Organised jewellery makers gain market share, capitalise on demand for lightweight jewellery

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The Indian jewellery sector is undergoing a transformation, with formalisation gaining momentum and organised players now controlling 36-38 percent of the market —a significant rise from 22 percent in FY19, according to analysts.

This shift has been driven by consumer trust in branded retailers, rising disposable incomes, hallmarking regulations, and a growing demand for lightweight, versatile jewellery that aligns with modern lifestyles.

Industry giants like Titan, Kalyan, Malabar and Senco are capitalising on these trends, expanding aggressively with franchise models and catering to evolving preferences for daily wear and studded jewellery, signalling a new era for India’s gold obsession.

Decoding the rise in market share  

Over the last four years, companies are expanding at a breakneck speed with reports suggesting addition of nearly 500 stores by large jewellery retailers in the next two-three years. Kalyan Jewellers has already announced plans to launch about 130 showrooms in India in FY25, compared to 71 stores in FY24.

“We have about 50 percent of the industry leader Titan’s showroom count. However, we are expanding at a faster clip. If this continues, we could reach Titan’s scale in the next 3–3.5 years,” Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers told Moneycontrol in an exclusive interview on January 13.

Meanwhile, Titan announced plans last year to add 170 stores in FY25, highlighting its aggressive strategy to capitalise on growing consumer trends. In its third-quarter update, the Tata Group company reported a sharp revenue increase, accelerating from a modest 8 percent year-on-year growth in the first quarter of FY25 to a festive-driven 25 percent surge in the third quarter. Titan also noted that its jewellery division is thriving, driven not only by traditional gold purchases but also by the rising demand for lightweight, versatile jewellery that complements the lifestyles of modern Indian consumers.

“The proliferation of stores and consumers' growing inclination towards purchasing jewellery from branded retailers, especially in the last 3-4 years, have brought about significant shifts in the market composition,” Motilal Oswal said in its sectoral research note last year.

The aggressive expansion strategies have fuelled local competition with small jewellers offering attractive discounts to lure buyers. “Competition is always here to stay. But of course, branding or spending by local players have increased,” Kalyanaraman said during the second quarter earnings call last year.

As of now,  Titan holds the lion's share in the organised retail sector with ~45 percent share with a network of over 900 stores spanning Tanishq, Caratlane, Mia, and Zoya. Other major retail players include Malabar, Kalyan and Senco, among others.

“The daily wear jewellery category is increasingly becoming quite competitive with more and more legacy jewellers and corporate brands launching attractive designs and collections at affordable price-points. In this market scenario, jewellers from the organised segment will definitely command the larger market share because customers are becoming quality conscious and discerning in their preferences and only the organised players have the design bandwidth and depth to meet the growing demand,” Malabar Group Chairman M P Ahammed told Moneycontrol in a statement.

Analysts flag that the franchise-based model has seen consistent success, prompting most players to adapt their business models accordingly. It is not only an asset-light model but also provides faster reach.

Why are people buying?   

So far, weddings and festivals have driven the demand for jewellery in India. While the demand for bridal and traditional jewellery products continue to be dominant, the  light-weight daily wear segment has begun to gather steam due to multiple factors including a rise in per-capita income, enhanced product offerings, trust-building through hallmarking, increasing number of working women, exposure to global designs, a focus on regular-wear fashion products, and so on.

“The evolving sensibilities of new-age women who look for ways to enhance the everyday look, their exposure to global trends and the innumerable design choices being offered by jewellers and jewellery brands are primarily driving the demand for daily wear jewellery,” said Ahammed. Retail chains identified the opportunity and have attempted to enhance the in-store buying experience to attract customers. Currently, daily-wear jewellery constitutes 30-35 percent of the Indian jewellery market.

While the lightweight jewellery segment was initially dominated by the unorganised sector, organised players are now rapidly expanding their presence in this space.