Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

GOLD JEWELLERY CONSUMERS
IMPORTANCE OF CITIES AS RETAIL CENTRES
The sentiment of leading urban retailers underlines the importance of cities as retail centres of gold jewellery
in their States.
Their estimates of the market share of the major city within their State range from 25% to 35%.
State Major city % of total
retail sales
in the State
Maharashtra Greater Mumbai 35
Rajasthan Jaipur 30
Gujarat Ahmedabad 30
Tamil Nadu Chennai 30
Andhra Pradesh Hyderabad 30
West Bengal Kolkata 30
Karnataka Bangalore 25
Kerala Cochin 25
Range 25-35
Source: Leading jewellery retailers in major cities.
Although their estimates may be exaggerated, retailers observe that many consumers in smaller cities, towns and some
villages travel to major cities when they need to buy a large quantity of jewellery. City retailers offer a wider range of
designs. City purchases carry high status.
TRADE OBSERVATIONS ON THE PROMOTION OF GOLD JEWELLERY
The following records the sentiment of several leading retailers:
Focus on marriage-related jewellery.
High volume over the next 10 years will continue to rely on marriage-related purchases. There is a need to underpin this
market.
Parallel focus on “wearable” jewellery and self-purchases.
Both categories are recognised as extremely important to achieve growth over the next 10 – 20 years. However, the extent
of their promotion should be balanced against the need to support the marriage-related jewellery market.
The market relies heavily on the “gifting” of jewellery.
The target market is not only the female recipient but also the person who gives or pays for the jewellery. Givers and
recipients both need to be motivated.
The purchase of most jewellery is normally the outcome of a family decision. Reassuring the head of the household,
parents and husbands is also important.
Motivate the younger generation
Many young people are not as committed as their parents to buying or receiving large quantities of gold jewellery.
Jewellery has both an “adornment” and “investment” dimension.
Retailers at every level are aware that the adornment dimension is strengthening. Gold jewellery needs to be positioned as
“fashionable”. However, there is also a need to underpin gold jewellery’s “investment” dimension.
Retailers observe that investment-related advantages can be emphasised credibly. Jewellery remains a “trusted and secure
asset” that has risen in value over the “long term”. It is a “highly liquid asset” with a “high resale value”.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET