India's Jewellery Sector Set for 5-7% Sales Boost This Festive Season
The Indian jewellery market is expected to see a 5-7% increase in sales value during the upcoming festive season compared to last year, despite challenges from high gold prices. Consumer preferences are shifting towards branded diamond jewellery and lighter weight gold pieces, especially in Tier II and III cities. The industry is adapting with versatile designs and expansion into new markets, as seen with Zen Diamond opening two new stores in Bangalore. Natural diamonds remain popular for milestone purchases, while lab-grown diamonds are attracting younger buyers.
*this image is generated using AI for illustrative purposes only.
The Indian jewellery market is poised for growth this festive season, despite challenges posed by soaring gold prices. Industry experts project a 5-7% increase in sales value compared to the same period last year, highlighting the sector's resilience and evolving consumer preferences.
Market Outlook
Neil Sonawala, Managing Director of Zen Diamond India, forecasts a positive trend for the jewellery sector:
| Aspect | Details |
|---|---|
| Sales Growth | 5-7% increase expected |
| Time Frame | Upcoming festive season |
| Comparison | Versus same period last year |
Gold's Enduring Appeal
Despite record-high prices, physical gold continues to attract buyers:
- Perceived as a safe-haven asset
- Global uncertainty bolsters gold's appeal
- India's steady economic growth supports demand
Shifting Consumer Preferences
The jewellery market is witnessing notable changes, particularly in Tier II and III cities:
| Trend | Details |
|---|---|
| Rising Demand | Branded diamond jewellery |
| Driver | Increasing disposable incomes |
| Adaptation | Lighter weight jewellery, lower karat options (e.g., 14K gold) |
| Key Factor | Design becoming crucial in purchasing decisions |
Consumers are increasingly seeking versatile pieces that offer value beyond just weight and price, indicating a shift towards more thoughtful purchasing patterns.
Diamond Market Dynamics
The diamond segment of the jewellery market shows interesting trends:
| Diamond Type | Consumer Behavior |
|---|---|
| Natural Diamonds | Dominate milestone purchases |
| Lab-Grown Diamonds | Attracting younger buyers |
| Popular for affordable, aspirational designs |
Industry Expansion
Responding to the growing demand, especially in South India, Zen Diamond has expanded its presence:
- Opened two new stores in Bangalore
- Strategic move to tap into the rising demand in the region
This expansion underscores the industry's confidence in the market's growth potential, particularly in key urban centers.
Conclusion
The Indian jewellery sector's projected growth, despite high gold prices, reflects the industry's adaptability and consumers' enduring affinity for jewellery. As preferences evolve and new markets emerge, jewellers are innovating in design, exploring new materials, and expanding their presence to meet changing demands. The upcoming festive season is likely to be a litmus test for these strategies, potentially setting the tone for the sector's performance in the coming year.
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