Indian jewellery sector expected to generate $81.26 bn in sales by 2024 end: DRK Jewels

Paarth Khanna, who is a Delhi-based jewellery designer and the third generation amongst the DRK Jewels owners, envisions expanding the legacy at par with the world's leading brands in design and luxury. A dynamic and iconic professional who keeps evolving with time and ensures to take DRK legacy to greater heights with his effervescent ideas and creating timeless pieces, Paarth Khanna is confident of good growth in Indian jewellery industry. He says the Indian jewellery sector is expected to generate a phenomenal $81.26 billion in sales by 2028 with the projections that the compound annual growth rate (CAGR) will go up by 4.59 per cent year between 2024 and 2028. In exclusive interview to Bizz Buzz, he said the demand for exclusive designs are growing very fast underlining the need for more focus on innovation through research and development and analytical studies

How does the legacy business model work in the jewellery industry?

The legacy business model in the jewellery industry often revolves around traditional craftsmanship, brand reputation, and generational continuity. Established jewellery houses leverage their historical significance, craftsmanship expertise, and iconic designs to create a sense of exclusivity and prestige. They prioritise quality materials, intricate craftsmanship and timeless designs, fostering a perception of enduring value. Legacy jewellers often build long-term relationships with skilled artisans, ensuring the preservation of unique techniques.

The generational aspect comes into play as family-owned businesses pass down expertise, maintaining a consistent brand identity. While embracing modern marketing and technology, legacy jewellers continue to rely on their heritage to attract customers seeking not only exquisite pieces but also a connection to a longstanding tradition of craftsmanship and elegance.

Please elaborate on the jewellery industry as a whole and how it works.

The jewellery industry is a dynamic and multifaceted sector encompassing the design, production, marketing, and retail of adornments. Key components include raw material sourcing, design innovation, manufacturing, distribution, and retail sales. Raw materials, such as precious metals and gemstones, are sourced globally, often involving intricate supply chains. Designers create diverse collections influenced by fashion trends, cultural motifs, and consumer preferences.

Manufacturing processes range from traditional handcrafting to advanced technologies. Distribution involves a network of wholesalers and retailers, including brick-and-mortar stores and online platforms. Marketing strategies emphasise brand identity, craftsmanship, and emotional connections. Retailers cater to various market segments, from high-end luxury brands to more accessible fashion jewellery. The industry also faces challenges related to ethical sourcing, sustainability, and changing consumer preferences. Overall, the jewellery industry reflects a blend of artistry, business acumen, and adaptation to evolving market dynamics.

Where does India stand in jewellery designing and exports? What is the size of India's industry and its projections for growth?

India holds a significant position in the global jewellery industry, renowned for its rich cultural heritage and intricate craftsmanship. The country is a major hub for jewellery design and exports, with a diverse range of traditional and contemporary designs appealing to global markets. India's jewellery industry contributes significantly to its economy, employing millions and supporting various related sectors.

The industry has shown resilience and adaptability, embracing modern designs and technologies. Projections for growth remain optimistic, driven by increasing global demand, a focus on ethical practices, and the promotion of handmade and artisanal jewellery.

The Indian jewellery sector is expected to generate an astounding $81.26 billion in sales by 2024. It is noteworthy that the compound annual growth rate (CAGR) predicts that this market will rise by 4.59 per cent year between 2024 and 2028. The government's initiatives to streamline regulations and promote skill development further contribute to the industry's positive outlook. As India continues to blend tradition with innovation, its jewellery sector is poised for continued growth and global prominence.

What is the speciality of DRK Jewels? How are you envisioning expanding the legacy at par with the world's leading brands in design and luxury?

DRK Jewels distinguishes itself through a combination of distinctive design and a commitment to exceptional craftsmanship. Our specialty lies in creating unique and timeless pieces that reflect a blend of tradition and contemporary aesthetics. We prioritise the use of high-quality materials, intricate detailing, and ethical practices, ensuring that each piece tells a story of artistry and sophistication.

To expand our legacy in line with the world's leading brands in design and luxury, DRK Jewels focuses on innovation, collaboration, and a customer-centric approach. We continuously invest in design research and development, fostering partnerships with renowned designers to bring fresh perspectives to our collections.

Embracing digital platforms and engaging in sustainable practices are integral parts of our expansion strategy. By upholding a commitment to excellence and staying attuned to global trends, we aim to elevate DRK Jewels to the pinnacle of the jewellery industry, providing customers with unparalleled luxury and enduring design.

Is it a fact that the demand for jewellery of various designs is more in South India than other parts of India?

Yes, it is a fact that the demand for jewellery, encompassing various designs, is traditionally higher in South India compared to other regions. South India has a deep cultural affinity for gold and jewellery, often considered an integral part of ceremonies, festivals, and everyday adornment. The region's rich cultural heritage and strong emphasis on rituals contribute to the sustained demand for a wide variety of jewellery designs. South Indian jewellery, known for its intricate craftsmanship and unique designs, including temple jewellery and traditional gold ornaments, remains particularly popular. While jewellery demand is significant across the country, the distinctive cultural practices and preferences in South India make it a prominent market for diverse and ornate jewellery designs.

How creative and updated a designer has to be to bring a design on board?

A successful jewellery designer needs to be both highly creative and continually updated with evolving trends. Creativity is essential for crafting unique and visually appealing designs that resonate with consumers. Originality in design sets a designer apart and contributes to the brand's identity. Staying updated is equally crucial as jewellery trends change with fashion, culture, and consumer preferences. Designers must be aware of emerging styles, materials, and techniques.

Continuous learning and adaptation to technological advancements, such as 3D modelling, contribute to staying competitive. Moreover, understanding market dynamics, customer demographics, and cultural influences ensures that designs are not only creative but also commercially viable. Striking a balance between creativity and market relevance allows a designer to bring innovative and sought-after jewellery designs on board

Behind the scenes of making jewellery, how R&D and analytics are done?

Jewellery creation is a very intricate process and behind the scenes of making jewellery requires consistent research and development. R&D involves exploring new materials, techniques, and design concepts to innovate within the industry. Designers and artisans collaborate to experiment with shapes, textures, and finishes, aiming to create distinctive pieces. Analytics come into play in understanding market trends, consumer preferences, and sales data. By analyzing this information, jewellery makers gain insights into what resonates with customers, informing decisions on design choices and production quantities.

Moreover, analytics assist in supply chain optimization, ensuring efficient sourcing of raw materials and production processes. This combination of R&D and analytics enables jewellery makers to blend creativity with market intelligence, producing pieces that not only showcase craftsmanship but also align with contemporary tastes and business strategies.

Jewellery business being family owned mostly do you the entrepreneurs face any funding issue?

While many jewellery businesses are family-owned, entrepreneurs in the industry can encounter funding challenges. Traditional financing avenues, like bank loans, may pose difficulties due to stringent requirements and uncertainties associated with the luxury goods market. Family-owned businesses often rely on personal savings or contributions from extended family members for initial capital. However, scaling operations or introducing new collections may necessitate additional funding.

Some entrepreneurs explore alternative financing options, such as private investors, partnerships, or crowdfunding. Economic downturns can also impact consumer spending on luxury items, affecting cash flow. Despite these challenges, successful family-owned jewellery businesses often prioritise sustainability, build strong relationships with suppliers, and strategically reinvest profits to navigate funding obstacles and ensure long-term viability.

What is the latest trend in the jewellery business? Of late, the demand mainly among the youth seems to be imitation jewellery?

The latest trend in the jewellery business reflects a growing preference for sustainable and inclusive practices. Ethical sourcing of materials, emphasis on transparency, and eco-friendly manufacturing processes are gaining prominence. While traditional and heavy jewellery continues to have its place, there is indeed a noticeable surge in the demand for modern and dainty jewellery, especially among the youth. Modern jewellery offers versatility, affordability, and trendy designs that align with fast-changing fashion preferences.

This shift is also influenced by a desire for variety and the recognition that jewellery can be more transient and expressive. The industry is adapting by blending craftsmanship with accessible materials, catering to a dynamic market that values both style and responsible consumption. The rise of imitation jewellery represents a broader movement towards conscious consumerism and a departure from traditional norms in the jewellery business.