The Indian luxury jewellery market is currently at a nascent stage and is set to grow rapidly driven by increasing aspirations and growing disposable income of Indian consumers. The increasing footprint of domestic and international luxury jewellery brands along with digital penetration would make luxury jewellery brands easily accessible to a larger consumer base across India.
What is luxury jewellery?
Luxury jewellery can be defined as jewellery made of precious metals and precious stones and sold by luxury brands.
Below mentioned are specific characteristics of luxury jewellery that separate it from premium jewellery and mass jewellery.
Product characteristics (Tangible)
- Innovative, distinctive, iconic, and timeless designs
- Exclusive, rare, limited edition
- Unparalleled craftsmanship (wearable art)
- Finest quality of metals and gemstones
- Expensive (priced significantly higher than its intrinsic value – the value of the material used)
- Often handmade – painstakingly produced
Emotional & Experiential characteristics (Intangible)
- Status symbol
- Aspirational
- Personalized and immersive brand experience
- Unique brand story – Heirloom, Heritage, Elite, Timeless, etc.
- Mostly appointment-based selling
Most luxury jewellers further classify their jewellery as High jewellery and Fine jewellery. High jewellery is more expensive than fine jewellery and is usually one-of-a-kind jewellery. High jewellery is also viewed as art in the form of jewellery.
Who sells luxury jewellery in India?
Indian luxury jewellery market is a relatively small market catered by a handful of domestic and international brands
Domestic brands:
These are a mix of Indian jewellery retailers and jewellery designers. Some examples are Zoya, Hazoorilal Jewellers, Ganjam, Sabyasachi, Farah Khan, etc.
International brands:
Several international luxury jewellery brands have a presence in the Indian market. Some examples are Cartier, Bulgari, Tiffany, etc.
The below table showcases the current number of jewellery boutiques or stores operated by the above brands in India
Who buys luxury jewellery in India?
There are two types of luxury jewellery consumers in India:
Traditional luxury consumers
- HNIs
- Industrialists and entrepreneurs
- Royal families
- Bollywood celebrities
- Jewellery connoisseurs & collectors
- NRIs
- Foreign tourists
Neo-rich luxury consumers
- Emerging middle class who are global travelers
- Fashionable and well-travelled women
- Younger and digitally savvy consumers
Why do people buy luxury jewellery?
There are mainly two reasons why people buy luxury jewellery
1) Status signaling – social and economic
2) Self-satisfaction – adornment and self-expression
The current state of the luxury jewellery market in India
Indian luxury jewellery market is currently at a nascent stage and is estimated to be less than $0.5 Billion market in 2021 (<1% of the overall jewellery market in India).
The global luxury jewellery market in comparison is estimated at $25BN in 2021 (~ 8% share of the global jewellery market).
The reason for the low penetration of luxury jewellery in India is that majority of Indians still look at jewellery as an investment as compared to the western market where it is seen as fashion and a form of art.
Recent trends in luxury jewellery in India
The increasing footprint of luxury jewellery brands
- Zoya plans to increase the number of boutiques from 5 to 12-15 in FY25. It also plans to increase the number of Zoya Galleries in Tanishq stores from 6 to 15-20 in FY25
- BVLGARI plans to have around 10 points of sales (both directly-operated stores and indirect stores or Shop-in-Shops) in the next 5 years
Digitalization
Luxury jewellery brands are adopting an omnichannel business model to target consumers across all channels. Digital, social media, and ecommerce websites are helping them break the geographic limitations of physical stores and reach a wider audience across metros and non-metros in India
Indians as global brand ambassadors of International luxury jewellery brands
- In 2021, Bvlgari appointed Bollywood actress Priyanka Chopra Jonas as its global brand ambassador
- In 2022, Cartier appointed Bollywood actress Deepika Padukone as its new brand ambassador
This would broaden the reach of these international luxury jewellery brands among Indian consumers
Future of luxury jewellery in India
Digital would act as a major catalyst in making luxury jewellery brands more accessible to a larger consumer base across India. Nearly all luxury jewellery purchase is expected to be influenced by online interactions.
Increasing marketing spending by luxury jewellery brands would create more awareness and aspiration for luxury jewellery.
The rising disposable income and global exposure of the emerging middle class are expected to drive the future growth of the luxury jewellery market in India
Conclusion
India currently ranks third in the world in terms of the billionaire population. The incredible growth in the number of self-made millionaires would rapidly expand the luxury consumer base in India
Would corporatization of the Indian luxury jewellery market be the next big opportunity? It would bring the necessary investment and expertise to scale up the home-grown luxury jewellery designers of India. It has already started in the fashion industry with large corporate houses like Reliance Brands Limited (RBL) and Aditya Birla Fashion and Retail Ltd (ABFRL) acquiring and investing in top fashion designers in India. Would luxury jewellery be the next?
Note: This article was exclusively written for SVAR – The Voice of Jewellers.
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