India’s gold market is steeped in tradition and still highly fragmented. However, over the last few years the industry has become more organised and regulated. Although small independent retailers still dominate the landscape, the market share of chain stores (national and regional) has increased steadily during the last decade.
In contrast to the retail jewellery trade, changes at the manufacturing level have been much slower. While manufacturers are becoming more organised, driven by growing demand from chain stores and tighter regulatory requirements (such as pollution licences), artisans still dominate Indian gold jewellery fabrication. But as the gold market continues to develop, organised retail and manufacturing operations will see their market share grow.
The retail jewellery landscape in India
The gold industry is integral to the Indian economy, contributing 1.3% to Indian GDP. 3 But it is still fragmented – dominated by small and medium-sized enterprises. Over the last decade, the retail jewellery market has undergone a notable shift , driven by changes in consumer behaviour and government regulations designed to encourage the industry to become more organised.