Young Entrepreneurs in Indian Gold and Jewelry Industry

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The love for jewellery is never-ending in India. The constant evolution and innovation in the gold and jewellery industry appear to have a glittering future. The business models evolve with time, sometimes due to changes in the demand and sometimes due to the advent of technology, resulting in the emergence of new trends.

The Indian gems and jewellery industry contributes close to 7% of India’s total GDP and employs over 5 million people. According to the India Brand Equity Foundation (IBEF), India’s gems and jewellery sector is one of the largest in the world contributing 29% to global jewellery consumption.

The outbreak of Covid-19, In April-June 2020, caused a significant slowdown in international demand and the G&J sector. The total exports were only around US$ 2.64 billion, a decline of about 70% than before.

Despite the global pandemic, India’s gold consumption in the first three months of 2021 increased by 37%. In Q1 of 2021, total jewellery demand was up by 39% from a year ago to 102.5 tonnes. Total investment demand for Q1 2021 increased by 34% to 37.5 tonnes in comparison with Q1 2020. Total gold recycled in India in Q1 2021 was 14.8 tonnes compared with 18.5 tonnes in Q1 2020, a drop of 20%.

In short, considering the country’s economic recovery, the demand for Gold in India is shining.

According to World Gold Council, as of October 2021, they state that;

‘Gold demand is likely to be strong in 2022. In 2022, economic growth and the impact of pent-up demand for gold are likely to herald a period of robust demand, although any future outbreaks of coronavirus could create further uncertainties’

The current trends in the Gold and Jewelry industry

Jewellery is not just an accessory or a style statement. It reflects the human personality and has the ability to change human emotion. Jewellery spreads positivity. The outbreak of the covid-19 pandemic started a new era in the gold and jewellery industry. The future of jewellery is redefined with the following trends:

1.   Online era

Buying gold itself is an event. The elaborated affair includes visiting jewellery shops or jewellers coming home, selecting jewellery, wearing jewellery to check comfort and weight, and testing. This elaborated affair is gradually changing. The 21st century is an era of digitalization. The emergence of e-commerce in the G & J sector is re-shaping the gold buying experience.

Millennials prefer a seamless, convenient, and easy retail experience. They find it more accessible to buy jewellery online. According to research, the Indian online Jewellery market is estimated at $850 Million in 2019 and is projected to grow to $3.7 Billion by 2025, at a CAGR of 28%.

The top online jewellers to look at are:

1. BlueStone
2. CaratLane
3. Tanishq – Titan Jewellery
4. Voylla
5. Pipa Bella
6. Isharya
7. PC Jeweller
8. Candere
9. Velvetcase
10. Jewelsouk

2. Lightweight Jewelry

The wearable lightweight jewellery is a choice of Millenials. Gold is no longer only traditional heritage jewellery. Due to the high price and low liquidity, Indian Jewelers are finding innovative ways to gain the attention of customers.

The higher price of gold is prompting buyers to reduce their purchases in volume terms. Indian jewellers are creating innovative designs to attract buyers looking for heavy-looking but light-weight products.

The younger generations are opting for Italian and contemporary designs light in weight, and therefore, affordable.

3. Floral Power

Floral is back on trend. The versatility of floral design jewellery has gained huge popularity. The designs range from bold and beautiful to fragile and petite. The elegant floral designs provide a diversity of pairings too. The metal base varies between yellow gold, white gold and the eternally elegant rose gold. These metals are beautifully offset by an array of precious stones, pearls, crystals, and diamonds. This has made floral jewellery the new favourite for brides across the country.

The modern designs and detailing of the floral jewellery are gaining traction and are all set to become the biggest bridal trend to watch out for. These not only add to the style statement but also signify good fortune, eternity and purity.

4. Geometric pattern

Geometric pattern jewellery is one of the most eye-catching jewelry trends. Geometric jewelry with sharp edges and avant-garde styles is trending across the industry. Geometric gold jewelry is an outstanding combination of imagination and craft. The youth entrepreneurs in the G&J sector are transforming the traditional design into a contemporary one using

• Perfect symmetry
• Laser-cut techniques
• Sleek designs
• An unusual choice of stones

The above-mentioned techniques bring in a whole new perspective on geometric jewellery.

Young entrepreneurs in the Gold and Jewelry sector

Every once in a while, a new technology, an old problem, and a big idea turn into an innovation. Many young entrepreneurs came forward with their innovative ideas to rule the market. It takes a lot of effort and talent to engrave jewellery. Young entrepreneurs are working to bring the gold and jewellery industry forward and expand its services worldwide with a strong and great impact.

They work by using cutting-edge technologies like 3D printers and design automation to make unique personalized jewellery. They research extensively including, AR (augmented reality), AI (artificial intelligence), and wearable hardware, to allure the current and future jewellery shoppers.

They focus on affordability, innovation, newness, customer happiness, and transparency. Using the latest technologies and innovation, young entrepreneurs are leading the G&J sector in an efficient manner.

Millennials or young entrepreneurs in the G&J sector are keen on marking their presence stronger in the market. Along with their innovative ideas, they also believe in upskilling their knowledge through professional certifications.

Gems and Jewelry are an integral part of the Indian economy. To keep it alive and in a growing trend, upskilling or reskilling is very important. Specialization in important areas like diamond processing, coloured gemstone processing, jewellery manufacturing, wholesale, retail and exports can enhance their knowledge to run the jewellery business.

Also, upskilling their knowledge in specialization like stone setting, stone carving or faceting and finishing in jewellery or gemstones is very important. Market trends are ever-changing and evolving so specialization will help the entrepreneurs to sustain the changes and meet the industry demand nationally and globally.

Challenges faced by young entrepreneurs in the Indian Gold and Jewelry industry

The common issue faced by entrepreneurs in Indian Gold and Jewelry industry is the sector is fragmented and unorganized. Due to the unorganized sector, there is a lack of data on workers and units. The lack of data results in missing out on the core competencies in terms of migration of workers when required.

The lack of quality in finished goods among small and medium manufacturers is one of the issues faced in the Indian Gold and Jewelry sector. Access to technology advancement through Common Facility Centres (CFCs) is highly beneficial. CFCs are implemented by the Government of India (GOI through Gem Jewellery Export Promotion Council (GJEPC).

These CFCs provide an opportunity for Micro, Small & Medium Enterprises to use state-of-art technology/equipment at optimum cost.

Steps were taken to improve the quality of goods:

• Creating CFCs wherever required
• Developing Mega CFCs in major export clusters for self-sustainability
• Mapping Units, productivity, and number of workers in each of these clusters
• Working out specific welfare schemes for health, education, and housing of workers in these clusters.
• The industry should also ensure that all transactions are traceable for ensuring credibility

Conclusion

Young entrepreneurs are extremely talented and all set to take the G&J sector to the global level. To enter the field of G&J industry, get certified in Gemology and other related courses, get enrolled in the International Institute of Gemology widely spread all over India. IIG is located in Mumbai, Surat, Ahmedabad, Kolkata, Bengaluru. For more information Call +91 93222 62357 or +91 22 – 4971 7444. You can also mail us at info@iigindia.com. Happy Learning!