How to start a Jewelry business Overview
Something which is the most valued among the India population after their own business is the jewelry 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 jewelry 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.
Jewelry business Market potential
The market for jewelry is vast in India backed by the large middle-class population and a share of upper-class too. The major consumers of jewelry for India with their primary reason behind a purchase of jewelry is associated with prestige, beauty and status.
The top most trending Jewelry business ideas one can consider are Handmade Jewelry, Personalized Jewelry, Vintage or Antique Jewelry, Ethical and Sustainable Jewelry, Bridal Jewelry, Children’s Jewelry, Fashion Jewelry, Jewelry Repairs and Restorations.
You are most likely to have a consumer market for these kinds of jewellery.
- Bridal accessories
The demand for these consumers vary on the type of jewellery you they require. So your options for this jewellery business would be:
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
Artificial jewelry business is likely to be preferred by many businessmen, but before starting this business one needs to thoroughly research the market, select suppliers, setting up online presence, promoting and marketing the brand and much more. Imitation jewelry business, is also a famous jewelry business in today’s world and can be done through various advertising ideas and strategies. Another trending jewelry business idea is online jewelry business which is full of advantages like such business has a global reach, personalized shopping experience, flexibility, convenience for customers and more.
Investment required for Jewelry business
The investment required to set up a jewelry making business is ₹10-₹15 lakhs.
The profits made from a jewelry making business in India is between ₹2.2Lakhs-₹50 lakhs. Jewelry business in India has occupied the largest position in the global market, it’s a thriving industry with a mix of traditional and modern trends. Jewelry business is profitable and has significantly increased the Indian economy.
License required & Uses
Depending on the uses specified above the target consumers for your jewelry business would be as follows:
Middle class income level: These consumers have a seasonal or half-yearly demand for jewelry 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 jewelry 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 jewelry 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 jewelry its quality, craftsmanship, labor intensive practices from countries like USA, Italy, Germany, France etc. is huge a target base.
The area required to set up a jewelry making business is 500 sq ft-800 sq ft.
Raw materials, Machinery required & Manpower
- Gems: sapphire, topaz, pearls, kundan.
- Soldering machine.
- Laser cutting machine.
- Gemstone setting machine.
- 2- goldsmiths.
- 3-unskilled workers.
- 2-skilled workers.
The business model of a jewellery business can be defined using these 4 variants:
Value proposition: The value which a jewelry 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
- Handcraft shows
Competitor review: The few key competitors in terms of retail jewelry stores to your jewelry business in India is as follows.
- Kalyan Jewelers
- Mussadilaal jewellers
Marketing strategy: The marketing strategy that your jewelry business can implement is as follows.
Advertisements: Through Tv commercials, celebrity endorsements, movie sponsorship, billboards.
Sales promotion: Through discounts and offers.
Jewelry business Growth
The jewelry 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 jewelry stood at 700 tones in 2019.
- Deals worth ₹8000 crore were made at the Indian international jewelry show held in 2018.
The profit margin this jewelry making business is likely to get to you is 40%.
Jewellery sure is expensive save your money for that, not this business and here’s why
- 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.
- The investment for this business is reasonable but comes with a considerable return and annual turnover.
- 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.
How to start a jewellery business in india?
One needs to keep various aspects in view before starting a jewellery business in India like researching and planning, keeping market demand in view, knowing about legal requirements, cost and profit, marketing and branding and more.
How to start a jewellery business from home?
A jewellery business can be started from home while keeping in view the following requirements : developing a business plan, good market research, setting up a workshop, getting licence and other legal paperwork done, developing and advertising your brand and more.
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