India’s jewellery market, particularly in the natural diamond sector, continues to experience significant growth, driven by changing consumer preferences and rising disposable incomes. This insight was shared in an exclusive media interaction by Ajoy Chawla, CEO of Titan’s Jewellery Division, and Amit Pratihari, Managing Director of De Beers India. Both executives outlined a positive trajectory for the market, with continued double-digit expansion and increasing consumer trust in branded jewellery.
Robust Growth in Diamond-Studded Jewellery
India’s jewellery market is witnessing a boom in the studded jewellery segment, spurred by urbanization and a shift in consumer behavior. Chawla noted that the diamond-studded jewellery sector has experienced consistent growth, particularly in the months following the festive season. “We’re seeing double-digit growth in both the number of buyers and ticket sizes over the last 4.5 months,” he said. However, he pointed out that buyers of diamonds under 2 carats are more cautious and adopting a ‘wait-and-watch’ approach, with solitaires making up just 10% of Titan’s diamond-studded category.
Gold coins have also exceeded expectations, delivering consistent year-on-year growth of 30% to 40%. Additionally, new consumers are driving much of this growth. In the second quarter, 46% of Tanishq’s buyers were new customers, signaling a shift in the demographic of jewellery buyers.
Evolving Consumer Trends and Changing Perceptions
Amit Pratihari highlighted the evolving nature of diamond consumer preferences, emphasizing that modern buyers are looking for versatile, meaningful designs that reflect individuality. “Jewellery is no longer just for special occasions; it’s becoming an expression of everyday elegance,” he explained. The rise of working women, especially in smaller cities, has further transformed the market, with these consumers viewing jewellery as a symbol of accomplishment rather than a social statement.
India’s increasing affluence, particularly in smaller cities, is contributing to this shift, with many consumers now making informed, independent purchasing decisions. “Women in smaller cities no longer seek validation for their purchases. They’re buying jewellery as a lasting investment and a reflection of their success,” Pratihari said.
Expansion of Tanishq and Regional Dynamics
Tanishq, India’s largest jewellery brand, continues to expand its footprint, reaching 496 stores in the latest financial year, a 7.8% growth year-on-year. The brand is also enhancing its offerings with newly renovated stores and an increased retail capacity. Other Tanishq brands, such as Mia and CaratLane, are also growing rapidly, with Mia set to reach 250 stores by year-end and CaratLane recently launching its 300th store.
Regionally, diamond-studded jewellery is performing strongly in the north and west, with the south and east catching up. Tanishq’s share of the organized jewellery market now stands at 24%. The company plans to increase its focus on studded jewellery, aiming to grow its share beyond 30% in the coming years. Chawla stressed that the brand’s growth strategy is based on selecting cities with high potential for studded jewellery performance.
Quality, Trust, and Consumer Education
Despite challenges like price volatility and the rise of lab-grown diamonds (LGDs), natural diamonds continue to thrive. Pratihari noted that India now accounts for 11-15% of global polished diamond consumption, underscoring the growing demand for natural diamonds. Both Chawla and Pratihari emphasized the importance of trust and transparency in building consumer confidence. Tanishq has implemented stringent quality control measures, including advanced detection technologies and a three-stage machine process to ensure its diamonds are free from contamination.
Chawla further explained that the brand focuses on showcasing diamonds for their brilliance and sparkle, qualities that resonate with consumers, particularly women. “We ensure that diamonds are seen not just as commodities but as symbols of beauty and authenticity,” he said. Additionally, Tanishq is investing in customer education, training staff across 150-200 stores and hosting events to foster greater awareness and transparency in the diamond market.
Addressing Challenges and Looking Ahead
The rise of LGDs, which are priced significantly lower than natural diamonds, presents both an opportunity and a challenge. While LGDs target a different consumer segment, the government’s new regulations requiring clear labelling will help consumers differentiate between the two. Pratihari emphasized that India’s jewellery market has immense untapped potential, with only 7-8% of the population currently owning diamonds.
As disposable incomes rise and consumer aspirations evolve, demand for branded, premium jewellery is expected to grow. Tanishq, alongside partners like De Beers, is positioned at the forefront of this growth, shaping the future of India’s jewellery industry. “India’s love for jewellery, particularly diamonds, is poised to strengthen, securing the country’s position as a global leader in the sector,” Pratihari concluded.
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