Branded Gold Jewellery Market in India

"There is definitely a market for branded jewellery especially if something is aimed at the younger generation, which wants to buy fashionable real jewellery. This is the right time to get into the market, as it has just started to take off."¹

- Devika Gidwani, Director of Diamond Information Centre, India

The Gold Rush

In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. Instead of being regarded as only an investment option, jewellery was being prized for its aesthetic appeal. In other words, the focus seemed to have shifted from content to design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply.

Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the country. Traditional jewellers also began to bring out lightweight jewellery, and some of them even launched their in-house brands.

However, the share of branded jewellery in the total jewellery market was still small (about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to 30 percent annually.

The branded jewellery segment occupied only a small share of the total jewellery market because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover, consumers trusted only their family jewellers when buying jewellery.

Consequently, the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices.

Gold Jewellery Market in India

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold.

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1] Business India, February 17, 2002.

Case Details

Case Code : BSTR041
Themes: Brand Management
Case Length : 16 Pages
Period : 1990-2002
Organization : Gili, Tanishq, Carbon, Oyzterbay and Trendsmith
Pub Date : 2002
Teaching Note : Not Available
Countries : India
Industry : Jewellery

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