The jewellery market in India is one of the largest in the world. with a multitude of players in both organised and unorganised spaces, consumers are spoilt for choice.
According to a recent report by the Indian Brand Equity Foundation the overall gross exports of Gems & Jewellery in April 2016 stood at US$3.23 billion, whereas exports of cut and polished diamonds stood at US$ 1.78 billion.
According to India Retail Report 2015, total jewellery retail market is worth RS.2,01,344 Cr (US$ 33.56 bn) growing at 24-26 per cent and is expected to reach Rs.383,000 crore (US$ 63.87 bn) by 2017.
An increase in disposable incomes has been an important factor for an increase in sales of jewellery. In India, customised jewellery is a niche market and is showing significant growth year-on- year and would likely take precedence in near future.
Gold jewellery rules the market with 72 percent share followed by diamond studded jewellery with 22 percent share. Based on the purpose of wearing, ceremonial or bridal jewellery accounts for the largest chunk. Fashion wear constitutes the lowest share on the occasional aspect but the biggest growth.
Indians have an unending appetite for gold and there is a sentimental as well as aspirational value attached to the yellow metal. They are the largest consumers of gold in the world and the industry is expected to grow at the pace of 10 to 15 percent in the next five years.
Moving away from occasion-based consumption, Indian consumers have evolved to treat jewellery as fashion accessory, and this is driving retailers’ incorporation of distinct collections such as work wear, regular or daily wear and fashion wear.
Gone are the days when jewellery was meant to be worn just by adult women. Today there are ample choices for young girls too.
The online jewellery market in India as well is is expected to hit USD 3.6 billion in value in the next three years, accounting for roughly 20 percent of the global market size estimated at USD 18 billion, mainly on the back of the eCommerce boom.
(Source: India Retailing)