How To Start Jewellry Business 

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.

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

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:

• Retail jewellery store
• Gold trading
• Jewellery manufacturer
• Gold importer
• Online Jewellery Retail

Here we deal with establishing a retail jewellery store.

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
• 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

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

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

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

• 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

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

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