Sales of premium jewellery gather steam
The demand for high-end diamond jewellery (all over Rs 5 lakh) is escalating at 50%
, much above the overall 20% growth. Jewellery makers are now focusing on this niche segment owing to the rising demand from consumers across the country.
Gitanjali Gems, ranking in the top 5 list of jewellery retailers, has witnessed sales of diamond jewellery worth more than Rs 5 lakh in the last one year. In the last fiscal, the company posted Rs 3,500 crore turnover and the share of high-end jewellery boosted to 15%. The company's chairman Mehul Choksi said: "Rise in disposable incomes is leading to more buys. Also, diamond jewellery is increasingly looked upon for investment. We feel, the segment will continue to grow at 50% in the years to come." He added, "Marriages account for 60% consumption of expensive diamond jewellery, and today, one diamond set during weddings has become a norm in higher middle-class families. Looking at the increasing trust in diamonds and its acceptance as investment option, we believe that the segment will rise by around 50% in the coming years,"
The retail branch of Su-Raj diamonds, Forever Jewellery, high-end jewels adds 40% to its turnover. Demand is rising in cities like Ahmedabad, Surat, Pune, Nagpur, Hyderabad, Gurgaon, Lucknow, Vadodara, Kochin, Allahabad, Ludhiana and Amritsar.
Gautam Gulati, chief operating officer (COO) of Mumbai-based Kiah Lifestyle Pvt Ltd said, "Earlier, only businessmen could buy diamond jewellery worth more than Rs 5 lakh at a time. Now, we also sell costly jewellery sets to professionals chartered accountants, doctors and IT & pharma professionals. However, it is clear that such jewellery is bought by people who also enjoy other luxuries and are mostly repeat buyers of diamond jewellery," Kiah has 6 stores across Mumbai, Delhi and Ahmedabad.
For high-end jewellery, the company has seen double digit growth. "We supply diamond jewellery to around 40 jewellers in different cities and the orders of jewellery worth more than Rs 5 lakh have trebled. All thanks to demand from smaller cities," Mr Gulati added. Kiah plans to open new growth stores in Patiala, Ambala, Bareli and Rajkot.
Tribhovandas Bhimji Zaveri (TBZ), based in Mumbai, has 14 stores spread across the city. They too have seen a rise in demand for diamond jewellery in the range of Rs 5-50 lakh. "Naturally, customers need better jewellery and to satisfy high-end customers, there is a need to always update designs and manufacturing. These are luxury products and will grow in coming years as Indian economy is growing," said Divyesh Shah, group head retail business of TBZ.
As per experts from the industry, economic development, pay hikes post the recession period, booming agricultural sector along with the always-soaring gold prices have encouraged buyers to purchase sought after diamond items.
Sales of premium jewellery gather steam
By: White Digital Media
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