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GOLD JEWELLERY CONSUMERS
Gold jewellery is bought as an “adornment”. It is also bought as an “investment”. For most consumers,
the motivations are intertwined.
As much as 50% of annual sales may rely on new purchases associated with about 8 million weddings each year.
In total, more than 70% of all purchases is broadly regarded as marriage-related because jewellery is accumulated for
this purpose over many years.
India is fundamentally a “gift-giving” market. Most jewellery is given to brides (and bridegrooms), women and young
girls by their parents, husbands or relatives.
Fashion is stimulating a higher proportion of personal purchases in large urban showrooms. Although described as
personal, most are the outcome of family decisions, and many fall within the gift-giving category.
Lighter weight “wearable” jewellery is viewed by retailers as an emerging new market with much potential.
In the rural areas, much low value added jewellery appears still to be bought personally as a way to store “savings”.
Jewellery purchases tend to be higher over 2 periods: October - January (4 months) and April - May (2 months).
Although “everyone buys gold”, the jewellery market appears to rely on the top 60% (109 million households) for the
bulk of annual purchases. Retailers stress the importance of the emerging middle class.
The urban population may account for 40% of jewellery purchases at this time. The rural/urban split is not a static
proportion each year. Rural demand weakens in a depressed agricultural environment.
The south (40%) is regarded as the most important jewellery consuming region, followed by the west (20 - 25%), north
(20 - 25%) and the east (15%).
Cities are important retail centres in their States. For example, Greater Mumbai (Maharashtra) may account for 35%,
and Chennai (Tamil Nadu) for 30% of sales within their States.
This section relies on information and insights provided by gold jewellery retailers.
MOTIVATION TO OWN GOLD JEWELLERY
“Gold is an auspicious metal. It is supposed to be divine. It is considered as bringing the Goddess Laxmi into your home.
It is a symbol of wealth and prosperity.”
“Giving gold jewellery to your daughter at the time of marriage is a necessity. Owning gold jewellery is a necessity. It is
our tradition.”
“Gold jewellery’s main role is as an asset. Its advantage is its liquidity and high resale value.”
These retailer observations illustrate two parallel motivations. Gold jewellery is owned as an “adornment” for cultural,
status and decorative reasons. It is also owned as an “investment” for store of value, savings and money purposes.
Although attitudes towards owning gold have started to diverge among the rich/poor, young/old and urban/rural, both
motivations remain relevant across all categories.
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The purchase of gold jewellery is normally the outcome of a family decision.
AN INTRODUCTION TO THE INDIAN GOLD MARKET