JEWELRY MARKET IN INDIA Jewelry Market: Market size 01 The Indian gems and jewelry industry has a market value of $64 billion, with solid growth potential & a projected value of $100 billion in jewelry exports alone by 2027 Jewelry market (FY23E, US$B) US$ 63.8B Fine Jewellery Fashion jewelry Jewelry with non- precious US$ 59.1B metal as a US$ 4.7B (93%) (7%) base Gold Silver Other fine metal US$ 50.9B US$ 4.0B US$ 4.1B (86%) (7%) (7%) Jewelry with gold as Jewelry with silver Jewelry with other a metal base as a metal base fine metals as a base Key Highlights 01 02 03 04 India’s gold & The Government Gold monetization, This market diamond export’s of India is import duty, contributes to 7% trade contributed looking forward hallmarking, etc. of the country’s ~7.5% to India’s to taking it to a are likely to help in GDP and 15.7% of GDP & 14% to milestone of US$ better growth of the India’s total India’s total 100 billion in industry and merchandise merchandise jewelry exports achieve the market exports exports by 2027 export target Note(s): Percentages mentioned are a split of the category heads in the preceding tier Source(s): Industry reports, Secondary research, 1Lattice analysis Jewelry Market: Competitive landscape 02 The Indian jewelry market is a dynamic landscape, with a diverse range of players adopting a multi-channel approach to sales Light jewelry players (jewelry predominantly using fine metal < 10 g) Fashion jewelry (semi-precious / others) Fashion & Silver Fine jewelry (precious metal) Silver Gold & Silver Gold Heavy jewelry players (> 10 g) Source(s): Industry reports, Secondary research, 1Lattice analysis Jewelry Market: Industry size 03 Silver is the most frequently purchased jewelry category; 71% silver users have an average annual spends of less than INR 8K per annum Frequency of jewelry purchase Average annual spend (%, N = 517) (%, N = 517) Yearly Annual 9.6K 24.9K 30K 27.3K 8.1K avg = 2 2 1 0.4 0.2 avg = freq. spend (months) (INR) 6% 6% 15% 15% 37% 9% 69% 37% 83% 11% 35% 71% 83% 69% 22% 9% 33% 44% 19% 3% 86% 21% 56% 25% 19% 17% 37% 24% 6% 12% 19% 8% 8% 7% 7% 4% 2% 3% 3% 2% 18% 16% 3% 3% 11% 2% 2% 1% 1% 1% Fashion Silver Gold Diamond Platinum Fashion Silver Gold Diamond Platinum More than INR 50K INR 25K to 50K INR 10K to 25K At least once At least once At least once in 3.1 to 6 months a month in 1.1 to 3 months INR 8K to 10K Less than INR 8K Have never purchased At least once Have never in 6.1 to 12 months purchased Voice of Consumers “I purchased jewelry last year “I buy small products for “My parents purchase jewelry since there was a marriage. We self-usage like nose pins, items for me as an investment. I bought a variety of items rings, and earrings almost buy silver items frequently for during that period. Moreover, I every 3 months since I love gifting to my friends. These are keep buying every 4-5 months to keep changing them. mostly small pendants with since I attend kitty parties and These are mostly gold and chains and rings since I find hence cannot repeat them.” silver items.” them affordable.” -Female, Hyderabad -Female, Mumbai -Female, Mumbai Note(s): Sample biased towards silver jewelry Source(s): Customer survey (N = 517) and consumer conversation (N = 33), 1Lattice analysis Jewelry Market: Consumer KPCs 04 Quality, design, and brand among others are the key criteria consumers look for while purchasing jewelry Quality • Quality of materials & craftsmanship is a primary consideration • Customers seek out jewelry that is well-made, long-lasting, and up to par Design and Aesthetics • Jewelry holds sentimental value & reflects wearer’s personality & style • A status symbol for many, and buyers may seek pieces that display their taste Brand • Reliability & reputation of the jewelry brand or merchant are key considerations • Trust in long-standing, reliable companies is higher Price and Value for Money • Jewelry is perceived to be a luxury item • Buyers closely look at resale value, pricing, offers & discounts Hallmarking and Certification • Buyers look for certification from agencies like Bureau of Indian Standards (BIS) • Provides assurance on the metal's purity & genuineness Occasion and Purpose • Occasions such as weddings, festive occasions, etc. influence the choice of metal & design • Festive buying is common among Indian consumers Voice of buyers “I buy jewelry from one specific brand because “I have a strong brand trust with the brand I the sterling silver quality is premium with great purchase from as they have authentic jewelry shine and quality. Even after months of use, the with proper certification & hallmark. It is value for shine is as it is, and it has not become dull.” money as we know exactly what we are buying.” -Female, Kolkata -Female, New Delhi Source(s): Industry reports, 1Lattice analysis Jewelry Market: Consumer Pain Points 05 Pain points are a hindrance while making jewelry purchase decisions; Affordability and authenticity are the major pain points of jewelry customers Trust and Sizing and Fit Quality and Authenticity Craftsmanship • Getting the right size for • Consumers are concerned rings & bracelets, can be • Shoppers demand well-crafted, about the authenticity of jewelry challenging durable pieces they are purchasing • Returns or resizing can be • Concerns about the quality of • Especially when buying online a hassle for customers materials & craftsmanship can or from lesser-known brands deter potential buyers Transparency Price and in Pricing Affordability • Perception of jewelry • Consumers feel as a luxury purchase, that the pricing of often being very jewelry is often expensive leads to opaque & affordability confusing concerns • Unclear markups & discounts raise CONSUMER buyer concerns PAIN POINTS Source(s): Industry reports, Secondary research, 1Lattice Analysis Jewelry Market: Trends 06 Consumer preferences are ever changing and are set to drive the jewelry market; AR / VR enhancing customer engagement with the try-before-you-buy experience 01 02 03 Technology AR / VR Personalization Sustainable luxury • Jewelry industry embraces • Customized jewelry • Consumer awareness is digital transformation with holds emotional value & on the rise & they prefer AR technology, offering is popular for its to buy luxury products "Try-before-you-buy" personal touch, which are ethically experiences especially custom name sourced, have positive necklaces socio-economic & • AR boosts customer environmental impact engagement, sales & data • Online jewelry shopping insights for brands emphasizes variety, • >90% of Indians prefer to convenience, buy natural diamonds • Top jewelry brands utilize AR customization, & quality which are sourced integration to help traditional ethically & are ready jewellers adapt to evolving • They are unique & are to pay a premium for consumer preferences & used for various the same pandemic-driven trends occasions Aulerth makes premium & environment-frie Big brands like Brands like Giva have started ndly jewelry Kalyan Jewellers to offer personalized jewelry have started to pieces which can be made add AR into their in gold, silver & rose gold online offering Outhouse Jewelry offers Tanishq has Brands like Tanishq & personalized also Cartier are premium brands bracelets & implemented which make ethically chains which AR for user responsible jewelry are 22K gold convenience Source(s): Industry reports, Secondary research, 1Lattice Analysis Jewelry Market: Trends 07 Jewelry brands focusing on trendy designs and silent luxury jewelry pieces; Young consumers having a stronger preference for diamonds 04 05 06 Growing preference for Trendy Designs Silent Luxury diamonds among youth • Consumers have started to • Young customers tend to buy • Silent luxury fashion prefer lighter & trendier flashier designs inspired from movement emphasizes on products; silver is the most new age social media platforms minimalist, high-quality & preferred products among timeless pieces that value • Diamonds most preferred by jewelry subtlety over flaunting new age consumers with ~55% wealth • Brands are currently contributed by consumers emphasizing everyday jewelry, within 18-35 years • Modern silent luxury gained catering to a younger audience global attention through • Different age groups result in with trendy designs, and brands like Bottega Veneta differing preferences and targeting consumers who prefer & The Row, offering exclusive buying habits simple, regular-wear pieces understated collections Diamonds being purchased by the younger CaratLane, is renowned for Silver jewelry strata of the minimalist jewelry. They craft becoming the top society elegant designs with clean choice among lines, simple shapes, and a consumers, with focus on material beauty brands like Voylla experiencing a surge in International popularity brands like Cartier & Tiffany & Co. have several Small & minimalist yet light jewelry luxurious preferred jewelry Brands Like Caratlane for regular designs have a strong social usage media presence Source(s): Industry reports, Secondary research, 1Lattice Analysis Jewelry Market: Growth drivers & Challenges 08 Higher income & positive government initiatives to drive the market ahead while economic volatility and rising online competition creating major challenges Growth drivers Challenges (Parameters) (Parameters) Higher disposable income Economic Volatility • Consumers experiment with • Economic downturns impact latest trends jewelry industry spending Favourable government initiatives Changing Consumer Preferences • Reduced taxation on gold & silver • Consumer preference shifts cause inventory & labor cost losses • Aim for higher exports Growing middle class Ethical Sourcing • Increase in aspirations • Consumers seek material transparency to prevent • Higher spending power environmental harm Adoption of branded jewelry Labor Practices • Adoption of Hallmark jewelry • Ensuring fair labor in lax-regulation countries is challenging for players • Organized market Increasing women workforce Inventory Management • Increase in gold purchase as • Overstocking or understocking women aspire to buy jewelry can lead to major financial losses High online ticket spends Online Competition • Rise in acceptance of purchasing • Online stores intensify competition, jewelry online disrupt traditional jewelry retailers Source(s): Industry reports, Government reports, Secondary research, 1Lattice Analysis Case Study: Melorra 09 Melorra bringing a shift in the traditionally run jewelry market with its 3D printed jewelry; Over 15,000 SKUs and 26 offline stores across India Bengaluru, ~US$ Daily wear jewelry, 2015 Series D India 80M 3D printed jewelry Founded Headquarters Total funding Company stage Offerings 3D Printing Business Facts 3D jewelry printing is a revolutionary technology using additive manufacturing for intricate, customizable, and sustainable 26 jewelry production Advantages Stores across India 15K+ 250K+ Rapid Cost- Reduced Reduced Complex SKUs Users served prototyping effective Material waste inventory geometrics Business Highlights Financials & Future • Melorra has seen growth at 200% CAGR over • Emphasizes affordability, with most pieces the last few years, with a revenue of priced under $100 US$~45M in FY22 • Focuses on sustainability, using recycled • They deliver to ~720 districts & ~2800 towns metals and ethical sourcing practices • Melorra has also started to build an • Partners with influencers and celebrities to international presence with exports to the UK, promote their brand and create a buzz USA, UAE & Singapore • Melorra has recently raised US$16 million to • Continuously innovates with new designs, and establish offline experience centres & focus technology to stay ahead of the competitors on brand awareness • Offers a referral program, incentivizing • Company expected to reach US$1 billion in customers to spread the word about the brand revenue by FY2026 Source(s): Company websites, Secondary research, 1Lattice analysis Case Study: StyleDotMe 10 MirrAR by StyleDotMe elevating customer experience with inclusion of virtual try-ons in traditional and online commerce Gurugram, ~US$ Pre-series Virtual try-on, 2014 India 35M A fashion advice Headquarters Total funding Company stage Offerings Founded StyleDotMe by Business Facts MirrAR MirrAR is an augmented reality 50+ 15M+ 100+ platform launched by StyleDotMe in 2015 which helps jewellers Customers Try-ons Countries sell products without across the completed served the need for physical world inventory Integrations 01 Enables virtual try-ons on Enables multichannel Website digitised versions of their experiences and a seamless inventory inside the physical transition between them for 02 boundaries of their store global shoppers 04 In-Store * SDK 03 Add real-time 3D masks & Upgrades brand’s mobile Social AR filters to your handles, app with point virtual create a digital catalogue try-on experiences Business Highlights Clients • AR software allows customers to try Conversion products in real-time, boosting purchaser confidence & sales • 160% conversion rate achieved using the AR platform • Virtual try-on experiences Returns enhance consumer confidence, reduce return rates • Returns reduced by 37% Note(s): *SDK stands for software development kit, it is a set of tools used to build software for a particular platform Source(s): Company website, Secondary research, 1Lattice analysis Case Study: Bluestone 11 Bluestone, an online jewelry pioneer, now operates 150 offline stores and aims to double this count by 2024 for extensive growth Bengaluru, ~US$ Precious metal & fashion 2011 Series E India 112M jewelry, solitaire, coins Headquarters Total funding Company stage Offerings Founded Financials & Future Business Facts • Company is on an expansion spree and plans to expand to 300 stores by 2024 from 150 offline stores currently 300 • Bluestone reported INR 461.4 Cr as its operating revenue in FY22 from INR 244.6 Cr in FY21, an increase of 89% YoY Offline stores by 2024 • Net loss widened 40X to INR 1,268.4 Cr in the financial year FY22 from INR 31.5 Cr reported in FY21 due to a 7000X loss on fair valuation of shares* due to change in accounting practices 8000+ 400K+ • Advertising promotional expenses also doubled to INR 42.3 Cr in FY22 from INR 20.4 Cr in FY21 Contemporary Instagram • Current valuation of Bluestone stands at US$410 M designs created followers Business Highlights Clients Life time exchange • Offer a lifetime exchange & buyback policy • Product can be returned or exchanged basis its current market value, with deductions towards making charges 10 + 1 monthly plan • Free 11th month instalment after 10 monthly instalments which can be redeemed after 11 months Try – at – home • Provides try – at – home service (free for first time online shoppers) to experience jewlery personally 3D jewelry rendering • Extensively use 3D printed resin to improve Ratan Tata the production process and reduce time to make big pieces Note(s): *Bluestone is a private company Source(s): Company website, Secondary research, 1Lattice analysis EXPERT SPEAK The Indian jewelry market is at a dynamic landscape characterized by a myriad of players adopting innovative multi-channel sales strategies. Similarly, Indian consumers are getting more comfortable buying higher value products also on online channels. The bumper exits that we recently saw in the jewellery start-ups signals a positive sentiment towards the new-age jewellery market, with PE and VC investors keeping a close eye on the burgeoning sector fueled by higher disposable income with increase in discretionary spending and a modern outlook on jewellery. -Roma Dixit The team at appreciates your time and support THANK YOU Enabling Better Decisions. New Delhi Gurugram Mumbai Bengaluru Unit 5, Ground Floor, Tower A, 4th Floor, DLF 112, First floor, 2734, Fourth floor, Uppal Plaza M6, District Centre Court, DLF Phase Workafella, AK Estate, HSR Layout, Sector 1, Centre, Jasola -110 025 5, Sector 42, Goregaon West, 27th Main, 16th Cross, New Delhi, India Gurugram-122 002 Mumbai - 400 062 Bengaluru - 560 102 Haryana, India Maharashtra, India Karnataka, India Registered address: Unit 5, Ground Floor, Uppal Plaza M6, District Centre, Jasola, New Delhi -110025
