India is considered as the international jewellery hub due to the massive domestic consumption of the gold and being the world’s largest diamond cutting centre.
The jewellery retail industry in India is witnessing unprecedented growth and despite low GDP rate the jewellery retail is growing at more than 6 percent annually.
After the formation of a stable government at the Centre many domestic and international players are poised to embark in the Indian jewellery retail industry with fresh ideas and energy. But, due to India's tough clauses about foreign direct investment(FDI) in retail, domestic brands like Tanishq, Geetanjali and PC Jewellers are dominating the market. Among the international brands, big names like Tiffany, Bulgari, Cartier and Gucci are getting decent response from India's luxury jewellery market even in the infancy stage.
After anticipating the potential of India jewellery market, the Dubai-based jewellery retail chain, Joy Alukkas came up with world's largest gold & diamond jewellery store in Chennai. To get maximum returns from this growth, every jewellery retail house in the country is vying for branding and positioning through innovative designs, celebrity association and concept based marketing strategies.
As per the recent study by McKinsey, everywhere in the world local players are leading the jewellery industry and it is not specific with India, the ten biggest jewellery groups capture only 12 percent of the worldwide market.
There are so many significant factors which are responsible for the growth of domestic jewellery retailers as they are familiar with the taste and preferences of the local people, culture, festivals, traditions and ethos.
If we keenly observe the Indian jewellery market we find that it is highly heterogeneous, we can easily analyse that designs which are popular in Tamil Nadu and Karnataka are entirely different from Delhi, Punjab and other parts of north India and same happened with the other regions. Designers born and brought-up in a particular area can easily sense the needs and demands of potential customers which give them a cutting-edge over the others.
The buying trend of the People is also changing with the varying trends in jewellery. Nowadays, women are more interested in branded and designer jewellery rather than sticking on conventional jewellery designs. Young working women, modern housewives and college going girls of affluent families love to flaunt their apparels and jewelleries in parties, festivals and other social occasions. Young generation treat jewellery as style statement rather exhibiting it as legacy or heirlooms. Designer jewellery is a greatest weapon of self-expression for young and fashionable women. Jewellery defines a woman's whole persona; her ideology, aspirations, attitude, inclinations and above all her expectations from the life.
Girls and women are buying jewelleries for new occasions like Valentine day, Halloween, first date, honeymoon and beach parties. Women working in corporate sport jewellery for various special occasion too, such as product launch, seminars and other promotional events.
Theme based and unconventional designs and colours of the jewellery should complement their attires, shape of the face, complexion, makeup and it must also sync with the occasion. Like the jewellery designed for ballroom parties will not go with religious festivals and vice versa.
It was the myth of market forecasters, that with the rise in globalisation, big international brands will either subdue the local brands or may acquire them after sometime. The same apprehension encountered by the businesses and experts after the rapid growth of e-commerce portals.
In fact, jewellery retail market has no serious threats from the online market. People can't trust on the authenticity of gold, diamond and solitaires mentioned on the ecommerce portals. Contrary to that, the use of online media is gaining momentum these days and jewellery retail industry is taking its help for the promotion and brand building activities.
Author: Chitwn D Malhotra, Jewellery Designer and Founder, Dillano.
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