Branded jewellery sales to double in two years

Branded gold and diamond jewellery sales in India are likely to double in two years due to changing consumer preferences and growing affluence in Tier-II and -III cities.

With a growing focus on these towns, organised retailers like Gitanjali Gems, PC Jewellers, Tanishq and Tribhovandas Bhimji Zaveri are set to grab a bigger pie of the robust economic growth.

Branded jewellery accounts for six-seven per cent of India’s Rs 300,000-crore gold and diamond jewellery sales, compared to 4-4.5 per cent two years ago. The contribution of branded jewellery to total sales is expected to increase to 12-14 per cent in two years. Tier-II and -III cities account for nearly 40 per cent of branded jewellery sales and this is expected to touch 60 per cent in two years.

“The expanding reach of the service sector, especially in tier-II and -III cities, is set to drive the demand for branded jewellery where disposable income remains high. Employees in this sector frequently change work place, thereby lacking the traditional jewellers of their choice. In the absence of a reliable traditional jewellery supplier, they move to organised retail to buy a branded jewellery, where they get trust and guarantee of purity, along with a pride of renowned brand,” said Bachhraj Bamalwa, chairman of the All India Gems & Jewellery Trade Federation. Leading rating agency Crisil had recently said the growth in the jewellery sector would be driven by tier-II and -III cities.

Gitanjali Gems, India’s largest integrated branded jewellery manufacturer and retailer, is planning to quadruple its store size in each of the 15 branded jewellery segments in a couple of years.