The Indian gems and jewellery sector reportedly contributes about 6-7% to India’s Gross Domestic Product (GDP). According to the Gems and Jewellery Export Promotion Council (GJEPC), India's gems and jewellery sector is one of the largest in the world, contributing 29% to the global jewellery consumption, and having more than 300,000 gems and jewellery players. Its market size is about $54.58 billion of which 55% is accounted by the unorganised sector. During Dhanteras, the market shines. BE speaks to two renowned jewellery brands to find the trends this Dhanteras.
Tanishq is a jewellery brand of India and a subsidiary of Titan Company, a company promoted by the Tata Group in collaboration with the Tamil Nadu Industrial Development Corporation (TIDCO). This particular Jewellery brand has been contributing large in Indian Jewellery market since its starting in 1980s.
Anjali Jewellers is a West Bengal based jewellery house that has recorded significant growth during recent years. This jewellery house has been generating crores of revenues for Indian jewellery industry. Keeping in mind today’s youth who are more inclined to shop online than offline Anjali Jewellers is also focusing largely on online shopping.
Deepika Sabharwal Tewari
Associate Vice President, Marketing, Jewellery
Division at Titan Company Limited
Q. How does Dhanteras provide an opportunity to jewellery brands?
A. Dhanteras is an extremely auspicious occasion characterised by the worship of the goddess of wealth, Lakshmi. On this day, gold is considered to be highly propitious and a sign of good luck, which ensures that it, is the perfect opportunity for consumers to buy gold in the form of jewellery. Dhanteras and Diwali are the most important season of business for jewellery brands as the highest amount of our sales take place around this period.
Q. What are your major offerings during Dhanteras?
A. Jewellery is an integral part of every celebration of the country and Tanishq beautifully fits in with each and every festivity. Needless to say, the upcoming Dhanteras and Diwali festivities are extremely important and Tanishq has put together enough mechanics in place to offer consumers the most favourable experience. Tanishq has come out with the new collection, Utsava, which is a beautiful fusion of modern and traditional styles. We are currently offering up to 25% off on making charges of plain gold jewellery and diamond jewellery value.
Q. What is your expectation from the market during this Dhanteras?
A. In the past one year, the gold and jewellery market has seen steady growth. While there have been some ups and downs with fluctuations in gold prices there has not been any drastic impact on sales or consumer demand. Tanishq saw great traction during seasons like Akshaya Tritiya, Gudi Padwa, Teej, Varamahalakshmi and Durga
Puja earlier this year and we are expecting this to continue over the next month as well. Dhanteras and Diwali are some of the biggest celebrations in the country and purchase of gold and/or jewellery is considered auspicious during this time. We are expecting the sales and demand to be favourable and in line with our expectations from the festive season.
Q. Are you planning to launch any new product or design keeping Dhanteras in mind?
A. We are completely geared up to add to the festivities and have introduced ‘Utsava’, an enchanting collection that showcases the rich culture and beauty of our country, encapsulating the true essence of the festive season. The collection consists of statement pieces that bring about an edginess and style with delicate craftsmanship.
Anargha Chowdhury, Director, Anjali Jewellers
Q. How is Anjali Jewellers greeting the coming Dhanteras festival?
A. Anjali Jewellers is going to be celebrating Dhanteras from the October 31, 2018, till Dhanteras, which is in the first week of November this year. We celebrate it more like a carnival with lots of gifts and various offers to make it a memorable experience for our customers.
Q. As you have customers for diversified jewellery products, how do you balance the demand during this festive season?
A. Since we cater to almost everyone from all walks of life, we have separate sections for the kind of jewellery we sell. We also advertise special pieces at attractive prices for clients to make it easier for them to come and buy saving them time and also coming with a pre-decided budget thus making it easier for them to avoid the rush.
Swapan Paul, Partner, Sananda Jewellers
The Sananda Jewellers, Kolkata, told BE that their jewellery house is ready to embrace the coming Dhanteras. They are giving big discounts on the making charge of ornaments and the customers will be gifted generously as per the range of their purchase. Paul is expecting 30%-40% increase in the sale of jewellery due to Dhanteras.
Jewellery companies are expanding to more and more cities, as well as expanding across the value chain Retailers in India have started selling their jewellery online. The growth of online jewellery is driven by increasing internet penetration rates, growth in high net worth individuals’ population and availability of low online jewellery prices.
India’s population is increasingly becoming urbanised, which is expected to boost household income, thereby leading to higher demand for gold and other jewellery. According to India Brand Equity Foundation (IBEF), income levels are the most significant long-term determinant of consumer gold demand. Holding all else equal, a 1% rise in income leads to a 1% rise in gold demand.
In the Union Budget 2017-18, the Government of India offered tax cuts for the middle class and other sections of society (5% for the Rs. 250,000-500,000 tax slab; which was 10% initially). The Government of India’s proposal to cut corporate tax rates to 25% for micro, small and medium enterprises (MSMEs) having annual turnover up to Rs. 50 crore ($ 7.5 million) will benefit a large number of gems and jewellery exporters from MSME category.
The government has also permitted 100% Foreign Direct Investment (FDI) in the sector under the automatic route. All these measures are well poised to enrich the Indian ornament market during this year’s Dhanteras.