India is known as one of the largest gems and jewellery producer in this world. This industry plays a crucial role in defining the Indian economy for its contribution to the total foreign exchange reserves of the world.
If we look deep down then we will find a conclusion that about 7% of Indian GDP and 15% of its total merchandise exports depend on Gems and Jewellery industry.
Since starting, there has been a lot of growth observed in this industry. If we just talk about gold and diamond, it is recorded to be 1.15 billion US$ in between April 2000 and June 2018. And there are many reasons that determine the whole scenario:
• Growing Demand
• Increasing Investment
• Attractive future opportunities
• Governmental support
To have deep knowledge about the market and trends of Gems and Jewellery industry have a look towards the following graphs:
• Exports of Cut and Polished Diamonds:
• Imports of Gems and Jewellery:
• Share of different segments of this industry in Total exports:
• Exports and Imports of Gold Jewellery:
Though there are many big companies which play a vital role in Gems and Jewellery industry but Tanishq, Malabar Jewellers, Rajesh Exports LTD, PC Jewellers, Joyalukkas, Gitanjali Jewellers, tbz, Kalyan Jewellers and tara are counted as the key players.
Strategies adopted by the industry:
There are a lot of strategies adopted by these key players, and we can’t expect each of them to work in the same way. It’s hard to talk about each and every strategy, but we have chosen some of them that gained their special place.
• Expansion and opening of exclusive showrooms (First started by Kalyan Jewellers and Malabar Gold and Diamond)
• Online Selling of gems and jewellery retailers (Plushvie, Malabar Gold, Tanishq, TribhovandraBhimiji ZAVERI, PCJ, etc.)
• Buyback guarantee on gold jewellery
• Finance facility
• Customized jewellery (Plushvie and Malabar Gold)
• Virtual Reality (Plushvie, PCJ, PNG jewellers and Popley and Sons)
Growth Drivers of this Sector:
• Population Demographics:
It is said that Indian Middle-class population is going to increase to 1,250 million in 2048 from 270 million in 2018. Also, the Rich population will increase to 310 million in 2048 from 30 million in 2018. These two classes are the prime buyers of Jewellery and gems.
• Gold Demand:
The rise in population will automatically increase the gold demand.
• Government Initiatives:
Government has started the Gold Monetisation scheme, so as to reduce the imports and meet the domestic demands. Special places are allotted as the jewellery park. Also, they have started more schemes to increase the gold supply from 40 percent to 80 percent.
It is said that the Gems and Jewellery industry will grow rapidly in the upcoming years, and in this whole process, all the established key players will play a crucial role. All the key brands are creating a platform for newcomers, which will indirectly lead to growth. In this modern scenario, everyone is focusing on new designs and products, and in the future, this whole process will increase at a faster pace.
Also, online sales are increasing day by day, and it is expected that it will increase more by the year 2022.
It is also expected that gold import will turn out to be a fillip for the Gems and Jewellery industry. So in total, it is said that the whole market will turn out to be a huge success in the upcoming years and the gold will play a crucial role in this process. According to the current scenario, it is predicted that jewellery demand is going to increase significantly in the future.
The online jewelry 2.0 will continue to flourish steadily for the next few years. The jewelry e-commerce industry is already booming as anticipated by market growth of nearly 17% in terms of CAGR for the forecast period 2017 to 2021.
This growth is said to be attributed to the growing convenience provided by emerging online shopping platforms such as Plushvie which provides ease of payment, easy returns and refunds terms among many others. Therefore, now it has become mandatory to sell jewelry online if you are looking for growth.