Jewellery brands boost festive ad spends by up to 45% despite Trump tariffs and gold price surge

India’s jewellery industry is gearing up for its most crucial quarter of the year, with leading brands preparing aggressive festive campaigns despite global headwinds, soaring gold prices, and U.S. President Donald Trump’s steep tariff blow. Executives and analysts say festive and wedding demand will continue to anchor the sector, even as players recalibrate their advertising strategies.

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“Festive and wedding seasons account for a substantial part of the annual revenue of jewellers. Therefore, jewellers typically deploy well-orchestrated advertising and marketing strategies to leverage the positive consumer sentiment during the festive season. In the upcoming festive season, the trend will continue,” said MP Ahammad, Chairman, Malabar Group.

Ahammad noted that while traditional media remains important, digital is taking a sharper focus.

“We are placing stronger emphasis on digital and social platforms to drive deeper consumer engagement since product discovery and design inspiration increasingly take place on social media. At the same time, we are intensifying the regionalisation of our advertising to better connect with diverse customer segments."

The company has recently rolled out its first brand campaign in Odia called Amara Porampara Amara Malabar featuring popular Odia actor Sabyasachi Mishra. "The response has been quite encouraging,” he said.

Despite U.S. tariffs of up to 50% on Indian jewellery exports, Ahammad remains bullish on domestic demand.

“Our domestic economy continues to be largely consumption-driven… the consumption side of the economy is majorly insulated from the Trump tariff impact. Jewellery brands and retail chains are gearing up for the festive season with a strong optimism and outlook,” he added.

Read more: GST 2.0 likely to lift festive cheer: India’s AdEx set to top Rs 55,000 cr in FY26, up 18–20% YoY

For new-age brands, this festive season is equally critical. Rupesh Jain, Co-founder of Lucira, said the company expects festive campaigns to drive 25–30% of its FY26 ad spends.

“This year marks Lucira’s first festive season since launch, so our focus is tilted towards building strong awareness. About 50% of the budget will be invested in brand marketing, driving storytelling, festive excitement, and aspiration on digital platforms. Around 10–20% will be allocated to performance campaigns… The remaining budget will go into offline channels such as physical stores and exhibitions, helping us build tactile trust and engage with buyers directly,” Jain explained.

Heritage brands are equally aggressive.

Palak Bansal, Founder of Oliveara Jewels, expects festive campaigns to contribute 40–45% of overall jewellery AdEx in FY26, up from 38% last year.

“This festive season, we are planning to increase our ad spending by approximately 25–30% compared to last year, with a sharper focus on driving both reach and conversions,” she said.

Bansal added that 50% of the company’s spend will go into digital advertising, with 25% on TV and print, 15% on outdoor activations, and 10% on regional media.

Read more: Consumer brands hike festive ad spends up to 20% YoY as India’s adex heads for upwards ₹55,000 crore in FY26

However, she admitted tariffs are weighing on the sector. “The Trump tariffs on diamond and jewellery imports have created a ripple effect… we anticipate brands to moderate their ad spending by around 5–8% compared to planned levels, while still prioritising festive campaigns to maintain visibility.”

Slowness in urban consumption

The Indian jewellery market, valued more than Rs 5,562 billion in calendar year 2023, has evolved steadily over the decades. Analysts caution that while this year's festive demand remains resilient, challenges loom.

Darshil Shah, Senior Research Analyst, HDFC Securities, said, “Persistent rise in gold prices has impacted volumes in recent months, which have been partly set off by improved product mix. The demand environment continues to remain volatile, impacted by geopolitical headwinds, persistent rise in gold prices and slowness in urban consumption.”

Shah pointed out that although volumes may be tempered, India’s jewellery market is poised for double-digit growth in value terms in 2025, supported by organized players’ expansion and premiumisation trends.

“Gold jewellery continues to be a culturally significant purchase during festivals such as Akshaya Tritiya and Diwali… but there is a noticeable shift, with consumers increasingly viewing gold not just as jewellery but also as a safe investment,” he said.

Read more: Over one lakh jobs at stake in India's jewellery sector due to fresh US tariffs

The U.S. tariff shock is being felt most sharply in exports.

“The tariffs have significantly increased the cost of Indian jewellery products in the U.S., making them less competitive compared to products from Turkey, Vietnam, and Thailand,” Shah added, noting that the industry is now diversifying exports.

Markets experts believe the damage may be temporary if trade talks advance.

“While the U.S. is an important partner for India with a contribution of almost 20% of its exports… sectors such as Textiles, Gems & Jewellery, and Auto Ancillaries may feel the heat of these levies. Nevertheless, if the talks are prolonged and these tariffs persist, India will be at a disadvantage vis-à-vis Vietnam and Indonesia,” said Anooshka from Dhanvesttor.

There is some relief on the policy front.

The government’s “GST 2.0” reform, expected by Diwali 2025, will streamline tax slabs while keeping jewellery rates untouched- 3% on jewellery and 0.25% on precious/semi-precious stones. This, Shah said, could “ease festive demand in the longer term” by ensuring stability for jewellers.

With Diwali and wedding season around the corner, the jewellery industry is betting big that India’s consumption engine will power through tariff turbulence and gold price volatility.

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As Ahammad summed up, “The media universe is now more diverse than ever, and jewellers will spread out their advertising budget across all touchpoints to build stronger visibility and brand recall.”