AMIT PRATIHARI, Managing Director, De Beers – India, shares how INDRA, the recent collaboration between De Beers and GJEPC, is set to transform the domestic retail landscape by strengthening the natural diamond narrative for end consumers.
India’s economy is on an extraordinary growth trajectory. In 2022, the country reached a $3.1 trillion economy, and today, it is estimated to be close to $3.5 trillion. Projections indicate that by 2030, India will achieve a remarkable $7.9 trillion economy.
This economic expansion means a doubling of income within the next five to six years, leading to increased disposable income and higher consumer spending.
A booming economy translates into unprecedented opportunities across sectors, including infrastructure, real estate, and most notably, the jewellery industry.
The organised jewellery retail sector currently comprises just 40% of the market, leaving a vast potential for growth and transformation.
India remains the second-largest jewellery market in the world after China, with a projected domestic jewellery consumption between $235 billion and $250 billion by 2035.
A New Era for the Jewellery Industry
India’s jewellery sector is undergoing a significant change, with organised retailers expanding aggressively, with plans to open numerous stores in the coming years. The recent entrant is the Aditya Birla Group that plans to invest $5,000 crore into the industry. This surge in organised retail signals lucrative opportunities for both retailers and manufacturers, and creates a substantial demand for manufacturing infrastructure, calling for a concerted effort to develop a robust backend to support this growth.
Despite its vast size, the Indian jewellery market still has significant untapped potential, particularly in diamond jewellery. Currently, diamond jewellery accounts for less than 10% of the total market, with natural diamonds contributing approximately $8.5 billion.
The opportunity for growth in this segment is immense, requiring strategic initiatives to enhance its visibility and desirability among consumers.
De Beers’ Commitment to Category Growth
At De Beers, our focus is on four key pillars to drive the jewellery sector forward:
- Category Marketing: Creating awareness and desirability for natural diamonds among consumers.
- Confidence Building: Through initiatives like the De Beers Institute of Diamonds, verification technology, and ensuring transparency.
- Brand Development: Strengthening our iconic brands like De Beers London and Forevermark.
- Retail and Consumer Engagement: Enhancing consumer experience through category marketing and partnerships with leading retailers like Tanishq.
Introducing INDRA: A Game Changing Initiative
INDRA is an ambitious initiative designed to educate, empower, and promote the natural diamond category. It is a collaborative effort between the Gem & Jewellery Export Promotion Council (GJEPC) and De Beers to address the evolving needs of the retail jewellery sector.
The jewellery retail landscape is changing rapidly, and retailers, especially in Tier 2 and Tier 3 cities, face unique challenges. Many jewellers in these regions maintain deep-rooted relationships with customers, akin to family doctors or lawyers. However, the complexities of buying and selling diamond jewellery can be overwhelming. INDRA aims to bridge this knowledge gap by offering retailers:
- Business Intelligence: Insights on future industry trends and how to stay competitive.
- Consumer Education: Helping end customers understand the authenticity and value of natural diamonds.
- Training and Support: Empowering retailers with the confidence to market and sell diamonds effectively.
- Technology Integration: Providing tools for verification and merchandising intelligence.
INDRA is more than just an initiative; it is a movement to create an ecosystem that ensures sustainable growth for retailers, manufacturers, and the entire jewellery industry. By equipping retailers with the right knowledge and resources, we are paving the way for a brighter future for the natural diamond sector.
One of our most significant recent collaborations is with Tanishq, where we are working on vertical integration from rough diamonds to polished stones, ensuring traceability and authenticity.
Additionally, in partnership with Tanishq, we launched the “Soulmate Diamond Pair” collection, a luxury jewellery range to promote natural diamonds in India. The collection has couple bands featuring diamonds cut from the same rough stone, symbolising unity and connection.
The Road Ahead
The Indian jewellery industry is at an inflection point. As disposable incomes rise and consumer preferences evolve, the demand for premium, organized, and transparent jewellery shopping experiences will only grow. Indra represents a proactive step in this direction, ensuring that all stakeholders in the jewellery sector can thrive in this rapidly changing landscape.
With a strong economic foundation and a forward-thinking approach, India is poised to become a global leader in the jewellery industry. The journey ahead is filled with immense possibilities, and through strategic initiatives like Indra, we can shape a future that is both prosperous and sustainable.