The Promising Precious Wearables Market
Having precious accessories that are pretty and affordable is a trending phenomenon now with demands like special light weight, every day, work wear, etc., sprucing up sales. Market veterans talk to Images BoF on the factors influencing the market of jewe
This exclusive feature looks at the the factors influencing the precious jewellery and watches market, and how fashion shoppers are transforming demand.
Jewellery occupies an important position in the Indian society. Thanks to the traditionalist and customs abiding nature of the consumers, the luxury jewellery market in India witnesses a boost during weddings and festivals such as Akshay Tritiya, Dhanteras, etc. Suvankar Sen, Executive Director, Senco Gold, confirms, “Yes. Wedding and festivals are the peak period when sales go high.” At the same time, he also shared that it varies from region to region, for example jewellery sales go high during Baisakhi and Raksha Bandhan in the North, similarly in the West, sales soar during Gudi Padwa and Ganesh Chaturthi, while the season for South India is during Onam.
“Over the years, the festive and occasion based purchases have been supplemented by a gradual and steady increase in non-occasion driven purchases,” shares Sunil Nayak, CEO, Reliance Jewels. He reveals, “These purchases have been powered by macro-economic factors like rise in disposable income of the ever growing middle class, which is becoming ever more affluent and strives to fulfil their aspirations. And to this ever so risk averse
group, putting money in gold jewellery is also considered as a safe and secure “investment”. Another factor that impacts jewellery purchase is fluctuations in price of the precious metal. A sudden upsurge or drop in prices adversely impacts jewellery buying – in the event of upsurge, there is a belief that there will be a price correction and bodes well to await the correction before purchasing. Similarly when prices drop, a further drop is expected as a result of which there is a temporary slack in purchase.”
A shift: Frequent shopping for various occasions
Atul Sinha, Senior Vice President Marketing and Retail Sales, Caratlane. com, agrees that jewellery sale is higher during the festivals. He feels, “There are more occasions which have come up that trigger jewellery purchases like Valentines day, Women’s day, Mother’s day, etc. Moreover, birthdays and anniversaries also push sales as jewellery is regarded as one of the most precious and personal gift which
one can give.”
Caratlane achieves 40-45 percent of its sales during September to December. Same is the case with Senco Gold, who also achieves 60 percent of the annual sales during this period.
According to Rajesh Tulsiani, CoDirector, Dwarkadas Chandumal Jewellers, “With passage of time, a shift in the significance and preference of jewellery was apparent. Today, with global exposure, jewellery has become a fashion statement from its auspicious slant. Consumers purchase jewellery in tandem with occasions, financial availability and gifting; since they believe that jewellery creates
Nayak also accedes, “With the “uber-isation” of India, people have now started looking at jewellery differently. From being a sentiment driven adornment, jewellery is slowly moving towards becoming a fashion accessory. Indians are slowly looking to imbibe jewellery, especially diamond jewellery in their routine life. In fact jewellery does compete with other products like electronics to grab a share of consumers’ wallet.” He further stated that there is an increase in demand for jewellery especially for the light weight, every day, work wear and low carat, etc.
“Occasion based purchases definitely see more traction as compared to non-occasion based purchases. As an economy we have not yet completely evolved to the point of making jewellery purchase a recurring habit. With the changing trends in jewellery purchases, demand for unique designs that can be flaunted, and rising trend of theme based collections etc., has started showing a change in purchasing patterns. We expect this to become the norm as time goes by,” he adds.
Consequently, there is also a continued strong sales of watches and resilient demand for precious metal jewellery. Manisha Sangani, MD, Just Lifestyle Pvt. Ltd., says, “Unlike jewellery brands, watch shopping does not
depend on any occasion. Though the sales are higher during end-of-theseason-sale periods and festivals as brands offer attractive discounts. Moreover, for men the options are limited and gifting a watch makes a better choice.”
Looking for a look
More than a product and fashion accessory, today consumers buy “a look”. They want to match their accessories with their attires. And as a result, it ends in multiple purchases. Citing Aspen watches’ example, she says, “Watches are not mere timepiece anymore these are the fashion accessories. These are the extension of one’s style.” Hence, the brand offers a vast assortment as per different looks while playing around with different colours, straps, dials, chains, etc.
Nayak explains, “The fashion quotient of the Indian consumer has undergone a sea change and it continues to do so at a very rapid pace. Jewellery, being an accessory, has undergone a drastic change both in terms of look and feel. While the bigger pieces continue to dominate the weddings, light-trendy pieces with delicate and cutting-edge contemporary designs are being purchased in larger numbers to go as accessories for the modern dressing among women consumers. This is adding to the frequency of purchase of jewellery.”
Tulsiani also added that women now reach for looks that can be styled in traditional as well as in contemporary manner with versatility being the key. Dwarkadas Chandumal Jewellers offer customers classy and statement jewellery which are not only high on style but also evergreen and can be suited to any occasion, personality and taste.
Disclosing the reason for Senco Gold’s popularity, Sen shares, “Clients definitely visit us for lightweight jewellery. In fact, the younger generation adore our Everlight and Gossip collections which are in silver. Our wedding collections are also very popular as they look heavy but weigh low and hence are easy to wear.”
Though majority of the sales happen during festivals such as Akshay Tritya which is in April-May, Dhanteras and Diwali in October-November, and other regional festivals, and spur footfalls, it will not be prudent to believe that jewellery purchase happens all
“Festivals are important in India and
we see a hike in sales during these periods. But there are more occasions
which have come up that trigger jewellery purchases like Valentines day, Women’s day, Mother’s day, etc, besides birthdays and anniversaries.”
Sr. Vice President Marketing & Retail Sales,
“Today with the global exposure, jewellery has become a fashion statement from its auspicious slant. Consumers purchase jewellery in tandem with occasions, finanacial availability and gifting purposes.”
Co- Director, Dwarkadas Chandumal Jewellers
“Watches are not mere timepiece
anymore these are the fashion accessories. These are the extension
of one’s style. More than product features, consumers look for designs that can be matched with
MD, Just Lifestyle Pvt. Ltd. (Aspen)
year round and not necessarily for only occasions. Tulsiani, expresses, “Purchase decisions revolve around myriad factors including financial availability, NRI clients travelling to the city, etc.” Nayak also says, “The sale and average ticket size may not commensurate with the footfalls as consumers tend to opt for tokens of auspiciousness. Attractive offers are normally announced to attract people from all faiths and the purchases that happen are of high ticket value. Moreover, personal occasions like weddings in the family are dominated by high ticket size.”
According to Sangani’s observation Indian consumer looks at price and after that he approves a product. “With more disposable income and increasing brand awareness, it is difficult to say on the sales and average ticket size during various occasions. The only reason, we can put is the attractive offers which retailers and brands propose during occasions,” she said. Aspen watches by Just Lifestyle aims at around 35 percent of the sales in September-December.
The best & forthcoming collections
Embracing the brand philosophy,
“Be The Moment”, Reliance Jewels introduced a collection inspired by the grace, beauty and peace within a swan. The collection is being developed in association with designer Garima Maheshwari and is being launched to cover the festive purchases during Navratri, Dussehra, Diwali and weddings up to January 2018. Their recent exclusive designer collection “Miliani” which was based on this philosophy was received very well in the market. Nayak shares, “Round about 40 designs in gold will be launched under this collection.”
“We have an attractive collection of diamonds in studded and polki (uncut), ethnic gold jewellery that exude personality, feminity and modernity. We have always been loved by our family of consumers,” said Tulsiani. He says, “Our bridal and festive collection is the perfect embodiment of feminine spirit and is stunningly luxurious with subtle and elegant touch to make every woman feel and look special. Adorned with diamonds and embellished with breathtaking motifs and innovative cuts, each jewel is a priceless legacy that can be passed on to generations.”
Known for watches that offer exquisite jewellery designs, Aspen’s feminine collection has been the best performing range during all these years. Some of the designs have been repeated with minor changes. Just Lifestyle’s 60 percent of the sales comes from their feminine range. “Our Aura collection, which we are launching during the festive season, is going to be a game changer. These watches use the concept of time and energy. We have used jewellery elements with natural stones,” concludes Sangani.
“Over the years the festive and occasion based purchases have been supplemented by macro-economic
factors like rise in disposable income of the ever growing middle class, which is becoming ever more affluent and striving to fulfil their
CEO, Reliance Jewels
“Jewellery sales varies from month to month and region to region, for example sales go high in Baisakhi and Raksha Bandhan in the North, Gudi Padwa and Ganesh Chaturthi in
the West, Onam in the South.”
-Suvankar Sen, Executive Director, Senco Gold