Krishna B Goyal, Convener, Silver Jewellery Panel, GJEPC, and Rahul Mehta, Managing Director, Silver Emporium, discuss the impact of rising silver costs, emerging trends, and global markets opportunities for exporters.
With the rising cost of silver, have sales been affected? Have you noticed any significant changes in consumer purchasing behaviour due to the increased prices?
Krishna Goyal (KG): The increase in prices has affected not only silver but also gold. As a result, consumers who previously purchased 9-karat gold jewellery are now turning to silver jewellery. Some customers have shifted their preferences towards more affordable alternatives, such as silver-plated items or jewellery made from materials like stainless steel or gold-filled options.
Rahul Mehta (RM): Silver prices directly affect sales. Consumers are now more selective and budget-conscious when making purchases. While the overall value of purchases remains consistent, the quantity of grams has decreased to balance out rising silver prices. Additionally, product design and aesthetics have gained significant importance.
In your opinion, which untapped markets should India target for silver jewellery and products? What strategies would you suggest for penetrating these markets?
KG: We should focus the Middle Eastern countries, Eastern Europe, and South America. Silver jewellery featuring gemstones and traditional Indian designs could be well-received in these regions. It is essential to identify key trade shows in these areas that can connect us with local retailers and distributors. Organising buyer-seller meets can also be an effective strategy for entering new markets.
RM: India is one of the largest consumers of silver articles and jewellery globally. The country has a vast market, and the demand for silver products is robust. While there are many national gold jewellery brands, the silver articles segment has a significant gap to fill. This presents many opportunities for smaller players to expand into different cities and establish regional brands.
What are the current trends in silver jewellery and products within the domestic market as well as overseas markets?
KG: We are witnessing a shift from minimalist to chunkier styles, with a growing preference for heritage and vintage-inspired jewellery. Pieces that mix ethnic motifs with contemporary styles, such as oxidised silver jewellery or gold-plated jewellery with modern twists, are gaining popularity.
These trends reflect a blend of traditional and modern influences, catering to diverse tastes and preferences among Indian consumers. The popularity of specific styles and designs is influenced by cultural significance, fashion trends, and individual expression.
Today, markets are becoming increasingly global, so what is trending in the West is also seen trending here. This has made life easier, as whatever is liked and sold abroad is also well appreciated and bought in India, and vice versa.
These trends illustrate a global shift towards personalisation, sustainability, and a blend of traditional and contemporary aesthetics in silver jewellery. The emphasis on ethical practices and unique, expressive designs reflects broader consumer values and preferences in the international market. A lot of jewellery is being designed and produced in line with lifestyle preferences.
RM: Silver jewellery offers a diverse range of products for various audiences, including bridal, working women, and millennials. It has captured the attention of Indian consumers across all age groups, who are purchasing pieces for different occasions. Currently, plain silver jewellery paired with semi-precious stones is trending significantly. Other design categories which millennials are exploring are minimalistic designs incorporating mixed materials with silver are also popular.
Several trends are emerging abroad, including a growing demand for sustainable, ethically sourced, and eco-friendly silver. Personalization is a significant trend, along with the stacking of silver jewellery.
What recent technological innovations have impacted the processing and production of silver jewellery? How have these innovations improved quality or efficiency?
KG: We in the jewellery industry have started using Augmented Reality, Virtual Reality to improve the customer experience. These technologies enhance the customer experience by allowing them to see how a piece of jewellery will look on them before purchase. They also help designers visualise and modify designs in a virtual space, improving the design process’s accuracy and creativity.
These technological innovations have collectively improved the efficiency, quality, and sustainability of jewellery production, allowing manufacturers to meet market demands more effectively and cater to evolving consumer preferences.
RM: There is a strong adaptation of various technologies from gold jewellery manufacturing now being applied to silver. Technologies like 3D printing and CAD have enhanced design precision and customisation, while direct casting and advanced surface finishing techniques have improved overall quality. These innovations have resulted in greater design accuracy, faster production development, and improved quality in silver jewellery.
What are the biggest challenges currently facing the silver industry? How are companies addressing issues such as price volatility and supply chain disruptions?
KG: High and fluctuating metal prices, along with rapidly evolving lifestyles and preferences, present significant challenges. Elevated metal prices have impacted demand, and price fluctuations in silver can affect profit margins, complicating effective planning and budgeting for businesses. Additionally, staying attuned to lifestyle changes is crucial for adapting product offerings accordingly.
Post-Covid, there has been a noticeable shift in how people approach life, with a significant increase in vacation travel and a surge in passenger loads on flights. This is just one example of the broader changes we see in daily life. As a result, the competition for the jewellery industry, particularly within the lifestyle segment, has intensified.
RM: Volatility of silver prices has directly impacted demand. Manufacturers and traders have observed that with rising silver prices, there is a trend towards creating designs that tell a story.