Undisclosed revenue has turned into a handicap for the unorganised jewellery segment. Access to capital, along with quality assurance and design capability, gives branded players their edge. And they are pushing their advantage deep into unpenetrated markets beyond India’s cities, where demand for jewellery is stronger both for consumption and as a hedge against inflation. This competes with financial savings products that are also seeking growth beyond top-tier towns that are driving formal jobs growth. Branded jewellery chains are tracking the emerging urban middle class by geography, as well as catering noticeably to rural demand.
The process is likely to speed up with radial urbanisation as jobs move to where skills are available for the fastest growing industries. Technology is also pushing things along by bringing a larger labour pool into organised employment and improving consumer choice. Changed jewellery consumption patterns are irreversible, pushing up demand for design innovation. India has not succeeded in weaning its people off their fascination with gold, which essentially exports their savings. But it has made a big dent in raising value addition in the jewellery industry. It should aim at exporting this by creating global brands.
