Double-digit AdEx and store expansion fuel $145B Indian jewellery market
The top 10 organized jewelry players including Titan (Jewellery), Joyalukkas, and Kalyan account command over 30% (90% of organized) of the total jewellery demand in India.
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The Indian jewellery market is expected to clock a 15- 16% CAGR to reach USD145 billion by FY28. Of this, the organized/formal market is projected to achieve over 20% CAGR, accounting for 42-43% of the total market, as per a Motilal Oswal rpeort. There are multiple drivers in the industry leading to such rapid growth, driven by rising disposable income (higher per capita growth in double digits), an improving mix for regular wear (beyond weddings and investment-led), enhanced product offerings (design, diamonds, etc.), trust-building through hallmarking, and a better buying experience at organized retail outlets.
Weddings and festivals are the primary reasons for the purchase of jewellery in India. Bridal jewelry still accounts for a significant portion of demand, contributing 55% to the total jewelry demand, the report further states.
The top 10 organized jewelry players including Titan (Jewellery), Joyalukkas, and Kalyan account command over 30% (90% of organized) of the total jewelry demand in India. According to the report, these players accounted for less than 20% of the total market during FY19. The store expansion and consumers' preference for buying jewellery from brand retailers, particularly over the last 3-4 years, have led to significant changes in the market mix.
Titan holds the lion's share in the organized retail sector with ~45% share in a network of over 900 stores spanning Tanishq, Caratlane, Mia, and Zoya. Jewellery continued to be the largest revenue driver with steady growth for Titan.
The standalone results for advertising expenses of Titan was recorded at Rs 250 crores compared to Rs 202 crores leading to an increase of Rs 48 crores (approximately 23.8%). The advertising expenses (consolidated) for this quarter was recorded at Rs 327 crores compared to Rs 290 crores in the last quarter indicating an increase of Rs 37 crores (approximately 12.8%).
CK Venkataraman, Managing Director of the Company stated that, "After a muted Ql, Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double digit growth for the quarter. Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya and Caratlane is working well.
Other major retail players include Malabar, Kalyan, Senco, et al. Several players, after experiencing success in their own region, have gradually become pan-India players.
Joyalukkas reported Rs 1,45,261 as revenue in 2023 as compared to Rs 1,03,339.41 in 2022 indicating a 40.57 increase in one year.
Festive boom
Dilip Gaur, Director, Indriya, says festive season leads to 3-4 times normal growth in the jewellery sector. "We are expecting a middle to higher double digit growth; for a new business like us, growth will be much bigger. While the industry may have a muted H1, post H2, with reduction in duty of gold, in July and August there was a significant growth in demand for gold."
Talking about CTV advertising, he shares, "We are going to increase more than 20 percent in ad spends. The jewellery business is about footfalls and converting the footfalls into buying. This whole CTV and ATL and BTL is to make sure that the consumer walks into my store."
Pelki Tshering, CMO, Tanishq (Titan owned) shares, "With a positive outlook this festive season, Tanishq is expecting significant growth. "Our ad spend will see double-digit growth over last year, driven by recent positive developments in the gold market, the upcoming wedding season, and the excitement around our new collections."
"From a market share perspective, we've always maintained a 6 to 7% share within the organized players. From a growth perspective, while South and East India saw strong growth in the first quarter, we expect the upcoming quarter to see significant growth in North and West India," asserts Tshering.
For Q2 FY2025, Kalyan Jewellers recorded consolidated revenue growth of approximately 37% when compared to the same period in the previous financial year. Its India operations witnessed revenue growth of approximately 39% during Q2 FY2025 as compared to Q2 FY2024, led by robust operating momentum on the ground across all markets with healthy same-store-sales-growth of approximately 23%.
Kalyan Jewellers launched 15 Franchisee-Owned-Company-Operated “FOCO” showrooms in India during the recently concluded quarter, with a strong pipeline of showrooms set to open over the course of October. Its digital-first jewellery platform, Candere, recorded a revenue growth of approximately 30% during the recently concluded quarter as compared to the same period during the last year. It launched 12 Candere showrooms during Q2 FY 2025.
For brand building, KALYAN employs region-specific campaigns with localized content and brand ambassadors appealing to national, regional, and local audiences. Each showroom is staffed with local personnel who are knowledgeable about the local language and culture, and designed to reflect local tastes. Additionally, the “My Kalyan” network hires employees from local communities to ensure relevant language skills and local relationships.
Then there is another prominent player - SENCO. is transitioning from being labeled as a 'regional player' to becoming a pan-India player. The company has a pan-India presence with a strong network in the eastern region (store/revenue mix of ~75%/ 80%). SENCO operated a total of 159 stores across India, with 93 company-owned stores and 66 franchise stores as of FY24. With about 4% market share in the eastern region, primarily in West Bengal, where 75% of its stores are located, SENCO is strategically expanding its presence in eastern markets and other regions.
As a part of its marketing strategy, SENCO has tied up with multiple national and regional brand ambassadors, including personalities from film and sports to enhance its brand image at the national level (especially to increase brand saliency in north India) and to target younger consumers.
