A World Gold Council (WGC) report on Wednesday said that there is an ample scope for retail demand of gold jewellery in the country as around 37 per cent of Indian women have never bought gold but would consider purchasing in the future.
The World Gold Council’s ‘Retail Gold Insights: India Jewellery’ report also noted that 60 per cent of the Indian women already own gold jewellery and it is the second most popular item among ‘fashion and lifestyle’ shoppers, preceded only by designer clothes and silk sarees.
“Nevertheless, the gold industry has an opportunity to reach a significant new audience: 37 per cent of Indian women are potential buyers, representing a sizable new target audience for the gold jewellery industry. 44 per cent of rural respondents fell into this category, compared with 30 per cent of urban respondents, it said.
Further, 40 per cent respondents had bought gold jewellery in the preceding 12-month period, eclipsing purchases of diamond or platinum jewellery.
The survey found that urban women tend to focus on the sense of security that gold brings, highlighting its role as a display of wealth as well as a store of value and rural Indian women place greater emphasis on gold’s widespread acceptability and its aspirational qualities, viewing it as a means of commanding respect.
As per the report, although many young women are active gold jewellery consumers, 33 per cent of Indian women aged 18-24 years bought gold jewellery in the 12 months preceding the survey their future purchase intent is low, particularly in urban areas.
Somasundaram P.R., Managing Director, India, World Gold Council, said: “India’s jewellery market is world-leading in the skills of its artisans, who craft the most elaborate and decorative pieces that adorn the nation’s women.”
“But the industry needs to be alert to the changing times. This research shows us that consumer tastes are evolving, and there is a risk of gold jewellery losing its connection with younger audiences as other brands vie for the attention of the millennial generation. Gold jewellery faces challenges from perceptions that it is a traditional necessity and not versatile enough for the modern Indian women,” he said.
He noted that that enhancing the purchase experience for consumers, incorporating a greater role for technology, should also be ‘focus for the industry.