Jewels of imitation

Gold gives way to artificial

With the passage of time, there has been a shift in the focus from gold jewellery being imperative to diamond and studded jewellery being in vogue. Nowadays, the spotlight has shifted to art jewellery. Also, there has been a drift from the age-old tradition of considering jewellery as an investment option with many other investment options opening up. Artificial jewellery is gaining significance, as it is serving the purpose of beautifying a woman, besides being safe to handle.

Factors augmenting growth

The artificial jewellery market in India stands at around Rs 1500 crore, 70 per cent of which is unbranded. The jewellery industry has a huge potential simply because of the customers it caters to - women. They are shopaholics and never satisfied with the amount of jewellery she possesses. However, rising prices are forcing women to hold their desires back. Hence, there is an increasing trend towards artificial jewellery.

Roli Malhotra, Manager-Marketing, Sia says, “Unorganised/ unbranded market comprises 70 per cent of the total market. It includes street peddlers, small 'bhakras', to shifty carts in malls, selling beaded malas, bangles, Victorian earrings and pearl studs. With the rise in gold prices, consumers’ tastes are shifting and hence the preference for artificial jewellery. But, the lack of players in this category restricts their purchase.” An attractive price for delicate designs is one of the core reasons for the rise of this industry. Artificial jewellery is more wearable and appealing, making it the ideal choice for all times. Also the array of choices offered makes it difficult to lay your hands off them.

Roli Malhotra says, “Media intervention in people's lives, the emergence of saas-bahu serials with growing emphasis on looks, heightened awareness of grooming due to financial independence of the Indian woman, rising prices of gold, safety factor with real jewellery and larger-than-life portrayals in Bollywood and the TV are contributing to the growth of this sector.”

Exclusive collections inspired from rich art and culture is also an addition to this line of jewellery.

Sushma Cooper, Director, Silver Maya, says, “The trend for fashion on the macro level is growing, people are more aware of styling and looking good, and accessibility of brands have increased, thanks to the growing retailing business. Women love to match their accessories/ jewellery with what they are wearing, the options available right now are huge and will be evergrowing. Jewellery is certainly doing very well and has more growth potential.”

Key players in artificial jewellery

Though artificial jewellery has no resale value, still the demand for it has seen a constant rise. The most prospective clients for this jewellery are the price-sensitive rural and middle classes. Multiple brands are now a part of this sector. The most prominent brands are:

Sia Art Jewellery: SAJ, the national market leader in art jewellery industry, is addressed by the twin factors, affordability and versatlity, along with industry recognition. A majority of Bollywood, fashion designers and TV soaps like Jassi, Baa Bahoo, Rasham Dankh, Nach Baliye, Maximum Style and movies like Devdas and Om Shanti Om have used Sia Art Jewellery.

Ola: Owned by Goldiam International Ltd, Ola has carved an ingrained niche for itself with a prestigious tie-up with the Aditya Birla Group of Companies.

Silver Maya: The designs from Silver Maya manifest vivid imaginations that are free of all boundaries and guidelines. Each piece is handcrafted with sterling silver and handpicked gemstones into the most unique jewellery.

Trenz: The brand blends ethnic and western designs. The diverse range of jewellery provided is used at several occasions and religious events, which occur throughout the world.

Art Karat: It derives its inspiration from many sources like temples of Khajuraho, the kingdoms of Rajasthan, the Mughals and the everlasting era of Indian cinema. The collection has been showcased in more than 10 bollywood blockbusters, including Devdas, Monsoon Wedding, Kamasutra and Zubeida.

All these brands are fast catching up on the market trends and are fulfilling their customers' wishes and desires for jewellery.

Heavy jewellery out, light in

People's preferences have changed a lot with the changing time. Chunky and bulky is out. Lightweight jewellery, trendy designs and an international feel to the jewellery is what is preferred today. With the number of working women increasing, simple and light jewellery is gaining preference.

Agreeing, Cooper says, “Women like to wear different, they want unique jewellery, something which is not worn by friends. I guess that's why they are constantly looking for something new. These days, women do not wear chunky jewellery, rather they prefer lighter pieces with a lot of combination of gemstones, charms, medallions etc.” Ravi Chawla, Managing Director, Ravissant, says, “The current trend is to have lightweight jewellery, which is comfortable and can be worn for several hours. Gemstones like sapphires (including the yellow cousins), rubies and emeralds are being used.”

Vijay Jain, CEO and Director, Orra, says, “The buyer looks for classic designs but with a different styling.”

Malhotra tells, “Rasrawa is the season's hot favourite. It is usually picked up by four to five people walking in. This may be due to its resemblance to real gold jewellery and designs in intricacy and workmanship.”

Dheeraj Arora, Managing Director, Trenz, says, “There are two ranges, one is the casual which deals with jewellery for daily wear and the other is the formal range, which is for parties. All clients buy according to their requirements. A woman who buys a suit for Rs 2,000 will not buy a necklace for Rs 5,000; her range will be Rs 500. While on the other hand, a lady who buys a designer saree or a lehenga wants to buy something in the range of Rs 4,000-5000, which gives the look of a real jewellery. Funky jewellery is reasonable according to the pocket money for college girls and ranges from as less as Rs 35 up to Rs 500. It comprises casual beads, artificial stones and pearls.”

Trendy trends

Earlier, standalone stores in a market area were seen the most. But now the trend has shifted to areas with higher footfalls. Malls, high streets and plazas are the desired locations, the reason being a large number of walk-in clients.

Malhotra says, “Currently, we have a healthy mix of mall vs high street stores. It depends on the city and the proposed location. High streets are meant for serious shoppers, larger ticket size and are destination points. Malls are impulsive, smaller ticket size but larger volume of footfalls.”

Sushma Cooper says, “My jewellery is being retailed from high-end designer stores since the quality and the designs match the high fashion clothes line.” Maintaining customers can be a very tedious task for the branded sector players, especially when the concept is a new one. All sorts of marketing strategies and promotional features are carried out to attract the customer.

Malhotra says, “We have a loyalty programme called the Gems Club, which has a database of more than 27,000 members across India. These are our loyal members who contribute upwards of 55 per cent to the company's revenues. We have lots of benefits and rewards in the form of discounts, special offers exclusively for them. Apart from these members, we have a lot of sales promotions and schemes all through the year to bring in more footfalls.”

Competition is there in every industry. It should be taken up with a creative zeal to do better. Price can be a very big factor here as the price range for this jewellery is already not very high.

Malhotra tells that they had to face local competition and at times it was because of the price.

“We are a national chain and our prices are fixed across the country. However, local players can offer on-the-spot discounts to keep a customer happy. This leads to imbalance in the market,” says Malhotra.

There are wide options for the sale of artificial jewellery. EBOs, MBOs and kiosks are what are seen the most. MBOs give an advantage to cash in on the walk-in clients for other products. Kiosks that are found in various malls serve the same purpose. Chinese imitation jewellery accounts for a large part of the market. India has managed to carve out a niche for itself, thanks to its contemporary design and high-quality levels. There is a lot of demand in the overseas market for fashion jewellery, especially in East Africa, the UK, Canada and the US.

Inflation heat surges

The rising inflation has given this industry a greater market. But is it affecting this sector also? Well, to an extent, the heat of inflation is being felt by this very industry as well. The industry has mixed reviews.

Chawla says, “It is difficult to comment whether it is the weather or inflation that has affected the client walk-in. However, there has certainly been some recession.”

Malhotra says, “The footfalls have dropped, but we have increased our conversion ratio and ticket size, so we have achieved a healthy growth.”

Disagreeing, Copper says, “It has not affected the business, women are still shopping.”

The reason for this could be the price range for this kind of jewellery, which starts from less than Rs 100. So, we can safely say that this sector has not been as affected by inflation as is the real jewellery market.

Boost to branded jewellery

With the rising middle class and their disposable incomes, the branded jewellery sector will definitely witness a great growth. Imports and exports will make India a hub for manufacturing and processing.

Malhotra says, “Sia is the category creators in some markets on an organised level. Currently, the brand balances both aspirational and product values. We hope to take it further by making strong statements in the market. For us, each piece of jewellery tells a story. We are in the business of making women beautiful and complementing them.”

Cooper feels, “The jewellery segment is on the rise like any other fashion product. There are lots of companies, giving buyers options to wear and in all price categories. Fashion is on a high and India has been accepting changes gradually with women getting more options and enjoying their quality time shopping and picking products which suit them, their budget and style. I see the fashion segment, which includes jewellery, also on the rise. Plus, we have so many festivities, occasions, social gatherings and women love to look their best. So buying will always be a second nature. Looking good is important and women are aware of it.”

Arora says, “We have been in the jewellery business for the last 20 years and have seen it change manifold. In the past three to four years, mall culture and shopping plazas have increased, leading to a rise in the number of people going out. People who come to malls do not come specifically to shop and there is more of impulsive buying. Impulse buying is more inclined towards cheaper products and fashion jewellery comes under this. With more malls coming up, the prospects seem to be very good.”

With a majority of the market still being unoganised, there is a lot of growth potential in this market. More players would grow to be a part of this business in the time to come.