How are Titan, Kalyan Jewellers, and Senco responding to high gold prices?

Titan, Kalyan Jewellers, Senco, and other major Indian jewelers are experimenting with lower-karat gold pieces, including 18-karat plain gold and 14-karat studded jewelry, to cater to budget-conscious consumers amid the persistently high gold prices.

What impact has the hallmarking of 9-karat gold had on the jewelry market?

The government's recent move to hallmark 9-karat gold jewelry has provided a boost to demand for more budget-friendly options, as consumers with budgets between Rs 50,000-Rs 1 lakh seek alternatives to the traditional 22-karat and 18-karat offerings.

Why is studded jewelry gaining popularity among younger consumers in India?

Studded jewelry, which includes a higher proportion of gemstones than gold, has been increasingly favored by Gen Z and millennial consumers in India. This trend is driven by the demand for trendy, everyday wear that is also light on the pocket.

Home / Business and Economy / Jewelers Adapt to High Gold Prices with Lightweight, Low-Karat Offerings

Jewelers Adapt to High Gold Prices with Lightweight, Low-Karat Offerings

29 Jul

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Summary

Jewelers push lightweight, low-karat and studded pieces as gold prices remain firm
9-karat gold hallmarking boosts demand for budget-friendly jewelry options
Studded jewelry with more gemstones than gold gains favor among younger consumers

Jewelers Adapt to High Gold Prices with Lightweight, Low-Karat Offerings

Jewellery retailers in India are currently adapting to the persistently high gold prices by pushing lightweight, low-karat and studded pieces. This shift in strategy comes as gold sales by volume fell by a record 60% in June, the steepest decline since the COVID-19 pandemic.

Organized players, such as Titan, Kalyan Jewellers, Senco, and Malabar Gold and Diamonds, are experimenting with 18-karat plain gold and 14-karat studded jewellery, moving away from the traditional 22-karat and 18-karat offerings. The government's recent move to hallmark 9-karat gold jewellery has also provided a boost, as it caters to budget-conscious consumers whose budgets are within the Rs 50,000-Rs 1 lakh range.

Additionally, the preference for studded jewellery, which includes a higher proportion of gemstones than gold, has been on the rise in the last few years, particularly among Gen Z and millennial consumers. Jewelers say this trend is driven by the demand for trendy, everyday wear that is also light on the pocket.

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