(MENAFN- KNN India)
New Delhi, Jun 20 (KNN) India's jewellery retail market has surged, from USD 50 billion in 2018 to an impressive USD 80 billion in the financial year 2024, according to a recent report by Motilal Oswal Financial Services.
This remarkable growth can be attributed to a confluence of factors, including rising disposable incomes, an increased appetite for regular wear of jewellery, enhanced product offerings, government-mandated hallmarking for trust-building, and an improved buying experience at organised retail outlets.
While organised retail jewellers account for 36 to 38 per cent of the overall retail segment, the majority of the market remains dominated by over 500,000 local goldsmiths and unorganised players.
However, the tide is gradually shifting towards organised retailers, driven by their ability to offer a superior shopping experience and a wider range of designs.
India's love affair with gold is deeply ingrained, with 66 per cent of the country's gold consumption dedicated to jewellery and the remaining 34 percent for bars and coins.
The nation's gold supply is heavily reliant on imports, which have experienced notable fluctuations from FY18 to FY20.
In FY19, imports peaked at 980 tonnes before declining to 720 tonnes in FY20, reflecting the impact of global price fluctuations, economic conditions, and traditional celebrations and weddings.
Weddings and festivals remain the primary drivers of jewellery demand in India, with bridal jewellery accounting for a staggering 55 per cent of total jewellery consumption.
However, the industry is strategically pivoting towards lightweight, daily wear pieces to cater to the preferences of younger consumers seeking jewellery that complements western-style attire, contributing 30-35 per cent to the market.
Fashion jewellery, though a smaller segment, contributes nearly 10 per cent to the Indian jewellery market. Within the product range, bangles and chains reign supreme, accounting for 60-70 per cent of total sales, with necklaces contributing 15-20 per cent, especially during festive and wedding seasons. Rings and earrings round out the remaining 5-15 per cent of sales.
The report highlights Tamil Nadu, Maharashtra, Karnataka, West Bengal, and Uttar Pradesh as the top five states driving the growth of organised retail jewellery stores in India, reflecting the diverse and culturally rich tapestry of the nation's jewellery traditions.
As India's affluence continues to rise and consumer preferences evolve, the jewellery retail sector is poised to sparkle even brighter, catering to the nation's enduring fascination with precious metals and intricate craftsmanship.
(KNN Bureau)
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