Small jewellers feel the heat as large players gain market share

According to the India Bullion & Jewellers Association (IBJA), there is a big threat to small retail jewellers

Small jewellery retailers and manufacturers in India are facing pressure because the system, they say, is loaded in favour of their large counterparts. 

They have alleged larger jewellery chains are getting gold loans at lower interest rates and other sops, apart from access to deposits of customers.

However, organised retailers say small players are losing out because they lack efficiency.

According to World Gold Council estimates, there are 385,000-410,000 jewellers in India. Between 2000 and 2015, the organised players’ market share rose from 5 per cent to 23 per cent and is expected to touch 35-40 per cent by 2020.