The gems and jewellery industry plays an important part in the Indian economy. It constitutes 5-6% of the overall GDP. Today the overall market stands at Rs 4, 50,000 cr of which the domestic market is estimated at Rs 2, 50,000 cr and exports of Rs 2, 00,000 crs. The domestic gems and jewellery industry is estimated to grow to INR 7, 20,000 Cr by 2018. The sheer size of this industry provides direct employment to roughly 2.5 million people and has the potential to generate additional employment of 0.7 – 1.5 million over the next five years.
Today the silver jewellery industry in India has already reached a market potential of INR 15,000 Cr and it is expected to grow by 300 percent to INR 45,000 Cr in the next 3-5 years. Even within the export category GJEPC has reported the fastest growth in silver jewellery exports. The silver jewellery exports have doubled in the past couple of years, as there has been trending demand for silver jewellery in the international market.
So what’s driving the change and growth in Silver Jewellery market?
Post globalization the jewellery market in India has evolved and is growing in its jewellery consumption pattern. It’s a well-known fact that India is a young country where over 50% of our population is less than 25 years of age. So the country is divided between people born prior to 1990 and post 1990. The young consumers born post 1990 are born in the digital world with computers, internet, social network sites, I pads, mobile phones, smart phones/televisions with over 100 channels etc. This has brought a paradigm shift in their lifestyle and purchase behavior. Today’s young consumers explore products on the net and are comfortable buying it. They are looking for great designs in jewellery at affordable prices. The costume jewellery which is available is unbranded and has generic pieces at less than Rs 2000 but has a poor finish. On the other hand fine jewellery with gold & diamonds starts at Rs 20,000, so there is a huge gap between Rs 2000 to Rs 20000 and that’s where Silver fits in well and has a great acceptance from the young audience.
Nowadays it is believed “the way you dress is the way you get addressed”. The contemporary Indian women today adorn jewellery as an expression of her individuality and attitude. Changing lifestyles has presented an opportunity for women to dress differently on various occasions. A woman embellishes different looks for social events, parties, family functions, weddings etc. So it may be a casual, sporty, classy, traditional, and sexy or any other look. For every look she needs to adorn herself with complimenting jewellery. Silver jewellery provides her with these options at affordable prices.
Silver being cheaper gives excellent scope for creativity and design innovations, it presents opportunities that are not possible with gold and diamond. Design has become the key differentiator in the affordable jewellery segment. Consumers today prefer jewellery that they can adorn and make a personal statement. The young believe in adornment and in indulgence unlike the older days where jewellery was meant more for lockers than to wear it.
Growing E commerce/online market and steep fashion jewellery demand is driving the push for silver jewellery in the upward trend. A number of big brands are venturing into the BIS 925 sterling silver jewellery segment.
Silver is projected to be the new gold in the next five years with respect to investment and personal jewellery preferences. The trendy silver jewellery you adorn is expected to give a substantial appreciation in the coming years. So it’s time you make your personal style statement with sterling silver jewellery.