RAPAPORT… Jewelry in India is considered much more than an adornment to make women feel beautiful. For generations, the value of jewelry has been on a par with other investments, especially if it is wedding jewelry. Historically, the mother-of-the-bride and the bride’s mother-in-law have not shied away from choosing heavy, elaborate, traditional sets of jewelry with intricate designs to mark the occasion. They consider the pieces one-time investments and typically purchase the complete three-piece sets — necklace, bracelet and earrings — from family jewelers.
“Wedding seasons are still the largest jewelry-selling seasons in India, accounting for an estimated 55 percent to 60 percent of total annual jewelry sales by value,” says Mehul Choksi, chairman, Gitanjali Group. “This is not just jewelry for the bride, but jewelry across all higher-end categories, because jewelry is also gifted to other family members on the occasion of a wedding. The Indian wedding seasons occur twice a year — around April/May and December/January.”
But jewelry design trends and jewelry purchasing habits in the country are changing dramatically and weddings are no longer the only occasion at which jewelry takes center stage. The market is expanding beyond ornate wedding jewelry to more contemporary designs using a greater variety of gemstones. And jewelry is now being purchased to celebrate other events throughout the year, including holidays and festivals. In addition, younger consumers are having an impact on the jewelry market. They are selecting popular nationally branded merchandise and they are bypassing the family jeweler to shop at boutiques or with specialty designers.
Tying Jewelry to Festivals
India is a land of festivals. National celebrations occur throughout the year and the exchanging of gifts has become an integral part of the festivities. While acquaintances might exchange sweets to mark the occasions, near-and-dear ones usually are given more expensive gifts. The fact that more consumers are choosing gold and silver jewelry as presents for their loved ones can be seen in the increased sales associated with such holidays as Akshaya Tritiya, Diwali, Eid ul Fitr. Moreover, commemorations of even the traditional Western holidays, such as New Year’s, Christmas and Valentine’s Day, have resulted in good sales of small-ticket items like rings, pendants and earrings. After weddings, Choksi says, “Festival season, particularly Diwali, is the other major jewelry-buying season.”
The buying patterns of younger consumers are fueled in part by the extensive retail advertising in India that bombards them with promotions for branded jewelry collections and with the message that they should celebrate the joy of gifting jewelry year-round.
“From what we have heard from the jewelers, there is a shift in consumers,” explains Sanjay Shah, director, Gold Star Diamond Pvt. Ltd. “Today, most buy small-ticket items from a brand collection and any big-ticket item is still bought from traditional family jewelers.” Shah notes that those brands that have survived this recession and are still in the marketplace are popular with consumers — and they fill a need for jewelers as well. “With prices of gold and diamonds increasing, it has become difficult for the traditional jewelers to stock small stuff,” he says. “They are focusing more on heavy tickets and are willing to carry brands for the small sales.”
Dressing Up for Parties
Moreover, says designer Harshad Ajoomal, owner of H. Ajoomal, a custom jewelry boutique, “Most of the clients are more aware and conscious of design and quality. They are more exposed and fashion-forward due to the advent of international brands and travel. They are also more experimental now and are willing to try out newer, younger designers rather than the same family jeweler. This brings variety to their jewelry collection and opens up their minds to more design forms and styles. As the value of precious stones has gone up considerably in the last few years, semiprecious stones in various colors also are becoming more popular. And lastly, the desire to have something that is unique and different — to stand out at a party — is driving many toward choosing more artistic and design-oriented pieces of jewelry.
“The fourth quarter of the year includes many occasions and parties that encourage clients to update and dress up their jewelry collections,” continues Ajoomal. “For the numerous Diwali parties and Christmas and New Year celebrations, dressing up in the latest style is now considered a must! And sales of jewelry are higher from the months of September and October until November. A lot of nonresident Indians also visit India around this time of year and that’s when they complete their yearly shopping too.”
Contemporary jewelry designs are not always less expensive or more modest than traditional Indian designs. “We have a special collection called the Resort Wear line,” says Ajoomal, “that has a smarter, but more casual styling, with a lot of semiprecious colored stones. These are generally rare and specially sourced stones that are not readily available and they are combined with diamonds in contemporary designs. For special occasions, the design might be more formal and the jewelry more expensive, using more precious stones and larger-size diamonds in different cuts. For parties, statement pieces are popular because they are noticeable and eye-catching.”
Designer Jewelry in Demand
One very interesting change in the gems and jewelry industry in India is the mushrooming of jewelry designers with their own exclusive jewelry studios — Ajoomal, Zoya from the house of Tanishq and Popley’s Jewellery Design Workshop Studio are a few examples. These firms design customized jewelry to client demands. Customers feel pampered and special, specifying the exact type of jewelry desired, the occasion for the piece and the emotions they want it to convey.
Such specialty designers market their products aggressively and creatively in the face of competition from nationally advertised brands. Popley and Sons has a special privileges card for loyal customers. H. Ajoomal has a separate customer-care division that schedules a number of exhibitions throughout the year. “Many of these are held close to the festival dates and holiday seasons,” says Ajoomal. “We also regularly send out email newsletters to all the people in our database informing them about the new jewelry designs for the upcoming season. We run advertisements in major lifestyle and fashion magazines in the special bridal and Diwali issues. We have a specially created catalog that explains and suggests to clients how they can match H. Ajoomal vintage pieces with their other accessories — bags, shoes, clothing — for any occasion.”
Weddings Remain a Market Force
While weddings are declining as a share of the overall Indian jewelry market, they still represent the majority share, so designers and manufacturers continue to pay close attention to wedding designs and collections.
“Bridal jewelry still retains many of the basic traditional designs, but with contemporary lines and interpretations,” notes Choksi. “Diamond jewelry is growing in popularity, especially in the metropolitan areas and bigger cities, and among the section of the population that has been exposed to global culture. Across India, though, gold is still the more popular material.”
Rhea Nasta, jewelry consultant, head designer and gemologist with Rhea’s Studio, Popley’s Jewellery Design Workshop, observes that even in wedding jewelry, “people are moving away from indulging in one big jewelry set for the trousseau. Rather, they opt for a combination of multiple small sets that can be worn later for various occasions.” According to Nasta, today’s bride wants the set to include a solitaire diamond in some form — either as part of the wedding ring or in earrings,and “cocktail rings as part of the wedding set are also gaining popularity.”
Ajoomal says “jewelry for marriages continues to be heavier, bigger and more formal. You still see complete sets consisting of neckwear and earrings and bracelet/bangles to match.”
Choksi points out that “All the brands launch new designs during the wedding season, and some new collections too. This year, we launched Nakshatra Vivaah, a special bridal collection based on a traditional design using seven stones representing a divine constellation that is believed to shower divine luck on the wearer, and Parineeta, a special high-end wedding jewelry brand using contemporary interpretations of traditional wedding jewelry.” For the past two years, Gitanjali also scheduled special wedding advertisements under the banner of The Great Indian Wedding Carnival, a promotion by the Leading Jewelers of the World (LJW) that combines special seasonal discounts, gifts and sweepstakes prizes.
Road Ahead
No player in the jewelry industry is leaving any stone unturned to tap into the changes that are transforming jewelry buying patterns in India. National brands are no exception. They are using attractive offers and advertisements to entice customers to loosen their wallets and indulge in buying jewelry not only for major occasions but throughout the year. And their focus is no longer exclusively on the elders in the household, who, in the past, were the only ones buying expensive jewelry. Today, the younger generation is making its own buying decisions and those decisions are not always the same ones their parents made. Very soon, the younger consumer will be the largest buying group and the market is positioning itself for a consumer who bypasses the traditional jeweler and heavy gold pieces in favor of branded jewelry or custom jewelry with a combination of stones.
