Jewellery Retailing Sector Analysis Report 

Latest research: We found 3 opportunities in this zig-zagging market

"Jewellery is a very involved category in India with high value standards." - Sandeep Kulhalli, Senior Vice President – Retail & Marketing, Tanishq

The jewellery industry in India is a vibrant, traditional, and high-value sector that plays a big role in the nation's economy.

As one of the fastest-growing industries, it is highly labour-intensive and export-oriented, making substantial contributions both to employment and to foreign exchange earnings.

India’s gold and diamond trade accounts for approximately 7% of the country’s GDP, while the gems and jewellery sector provides employment to nearly 5 m people.

Recognizing its potential, the Government of India has implemented various initiatives to attract investments, upgrade technology, and enhance skill development. These efforts aim to strengthen the global presence of "Brand India" in the jewellery domain.

Notably, the government has allowed 100% Foreign Direct Investment (FDI) under the automatic route, eliminating the need for prior approval from the Reserve Bank of India or central government.

According to the Gem & Jewellery Export Promotion Council (GJEPC), the Indian gem and jewellery market—currently valued at Rs 7.37 trillion (US$ 85 billion)—is projected to grow significantly, reaching Rs 11.27 tn (US$ 130 bn) by 2030.

The growth in exports has been primarily driven by a resurgence in demand from the US and the successful execution of orders secured by Indian exhibitors through Virtual Buyer-Seller Meets (VBSMs) organized by the Gem & Jewellery Export Promotion Council (GJEPC).

However, in FY24, India’s gems and jewellery exports declined to US$ 22.27 bn, a 14.94% decrease compared to the previous year.

The Government of India, in collaboration with key stakeholders in the gems and jewellery sector, remains firmly committed to boosting exports.

This includes identifying industry challenges and implementing targeted interventions, particularly to support Small and Medium Enterprises (SMEs).

Efforts are also being directed towards expanding into new international markets while strengthening India’s presence in established ones.

Recognising its strong growth potential, the government has officially designated the gems and jewellery sector as a priority area for export promotion.

Challenges Faced by the Industry

While the Indian jewellery retailing industry remains on a strong growth trajectory, it is constrained by several structural, regulatory, and market-driven challenges.

These hurdles affect the sector’s efficiency, scalability, and global competitiveness.

The key challenges are outlined below:

1. Heavy Reliance on Imported Raw Materials

   The Indian jewellery industry is significantly dependent on imports for critical raw materials such as gold, diamonds, and other precious stones.

   This overreliance exposes the sector to international price volatility, supply chain disruptions, and foreign exchange risks. Moreover, limited indigenous sourcing restricts opportunities for backward integration and cost optimisation.

2. Labour and Skill Constraints

   As a labour-intensive sector, the industry continues to face difficulties in attracting and retaining skilled artisans. Challenges include inadequate training infrastructure, low wages, and suboptimal working conditions.

   The traditional karigar (artisan) ecosystem is under pressure, with declining interest among younger generations to pursue jewellery craftsmanship.

3. Evolving Consumer Preferences

   Rapid urbanisation, rising disposable incomes, and changing fashion trends have led to a shift in consumer demand towards lightweight, branded, and personalised jewellery.

   Retailers must remain agile and responsive to these evolving preferences. A lack of innovation or adaptability risks product obsolescence and erosion of market share, particularly among younger urban consumers.

4. Currency Volatility

   Given its dependence on both imports and exports, the jewellery sector is highly vulnerable to exchange rate fluctuations.

   Currency volatility poses challenges in terms of pricing consistency, inventory management, and margin stability.

5. Limited Value Addition in Product Design

   Despite India being one of the largest gold-consuming nations, the industry continues to struggle with low value addition.

   A strong consumer preference for pure gold jewellery limits the adoption of innovative designs, artistic craftsmanship, and contemporary styling. This trend hinders the growth of premium, branded, and higher-margin jewellery segments.

6. Regulatory and Import-Related Constraints

   To manage the Current Account Deficit (CAD), the Government of India and the Reserve Bank of India (RBI) periodically impose restrictions on gold imports.

   These include import duties, licensing norms, and quantitative caps. While aimed at curbing domestic demand, such measures often lead to supply chain disruptions and increased procurement costs for retailers.

Strategies Adopted by the Gems & Jewellery Industry

To remain competitive and meet evolving consumer demands, players in the Indian gems and jewellery industry have implemented a range of strategic initiatives. These measures aim to enhance market reach, improve customer engagement, and adapt to emerging retail trends.

Key strategies include:

1. Expansion Through Exclusive Showrooms

   Leading jewellery retailers are actively expanding their footprint by opening exclusive showrooms, particularly in tier I and tier II cities. This expansion strategy not only improves accessibility but also helps cater to a more discerning, urban customer base.

   Additionally, companies are increasingly seeking to integrate operations across the value chain, from sourcing to retail.

2. Strengthening Online Presence

   With rising internet penetration and a growing base of digitally savvy high net worth individuals (HNIs), the industry is witnessing significant growth in online jewellery sales.

   Retailers are leveraging their own e-commerce platforms and partnering with leading online marketplaces like Amazon India, as seen in the case of Joyalukkas, to broaden their digital footprint and reach a wider audience.

3. Introduction of Gold Buyback Schemes

   To build consumer trust and encourage repeat purchases, several jewellery brands have introduced gold buyback guarantees.

   These schemes allow customers to return purchased jewellery within a specified period, subject to predefined terms and conditions, thus providing greater flexibility and assurance.

4. Focus on Customised Jewellery

   Recognising a growing preference for personalised and bespoke jewellery, companies are increasingly offering customisation services.

   Brands like Malabar Gold & Diamonds enable customers to tailor their jewellery designs as per individual tastes, enhancing customer satisfaction and loyalty.

5. Virtual Buyer-Seller Engagement

   In response to global travel restrictions and evolving B2B dynamics, the Gem & Jewellery Export Promotion Council (GJEPC) launched its first Virtual Buyer-Seller Meet (VBSM) for loose diamonds in September 2020.

   These virtual platforms facilitate seamless interaction between buyers and exhibitors, enabling business continuity and expanding international outreach.

Porter’s Five Forces Analysis – Indian Jewellery Retail Industry

1. Competitive Rivalry – High

   The Indian jewellery industry is marked by intense competition, with a mix of organised national chains and a large unorganised segment of local jewellers.

   While heritage brands enjoy strong customer loyalty and reputational advantage, the market remains crowded and price-sensitive. Continuous innovation in design, customer service, and branding is essential for players to maintain or grow their market share.

2. Bargaining Power of Buyers – High

   Buyers in this sector wield significant power due to the abundance of choices and ease of price comparison, especially with the growth of online retail. Customers increasingly expect transparency, quality assurance, and competitive pricing.

   Additionally, the growing preference for branded and certified jewellery further pressures retailers to maintain high standards while offering value.

3. Bargaining Power of Suppliers – Moderate

   The industry relies heavily on the procurement of precious raw materials such as gold, diamonds, and gemstones.

   While jewellers have access to a range of suppliers, the limited availability and price sensitivity of key materials especially diamonds, gives certain suppliers moderate bargaining power.

   However, large, organised players mitigate this through bulk procurement and long-term sourcing relationships.

4. Threat of New Entrants – Moderate

   Barriers to entry in the jewellery retail space include the need for brand trust, capital investment, regulatory compliance, and establishment of distribution networks.

   While these barriers provide some protection to established players, digital channels, D2C models, and growing demand for lightweight and affordable jewellery, have made market entry more accessible for niche and online-first brands.

5. Threat of Substitutes – Low

   Jewellery, especially in the Indian context, carries deep emotional, cultural, and investment value, which significantly reduces the risk of substitution.

   Although consumers might shift to other luxury goods or experiences, jewellery remains a preferred gift, tradition-linked asset, and status symbol, particularly during weddings and festivals.

Financial Comparison of Listed Companies

		FY 24
	Particulars	Market Cap (₹ Cr)	P/E Ratio	Net Sales	Operating Profit	ROCE (%)
Company Name	Titan Company Ltd	320077.98	96.86	510840.00	58250.00	25.01
	Kalyan Jewellers India Ltd	58853.70	73.80	185482.86	14417.19	15.94
	Senco Gold Ltd	5973.54	33.11	52414.43	4307.68	14.87
	PC Jeweller Ltd	8338.13	0.00	6054.00	-1063.70	-1.77

Peer Profiles

1. Titan Company

   Titan Company Limited, a part of the Tata Group, is one of India’s leading consumer lifestyle companies.

   It is best known for its diversified portfolio, which includes watches (Fastrack and Sonata), jewellery (Tanishq and Mia), eyewear (Titan Eye+), and accessories.

   Titan’s jewellery division, Tanishq, is among the most trusted and premium jewellery brands in India, with a strong focus on design innovation, trust, and customer experience.

2. Kalyan Jewellers India

   Kalyan Jewellers is a prominent pan-India jewellery retailer offering a wide array of products including gold, diamond, pearl, white gold, gemstone, platinum, and silver jewellery. Its product range features chains, necklaces, rings, earrings, bangles, and bracelets.

   Through its customer-focused initiative ‘My Kalyan’, the company provides value-added services such as jewellery purchase schemes, gold insurance, wedding purchase planning, gift vouchers, and educational guidance on gold buying, enhancing customer engagement and trust.

3. Senco Gold

   Senco Gold Limited is a well-established jewellery retailer in India with a strong presence, particularly in eastern India. The company specialises in gold and diamond jewellery, while also offering pieces crafted from silver, platinum, and semi-precious stones.

   In addition to traditional jewellery, Senco offers costume jewellery, silver coins, and silver utensils, catering to a diverse customer base across various price points and product preferences.

4. PC Jeweller

   PC Jeweller is engaged in the manufacturing, retailing, and trading of a broad assortment of jewellery. The company offers 100% hallmarked gold jewellery along with a variety of diamond-studded pieces, silver articles, and precious stone jewellery.

   PC Jeweller operates through a mix of company-owned and franchise stores, focusing on offering certified, high-quality products with customisation and transparency at competitive prices.

Major Non-Listed Companies

While not listed on stock exchanges, the following companies are significant players in India’s jewellery retail market. Due to their scale, reach, and brand equity, they are essential for qualitative benchmarking.

1. Malabar Gold & Diamonds

   Headquartered in Calicut, Kerala, Malabar Gold & Diamonds is one of the world’s fastest-growing jewellery retailers.

   The company operates across 13 countries and manages 15 business verticals, with an annual turnover of approximately US$ 7.5 bn.

   With a global workforce of over 25,000, Malabar has established a strong presence in both domestic and international markets, supported by extensive retail expansion and a diversified product portfolio.

2. Joyalukkas India

   Joyalukkas has built a wide network of over 175 showrooms spanning 11 countries, including key markets such as India, the UAE, UK, US, Singapore, and Malaysia.

   It is recognized as a trusted global jewellery brand and continues to expand aggressively in international markets.

3. Lalithaa Jewellery Mart

   Established in 1985 and headquartered in Chennai, Lalithaa Jewellery has built a strong reputation across South India.

   The company is known for its focus on transparent pricing, minimal wastage charges, and quality craftsmanship.

   With a robust network of retail outlets, it caters primarily to the value-conscious consumer segment while offering a wide range of gold and diamond jewellery.

Conclusion

The Indian jewellery retail industry is rich in tradition and yet is rapidly modernising.

With a market poised to grow from Rs 7.37 trillion (tn) to Rs 11.27 tn by 2030, the sector promises significant long-term potential. It remains a cornerstone of India’s cultural identity, a major contributor to employment, and a key driver of export earnings.

While the industry faces structural challenges such as dependence on imported raw materials, currency volatility, evolving consumer preferences, and skill shortages, leading firms have proactively adapted through digital transformation, showroom expansion, gold buyback programs, and personalised offerings.

Organised retailers like Titan, Kalyan Jewellers, and Senco Gold continue to drive formalisation in the sector, leveraging brand trust, design innovation, and operational efficiency.

Simultaneously, large unlisted players such as Malabar Gold & Diamonds and Joyalukkas command significant market share and international presence, serving as qualitative benchmarks for the industry.