| Date: |
05-11-2015 |
| Subject: |
Indian consumers moving to branded jewellery: Study |
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AHMEDABAD: Consumers seem to be giving a miss to their traditional jewellers. With a penchant for new designs and varieties in jewellery, an increasing number number of consumers are now turning to branded jewellery companies.
According to a report by apex industry body ASSOCHAM, branded jewellery now constitutes 20% of the total demand, which was around 10% in 2003. This is further expected to go up to 30% by the end of 2020.
The study titled 'Gems & Jewellery Industry: Contributing to Make in India' by Assocham and Thought Arbitrage Research Institute (TARI) further said that the branded jewelers are able to fulfil the changing demands of consumers better than unorganised players.
On gold being an investment option, the study says, "About 76% of people consider gold a safe investment. After the recent economic slowdown, investors have shifted their preference from interest bearing securities and shares towards gold. The demand for gold coins and bars reached 27% of total demand compared to only 13% in 2006. This demand is expected to grow further in future."
The study also says that during 2005-12, investment demand for gold bars and coins increased by a compounded annual growth rate (CAGR) of 43% and that of jewellery by 22%. Consumption demand in the same period increased by a CAGR of 23%.
Overall exports from gems and jewellery sector in India during the first six months of fiscal 2015-16 stood at $19.22 billion and registered a decline of 5.59 per cent over the $20.3 billion exported in the same period last year.
"Gems and jewellery sector might register a decline of about 15 per cent in wake of severe economic downturn in major export markets of China and the Eurozone," said DS Rawat, national secretary general of ASSOCHAM while releasing the study in Ahmedabad on Tuesday.
"Granting industry status can give a fillip to investments and bring down costs of operation in gems and jewellery sector, besides it will help build trust and faith in Indian brands in the global markets," added Rawat.
Source : timesofindia.indiatimes.com
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