Global economic recovery is transforming the very format of businesses across segments and cross continent trade is building momentum as brands are eyeing lucrative markets to park their offerings and increase the bottom-line. China and India are the two consumer giants waiting with an appetite like never before, waiting to embrace global culture and taste which will go a long way to strengthen their economics as the most busiest of departments in these two large economies are TRADE AND COMMERCE. Like Anand Sharma, the commerce minister of India rightly puts it, "India is the global leader in the diamonds and colored gemstone sector, and is looking forward to greater investment by the world's top jewellery and watch brands into the country," .
The world has reciprocated and India is preparing to experience one of the most important transition that will open a new chapter in the history of the Indian Gem and Jewellery industry – INTERNATIONAL BRANDED JEWELLERY. Vying in for space in every store / mall, would be an International brand armed with quality, service and technology. The mergers and acquisitions being witnessed lately in the Indian Gem and Jewellery industry is testimony to the fact that world is going to be a single marketplace and India the biggest retail store.
Some of the prominent Indian players who are making this possible are Gitanjali group, Priority group, and Rose, to name a few giving Indian consumers a taste of International products and services. Gitanjali has the most visible jewellery brands in the domestic market today including Nakshatra, Gili, Asmi and D’damas and the company acquired the Samuels and Rogers, a US-based jewellery retail chain in 2006-2007 to set its feet in the global jewellery market. In 2010, it acquired leading Italian jewellery brands Stefan Hafner, Nouvelle Bague, Io SI, Porrati and Valente to become the world’s largest branded jewellery retailer. The same year, the company enhanced its presence in the luxury lifestyle sector across India. The company acquired Giantti, another Italian jewellery brand to give its Indian consumers a global touch.
The most recent of JV between Priority Group, the owners of brand “Priority jewels” and retail chain “Just in Vogue” and Aaron Shum Jewelry of Hong Kong, to manufacture and market “Coronet Solitaire” in India adds to the potential that India as a jewellery country is projecting. MMTC, the state owned mining and precious metals supply company of India is also looking at launching jewellery chain outlets within the next quarter encashing on the large domestic consumer market.
Apart form the International players vying in for a share of the consumer market, we are also seeing domestic players expanding into manufacturing to satisfy the global need and also expanding their local formats regionally. Indian jewellery retailers are looking at becoming regional leaders to curtail the growth of National jewelers and International companies entering tier 11 and tier 111 cities. Just like Kashi jewelers of Kanpur venturing into jewellery manufacturing and aspiring to expand into chain store or Punjab jewelers of Inddore and Ranka of Pune increasing their retail space to close to 50,000 sq ft each making them stronger regional players. Indian corporate jewellery companies like Tanishq, Gili, RAA, Kisna and Orra are also strategizing to make their presence felt nationally to give a quality and uniform experience to the consumers.
With the number of expansions, mergers and acquisitions that the country will witness in the next few months, 2012 is destined to make India a Mecca for BRANDED JEWELLERY. There will be a clear-cut demarcation between National,
International and Local brands pitching for a share of the consumer wallet. While branded jewellery will gain grounds the retail outlets will also undergo transformation. Conventional jewellery outlets will change to offer LOUNGE area to those privileged customers and specialize in COUTURE for special occasions. Sales and service levels will become multi dimensional and seek to give a personalized experience to the customer as COUTURE will take front seat to give a new meaning to designer jewellery, thus taking DIAMOND back to the premium slot.
GOLD will rule, whether through exchanges or jewellery, the yellow metal is sure to increase in tonnage terms in India. India has always been a gold country and with the entry of commodity exchange investment in Gold [physical and non physical] has increased more than 10 folds in the last decade. Gold consumption would be duly complimented by the launch of gold jewellery brands. DAMARA is one such Indian entity seeking to launch Gold and Silver BANGLES in India. PRIORITY JEWELS will be launching gold jewellery brand in 2012 and would be spreading through self and most of its 400 odd partner outlets in the country.
Soaring Gold and Diamond prices will not be a deterrent to sale as customers will find a jewellery alternative in every avenue that premium consumer products are sold. Jewellery kiosks and stores would be visible and consumers will shop JEWELLERY throughout the year. Jewellery then, will not be bought for investment as there would be innumerable other mediums for investment such as commodity exchanges which will mature in service and deliverables.
Platinum will become an aspirational metal and will a surge in demand with more and more big retailers stocking Platinum jewellery for the elite. Platinum jewellery will prove to become an important alternative to heavy gold jewellery and with COTURE building in, the young Indian rich will start preferring Platinum jewellery.
