The market share of retail store chains in the Indian retail jewelry market is expected to grow to 40 percent in the next five years. Till a year ago, chains of jewelry stores accounted for 35 percent of the Indian retail jewelry market.
The top five retailers are expected to open 800-1,000 stores in the next five years.
A report titled ‘Jewellery Market Structure’ by the World Gold Council (WGC), highlights the transformation of the gold jewelry market in the country over the last few years.
According to the report, the industry is fragmented, so it is impossible to accurately estimate the number of jewelers in India. Various trade bodies estimate between 5,00,000 to 6,00,000 with a wide variation.
“The demand for better design and consumer experience, increasing awareness about hallmarking, better pricing structures and competitive return policies, along with GST and demonetization, have driven the trend towards retail store chains,” said WGC.
The smaller independent retailers still dominate the landscape while the market share of chain stores (national and regional) has grown steadily over the past decade, it said.
“The Indian retail jewellery market has undergone several structural changes over the past decade. These are driven by some rules and some changes in consumer behaviour,” said Somasundaram PR, Regional CEO, India, WGC.
“Small players need to be more transparent and adopt technology faster if they have to gain similar access to credit and protect market share,” added Somasundaram PR.
According to the report, chain stores have grown in the last 10-15 years. It has achieved 35 percent market share by 2021.
Chain stores, with national operations, focus on daily wear and fast-moving jewelry items such as chains and rings and these items account for 50-60 percent of their business. The report estimates that over the next 5 years, chain stores will continue to expand and their market share will surpass 40 percent.
While online jewelry purchase has risen, the average ticket size has remained between 5 and 10 grams. Online buyers tend to purchase lightweight daily wear/fashion jewelry in 18-carat gold.
The report projects that the market share of online jewelry in the next five years could increase to 7-10 percent.
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