One of the most significant changes in the jewellery market over the last 10-15 years has been the advent of chain stores and the market share they have gained at the expense of stand-alone retailers. According to market intelligence from Metals Focus, by 2021 chain stores (both national and regional) had achieved a 35% market share.
Since 2016, chain stores have increased their market share by 5%. Demand for better designs and consumer experience, a growing awareness about hallmarking, better pricing structures and competitive return policies, as well as the introduction of GST and demonetisation, have all accelerated the shift towards chain stores. Most gains have been in large cities and towns.
But here, chain stores may be nearing a ceiling for expansion as independent retailers catch up with the need for a heightened consumer experience and customer-led designs. Chain stores are therefore shifting their focus to Tier 2 and Tier 3 cities, where there remains aspirational consumer demand ready to be tapped. Metals Focus estimates that over the next five years or so chain stores will continue to expand and their market share will surpass 40%.
The top five retailers alone will likely open 800-1,000 stores during this timeframe. It is also worth highlighting that many jewellers have changed category over the past five years as their businesses have expanded and they have gained market share. For example, Senco Gold and Diamonds – previously considered a regional chain – now operates in more than 13 states and is categorised as a national chain.
Furthermore, many stand-alone retailers with prominent brand names have expanded their stores or opened new ones in their region and are now classified as medium-sized retailers.
Heera Zhaveraat (HZ International) A Diamond, Watch and Jewellery Trade Promotion Magazine provide dealers and manufactures with the key analytical information they need to succeed in the luxury industry. Pricing, availability and market information in the Magazine provides a critical edge.
