Perspective on Indian Jewellery and accessories market

Jewels and ornaments have always enamored India, and our culture is steeped in it. One estimate puts the value the gold stored in Indian households (mostly in the form of ornaments and jewelry) at 40% of India’s GDP. Backed by a rich cultural heritage, India’s jewelry and accessories sector has come a long way and is expected to reach ~$89B by 2026. Rising disposable incomes, changing consumer preferences, and a booming e-commerce landscape are expected to be the key drivers for this growth

Here are a few things we believe could be key differentiating factors in this space to build a scalable and sustainable business:

1. Trust: Buyers want to be more certain of the quality and purity of the pieces they buy. This category is yet to mature to rely completely on online product description pages to evaluate the quality of high ticket-size items. Customers will want to evaluate and trial the piece physically. Players have adopted an omnichannel online+offline approach to distribution to address this consumer preference. 
2. Ticket size: India’s mass-premium trend impacts very few other categories as much as this. Traditionally, very high ticket size and being out of reach of a large audience. Barring special occasion purchases (e.g., one’s wedding), people prefer an affordable AOV, allowing daily wear and easier repeat purchases. 
3. Inventory: Ever-changing fashion trends, coupled with the high value of each piece, can quickly spiral into tons of unsold inventory, locking up working capital. Planning your collections using analytics to identify high-selling SKUs and selectively investing in production are important. 
4. Margins: Precious metals, while high value, are ultimately a commodity. A brand's value-add and margins rely on the ability to differentiate in designs. Unique designs make it easy to stand out in your marketing ads and allow a better price point. 

Here are a few spaces within jewelry and accessories that we think are interesting:

1. Ethnic designer wear: Indian artisans are celebrated for their precision and attention to detail. The quality of workmanship in Indian jewellery sets it apart in the international market. Despite the exceptional craftsmanship, Indian jewelry often comes at a competitive price point, offering excellent value for money to consumers and attractive margins for exporters.
2. Matrimonial wear: Weddings are a cornerstone of Indian culture, and exquisite jewelry and accessories will continue to form an integral part of this celebration. Brides and grooms seek pieces that reflect their unique style and the grandeur of the occasion. This presents an opportunity for businesses to cater to this low repeat (hopefully) but extremely high AOV segment.
3. 9-to-5: Includes stud earrings, small to medium-sized necklaces, bracelets, and rings that are not overly flashy or ostentatious and reflect modern Western minimalism that goes well with workwear. The design and style of this category are meant to be tasteful, elegant, and inoffensive, allowing individuals to express their style while adhering to workplace dress codes.  
4. For men: Men increasingly look for unique and personalized accessory pieces. Consider offering custom-made men’s jewelry, such as personalized rings, bracelets, or necklaces; this can be a high-value niche. 

Are there more white spaces you believe will see strong demand in coming years? We are happy to know your thoughts and collaborate if you build a brand in the jewellery category.