Market Speaks: India Jewellery Retail Sector Continues To Becomes Increasingly Organised Says WGC

29 Sep 2022 , 02:35 PM

According to a latest report from the World Gold Council (WGC), the Indian jewellery market has seen many structural changes over the last decade, some brought about by regulation and some by a shift in consumer behaviour. While the hallmarking regulations will provide a level playing field, national and regional chain stores are set to continue to gain market share because of their access to credit and the large inventory they carry. However, as many players start entering Tier 3 and Tier 4 cities, there should be a certain level of aspirational demand that they can tap into, allowing branded players to quickly gain market share. Small players need to become more transparent if they are to access credit, as banks and financial institutions are currently wary of lending to the gems and jewellery sector. While the jewellery retail sector continues the trend it began over a decade ago and becomes increasingly organised, the manufacturing sector is only at the beginning of this journey. Government and industry are focusing on shifting manufacturing from congested centres to jewellery parks and this will aid organisation within the trade. Meanwhile, the growing concern among retailers and consumers about ethical standards and working conditions of artisans represents an industry threat. In response, many large players only want to work with organised manufacturers, and it is these who will see their market share strengthened going forward.Powered by Commodity Insights