Glistening upturn in branded luxury jewellery

Indian jewellery retail is witnessing a huge transformation. It has transformed

from being an investment to a fashionable accessory. The entry of large number
of luxury brands into India is further contributing to this transformation. Let us
find out how&

By Subhro Prakash Ghosh | October 24, 2009

Retail-Trends

Indian jewellery industry has witnessed a rapid transformation during the past few years
especially in luxury jewellery retail market which is expected to gear up its current share
of 4 per cent to 18 per cent of the total retail sales by 2010. The gem and diamond
industry contributes around 15-17 per cent of India’s total exports. Increasing
disposable income and brand consciousness among Indians has futher given a boost to
the luxury jewellery retail industry in India. Earlier,

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jewellery was considered to be an investment and was most of the time kept in lockers.
However, with the emergence of working women concept, people prefer buying jewellery which
is light in weight and can be worn on regular basis. This trend has led to increase in the sale of
diamond jewellery as it is not just beautiful but also light in weight and easy to wear. Another
reason contributing to growth the of luxury diamond jewellery is the increasing gold price. It is
gradually ticketing too high in the market, enticing the customers towards diamond jewellery, as
now there is a thin line in the price of gold and diamond.  

Luxury brands in India

Last few years are considered to be the years of retail innovation and it has widened the flood
gates for national and international brands to solidify their stands in the Indian market luring the
customers with creativity and innovation. Entry of the luxury branded jewellery like Tiffany & Co.,
The Gem Palace, Harry Winston, Dia, Caratti, Ganjam, Mirari Jewels, Opulence By Jewelex,
Alpana Gujral and Anmol Jewellery to name a few, have made a new market mantra which suits
the needs and wallets of the upper middle class and high net worth individuals. The companies
dealing in diamonds are following a new strategy of blending their products with Indian customs
and traditions which gives a boost to sales and brand promotion.  

Paradigm shift: from mass to class luxury 

With the upsurge of the foreign players’ entry into India the branded diamond jewellery is getting
established and is making its own identity in the market, creating a move from lower to medium
range of product-line, i.e., daily wear or light weight jewellery. Considering increased
competition as a result of entry of large number of foreign players in luxury jewellery retail,
domestic brands are also converting and upgrading them from the mass to class luxury retail. 

According to Anil Prabhakar, Vice President (Business Development), Gitanjali Lifestyle, “At this
particular stage of luxury jewellery business, India does not require further customisation as the
customers have built up their taste over a period of time which is very subjective.” He further
elaborates, “Though there are Indian designers and manufacturers to give the taste of traditional
and Indianised jewellery, it is not true that the consumers never prefer to purchase a jewellery
piece designed by foreign designer. Starting from Milan to Paris to Mumbai, the savour of the
customers remains more or less the same who prefer world class design.”  

Region and custom-based style 

Some survey reports cite that all the leading national and international luxury jewellery brands
have extensive knowledge related to Indian custom, style and physique, and thus, they are
moulding their designs and styles of jewellery based on particular area, taste and preferences of
the people. Regarding this, Sanjay Banerjee, Vice President, Asmi Jewellery India (P) Ltd says,
“Whichever domestic jewellery brands have already proved themselves in the market have
upgraded their business-line, i.e., class luxury, which is growing rapidly, specially for the
occasions like wedding, anniversary or religious and the consumers are more inclined towards
these classy pieces with high-ticket prices.”  

More market penetration

Recognising the potential of the emerging luxury jewellery market, large numbers of players are
venturing into this gem and jewellery retail sector. Also, franchising is likely to be one of the
credible business models among the retailers. There are brands like Gitanjali, Orra, Cygnus and
Tanishq who have already successfully expanded through franchise route. Reliance Jewel has
an aggressive plan to open over 300 stores in 5 years across the nation. Swarovski also aims to
add over 25 outlets by the end of 2009. Future Group-owned Navras is also foreseeing to have
around 100 in-stores in Big Bazaar by 2011. Darpan Gupta, Owner, Mangatrai, a Hyderabad-
based company admits to expand to towns to sustain in the market, However, the big players
still cherish a mindset to expand their retail chains in the metros. He says, despite having the
potential of the customers of tier I or II cities to buy luxury jewellery, they end up purchasing the
merchandise from the main metros.