The jewellery industry, deeply rooted in tradition, is experiencing substantial transformation influenced by economic shifts, cultural sentiments, and changing consumer preferences. Gold prices have been reaching new highs, festive demand has been fluctuating, and the latest trends have been coming to the forefront. While this is a dynamic industry with cyclic ebbs and flows, it’s imperative to understand, analyse, and identify the key drivers behind these trends to ensure optimal outcomes for brands, investors, and customers. Here are some of my key observations.

Price Surge Reshaping Purchase Decisions

Gold has always been a safe asset to invest in. However, recent geopolitical tensions, inflation worries, and bank buying have pushed the prices to historic levels. The recent price of gold per troy ounce reached $3,110, and a gram of 24-karat gold in India came close to Rs 9000. This boom in the gold price has changed customer behavior in India, the Middle East, China, and other regions.

Decoding the impact on the consumer

• High prices have made customers switch to lower-weight, intricate designs over heavy traditional jewellery sets to manage their budget.
• The number of gold substitutes has risen, with lab-grown diamonds, gemstone jewellery, and gold-plated alternatives gaining traction among buyers.
• Due to a lack of steady investment avenues, buyers have looked to invest in an asset like gold, mainly in gold bars, coins, and ETFs, over ornamental jewellery.

Retailer strategies and incentives

• Multiple prominent brands are offering flexible financing options. No-cost EMIs, lower interest rates, and more manageable repayment options have been partly successful in sustaining demand.
• Exciting exchange programs offer customers the chance to submit their old jewellery for new lightweight designs while saving big on costs.
• Multiple large jewellery chains have shifted their focus to higher margin categories, namely designer and branded ones, to offset the decrease in sales volume.

Festive Buying Still Reigns Supreme

Despite the sharp increase in prices or the fall in sales volumes, festive shopping has sustained the demand for jewellery. In a nation like India, festivals and weddings drive around 60-70% of the annual demand. Emotional and auspicious buying patterns have managed to bring balance to the demand side.

Festive purchase trends

• Instead of traditional heavy-set jewellery sets, many customers are opting for modular jewellery, such as stackable rings and layered necklaces.
• Gen Z buyers and millennials, too, are going for everyday pieces over ones that can only be worn on special occasions.
• In India, where gifts are usually exchanged at every major festival, people choose earrings, bracelets, and smaller pendants as festive gifts.

Wedding demand throws up mixed trends

Weddings have typically been a non-negotiable driver, but economic scenarios and changing customer tastes have changed buyer behavior. Brides are moving to heirloom or rented jewellery for the special day, with a renewed priority on customization, and jewelers are blending traditional and contemporary designs to tap into customer behavior.

How Design Trends Are Evolving

Earlier, the taste of the average woman toward their jewellery was heavy with sentiment, opulence, and ownership. Heavier pieces tended to dominate the customer choice, with retailers focusing on such designs to boost footfall. Now, the picture has dramatically changed. There are several factors to this.

Minimalism

The present buyer, Gen Z or a millennial, is looking at inspirational designs with minimal aesthetics, be it delicate chains, intricate earrings, or pendants; the average customer is looking for subtlety. Also, gender-neutral jewellery is massively popular, and young couples are looking at chains, cuffs, and unisex rings to gift each other to mark special milestones.

Sustainability

Lab-grown diamonds have become a popular trend, with multiple celebrities promoting such ethically sourced and sustainable alternatives, making them mainstream. Consumers are also looking for eco-certified jewellery. Such changes resemble a change in young customers, who are looking for brands that align with their values.

Changing Consumer Behaviour

Focus on experiences

Rented jewellery is becoming popular, and the pre-owned jewellery market is also witnessing a steady rise fueled by a changing mindset. Customers are moving away from the ownership aspect and instead focusing on jewellery that tells a story.

Digital influence

Social media channels like Instagram, Facebook, and Pinterest have been moulding customer demand and influence, and omnichannel marketing is proving crucial in tapping into the younger buyer demographic.

The jewellery market is witnessing significant shifts, and retailers in the sector have the daunting task of balancing tradition with modernity, aesthetics with opulence, and constraints with desires. For any brand looking to scale in the market, it is imperative to provide flexible financing, perform omnichannel marketing, focus on sustainability and a minimalistic aesthetic, and build a premium differentiator. There are a lot of factors driving multiple trends in multiple demographics. Still, it is crucial to treat this as a holistic change due to differing generational behavioral patterns to stay relevant in this market.

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By Disha Shah, Founder & Designer, DiAi Designs