Despite rising gold prices and falling demand, major Indian brands are expanding into the gold jewellery market.
According to a news report in Outlookbusiness, while gold demand dropped by nearly 17% last quarter and prices surged by 18% year-on-year in June, companies like Aditya Birla Group are launching new jewellery brands, such as Indriya.
The confidence driving this expansion stems from the trust-branded jewellers command. The report stated that as festival and wedding seasons approach, retailers expect consumers to return, prioritizing the assurance of hallmarked, pure gold.
Sandeep Kohli, CEO of Novel Jewels, notes that organized retail, though still under 50% of the market, is growing rapidly.
The report added that India’s gems and jewellery market, currently 7% of GDP, is projected to grow from $75 billion in 2023 to $90 billion by 2025.
Leading players like Tanishq and Kalyan Jewellers are expanding nationwide, driven by shifting consumer preferences for lightweight, hallmarked, and ethically sourced jewellery.
The report noted that branded jewellers are well-positioned for growth despite current economic challenges due to an increasing focus on sustainability and transparency.
Per the report the festival and wedding seasons will test the resilience of this market.
