The size of India’s retail jewelry industry is ~USD 12bn, 80% of which is
gold jewelry. The Indian retail jewelry sector is dominated by the unorganized
sector (95-96%). The industry is highly fragmented with about 400,000 retail units
and about 800,000 goldsmiths. No single pan India retail format has emerged yet.
However, the share of organized retail has been slowly but increasingly catching up
from 1.9% in 2004 to 4% at present. It is estimated that the share of organized
sector is growing at 30-40% yearly. Globally, organized retailing comprises of 30%
of total jewelry sales.
According to a KPMG report the market size for jewelry will increase to
USD 230bn in 2015 from USD 146bn in 2005. The markets worldwide are
estimated to grow at 5% and Indian market by more than 10%. India and China
will be equivalent to the size of US industry in 2015.
India has been the largest consumer of gold jewelry in the world and has a
natural and cultural affinity toward jewelry. It is expected that branded jewelry
market in India is set to grow at a much faster rate because of various factors like:
High and growing disposable income in India
Growing perception of jewelry as a fashion accessory rather than investment
Growing brand awareness amongst young Indians
Retail revolution
Increasing advertising and promotional campaigns
Within the last 2-3 years, a slew of brands have been launched in India. Some top
brands include Tanishq, Orra, Nakshtara, Carbon, etc. The three top listed
companies in India are Titan, Gitanjali and Rajesh Exports. Each of these companies
employs different business models and retail formats. The operating margins have
been around 3.5-8%. Margin expansion can be achieved by forward integration by
diamond manufacturers/exporters and by selling more diamond studded jewelry
than gold.
gold jewelry. The Indian retail jewelry sector is dominated by the unorganized
sector (95-96%). The industry is highly fragmented with about 400,000 retail units
and about 800,000 goldsmiths. No single pan India retail format has emerged yet.
However, the share of organized retail has been slowly but increasingly catching up
from 1.9% in 2004 to 4% at present. It is estimated that the share of organized
sector is growing at 30-40% yearly. Globally, organized retailing comprises of 30%
of total jewelry sales.
According to a KPMG report the market size for jewelry will increase to
USD 230bn in 2015 from USD 146bn in 2005. The markets worldwide are
estimated to grow at 5% and Indian market by more than 10%. India and China
will be equivalent to the size of US industry in 2015.
India has been the largest consumer of gold jewelry in the world and has a
natural and cultural affinity toward jewelry. It is expected that branded jewelry
market in India is set to grow at a much faster rate because of various factors like:
High and growing disposable income in India
Growing perception of jewelry as a fashion accessory rather than investment
Growing brand awareness amongst young Indians
Retail revolution
Increasing advertising and promotional campaigns
Within the last 2-3 years, a slew of brands have been launched in India. Some top
brands include Tanishq, Orra, Nakshtara, Carbon, etc. The three top listed
companies in India are Titan, Gitanjali and Rajesh Exports. Each of these companies
employs different business models and retail formats. The operating margins have
been around 3.5-8%. Margin expansion can be achieved by forward integration by
diamond manufacturers/exporters and by selling more diamond studded jewelry
than gold.