Editor’s Note
India’s diamond jewelry market has surged from 2% of global consumption in 2005 to 11% today, now ranking as the world’s second-largest. This growth reflects the country’s buoyant economy and rising affluence.
Mumbai, India— In 2005, India’s domestic diamond jewelry market was relatively small, accounting for just 2 percent of total global consumption. That figure has risen to 11 percent today, according to De Beers Group, making India the second-largest market for diamond jewelry worldwide.
Diamond jewelry sales in the country, which stood at $4.6 billion in 2021, rose by 8 percent to $5 billion in 2022 (15 percent in local currency), according to De Beers’ Diamond Insight Report from 2023. Sales have continued to climb since then and are widely expected to reach about $8.5 billion to $9 billion this year.
Indian diamantaires describe the local market as one of the bright spots amidst the global economic slowdown. The country’s economy is among the fastest growing in the world. There is an expanding, and increasingly affluent, middle class, and consumer tastes are influenced by global trends sparking a rising interest in diamond jewelry.
Kisna Diamond & Gold Jewellery, the flagship retail brand of Hari Krishna Exports, recently expanded its exclusive showrooms to 40. These are primarily located in metropolitan cities and tier 1 (the largest, most established cities) and tier 2 cities (those that are smaller but growing rapidly) in addition to the brand’s presence in more than 1,500 shop-in-shops in local jewelers across the country.
In a presentation at the “InnovNXT, Forty Under 40 Leadership Summit” organized by the Gem and Jewellery Export Promotion Council (GJEPC) earlier this year, Pratihari noted that diamond jewelry demand is urban-centric, with larger cities (tiers 1, 2 and 3) accounting for 80 percent of all purchases. The buyers are predominantly younger consumers, with 50 percent under 35 years old and the share of millennials (now 28-43 years old) and Gen Z (now 12-27 years old) buyers accounting for about 75 percent of all purchases. He estimated that the number of mid- to high-end consumers in India will increase 20 percent between 2022 and 2030.
Ajoy Chawla, CEO of the jewelry division at Titan Company Ltd., which owns retail chain Tanishq, India’s largest jewelry retailer, noted recently that there is a massive opportunity for diamond sales to increase given the very low penetration of diamond-set jewelry (also referred to as studded jewelry) in the market. Recent projections by Red Seer, a consultancy firm, estimate that the share of studded jewelry in India, which was about 14 percent in 2020, has risen to 18 percent in 2023 and could touch 25-30 percent in the next five years.
Against this backdrop, De Beers and Tanishq recently entered into a long-term strategic collaboration to boost diamond demand in India. Conseiller said this is part of De Beers’ refreshed approach to category marketing, which is focused on establishing strategic partnerships with retailers.
It is not just affluence that has propelled growth. De Beers, which has three decades of experience in retail in India, pinpoints some unique characteristics of local demand. One of these is self-purchase, which accounts for around 60 percent of diamond jewelry demand. Conseiller noted that the role and influence of women is particularly strong in India.
Pratihari shared an interesting insight on the growing influence of digitalization and e-commerce, noting that it made diamond jewelry, “more accessible to a broader audience across India’s urban and semi-urban regions.”
The rapid rise of an organized sector in Indian jewelry retail is another enabling factor. Though wearing jewelry is an intrinsic part of Indian culture, it was a largely unorganized industry. In the 1990s, some traditional family jewelers began modernizing their operations, and the Tata Group had entered jewelry retail with Tanishq. It was only after 2000, however, that the first large jewelry retail chains came into existence. Some, like Kisna and Orra, were launched by large diamond manufacturers/exporters. Corporate giant Reliance Industries created Reliance Jewels. And, jewelers like Malabar, PNG, Alukkas, Senco, and others with a strong presence in a city or two, began developing regional or nationwide chains.
