Published
Jun 27, 2019
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India’s organised jewellery market expected to keep growing

Published
Jun 27, 2019

India’s organised jewellery retail sector is expected to continue to grow at a rate of between 10 and 11 percent until 2022, almost maintaining its current growth rate.

The organised jewellery sector is expected to keep growing in India - UBM India


Domestic, organised jewellery retailers are becoming an increasingly popular destination for shoppers, even in more rural locations, ET Bureau reported. The organised jewellery market grew by 11.9 percent from the 2016 to 2019 financial years and comparable growth is expected for the next new financial years, according to the global analytics business Crisil. 

Crisil analysed 50 jewellery retailers which make up around 50 percent of India’s organised jewellery retail market. From this group, the firm identified three main growth drivers for the industry: an increase in gold prices, an extension of the promotional schemes period from 70/80 to 150/170 days, and increased store openings. 

Crisil also reported an increased demand for branded jewellery among shoppers. Brand conscious is increasing in non-metro locations for both the fashion and jewellery sectors which is helping the organised sector to expand.

“Since bank credit to the sector remains constrained, new store additions by organised jewellery retailers will be largely funded through internal accruals,” Crisil’s director, Mohit Makhija, told ET Bureau. “As a result, the financial profiles of organised jewellery retailers are expected to improve over the medium term with TOL/TNW ratio seen below 1.1 times. The credit profiles of most retailers is expected to remain stable over the medium-term because of sustained demand and stable leverage.”

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