Sunday, July 7, 2024

India’s Jewelry Retail Sector Soars to $80 Billion in 2023-24 from $50 Billion Six Years Ago

India’s jewelry retail sector has experienced a significant surge, reaching USD 80 billion (₹6400 billion) in the financial year 2024, up from USD 50 billion in 2018, according to a report by Motilal Oswal Financial Services. This remarkable growth is attributed to several key factors, including rising disposable incomes, an expanding market for regular wear jewelry, trust-building through mandatory hallmarking, and enhanced buying experiences at organized retail outlets.

The report highlighted that organized retail jewelers account for only 36 to 38 percent of the overall market share, with the majority still dominated by over 500,000 unorganized local goldsmiths and jewelers.

Key drivers of this growth include:

Rising Disposable Income: As incomes rise, consumers are spending more on luxury items, including jewelry.

Regular Wear Options: An increasing number of consumers are buying jewelry for daily use, not just for special occasions.

Trust-Building through Hallmarking: Government-mandated hallmarking has increased consumer confidence in the authenticity of jewelry.

Improved Buying Experience: Organized retail outlets offer a more reliable and enjoyable shopping experience.

Gold consumption in India is predominantly for jewelry, accounting for 66 percent, with the remaining 34 percent for bars and coins. India’s gold market is heavily reliant on imports, which have seen fluctuations.

Gold imports peaked at 980 tonnes in FY19 before dropping to 720 tonnes in FY20 due to factors such as global gold price declines, economic conditions, and increased import duties.

The report identifies Tamil Nadu, Maharashtra, Karnataka, West Bengal, and Uttar Pradesh as the top states for organized retail jewelry stores.

Weddings and festivals remain the primary drivers of jewelry purchases, with bridal jewelry making up 55 percent of total demand.
Daily wear jewelry accounts for 30-35 percent of the market, while fashion jewelry contributes nearly 10 percent.

In terms of product segments, bangles and chains dominate domestic jewelry consumption, accounting for 60-70 percent of total sales, preferred for daily wear by women. Necklaces contribute around 15-20 percent, with sales peaking during festivals and weddings. Rings and earrings make up the remaining 5-15 percent of sales.

The jewelry industry is increasingly focusing on lightweight designs to appeal to younger consumers who prefer daily wear pieces that complement western-style attire. This strategic shift aims to cater to evolving consumer preferences and sustain the sector’s robust growth.

Related topics:

Alice is a seasoned jewelry designer renowned for her exquisite creations that seamlessly blend artistry with elegance. With a passion for craftsmanship and an unwavering commitment to quality, Alice has established herself as a distinguished figure in the world of fine jewelry. Drawing inspiration from diverse cultures and artistic movements, Alice brings a unique perspective to her designs, creating pieces that transcend mere accessories to become timeless works of art. Her meticulous attention to detail and insistence on using only the finest materials ensure that each creation reflects not only her artistic vision but also a commitment to unparalleled craftsmanship. Having honed her skills through years of dedicated practice and a keen understanding of evolving trends, Alice is adept at translating her clients' desires into bespoke, one-of-a-kind pieces. Her portfolio encompasses a range of styles, from classic and timeless to avant-garde and contemporary, showcasing her versatility and ability to cater to a diverse clientele.

Related Articles

Latest Articles