The jewellery industry is expected to achieve CAGR (compound annual growth rate) of 8.1% for period between 2020 and 2025. Global market value of the industry in 2020 was USD 323.98 billion and will reach USD 480.5 billion.
The industry is anticipated to grow significantly during the forecast period. There is a huge base of clientele for the products of the industry. Moreover, new products are introduced every now and then to attract customers.
There is a huge clientele for jewellery industry
Manufacturers tend to keep tab on the new fads and design their products similarly. Performance of the industry depends on changing life-styles and value people give to status symbols.
Growing popularity of jewellery
No denying the industry has a large following. It is particularly so in a country like India. Boost in the demand is coming from men. They are accepting it as a status symbol triggering a great deal of growth. It has always been a status symbol wearing gold jewellery in India.
It is a new phenomenon that men are also paying a great deal of attention to newer fashions. If the trend continues it will definitely pave the way for strong market. More and more men are using products like tie bar, cufflinks, gold chains, cartography necklaces and signet rings.
It is the mainstay of the jewellery industry in India. Now there is a fashion of wearing a lot of jewellery at weddings. In tradition-bound countries like India, it plays an important cultural role. Moreover, weddings in India are an expensive and elaborate affair full of rituals.
Wedding is an intricate affair involving many rituals. Spending on weddings is increasing which is good for the industry. Bridal jewellery has always been in vogue in India. Now women prefer to wear the latest trends in necklaces and bangles.
It is important for jewellery industry in India to offer excellent customisation services for wide range of services. Women tend to customize the jewellery as per their ideas of latest fashion and trends. Offering wide range of designs and customization is imperative for growth in the market.
On the other hand, wearing gold chains and necklaces is no longer confined to weddings and similar occasions. It has become a fashion for both men and women to wear plain gold chains, rings, etc.
Gifting of bracelets and earrings has become common on events like adversaries and birthdays. Such trends will impact the market positively.
Indian jewellery market size
Exports of gems and jewellery totalled USD 35 billion in 2020. The government is looking to double it in the next five years. The target for 2025 is USD 70 billion. Growth in the market is mainly due to the strong demand in the export market of the US.
Indian jewellers fulfilled most of the orders received during the global pandemic. It was a good performance by the industry considering the global conditions.
And the target for 2022 was set at USD 44 billion. Indian industry has global competitiveness in terms of quality and pricing of its products.
Sales zoom in festive season
There is a great deal of activity in the sector during the festive and marriage season. The industry always looks to generate excellent figures during the season. After the festive season we have a wedding season. So this period is excellent for the Indian market.
The companies bring into the stores their latest designs that are in vogue at the time. The trend of new and innovative designs in the market will have significant impact. These designs will be the favorite for some years to come.
We are witnessing excellent demand for solitaire diamonds and exquisitely designed pieces of jewellery. Now-a-days it is lightweight and elegance in designing that has become popular with women. The reputed companies always have got the finger on the pulse on the current fashion.
Simple designs are in vogue
There is no denying the fact that fashion is a dynamic thing that keeps on changing. It is imperative for the jewellery industry to be in tune with the fashion accessories market. As the fashion accessory trends change so does the jewellery market.
Presently, it is chick and simple designs that have become popular with the youth. Now the focus of people is to look sophisticated yet they do not want to wear heavy jewellery. Their aim is to project a look that is posh. Such a look is possible only with classic designs.
Majority of buyers have a budget between Rs 5000-25000 per piece. It is the customers in this budget that form the base for the gems and jewellery industry.
Digital shopping has a big impact on the sales of jewels and gems. Demand of jewellery products have greatly increased because of the rise in digital shopping. In the recent times, the popularity of digital shopping and social media has increased many times.
Now a significant percentage of customers have started shopping online. No one can argue against the convenience offered by online shopping. However, it is not possible to buy heavy jewellery online. It would require the customers to visit a shop to see the craftsmanship.
Shopping for heavy jewellery is an art. It needs an artistic outlook to appreciate its designing and craft. Also, you will have to check out the authenticity and quality of gold used in the making of jewellery pieces. And, it needs considerable investment so there is rigorous checking of the quality.
High quality customer Service
Jewellery business is a service industry. For doing a great business it is imperative to have an excellent customer service. All reputed jewelers arrange training for staff in sales and customer services. Staff members receive training to acquire the art of charming customers and selling them effortlessly.
The jewelers pay a great deal of attention to ensure the customers have a great experience visiting the store. Ensuring an amazing experience for customers now forms an important part of selling jewellery. There growing emphasis on comfort and providing a great shopping experience to customers.