Recently, CareEdge Ratings published their report, ‘Branded Jewellers’ FY25 Revenues Set to Grow 20%, Margins May Moderate!’ The CareEdge Ratings said, that they, expects the branded jewellery retailers to outperform the industry in terms of revenue growth in the medium term aided by expanding store network and shifting consumer preferences.
The branded jewellers are expected to record a revenue growth of 20-22% in FY2025 largely on account of a sustained rise in gold prices, purchases backed by cultural considerations and the rapid addition of new stores.
According to Sudarshan Shreenivas, Director, CareEdge Ratings, “The volume growth for the domestic jewellery retail industry is expected to remain muted in FY2025 with factors including high volatility in gold prices in the recent months and the evolving global geopolitical and macroeconomic landscapes remaining key demand constraints.
Nevertheless, the expectations of a normal monsoon in CY2025 and sustained wedding and festive consumption of gold in India are likely to support demand in the near-to-medium term.”
Key takeaways said, the domestic jewellery industry is expected to record muted volume growth in FY25 due to a steep rise in gold prices in the recent months, the evolving macroeconomic scenario and the likelihood of high volatility in prices.
The branded jewellery retailers are, however, expected to record healthy revenue growth of 20-22% on a YoY basis in FY2025, with projected volume growth of around 5% YoY, led by aggressive store additions, changing consumer preferences, continued rise in gold prices and steady wedding and festive demand due to the strong cultural affinity of Indians to gold.
CareEdge Ratings’ sample of 8 large jewellery retailers, which account for ~50% of the organised jewellery retail industry by revenue, aggressively expanded their retail footprint in FY2024 with an estimated addition of around 260 stores (~22% of the store count as on March 31, 2023). CareEdge Ratings expects the jewellers to continue the store addition momentum over the medium term to capitalise on industry-wide tailwinds.
