How To Start Jewellery Business | SkillsAndTech
Something which is the most valued among the India population after their own business is the jewellery they own. It is a means to reflect their social status and prestige, these are those goods where when the price of it increases, the demand for it increases further, in economics it’s coined to be known as a Veblen effect
The Indian market is the largest exporter for the gems and jewellery and this sector has seen to be contributing a 6%-7% to India’s GDP. Apart from that, it is also one of the largest consumed goods of this nation.
The Indian Jewellery market was valued a ₹ 5044 billions in 2019, that’s just the love of Indian for gold and jewellery much of which comes from having the need to plan a grand-expensive-talk of the town-kind of wedding in this country.
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Still don’t believe this? You will once you get a head start in this Jewellery business and here’s the whys and the hows
- Market potential and uses
The market for jewellery is vast in India backed by the large middle-class population and a share of upper-class too. The major consumers of jewellery for India with their primary reason behind a purchase of jewellery is associated with prestige, beauty and status.
You are most likely to have a consumer market for these kinds of jewellery
- Rings
- Necklace
- Earnings
- Anklets
- Bracelets
- Chains
- Bridal accessories
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Having said this, the demand for these consumers vary on the type of jewellery you they require. So your options for this jewellery business would be:
- Antique
- Temple
- Bead
- Bridal
- Fashion
- Kundan
- Filigree
- Handmade
- Minakari
- Polki
- Navratna
Now depending on this the type of Jewelry store options you have to start with you jewellery business would be:
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- Retail jewellery store
- Gold trading
- Jewellery manufacturer
- Gold importer
- Online Jewellery Retail
Here we deal with establishing a retail jewellery store.
Table of Contents
Uses
The uses which your consumers associate with the jewellery you supply are as follows:
- Used for daily wear
- Used to be worn at parties, events etc
- Used for donations
- Used for bank loans as mortgage
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- Used in weddings
- Used on festivals
- Used as a gift
- License required
The licenses required to set up a jewellery making business is :
- BIS license for selling hallmark jewellery
- Import export code
- GST registration
- Trade license
- Trademark and patent licensing
- Investment required
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The investment required to set up a jewellery making business is ₹10-₹15 lakhs
Profits made
The profits made from a jewellery making business in India is between ₹2.2Lakhs-₹50 lakhs
- Target consumers
Depending on the uses specified above the target consumers for your jewellery business would be as follows
- Middle class income level: These consumers have a seasonal or half-yearly demand for jewellery which usually deals in gold, necklaces, earnings, rings etc who require it during Festivals, weddings etc
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- Upper class income level: These consumers have a quarterly and frequent demand for jewellery and spend an average of 20% of their income on it on occasions like dinner parties, luncheons, events etc
- Designer boutiques: The clothing designer boutiques also maintain a collection of jewellery of various kinds like temple, antique, minakari etc which complements their designs specially to attract consumers for events like weddings, galas, parties etc
- Charitable events: Your jewellery could be bought and auctioned for charitable trusts, donations at various events by high end income earning population
- Tourists: The tourists who aim at getting a taste of the authenticity of the Indian jewellery its quality, craftsmanship, labour intensive practices from countries like USA, Italy, Germany, France etc is huge a target base
- Area required
The area required to set up a jewellery making business is 500 sq ft – 800 sq ft
- Raw materials required
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The raw materials involved in starting a jewellery business is:
- Gold
- Silver
- Hooks
- Gems: sapphire, topaz, pearls, kundan
- Machinery required
Machinery required to set up a jewellery making business is:
- Soldering machine
- Laser cutting machine
- Gemstone setting machine
- Manpower required
The manpower required to run a jewellery business is
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- 2- goldsmiths
- 3-unskilled workers
- 2-skilled workers
- Business model and growth
The business model of a jewellery business can be defined using these 4 variants:
- Value proposition: The value which a jewellery business is likely to get you is:
- High demand with increased disposable income and even higher seasonal demand
- Target consumers being : middle- class which is the highest spender and most populated in India
- Target consumers: As discussed above the target consumers for your jewellery business is as follows
- Middle class
- Upper class
- Designer boutiques
- Charitable events
- Museums
- Handcraft shows
- Exhibitions
- Tourists
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- Competitor review: The few key competitors in terms of retail jewellery stores to your jewellery business in India is as follows
- Kalyan Jewelers
- TBZ
- Mussadilaal jewellers
- Marketing strategy: The marketing strategy that your jewellery business can implement is as follows
- Advertisements: Through Tv commercials, celebrity endorsements, movie sponsorship, billboards
- Sales promotion: Through discounts and offers
Growth
The jewellery making business has witnessed and has the potential for for the following growth prospects:
- Firstly, the Indian middle class is expected to increase to 547 million by 2025 which is likely to increase the demand for gold
- Moreover, the demand for gold jewellery stood at 700 tonnes in 2019
- Deals worth ₹8000 crore were made at the Indian international jewellery show held in 2018
- Profit margin
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The profit margin this jewellery making business is likely to get to you is 40%
- Suggestions
Jewellery sure is expensive save your money for that, not this business and here’s why
- Firstly, the target market for this business is the majority of the population which is the middle class which comes with large seasonal demand and frequent half-yearly demand
- Secondly, the investment for this business is reasonable but comes with a considerable return and annual turnover
- Lastly, it’s very labour intensive business which comes with low cost in India and therefore there a massive foreign demand making India the larger exporter of gems and jewellery with $27.44 billion in 2021
