Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

GOLD JEWELLERY CONSUMERS
WEDDING JEWELLERY
An agreed amount of jewellery in grammes, or a rupee value, is normally given at the time of marriage,
regardless of the prevailing gold price.
The amount of new jewellery that is purchased can be influenced by several factors.
Arranged marriages
An arranged, as opposed to a “love”, marriage generally involves the gifting of much more jewellery. A common
observation is that more than 90% of rural and 60% of urban marriages are arranged. The number of arranged marriages
is expected to fall. In rural areas, the decline is likely to be gradual.
Dowry
Although the dowry system has been illegal since the early 1960s, the giving of jewellery and other items to the bride, groom
and other family members occurs at every level.
In the case of an arranged marriage, a weight or rupee value of gold jewellery is normally agreed between the families. In
the south, the weight is widely expressed in terms of sovereigns (K22 coins weighing 8 g). For example, 5 sovereigns
(40 g) or less at lower levels, 100 sovereigns (800 g) or more at higher levels.
At higher levels, jewellery as a percentage of the total amount is reported as falling, due to the groom’s and couple’s
preference for lifestyle products. A typical comment is that a percentage in urban areas of around 60% in the mid 1990s
would now range between 25 - 40%. However, as the overall rupee value demanded by many grooms has increased, a
substantial amount of jewellery still tends to be given.
Accumulated jewellery
Many families acquire wedding items over several years in order to meet their obligations at the marriage of their
daughters. Some accumulate items that will eventually be converted into wedding jewellery. Some family jewellery, owned
by the mother or grandmother, may also be converted, or repolished and given.
Economic environment
The conversion of more existing family jewellery may occur if family finances are stretched.
Gold price
If the gold price is considered high, more existing family jewellery may also be converted.
Non-Resident Indians (NRI’s)
Millions of Indians working in the Middle East, Europe, USA and elsewhere remit funds to their families. This enables many
poorer families to boost their purchases substantially.
New jewellery is normally bought 2 - 4 weeks prior to the marriage, although it may be chosen well beforehand. Retailers
in both urban and rural areas observe that, as the purchase of bridal jewellery is so important, many families travel to
larger cities and towns. Status is enhanced, and more designs are available.
Purchases can range from a few grammes to several kilos.
The chosen categories, weights and styles of individual items can vary according to regional, community and personal
preferences. An appendix illustrates what might be purchased at the level of 200 g.
Apart from bridal jewellery bought by the bride’s parents, other jewellery can also be bought at this time. The bride can
receive items from the groom’s family, the groom from the bride’s family. Other members of both families can give or receive
gifts of jewellery (or coins).
OTHER GIFTS WITHIN THE FAMILY
The giving of gold jewellery at important family occasions is common among those who can afford to do so.
It may be given at a child’s naming ceremony, puberty, birthdays and anniversaries, and on the occasion of festivals and
some auspicious days.
For example, at a naming ceremony, a small bangle, hip chain, chain, pendant and anklet may be given.
The main recipients are girls and women. Girls need to accumulate jewellery for their marriage. For many married women,
jewellery is their only personal asset.
The “other gift” market is important for most large showrooms, its share ranging from 10 - 15% and more. For most small
urban and rural outlets, the gift market tends to be small.
PERSONAL PURCHASES
Fashion is reported as stimulating more personal purchases in large urban showrooms. Investment
continues to drive many personal purchases in smaller outlets and in rural areas.
Although described as “personal”, retailers observe that most purchases are the outcome of family decisions. Many fall
within the category of gifts when funded by the head of the family.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET