India's family jewellers' to start to professionalise

India’s small, independent jewellers, which are generally family-run operations, are starting to organise themselves into groups of four to five players to share a common brand identity and marketing strategy.

India’s 300,000 traditional jewellers – commonly referred to as the unorganised sector – dominate the country’s jewellery retail landscape with a 96 per cent market-share, while large brands or organised retail form only 4 per cent of the overall market.

But in recent times smaller jewellers have been losing business to larger brands, mainly due to factors such as increasing consumer sophistication, diminishing investment-driven purchases, alternative retail channels and competition from other luxury products.

“The emergence of organised retail will make the jewellery industry more professional and prepared to face challenges,” Ashok Minawala, the president of the Gems and Jewellery Federation, told Business Standard.

“With the entry of new players and competition from other sectors, there is a need to retain existing customers and attract new ones,” added World Gold Council director, Dharmesh Sodah.