As India's festive season kicks off, the jewellery sector is gearing up to meet an anticipated surge in demand. The convergence of reduced import duties, technological advancements, and evolving customer preferences has set the stage for a boom in the industry. Jewellery sales in India are expected to soar during this period, contributing significantly to the annual revenue of the sector, which accounts for around 7 per cent of the country’s GDP.
Jewellery brands are forecasting increased sales driven by the festive and wedding seasons, with a blend of tradition and modernity taking centre stage. According to industry reports, India's gold demand is expected to rise by 15-20 per cent during this period, especially after the government reduced the gold import duty earlier this year.
Gold Duty Cut Boosts Market Confidence
The reduction of gold import duty has had a significant impact on the market, boosting customer confidence and making gold more affordable. MP Ahammed, Chairman of the Malabar Group, remarked on the immediate effect, saying, “The gold import duty cut has energised the gold jewellery demand ahead of the festive season. We are witnessing a renewed optimism among consumers to purchase jewellery, and the positive sentiment will surely impact the festive and wedding season jewellery purchases.” He further noted the socio-cultural importance of gold in India, predicting a strong revival in volume-based demand.
Mahendra Luniya, Chairman, Vighnaharta Gold says that gold prices in India have dipped by Rs 4,500 to Rs 5,000 due to a reduction in import duty, sparking increased interest in both physical and digital gold ahead of the festive season. “This price drop presents an ideal buying opportunity as gold is down from its peak. However, with international gold prices exceeding USD 2,500 per ounce and potentially rising further, Indian prices could soon surge to Rs 75,000 per 10 grams. Digital gold, which avoids GST and price fluctuations, offers a more profitable investment option compared to physical gold. Additionally, with around 35 Lakh weddings expected post-festive season, demand is set to drive prices even higher, making now the perfect time to invest.”
Ajoy Chawla, CEO of the Jewellery Division at Titan Company, also praised the duty rationalisation, highlighting its impact on reducing unofficial gold inflows and providing relief to Indian customers. “Tanishq has lined up exciting new collections, promotional offers, and regional festive campaigns this quarter to further stimulate consumer demand,” Chawla stated.
Technological Advancements For Enhanced Shopping Experience
Jewellery retailers are not only banking on reduced prices but are also adopting cutting-edge technology to enhance the customer experience. Many brands have invested in advanced design tools, augmented reality (AR) experiences for virtual try-ons, and sophisticated e-commerce platforms to meet the increasing digital demand. Brands like Irasva Fine Jewellery have embraced both physical and virtual engagement models. Leshna Shah, Founder of Irasva, shared, “We have enhanced our in-store experiences to provide a seamless shopping journey for our clients. This includes offering customization, video consultations, try-at-home services, and door delivery.”
Similarly, SahiBandhu, a gold loan aggregator platform, has introduced tech-driven customer service enhancements. Mehak Srivastava, Head of Marketing at SahiBandhu, commented, “To manage the anticipated surge in demand, we are offering 24/7 customer support, nationwide availability, and competitive gold loan rates, making the buying process smoother for our customers.”
Design Trends: Blending Tradition With Contemporary Styles
With the festive and wedding seasons often coinciding in India, brands are preparing a diverse range of collections that cater to both traditional and modern tastes. Joita Sen, Director and Head of Marketing and Design at Senco Gold & Diamonds, pointed out that the festive season brings a harmonious blend of traditional and modern designs. “In India, the demand for gold is timeless, seen as a trusted investment for generations. Meanwhile, the demand for diamond jewellery is driven by its design appeal and the versatility to be worn on any occasion,” Sen remarked.
She added that the bridal segment plays a pivotal role during this time, with many collections aimed at young women who seek designs they can wear daily yet hold cultural significance. “This season sees a harmonious blend of traditional and modern designs, with wedding buyers often opting for traditional pieces that incorporate contemporary aesthetics,” Sen noted.
Archana Aggarwal, a renowned jewellery designer, emphasised the growing trend towards personalised and ethically sourced jewellery. “There is a growing trend towards personalised and customised pieces, reflecting individual styles and sentiments. Additionally, sustainability is becoming increasingly important to consumers, leading to a rise in demand for ethically sourced jewellery,” she said.
The focus on sustainability is also driving the popularity of lightweight collections. Sen's brand, for instance, has seen a rise in the sale of lightweight jewellery that appeals to younger consumers during the auspicious muhurats.
Retail Expansion To Meet Demand
Brands are expanding their retail presence to cater to the growing demand, especially in Tier II and III cities. Mia by Tanishq is at the forefront of this movement, with Product and Merchandising Head, Mrinal Maji, stating, “This festive season, Mia by Tanishq is bringing an exciting collection designed with the customer in mind. We’re committed to making this festive season special for everyone, by bringing the exhilarating Mia experience closer to you through network expansion in metros, Tier II, and Tier III cities.”
Kicky & Perky, a premium silver jewellery brand, is also preparing for increased demand. Aditi Khandelwal, Co-Founder of Kicky & Perky, said, “During the festive and wedding season, we anticipate a significant surge in customer preference for premium silver jewellery. The season presents an opportunity to boost sales through targeted promotions, limited-edition launches, and curated gift sets.”
Festive Promotions And Campaigns
Many jewellery brands have planned elaborate promotional strategies to attract customers during the festive season. The Malabar Group’s “Brides of India” campaign is a notable example, aiming to offer differentiated and diversified designs for the modern bride. Meanwhile, Senco Gold & Diamonds has meticulously crafted an integrated marketing strategy to align with the festive rush, adorning stores and introducing new collections with enticing offers.
On the luxury front, Vummidi Bangaru Jewellers has already observed a rising trend in sales, with Managing Partner Vummidi noting, “We are expecting an average growth rate of 10-12 per cent with this year’s festival season sales.” He emphasised the importance of maintaining customer sentiment and offering festival-specific collections, particularly ahead of Diwali.
India’s jewellery sector is entering the festive season with optimism, spurred by government policy, technological advancements, and innovative design trends. From gold and diamond pieces to personalised and sustainable jewellery, consumers have a wealth of options this season. As brands prepare to meet the growing demand, the combination of reduced import duties and enhanced customer experiences promises a bright future for the industry. The festive season is set to sparkle brighter than ever, with the sector expecting robust growth and elevated consumer sentiment.
_20240511161025original_image_14.webp)
