Jewellery brands in India: Bright road ahead in 2024

The expansion plans for the new year shines bright for most of the organized jewellery brands in India. The upsurge in growing affluence and changing consumer preferences, e-commerce and digital transformation, international expansion opportunities, investor friendly business model &  brand innovation has lead  to the growth of jewellery industry in India. The year 2024 too holds promising prospects for the jewellery industry, with several brands eyeing robust expansion both in India and on the international stage. This article explores the factors driving this growth and highlights the key players set to make significant strides in the market.

By Beny Sachdeva

Jewellery Brands in India: The Growth Factors

Growing Affluence and Changing Consumer Preferences:

India's rising affluence and evolving consumer preferences have created a favorable environment for the expansion of jewellery brands in India. As disposable incomes increase, consumers are increasingly seeking high-quality, unique, and ethically sourced jewellery pieces. This shift in demand has opened up new opportunities for both established and emerging brands to capture a larger market share. Witnessing this change in consumer preference, leading jewellery brand Joyalukkas India Pvt Ltd plans to invest about Rs 2,400 crore in the next two financial years to open 30 new showrooms in India and ten outlets abroad, according to Chairman and Managing Director Joy Alukkas.

The company is also preparing for an IPO (initial public offering) for further expansion of its business, he said. Currently, Joyalukkas has 100 showrooms in India and 60 outlets in ten countries. “We have plans to expand our operations both in India and abroad. We are targeting to open 30 new showrooms in India, while ten outside India in the next two financial years 2024-25 and 2025-26,” Joy Alukkas mentioned.

E-commerce and Digital Transformation:

The rapid growth of e-commerce and digital platforms has revolutionized the way consumers shop for jewellery. With the convenience of online shopping and the ability to browse a wide range of products, jewellery brands in India are leveraging these platforms to reach a larger customer base. By investing in robust online presence and seamless customer experiences, brands can tap into the vast potential of the digital marketplace.

Focus on Sustainable and Ethical Practices:

In recent years, there has been a significant emphasis on sustainability and ethical practices within the jewellery industry. Consumers are increasingly conscious of the environmental and social impact of their purchases, leading to a surge in demand for responsibly sourced and ethically produced jewellery. Brands that prioritize sustainability and transparency in their supply chains are likely to gain a competitive edge in the market.

International Expansion Opportunities:

While the Indian market presents immense growth potential, jewellery brands are also eyeing international expansion to diversify their revenue streams. With the increasing global demand for Indian jewellery designs and craftsmanship, brands have the opportunity to establish a strong presence in international markets. Strategic partnerships, collaborations, and targeted marketing efforts can help brands successfully penetrate new markets and cater to the preferences of international consumers. As mentioned in recent official media reports, “Tanishq expanded its international presence, adding two more stores in the US, in Houston and Dallas, and one store in Singapore,” the company noted. “Mia opened its first store in Dubai, taking the jewelry international footprint to 14 stores. The geographical expansion and healthy consumer demand at international locations drove circa 102% year-on-year growth.”

Brand Innovation and & foray into smaller cities

To stand out in a highly competitive market, jewellery brands are focusing on innovation and differentiation. By offering unique designs, personalized experiences, and customization options, brands can create a distinct identity and build a loyal customer base. Investing in research and development, leveraging technology, and staying attuned to evolving fashion trends are crucial for brands to stay ahead of the curve.

Besides innovation, expansion to tier 2,3 & 4 cities tops the priority list for most of the organized jewellery brands in India. Looking at the opportunity in smaller towns, Suvankar Sen, MD & CEO, Senco Gold says, “Our focus will continue to remain on east and north part of the country. We will continue to leverage the goodwill of the brand that we have already created in the eastern and northern part of the country, penetrating to the tier-2, tier-3 and tier-4 four cities of those zones. So that continues to happen and we will do the same.”

The year 2024 holds immense potential for jewellery brands looking to expand their presence in India and internationally. With a growing affluent consumer base, the rise of e-commerce, a focus on sustainability, and opportunities for international expansion, brands that adapt to these trends and prioritize innovation are well-positioned for success. By capitalizing on these factors, jewellery brands can establish themselves as leaders in the industry and cater to the evolving needs and preferences of consumers.

In the coming years, growth in the gems and jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Online sales are expected to account for 1–2% of the fine jewellery segment by 2021–22. Also, the relaxation of restrictions on gold import is likely to provide a fillip to the industry.

The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilisation of gold prices at lower levels is also expected to drive volume growth for jewellers over the short to medium term. India has 450 organised jewellery manufacturers, importers & exporters and is the hub for jewellery manufacturing. These players have benefited greatly due to the increasing liberal policies by the government. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. India’s gems and jewellery industry is expected to reach US$ 100 billion by 2027.

GROWING  DEMAND FOR JEWELLERY IN INDIA

•  India’s gems and jewellery exports reached US$ 37.73 billion in 2022-23.
• In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds.

INCREASING INVESTMENTS IN JEWELLERY SECTOR

• The total foreign direct investment (FDI) inflows in the gems and jewellery sector during 2021-22 stood at US$ 58.77 billion.
• In September 2021, Malbar Group invested Rs. 750 crore (US$ 100 million) in a gold refinery and jewellery unit in Hyderabad.

POLICY SUPPORT FOR JEWELLERY BRANDS IN INDIA

• The Government has permitted 100% FDI under the automatic route in this sector.
• The Government has reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and NIL. 

ATTRACTIVE OPPORTUNITIES FOR JEWELLERY BRANDS

• India’s gold demand will witness a sharp upswing to top 800 tonnes in 2023.
• In the fourth quarter of 2022 demand for gold rose stood at 219.7 tonnes.
• The FDI inflows in the gems and jewellery sector increased by 60.78% in FY22 on a year-over-year basis.(Source: IBEF)