Organised Jewellery Industry to See 17% Revenue Growth in FY26

Industry Overview
The Indian organised jewellery sector is poised for substantial growth, with India Ratings projecting a 17% revenue increase for FY26. This growth is driven by various factors, including rising consumer demand, increasing discretionary spending, and the expanding middle-class population. With a growing preference for branded jewellery, the market is witnessing a shift towards organised players, offering premium and innovative designs.

Factors Driving Growth
Several key factors are contributing to the positive outlook for the jewellery industry:

Growing Consumer Demand
The rising middle-class population and increasing disposable incomes are pushing jewellery sales higher. Consumers are becoming more inclined towards quality, design, and branded jewellery, creating a robust demand for organised jewellery offerings.

Discretionary Spending
Higher discretionary spending is driving consumer investment in jewellery, particularly among younger generations who seek personalised and value-added products. This trend is further supported by increased weddings, festivals, and special occasions, boosting sales during peak periods.

Consolidation of the Market
A shift towards organised jewellery players is evident as small retailers face challenges in meeting evolving consumer preferences and regulatory norms. Larger companies are gaining market share due to their ability to offer trust, consistency, and quality products.

Technological Advancements
The use of technology, such as augmented reality for virtual try-ons and artificial intelligence for design innovations, is enhancing the customer experience. This shift is attracting a younger, tech-savvy audience to organised jewellery brands.

Challenges and Risks
While the industry exhibits strong growth potential, it is not without challenges:

Volatility in Gold Prices
Fluctuations in gold prices can impact profit margins, especially for jewellery retailers reliant on gold-based inventory. Managing these fluctuations effectively is crucial for sustaining profitability.

Regulatory Environment
Changes in government policies, taxes, and certification requirements may pose compliance challenges for organised jewellery players. Adapting to these regulations swiftly will be vital for continued success.

Competition from Unorganised Players
The unorganised sector remains competitive, offering lower-cost alternatives to consumers. Striking a balance between affordability and premium offerings will be essential for maintaining market share.

Future Outlook
With positive macroeconomic indicators and increasing urbanisation, the organised jewellery sector is set to flourish. Companies that focus on expanding their reach, enhancing customer experience, and adopting innovative solutions are likely to lead the growth trajectory. Investors are advised to watch for strategic developments, market consolidation, and technological advancements as key drivers of long-term value creation in this sector.

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