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Jewellery brands in India are devising newer strategies and refining their existing approaches to alleviate the impact of soaring gold prices.
According to data from BankBazaar, the prices have been increasing consistently from ₹35,220 in 2019 to ₹71,510 per 10 grams of 24-karat gold, with prices hitting an all-time high of ₹79,900 on October 18, 2024.
The ongoing rise in prices of the precious metal has prompted jewellers to adopt creative solutions to maintain its allure and desirability for consumers. One notable trend is the increasing adoption of lightweight pieces in their collections. For instance, Tanishq has added nearly 500 lightweight designs in their festive collection this season.
Approximately 8,000 designs from Titan’s jewellery collection are now lightweight or optimised for weight, with the company introducing 1,200 new SKUs in this category last year. “In our newly launched Nav Raani collection, which can range up to 130–140 grams, we have ensured that the median weight is around 60 gram per set, keeping it within an affordable price range,” says Ajoy Chawla, Chief Executive Officer of Jewellery at Titan.
Budget-conscious
One of the primary reasons for the growing inclination toward lightweight jewellery is that customers’ budgets are not increasing at the same rate as gold prices, points out Chawla. “Their budgets are simply not keeping pace. If gold prices continue to rise at this rate, it will be challenging for consumers.”
Echoing this sentiment, Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, states, “In the past, when gold prices were stable, buyers focused primarily on the volume of gold. However, this has shifted; inquiries now revolve around costs as consumers become more budget-conscious. The emphasis has changed from how much gold they can buy to how much they are willing to spend.”
To accommodate buyer budgets, jewellers are creating designs that appear heavy but are lightweight, says Suvankar Sen, Managing Director, CEO of Senco Gold and Diamonds.
Sen further explained how this trend is also reflected in diamond jewellery: “Five years ago, pieces were typically crafted in 18 karat gold; however, due to rising prices, many are now made from 14 karat gold. This shift positively impacts the budget for diamond jewellery.”
In addition to launching 150 new designs in its Everlight collection, which features lightweight, minimalist jewellery, Senco is collaborating with Kharigars to create designs by incorporating semi-precious, pearls, and synthetic stones. “This approach not only enhances the aesthetic appeal but also keeps the products within customers’ budgets,” Sen added.
Tech-driven
Kalyanaraman emphasised how the brand is leveraging technology to create designs that use less gold without compromising on appearance. “We can now produce jewellery that maintains the same size and aesthetic as before, unlike traditional methods that required a fixed amount of gold for structure,” he revealed.
Besides, jewellers are leveraging their existing monthly installment payment schemes, gold exchange programs and initiatives that allow consumers to pay a small advance and secure their purchases for later pickup, benefiting from the lower of the two prevailing gold prices. This approach addresses the volatility in gold prices while offering enticing deals on making charges.
These efforts aim to ease the financial burden on buyers while sustaining demand and making the liquid metal desirable yet again.
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