Imitation Jewelry - a brief market analysis.
More at less. No we are not talking about – less is more. We are actually talking about the want to have more of something good at as little price as possible. And if we are honest with ourselves, we all want all good things in our lives to be like that.
One product category that perfectly fits into this criteria is the huge market of imitation jewelry, also called non-precious jewelry, decorative jewelry and party jewelry. Unlike gold or diamond jewelry, that are covered under the precious or real jewelry and are worn only on special occasions, imitation jewelry serves more casual purposes like parties and gatherings and is even suitable for wearing daily to the office or for a quick visit to the shopping mall.
However, this is one market which cannot be generalized and deserves a deeper look. In this 4 part series, we try to bring to you some insights from the imitation jewelry market of India
Imitation jewelry - Offline Markets
Until almost 2 decades back, when internet and e-commerce penetration was not significant in India, imitation jewelry was predominantly an offline business. Many would stay it still is and will continue to be.
While some part (we can say first half) of this is true, there has been a major shift in the way the other half operates. To make it more clear, the manufacturing and distribution or the B2B part of the business works offline, almost all of it. It is the B2C part or the consumer buying part that has changed or evolved over the years, with online buying getting a lot of preference.
Having said that, as a whole, this is still an offline dominated market, with more than 80% of business still coming from traditional physical store based markets. And now that we have mentioned it, lets us have a quick look at the top offline imitation jewelry markets in India –
Zaveri Bazaar, Mumbai – With more than a 1000 stores to choose from today, this is one of the largest market for imitation jewelry in India
Chandni Chowk Delhi – Established in the 17th century by Shah Jahan as a part of his capital city Shahjahanbad, this is one of the oldest markets in Delhi
Johari Bazaar, Jaipur – was established by Maharaja Madho Singh during his reign from 1638 to 1678 and gained popularity during the same period.
Begum Bazaar, Hyderabad – more than a 100 shops sells imitation jewelry in this ancient market which is also one of the largest commercial places of the city
George Town, Chennai – Known for offering some of the latest designs at the best prices, this is a good market for bulk buyers.
Other noteworthy mentions –
Manish Market in Kolkata, Janpath in Delhi, Sarojini Nagar in Delhi, Ponday Bazaar in Chennai and Commercial Street in Bengaluru
Is all imitation jewelry cheap?
Well, the answer depends on what you would term as imitation and semi-precious. Also, the answer would depend on what a particular segment of people would term as economical or expensive.
While the baseline of the fashion jewelry market has always been to offer variety and more quantity at lesser prices as compared to precious jewelry, not all semi-precious jewelry can be called economical.
Since, price as a parameter is subjective – the market is flush with brands offering imitation jewelry as low as Rs. 250 for a set of necklace and earrings. The range then includes semi-precious jewelry which might cost your pocket around Rs. 3000 – 30,000 for a layered necklace with the addition of a few semi-precious stones.
The range can go even higher, running into lakhs of Rs. for a designer piece sold by names like Tiffany & Co, Cartier or Bvlgari. Of course, the line separating precious and non-precious jewelry gets dissolved somewhere in between.
The number of brands available in the lower segment is higher and gradually decreases as we move up the price graph. However, in each segment you will find competition.
The variety in categories and designs along with the price range is definitely helpful for the customers – they have a lot to choose from. Whether it is the offline market or the online space, the customers or buyers have their hands full when it comes to choices.
The same situation, however, makes life difficult for the people sitting on the other side, i.e. the sellers.
In the online space – competition is tough for imitation jewelry sellers, irrespective of whether they are selling on marketplaces like Amazon, Flipkart or even Meesho or they have set up their own website to sell their items online.
Some big players in the Indian imitation jewelry market
Imitation jewelry has existed since ancient times in India. The market size has grown in both width and depth over the years.
Siddharth Bindra, Managing Director, Biba says – After china India is the second largest manufacturer of Imitation Jewelry and the market is growing each year.
In 2017, Biba launched their fashion accessory range Biba Jewellery, to provide its shoppers an opportunity to shop for their complete look at one place. Their jewelry line includes fashionable neckpieces, bracelets, earnings and finger rings.
Mr. Bindra told “The response for our jewellery line has been encouraging. We have been coming up with new collection for jewellery on a regular basis and getting much love from our patrons,”.
This has fueled demand for imitation jewellery, a market which is pegged at Rs 8000 cr out of which about 2% is sold online.
Vishwas Shringi, Founder and CEO, Voylla says, “The fashion jewellery market in India is at about Rs 15,000 crore and is growing steadily at 20 percent CAGR.”
Although Voylla started with selling jewelry online in 2012, today their brand is available through 145 exclusive brand stores and 20 multi-brand outlets.
Sukkhi is one of the most known and biggest names in the online imitation jewelry market category. The brand retails its products through marketplaces like Amazon India & Flipkart, but has the major focus on selling through its website – Sukkhi.com. built on Shopify on a customized theme.
Sukkhi has clearly made its mark in the online imitation jewelry market and is the benchmark for a lot of brands today. These include brands which have started out as only online brands in the last 4-5 years as well as brands with more experience in the offline market which are now trying to get their ground in the online market.
One such fast growing brand is Alex Jewellery which sells by the brand name Saiyoni, managed by Amidora Infotech. Amidora Infotech is an end-to-end ecommerce service provider and has been helping brands grow online since the last 10 years.
Case Study - Alex Jewelry - Saiyoni
Overview:
Since the year 1982, the brand has successfully gained popularity in the market due to its amazing collection of jewelry that includes Artificial Designer Ring, Artificial Bridal Necklace Set, Designer Artificial Jhumka, Ladies Artificial Bangles, etc.
All of these beautifully designed jewelry are produced in-house by the brand at its manufacturing unit, situated in the growing city of Mumbai, India.
Challenges:
Existing in-house ecommerce/ marketplace team unable to drive the business growth through online marketplaces/ Ecommerce. Increased cost of the operations V/S Sales.
Approach:
- Identifying the issue of limited design and the quantity
- Addressing the same with increment in the quantity to fulfill the demand across marketplaces
- SKU assortment strategy
- Online marketplaces presence expansion
Phase 1:
included Amazon, Flipkart, Meesho and Snapdeal.
Phase 2:
Expansion on Myntra, AJIO, SimSim, Jiomart and many similar beauty, fashion, accessories related online marketplaces.
Impact:
- We managed to grow brands presence from 2 to 8+ Online Marketplaces
- SKUs size comprising of 500 in year 2021 to 1000+ in 2022
- Successful inventory management
- Stepwise Growth
- Price Parity across marketplaces
- Managing the assortment size
Sales Impact:
- From zero to net realization of INR 12-15 Lacs/ Monthly – Financial Year 2021
Target for FY 2022:
- Cross INR 1 Cr/ Monthly revenues
Online Jewellery Business in India : Growth drivers
Rising price of Gold and Silver:
Indians are well known to be fond of wearing ornaments made of precious metals such as gold and silver. However, of late, the appetite for expensive metals has been dipping with the soaring prices of metals such as gold.
Accessibility - Offline:
The unorganized sector or unbranded range of imitation jewellery is available across the country, spread throughout the cities, towns and villages of India.
Accessibility - Online:
More consumers from Tier 2 and Tier 3 are opening up to online purchase of imitation jewelry, thanks to return and replacement options offered by the online platforms and brands alike.
As per Chaitanya Aggarwal, Founder & CEO, Juvalia & You, “Consumers in tier 2 and 3 cities are opening up to the online purchase of jewelry”
Affordability:
In case of known brands and e-tailers, there are discounts and coupons coupled with EMI options to help the buyers pick up the slightly expensive designs.
The YOLO way of living:
More and more Generation Zs like to live in the moment and do not mind splurging on the things they like.
To summarize -
Being a part of the fashion industry, this is one industry which will never go out of business. There will be major shifts in trends and styles which will reflect in the materials used and manufacturing process. The reverse of it is also equally true.
Something like Covid-19 which led to the shutdown of a lot of businesses, could also only temporarily affect this industry.
The industry holds a lot of potential for players at various levels. One could decide to be a niche player in the industry and stick to a small market or may decide to go mass market or even become a B2B bulk player.
Whatever way you choose – you need to establish your own USP which matches your vision and a product to support it equally.