How Organized Retail Transformed Jewellery Business in India ?

Organized Retail Tranform Jewellery BusinessThe transition towards organised retail jewellery has been stupendous. The growth of large jewellery showrooms has brought trust and faith among customers. Moreover, unlike the smaller jewellery stores, the new breed of large jewellery stores ensures quality of products, has diverse range of products, purity and value for money in terms pricing. The share of organised market in the overall gem & jewellery market is expected to be 35% over the next few years given the urbanisation trends as well as the emergence of online players in the sector. The growth of the organised jewellery sector is expected to be in the range of 30% -35% over the next 3 years.

The domestic gem and jewellery industry is expected to grow at a CAGR of 16% going forward touching Rs 5.5tn by 2018. Gold accounts for 80% of the total gems and jewellery market.

Unmatched Demand for Gold in India
Indians attach a high emotional value for gold. Gold is usually purchased during important festivals such as Diwali and also during weddings. Weddings generate approximately 50% of India’s annual gold demand. Domestic gold jewellery demand recorded a 10% CAGR during 2009 to 2014. On a yoy basis, Gold jewellery demand slowed down to 8% in 2014 vis-à-vis 11% growth recorded in 2013. The demand remained robust despite imposition of import restrictions in 2013 in the wake of worsening current account deficit. In contrast, global gold jewellery demand exhibited a 4% CAGR during 2009 – 2014. India’s share in global jewellery demand increased from 24% in 2009 to 31% in 2014.

The overall number of wealthy individuals has been on the rise over the past three years. The number of HNI (average assets of about USD 1 mn) in the country recorded a CAGR of 11.6% over 2011-2013. This clearly indicates a growing demand of valuables such as gold jewellery. Gold Shines Bright in India ir-respective of any other factor and Organized Retailers are Making a Killing on this.

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