The gold industry is integral to the Indian economy, contributing 1.3% to Indian GDP. But it is still fragmented – dominated by small and medium-sized enterprises. Over the last decade, the retail jewellery market has undergone a notable shift, driven by changes in consumer behaviour and government regulations designed to encourage the industry to become more organised.
The advent of chain stores in the last 10-15 years and their gradual gain of market share at the expense of stand-alone retailers has been notable. And this market share continues to increase, up 5% since 2016, and representing a 35% share of the market by 2021.
The competition fostered by such rapid expansion has encouraged innovation; jewellers are now focusing on product offerings that provide both value and diversity to India’s wide cultural and demographic customer base.
Chain stores, with national operations, focus on daily wear and fast-moving jewellery items (such as chains and rings) and these items account for 50-60% of their business. Stand-alone and medium sized retailers tend to focus on three elements: bridal jewellery (accounting for 60-65% of their business), customisation, and personal relationships with customers.