Branded Gold Jewellery Market in India

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"There is definitely a market for branded jewellery especially if something is aimed at the younger generation, which wants to buy fashionable real jewellery. This is the right time to get into the market, as it has just started to take off." ¹

- Devika Gidwani, Director of Diamond Information Centre, India.

The Gold Rush

In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. Instead of being regarded as only an investment option, jewellery was being prized for its aesthetic appeal.

In other words, the focus seemed to have shifted from content to design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the country. Traditional jewellers also began to bring out lightweight jewellery, and some of them even launched their in-house brands. However, the share of branded jewellery in the total jewellery market was still small (about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to 30 percent annually.

The branded jewellery segment occupied only a small share of the total jewellery market because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover, consumers trusted only their family jewellers when buying jewellery. Consequently, the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices.

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1] Business India, February 17, 2002.

2] The Gold Control Act of 1962 banned the holding of "primary" or bar gold, except by authorized dealers and goldsmiths, and sought to limit the jewellery holdings of families.

3] For more than a century, the name DeBeers was synonymous with diamonds. The company led the world in exploration, mining, and marketing of diamonds. As part of a venture agreement, De Beers SA transferred to De Beers LV (an independently managed company established in 2001 by DeBeers SA and LVMH Moet Hennessy - Louis Vuitton, the world's leading luxury goods company) the worldwide rights to use the DeBeers brand name for luxury goods in consumer markets.

4] Tiffany & Co (Tiffany) is an internationally renowned retailer, designer, manufacturer and distributor of jewellery, timepieces, sterling silverware, crystal, stationery, fragrances and accessories. In 2002, Tiffany had more than 100 stores and boutiques in US and international markets.

5] The Paris-based Cartiers is the maker and seller of watches, wedding and engagement rings, diamond jewellery and other luxury goods.