SURAT: Consumption of diamond jewellery in India is expected to touch $6.1 billion (Rs.30,000 crore) in 2010-11, a 50 per cent increase compared to the current $4.2 billion diamond jewellery sales. Thanks to rising prices of gold over the last few years, the Indian consumers are finding more value in the diamond jewellery.
Industry experts said the domestic jewellery market is pegged at $16 billion, which includes gold, diamond, platinum and others. In the last four years, the diamond jewellery sales have increased from $1 billion to $4.2 billion. Since the US, which accounts for 45 per cent of the global jewellery consumption, is yet to come out of recession, the accelerating diamond jewellery sales in India is set to provide the much-needed insulation to the Indian gems and jewellery industry facing volatility in the US and UK markets.
The jewellery manufacturing companies have set their eyes on the domestic diamond jewellery sector. The company owners believe only 15 per cent of the total jewellery market is diamonds, so the opportunity for growth in the domestic market is quite high.
"We have set our eyes on the domestic diamond jewellery market. This year, our company has registered 20 per cent growth in the diamond jewellery sale and we expect to maintain the growth rate in the next year too," said Aagam Sanghavi, director, Sangini.
Sanghavi feels the main reason for spurt in sale of diamond jewellery is the rising prices of gold over the last few years. The consumers are preferring studded jewellery instead of going in for the plain gold jewellery, which was the trend among the Indian consumers till now.
At the recent India International Jewellery Show -2009 in Mumbai, Mehul Choksi, CMD, Gitanjali Gems had said the market for branded diamond jewellery is upbeat and it is expected to register a growth of 40-50 per cent during the Diwali season.
A recent study by KPMG says India is set to realize total jewellery sales of $21 billion by 2010 and $37 billion by 2015. Currently, out of the eight key world retail markets, the US accounts for 45 per cent of the jewellery sales. India and China, which follow with 8.3 per cent and 8.9 per cent respectively, will emerge as the market equivalent of the US by 2015.
However, sensing its expanding backyard market, the Gems and Jewellery Export Promotion Council (GJEPC) and the Gems and Jewellery Trade Federation (GJTF) have launched 'Anant', a generic marketing initiative aimed at driving consumer demand for diamond jewellery.
GJEPC chairman, Vasant Mehta said, "For the first time we have launched the campaign for the domestic market. The campaign will run from September 2009 to February 2010 across 15 major cities targeting 1.5 million rich consumers. We expect a 20 per cent growth due to the campaign."
Source : TOI