Gold jewellery has long been regarded as a symbol of riches, financial security, and festivity in Indian culture. The popularity of gold jewellery has only grown as the economy has progressed. At the same time, thanks to modern technologies and changing lifestyles, gold jewellery manufacturing and retailing processes are undergoing a full transition. Millennials see jewellery as an important aspect of their personal style and are increasingly purchasing it to show it off. As a result, it’s only logical that modern jewellery shops prioritize consumers’ objectives and desires.
To increase sales, jewellers in India are rethinking their brick-and-mortar business models and employing an omnichannel approach with a stronger digital strategy. This is being done because unorganized jewellers are facing growing competition from large companies, who are eroding their customer base by offering better customer engagement, novel financing methods, and a wider range of styles. Consumers today expect better designs and look for the assurance of quality, authenticity and purity of jewellery during their jewellery purchase process.
Impact of Covid-19 on the Jewellery Industry
Prior to the Covid-19 epidemic, the jewellery business was on track to grow at a rapid pace, the expenditure on jewellery is the third highest retail category with approximately 8% in overall retail consumption basket of India in 2020 and is forecasted to become second highest by 2025 overtaking apparel and accessories. The Indian consumers continue to love gold and jewellery with India being the 2nd largest consumer of gold in the world. While the Covid pandemic initially led to drop in demand for the last two years. However, demand revived in last quarter of 2021 as fears of the pandemic eased led by the large number of weddings. India, on average, has 10 million marriages annually, which amounts to close to 55% of jewellery demand. The demographics of the country will continue to support this demand.