India’s jewellery market is experiencing remarkable growth, with projections indicating a 15-16% compound annual growth rate (CAGR), aiming to reach a staggering USD 145 billion by fiscal year 2028. This rapid expansion is largely attributed to an evolving consumer landscape, an increase in disposable incomes, and a shift toward organized retail outlets. The formal market, in particular, is set to outpace the overall sector, with expectations of over 20% CAGR, capturing nearly 43% of the total jewellery market share.
Organized Retail and Key Market Drivers
Several factors are contributing to this boom in the Indian jewellery market, notably the increase in disposable income, particularly among the middle class, and a more diversified jewellery consumption pattern. Traditionally, jewellery purchases in India were largely driven by weddings and investments. However, as per a recent report by Motilal Oswal, there has been a significant shift toward regular wear, with consumers now purchasing jewellery beyond just wedding and festive occasions. Additionally, the growing availability of high-quality designs, including diamond-studded pieces, and the introduction of hallmarking standards have further boosted consumer confidence.
The jewellery market’s impressive growth is also fueled by a better buying experience at organized retail outlets. As consumer preferences shift from unorganized, smaller jewellers to large, branded retailers, the market dynamics have seen a significant transformation.
The Dominance of Organized Players
The organized jewellery market in India is now dominated by the top 10 players, including industry giants like Titan (through its Tanishq, Mia, Caratlane, and Zoya brands), Kalyan Jewellers, and Joyalukkas, among others. These companies currently hold over 30% of the total jewellery market share, accounting for 90% of the organized segment. This marks a substantial leap from FY19, when they commanded less than 20% of the market.
The rise of organized jewellery players in India can be largely attributed to their expanding store networks and the growing consumer preference for buying from trusted, branded sources. Titan, for example, holds a commanding share of the organized retail jewellery sector, with nearly 45% of the market, thanks to its extensive network of over 900 stores across India and abroad.
Titan’s Stronghold in the Market
Titan has emerged as a dominant player in the Indian jewellery retail sector, with its flagship Tanishq brand leading the charge. The company’s comprehensive network includes not only its core Tanishq stores but also its Mia, Zoya, and Caratlane brands, which collectively cater to a broad range of consumer preferences. The company’s continuous expansion, including new store openings and new product launches, has played a pivotal role in maintaining its market leadership.
For instance, Titan’s Caratlane, a leading online-to-offline jewellery brand, reported a robust 30% year-on-year growth in total income for Q1FY25. Caratlane’s physical store presence has also increased, with 275 stores across 112 cities. This growing footprint, along with the increasing adoption of digital platforms for jewellery purchases, has positioned Caratlane as one of the most successful online jewellery retailers in India.
Titan’s global expansion has also gained momentum, with Tanishq increasing its international presence. The brand’s stores in the Gulf Cooperation Council (GCC) region, North America, and Singapore have been performing strongly. Notably, Tanishq’s stores in the United States, which opened between December 2023 and March 2024, have received enthusiastic responses from the Indian diaspora.
Joyalukkas and Kalyan Jewellers: Strong Revenue Growth
Joyalukkas, another major player in the Indian jewellery market, has seen impressive revenue growth, with its revenues increasing by 40.57% in 2023 compared to the previous year. This remarkable growth trajectory can be attributed to Joyalukkas’s successful expansion strategy, both in India and abroad, as well as its strong brand appeal among consumers.
Kalyan Jewellers, another top competitor, reported a 37% year-on-year revenue growth in Q2FY25. The company’s growth was driven by a strong performance across its India operations, which saw a 39% revenue increase, underpinned by robust same-store sales growth of 23%. Kalyan Jewellers also continued its expansion by opening 15 new Franchisee-Owned-Company-Operated (FOCO) showrooms in India. In addition, its digital-first jewellery platform, Candere, recorded a 30% increase in revenue during the same period.
Kalyan’s approach to marketing is also paying dividends. The company uses region-specific campaigns featuring national, regional, and local brand ambassadors to engage with a wide spectrum of audiences. The use of localized content and staff that are familiar with the language and culture of each region is further enhancing Kalyan Jewellers’ appeal across India.
Festive and Wedding Seasons: Catalysts for Growth
In India, the festive season and weddings remain the two primary drivers of jewellery purchases. According to Dilip Gaur, Director of Indriya, the festive season typically drives three to four times the normal growth in the jewellery sector. This seasonal surge is expected to be even more pronounced this year due to the reduction in the customs duty on gold, which is likely to stimulate demand for gold jewellery in the latter half of the year.
In response to this, several jewellery companies are ramping up their advertising spending. Tanishq, for example, is set to increase its ad spend by double digits this year, focusing on capitalizing on the festive season and the upcoming wedding season. The company is optimistic about the prospects of further growth, particularly in northern and western India, where it expects to see significant demand in the coming quarters.
Senco’s Expansion and Strategy for Growth
Senco, a regional player with a strong presence in Eastern India, is also transitioning to a pan-India brand. The company has gradually expanded its store network, with 159 stores across India by FY24, and is now focusing on increasing its footprint in other regions, including the north and west. Senco’s marketing strategy involves a mix of regional campaigns and brand partnerships with prominent film and sports personalities to enhance its national visibility.
Senco’s expansion efforts have been especially successful in its home region of West Bengal, where it commands a 75% market share. As the company grows, it is tailoring its offerings to cater to the preferences of consumers in other regions, hoping to build on its strong foundation in the east to achieve national prominence.
Impact of Gold Duty Reduction
A key development that has impacted the jewellery sector is the reduction in the customs duty on gold imports, from 15% to 6%. According to CK Venkataraman, Managing Director of Titan, this move will have long-term positive implications for the industry. While the reduction in duty could lead to short-term inventory losses, the lower gold prices are expected to benefit larger players by creating a more level playing field for businesses like Titan, which have the scale to take advantage of these changes.
This development could also help curb the rise of unorganized players in the jewellery market and boost consumer confidence in buying from established, trusted brands.
Conclusion: A Bright Future for Indian Jewellery
The Indian jewellery market’s rapid growth can be attributed to a combination of factors, including higher disposable incomes, the growing popularity of organized retail, the diversification of jewellery consumption, and the steady growth of the country’s wedding and festive seasons. With key players like Titan, Kalyan Jewellers, and Senco continuing to expand their footprints across India and internationally, the market is set for sustained growth.
As the market continues to evolve, the organized sector is expected to dominate, with increasing store openings, advertising expenditures, and a more personalized buying experience driving consumer demand. While the festive and wedding seasons will continue to play a significant role, the ongoing expansion of branded jewellery retailers and the reduced customs duty on gold are likely to fuel even greater growth in the years ahead.
The Indian jewellery market is well on track to achieve its ambitious target of USD 145 billion by FY28, and with its current trajectory, it is poised to become one of the largest and most dynamic jewellery markets in the world.
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