the rapidly growing business segments in the country. Low cost, innovative designs and rise in fashion among the rural and urban folk compared to original jewellery have made the business particularly popular throughout the country. Indeed, the fashion jewellery market in India is anticipated to grow at a CAGR of around 20% during the period 2018-2022. India is the second largest manufacturer of fashion jewellery after China and, each year, the fashion jewellery market incurs tremendous growth due to an increased demand domestically as well as in the export market.
The target customers for fashion jewellery are primarily the millennial. This population segment is young and occupies about 47 per cent of the workforce. This customer segment tends to spend a large percentage of their income on consumer goods. Staying in touch with fast-changing trends and the need to stay innovative and up to date is mandatory for this segment. Hence, they tend to opt for fashion jewellery rather than splurge on the traditional gold and silver, as they prefer to stay up to date on the rapidly changing trends of the sector and also easier on the pocket.
What Makes Fashion Jewellery Industry Shine?
One of the reasons factors that influenced the rise of fashion jewellery could be attributed to the drastic hike in prices of gold and silver. Another one is the need to wear the right kind of jewellery with different dresses for all kinds of occasions, ranging from the traditional weddings to an evening out with friends. Hence, consumers willing to stay up to date on their fashion trends - and also not wanting to burn a hole in their pockets on accessories, tend to go straight for fashion jewellery. India is the land of value-conscious shoppers, a fact which has further aided the glowing rise of the fashion jewellery segment. The use of daily-use jewellery falls under the fashion market, whereas - consumers still prefer to wear real jewellery for the few special occasions such as marriages, festivals etc.
As millennials are becoming the major consumers of jewellery but have limited buying ability, fashion jewellery is proving to be a truly outstanding replacement, allowing them to fulfill their emotional need of ‘looking good all the time’. Customers hence buy varying kinds and styles of fashion jewellery to pair with different outfits. Jewellery is no longer worn for ceremonial purposes or with traditional attires only, but has changed to being a method of expressing individuality and fashion sense. Moreover, since India is a young nation with a median age of 27 years, it is expected to be the youngest emerging economy in the world and with jobs that are superior to our ancestors. And, with better education, this generation is willing to spend more on fashion accessories that reflect their personality.
Today, fashion apparel trends go hand-in-hand with accessories required to achieve the look of the day. Moreover, new generations of designers have emerged, who are highly creative and make fashion jewellery out of a combination of an array of materials. These included base metals, rhinestones, CZ crystals, celluloid, shells, glass, corals, amber, stones, ivory and beads.
How To Get Into The Fashion Jewellery Game?
The best way to make it fast and big in the fashion jewellery industry is to opt for a franchise that already has a market presence, strong branding/advertising. And, in this fashion-conscious world, a celebrity brand ambassador will also help with attracting consumers. The initial investment on a franchise outlet in this market of brands such as Tanishq, Sangini would amount to this: 70-80 lakhs in a store model ranging 1000 sq f.; 30-40 lakhs of the initial investment would go into the merchandise of the brand; adding 10-15 lakhs for state-of-the-art interiors; and 5-7 lakhs would go into the month-on-month operational expenditure including AC, rent, electricity, maintenance, security, miscellaneous etc. A store of this size and variety would require a 5+1 employee system, with one floor manager, one 24/7 security guard and three sales people. The monthly revenue of a fashion jewellery franchise store would amount to around 15-20 lakhs, placing the breakeven of your investment between 8-12 months depending on city/location of the store, preferred tastes of the local populous, and popularity of the franchise.