Retail Jewelry

sunandaC

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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.
 
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.

Hey sunanda, thanks for the information and it is really very informative. Well, i also searched on the same information and got a document which would give a nice report on Retail Jewelry, so please download my presentation and check it.
 

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