India has a tremendous appetite for gold and diamond jewellery, creating one of the largest jewellery markets in the world. Furthermore, India is the world’s largest importer of gold, and the gems and jewellery sector contributes nearly 6-7% to the Indian GDP, making it a significant industry. With India’s booming middle class and growing economy, the demand for gold is set to rise further in the coming years. Therefore, the jewellery business holds considerable promise for the coming years.
The jewellery business could be a lucrative venture in India, as the country has a rich tradition of ornament use, along with a high level of demand throughout the year. Whether it is a wedding, a festival, or just a typical day, fashion and jewellery continue to play an unavoidable role in Indian life. However, to venture into this attractive industry, one needs to do a lot of planning, stay in line with legal laws, and understand market trends. Here is how you can get started step by step.
The first step in starting a jewellery retail business is to create a brand name, obtain a trademark, create a website, and register your business as a private limited company, partnership, or LLP (Limited Liability Partnership). In this article, we examine the procedure for starting a jewellery business in India.
Globally, India is the largest consumer of gold. The gems and jewellery market in India is home to more than 500,000 players, with the majority being small players. Therefore, starting a jewellery business is one of the most profitable opportunities for beginners.
Types of Jewellery Business
India’s domestic gems and jewellery industry was estimated to have a market size of approximately Rs. 251,000 crores in 2013, with the potential to grow to Rs. 500,000 crores by 2018. The entire gems and jewellery industry is poised to experience a robust Compounded Annual Growth Rate (CAGR) of approximately 15.95%, making it an attractive investment opportunity. The Indian Jewellery Business can be divided into different types as follows:
- Retail Jewellery Shops
- Online Jewellery Retail
- Gold Trading
- Gold Importers
- Jewellery Manufacturers
Steps to Start a Jewellery Business in India
1. Choose Your Jewellery Niche
The most obvious and crucial thing is to select your niche. The jewellery market in India is enormous, and it would be too outlandish to serve all the possible segments at once. You may specialise in traditional gold and diamond jewellery, silver ornaments, or opt to engage in fashion jewellery using artificial materials. There are also designs that are handmade, tribal, as well as gemstones that are common in certain areas. A niche will define your customers, the price to charge for your products or services, how you plan your inventory and even how you market it. One should select a niche that aligns not only with what one is passionate about, but also with the available market need.
2. Have an Insight into the Market
When you have determined your niche, use market research. This will involve researching consumer preferences, pricing systems, seasonal demand and competition within your preferred category. Watch the local competition and the well-established online jewellery brands to determine their product positioning. Being aware of the recent tendencies in the design field, the regional patterns, and how people buy things will enable you to make smarter decisions about your inventory and branding. Through this stage, you will also know whether you need to begin using an online store, physical showroom or a mix of both.
3. Register your Business
The next step is to register your business. Select an appropriate business type, like sole proprietorship, partnership, LLP or a private limited company. Based on the scale and investment. You will also be required to procure GST registration, PAN card and open a current account in the name of your business. It is also good to carry a BIS (Bureau of Indian Standards) certification in case the business is dealing with precious metals such as gold or silver. In case you are going to sell hallmark jewellery, then BIS certification is required.
4. Get Necessary Licenses
In India, to operate a legal jewellery business, you are required to obtain specific licenses and clearances. You are required to obtain a license granted by the local municipal authority for the Shop and Establishment license if you are opening a store. To sell gold and silver, a license in hallmarking should be taken with the BIS. In case you are importing materials or exporting finished products, you can also require an Import Export Code (IEC) from the DGFT. Also, you will secure your trademark by registering it to protect your brand name in a market where there are many competitors.
5. Get a Reliable Supplier or Establish Manufacturing
It depends on your business model, whether you will use a trusted supplier or you will have your own production unit. As retailers, it is essential to order products supplied by verified wholesalers or manufacturers of jewellery to maintain quality and avoid losing customers. When you are creating your own designs and making your own pieces, you can establish a small studio or outsource those services to experienced craftspeople. Make sure that there is quality checking of each piece before it gets to the customer. Raw materials such as gold, silver, or stones should also be sourced in a legal and ethical manner.
6. Develop an Unmarked Brand Identity
Quality is one thing, but perception is another thing that a jewellery brand can flourish with. Name and logo: come up with an identifying name with a logo in a manner that makes sense to the audience and corroborates your niche. Design packaging that can only improve the delivery of the customer experience and create a feeling of value. The personality of your brand must portray reliability, prestige, and fissionability, depending on your target segment. Creating a consistency of design in your products, packaging, and promotional materials should aid in long-term brand recall.
7. Online Presence Development
Having a great presence on the internet is equivalent to having a physical store in the current Market. Everything begins with buying or proving a site or e-commerce where you can showcase your range. Make an investment in good professional product photos and descriptions. Such platforms as Shopify, Amazon or Flipkart may also come in handy to access more people. Use your social media (Instagram, Pinterest, and Facebook) to publish new designs and communicate with customers to attract traffic to your store. Jewellery online stores are experiencing massive expansion due to the effect of younger consumers who deem convenience and online shopping experiences more attractive.
8. Strategy Your Marketing Strategy
You will have to have a good marketing strategy to create a profile and gain clients. This is offline and online. In the offline context, one can imply the local newspaper advertisements, hoardings, and collaboration with wedding organisers or fashion shows. Online promotion incorporates your website optimisation, social media advertising, influencer relationships and email. Promotions, discount offers, and festival launch is also a brilliant method of sales hiking. When giving out messages, make sure you focus on quality, trust, certification and unicity; these are important elements in the purchase of jewellery.
9. Incentive on Customer Service and Faith
Trust forms the jewellery industry. Sell authentic, certified goods at no-nonsense prices. Offer ample return and exchange policies and offer excellent after-sales service. Provide bespoke or tailor-made services that cater to a unique interest during the purchase of jewellery. To ensure customers have long-term relationships, you should educate them on matters pertaining to purity, hallmarks, and proper storage. Customer loyalty and word of mouth are powerful tools in this sector.
Conclusion
The creativity involved in setting up a jewellery business in India is not enough; there is a need for a combination of legal knowledge, market insight, branding, and a serious dedication to quality. With a good plan of action, the proper licenses and a good relationship with your customers, you can pursue the passion you love in the jewellery business to a successful and reliable company. Whether it’s a small start on the internet or a full-fledged showroom, the Indian jewellery market has enormous potential to begin with, as long as one is willing to shine.
