How to Start Jewellery Business in India 2024

How to Start Jewellery Business in India

Introduction

Welcome to how to start a jewellery business in india guide.

First, why should you be thinking of starting a jewellery business in India?

The jewellery market impressed the world by reaching an impressive US$ 37.73 billion in 2022-23.

The Indian jewellery industry brought in US$ 58.77 billion in foreign direct investment (FDI) during 2021-22.

Currently India gold demand is projected to exceed a staggering 800 tonnes in 2023, marking a significant uprising.

The gems and jewellery sector experienced a remarkable year-on-year increase of 60.78% in foreign direct investment (FDI) inflows during FY22.

The interesting fact is approximately 96% of the retail jewellery shops are small, family-owned businesses.

Now you know the value, let’s learn everything about it.

Is Jewellery Business Profitable in India?

Now let’s focus on the next significant question.

Is the Indian jewellery business profitable?

Now let’s see some facts from India Brand Equity Foundation.

The simple obvious answer is, Yes where it generates more than $40 billion in annual revenue.

For example, Malabar Group invested a staggering Rs. 750 crore (US$ 100 million) in a cutting-edge gold refinery and jewellery unit based in Hyderabad in September 2021.

This is because the Indians have strong sentimental value for gold where it even has strong connections to celebrations, weddings and ceremonies.

Everything contributes to the market where it’s expected to grow by 10-12% over the next few years.

The country’s growth and development of economy is also fueling the gold demand where when they have more money to spend then they try to invest it into jewellery.

Due to all this demand jewellery companies profit margins are very lucrative too where some report it to around 40-45%.

Now all these points confirm that the Jewellery business is indeed very profitable in India.

Types of Jewellery Business

Jewellery business in India comes in many styles and designs.

There are different types of jewellery businesses that cater to different tastes and budgets in Industry. 

We’ll look at what makes each type special and who they target.

Sell Jewellery at Home

Now the trend is working from home, so it applies to the Jewellery business.

You can initiate a home-based jewellery business with low capital investment.

This provides flexibility and low overhead costs.

Leverage online platforms or participate in jewellery exhibitions to display and sell your products.

Focus your designs on unique and specialised jewellery not easily available in the mainstream market.

This creates a niche, attracting customers seeking exclusive pieces and not readily available in the market.

If you are interested in learning more about jewellery making then you can visit Udemy, to see available courses.

OR. You can watch free videos on Youtube about making Jewellery.

Start a Wholesale Business

You can directly procure inventory from manufacturers at lower prices compared to retailing, improving your profit margins in India. 

As a wholesaler, you sell these pieces at competitive rates to retailers, who then market to final consumers.

However, wholesaling requires significant upfront capital to establish relationships and stock inventory.

Here is one wholesale seller where he explains about wholesale jewellery.

This high-volume, low-margin approach has significant prospects if adequately funded.

Become a Reseller

As a reseller, you act as a broker between jewellery brands and their customers.

You promote their products, generate sales, and earn a commission on every purchase.

You don’t need to manage inventory, handle production, make jewels, or invest in physical stores.

Your focus is on marketing and building relationships with both brands and customers.

You are not involved in the product creation or supply chain, your profit margins will be lower compared to owning your brand.

This is a commission-based model and enjoys sales and relationship building.

Becoming a reseller can be a fantastic way to tap into the booming Indian jewellery market with minimal upfront investment.

Sell on Online Platforms

You can either launch your own ecommerce store or sell through popular online marketplaces.

Selling online significantly reduces overhead costs compared to physical stores.

Also, digital platforms allow you to do targeted marketing on social media to promote your business.

Jewellery Export Business

Exporting jewellery enables you to sell far beyond the domestic market.

However, exporting products overseas involves acquiring specific import-export codes and trade permits.

You must thoroughly understand compliance and regulations for destination countries.

Remember, apart from domestic profitability, Indian jewellery is much sought after internationally too.

With sound legal knowledge and quality craftsmanship, you can build a successful cross-border jewellery venture.

Jewellery Franchise Business

We have understood domestic and international opportunities in the Indian jewellery trade.

What about trying a less risky option – a jewellery franchise?

Consider becoming a franchisee for an already popular Indian jewellery brand.

This provides you the advantage of an existing brand name, marketing, logistics and supply chains.

In return, franchise agreements entail sharing an agreed percentage of revenue earned as royalty and franchise fees.

Eg: DP franchise is one such business example which I found on YouTube.

Jewellery Imitation Business

We have explored top-end gold and diamond jewellery ventures.

There is a segment with massive untapped potential, which is artificial jewellery! 

Imitation jewellery caters specifically to price-sensitive low and middle-income groups.

Eg: Kalyani covering is one such successful business.

It requires significantly lower capital than real gold businesses to set up and operate.

Artificial jewellery is the future mass opportunity worth its simulated weight in gold in India too.

Understanding Different Jewellery Business Models

Wholesale vs Retail Jewellery Business

  • Wholesale Model: Characterised by lower margins but higher volumes, necessitating a large upfront investment in inventory.
  • Retail Model: Yields higher returns per piece sold.

Online vs Offline Jewellery Business

  • Online Model: Offers lower operating costs and a broader customer reach.
  • Offline Model: Allows customers to physically experience products.
  • Omnichannel Approach: Combining online and offline models is often recommended for maximum reach.

Choosing the Right Franchise Partner

  • Proposal Evaluation: Carefully examine the terms and conditions of each franchise proposal.
  • Legal Assistance: Seek legal advice to review franchise contracts.
  • Comparison and Negotiation: Compare different franchise offerings and negotiate where possible.

Essential Steps for Starting a Jewellery Business in India

Identify a Market Opportunity

Now we understand the immense potential and profitability of the Indian jewellery market. But how does one go about setting up a successful jewellery business?

Here are a few key steps:

  1. First, meticulous market research is critical. Analyse demand trends, competitive landscape, consumer behaviour, pricing dynamics, distribution channels, and more. Identify market gaps to target and growth opportunities to leverage. 
  2. Next, decide your niche—fine jewellery, fashion jewellery, customised designs etc. Specialisation lets you differentiate and build expertise in your offerings. 
  3. Third and most vital, gain crystal clear consumer insights. Deeply understand the needs, preferences, aspirations and pain points of your core target group. Customise products and experiences accordingly. 

The Indian jewellery market offers massive potential, but cracking it needs strategy and rigour.

Robust research, smart niche picks and sharp consumer focus will set you up for success.

Let’s now dive deeper into practical steps for setting up operations.

Where to Buy Jewellery Supplies

Moving ahead, procuring the right materials is fundamental for crafting alluring jewellery. 

Firstly, partner with reputed suppliers to source high quality gold, silver, precious stones and other materials. Ensure ethical sourcing and fair pricing.

Additionally, partnerships with skilled manufacturers will help you to create customised, innovative jewellery pieces. 

Besides, you can tap into India’s extensive wholesale market industry to purchase finished jewellery items in bulk for retail operations.

Now let’s get into the specifics of managing daily operations – from design to sales.

Do Proper Research and Study the Competition

Moving forward, let’s address a critical aspect – competition. After all, the Indian jewellery space is thriving with players.

First, thoroughly analyse major competitors – understand their product offerings, pricing, promotions, store formats, and more. Identify potential gaps to fill.

Next, define your distinctive value proposition to stand out:

  • Is it an intricate design?
  • Personalised service?
  • Regional specialisation?
  • Conscious luxury?
  • Sharp pricing?

Highlight it clearly.

Additionally, with market insights in hand, set concrete short and long term business goals.

Target specific revenue, store count, inventory turnover, or customer acquisition figures. Data-backed goals instil strategic focus.

Register a Creative Name for Your Business

To begin, extensively brainstorm an intriguing, meaningful name for your jewellery venture.

Ensure it is unique, easy to recall and creates your identity. 

Next, legally protect it through trademark registration & business registration in India.

This safeguards your brand equity from potential infringement.

Further, create a stylish logo that reflects your values.

Craft a crisp tagline that captures your essence.

Use consistent visual branding identity across stores, packaging and promotions.

In short, obsessively deliberate and register a stellar name. Compliment it with visual assets that communicate your brand promise.

Now that we have strategic clarity, let’s ground ourselves in operational realities.

Bank Account for Jewellery Business

The next logical step is to set up the business properly.

So what are the key things you must do in financial space?

Firstly, open a dedicated business bank account. This separates your personal and business finances, enabling transparency in operations.

Secondly, facilitate acquisition of business loans by maintaining proper financial statements. This provides funding to grow your inventory and operations.

Lastly, accurately maintain business accounts and financial transparency. This builds credibility with stakeholders like banks, auditors and tax authorities.

How to Open a Dedicated Bank Account?

What do you need to open a dedicated bank account for your jewellery business in India? Let’s go through step-by-step.

Choose Account Type: Opt for a specialised current account designed for jewellers, like “Current Account for Jewellers” from Axis Bank. This provides unlimited transactions, cash withdrawals, digital banking and customization.

  • Registration: If a proprietorship, know there’s no government registration mechanism. But register for GST (Goods and Services Tax) if applicable.
  • Documents: Provide name, address and business activity proof like registration certificate, trade licence, tax returns and utility bills.
  • Eligibility: As proprietor, be an Indian tax-paying citizen complying with laws. Have GST registration if sales exceed thresholds. Must have PAN (Permanent Account Number) and Aadhaar cards.
  • Opening Process: Visit chosen bank with all documents required. Each bank has unique requirements based on regulations. Bank will guide the account opening process.
  • Compliance: After opening, file obligatory income tax and GST returns on time, if applicable.

Getting these financial aspects right forms the bedrock on which you can build a successful jewellery enterprise.

Employee Recruitment

Now you need to build a solid operational framework.

What are the key functions you need to find employees for a Jewellery business?

  • First and foremost, hire skilled craftsmen for jewellery design and production. Their creativity and workmanship greatly impacts product quality and uniqueness for your brand. 
  • Secondly, ensure your sales staff are very good at marketing. Their ability helps to make more sales.
  • Lastly, conduct thorough background verifications before recruitment. Integrity and reliability of staff dealing with precious Jewellery is paramount. (In India Jewellery theft from internal staff is also common)

Having expertise in these three operational areas will provide a solid base for the success of your jewellery business in India.

Set Realistic Goals

The next key step is to translate this business into small business targets and track progress.

What goals should you establish and track?

  • First, set achievable targets – for sales, distribution reach and business growth.
  • Second, be prepared to adjust goals based on initial market feedback.
  • Finally, implement clear metrics to monitor progress against benchmarks.

Here are the questions you can ask for employees, to see if they are most suited for the Jewellery business.

Now let’s dive deeper into the interview and selection process.

What makes you the perfect fit for this jewellery business role? Highlight your relevant skills, experience and values that align with our needs.

  • Share your motivation: What’s been one of your favorite jobs and why? Reveal your true passions.
  • Service is critical here: When have you experienced stellar service and terribly poor service? Understand the candidate’s standards.
  • Teamwork makes the dream work: Explain what teamwork means to you and how you actively contribute.
  • Support for success: What would you need from us to deliver high-quality work and happy customers?
  • Core value: Most customers hire us for the same reason – what do you think that is? Tests business understanding.
  • Brutal honesty: If there’s one reason not to hire you, what would it be? Gauge self-awareness.
  • Show me the money: What are your pay expectations? Prevent compensation misalignment.
  • Questions show interest: What questions do you have for me? Reveals role and business understanding.
  • Linguistic skills: Can you comfortably handle languages used with our staff and customers? Critical in diverse India.

Establishing SMART goals and metrics to track performance is vital for the success of any business, especially in the dynamic jewellery sector.

Build a Business Plan

Let’s focus on an actionable Jewellery business plan in India.

Here is a sample business plan template which you can use:

1. Executive Summary:

Our jewellery business, [Name of Business], aims to captivate the Indian market with [unique selling proposition]. We cater to [target audience] with a curated collection of [type of jewellery] crafted from [materials]. By leveraging [competitive advantage], we plan to achieve [specific goals] within [timeframe].

2. Company Description:

  • Mission: To [mission statement].
  • Vision: To become [vision statement].
  • Values: [Core values of the business].

3. Market Analysis:

  • Industry Overview: Brief description of the Indian jewellery market, size, growth, and trends.
  • Target Market: Detailed description of your ideal customer, including demographics, psychographics, and buying habits.
  • Competitive Landscape: Identification of key competitors, their strengths and weaknesses, and your competitive advantage.

4. Products and Services:

  • Description of your jewellery offerings: Highlight unique features, materials, designs, and price range.
  • Customisation options: If you offer customisation, explain the process and pricing.
  • Additional services: Mention any additional services like repairs, cleaning, or engraving.

5. Marketing and Sales Strategy:

  • Online marketing: Website, social media, influencer marketing, online advertising.
  • Offline marketing: Physical store, partnerships with boutiques, events, and exhibitions.
  • Pricing strategy: Competitive pricing, discounts, loyalty programs.
  • Sales channels: Direct sales, wholesale, online marketplaces.

6. Management Team:

  • Brief introduction of key team members, their expertise, and experience.
  • Roles and responsibilities within the company.

7. Financial Projections:

  • Projected revenue and expenses for the next [number] years.
  • Funding requirements and investment plans.
  • Break-even analysis and profitability timeline.

8. Implementation Plan:

  • Key milestones and timelines for launching and growing the business.
  • Actionable steps for each phase of the plan.
  • Resource allocation and budget breakdown.

9. Risk Management:

  • Identification of potential risks and challenges facing the business.
  • Mitigation strategies and contingency plans for each risk.

10. Conclusion:

Reiterate your unique value proposition and vision for the future. Express confidence in your team’s ability to achieve success.

Example Value:

  • Unique Selling Proposition: Handcrafted, sustainable jewellery made with ethically sourced gemstones.
  • Target Audience: Eco-conscious millennials and Gen Z with a bohemian style.
  • Competitive Advantage: Direct sourcing from artisans, competitive pricing, personalised customer service.
  • Specific Goals: Achieve 100% online sales growth within the first year, open a physical store in Mumbai within two years.
  • Remember: This is a template, and you should customise it based on your specific business and goals.

Legal and Regulatory Compliance for Jewellery Business

Legal and regulatory compliance and procedures are very important for Jewelry making business.

Now, let’s focus on important information such as BIS certification, GST registration and legal permits.

Obtaining BIS Certificate for Jewellery Business in India

You must acquire a BIS hallmarking licence to sell certified jewellery.

This Bureau of Indian Standards certificate assures consumers of the purity and fineness of gold/silver ornaments.

So how does one get this coveted certificate?

  1. Registration Application: Jewellers must formally apply to register each sales outlet they wish to sell hallmarked jewellery from. The BIS reviews applications for specific premises and grants registration accordingly.
  2. Corporate Licence: For multi-location jewellers under unified management, a single corporate licence covering all outlets is available. This licence has terms and conditions but offers registration fee discounts.
  3. Application Process: Applications are made online through the BIS portal. Required documents and applicable fees must be submitted.
  4. Instant Certificate: Selling hallmarked gold/silver jewellery or artefacts? Get an instant, lifetime registration certificate without needing to upload documents or pay fees.
  5. Compliance Critical: After licensing, strict adherence to purity standards and other terms and conditions is mandatory. Deviation can cancel the licence and invite penalties.
  6. Enquiries: For additional information on hallmarking, jewellers can contact the DDG (Hallmarking) at the BIS directly.

Now you know precisely what’s needed and step-by-step how to get certified to sell hallmarked jewellery legally in India.

Also be aware that non-compliance can lead to hefty financial penalties or even business closure.

So don’t take this lightly.

The BIS hallmark is currently voluntary. But with rising customer awareness, it can become an important differentiator in purchase decisions. 

Moreover, when hallmarking becomes mandatory in the next few years, you will already be compliant and ahead of competition.

GST Registration for Jewellery Business

Firstly, GST registration is mandatory for conducting any jewellery business in India. 

Non compliance can mean heavy penalties.

Secondly, it enables charging and collecting GST on sales and remitting it to the government.

As GST has made tax compliance and credit flow more transparent, proper registration is non-negotiable.

Any unregistered jeweller also risks losing customers, as business buyers will demand invoices to claim input credit.

So along with other aspects we have covered, ensure you have GST registration before commencing your jewellery venture.

It forms the basic financial/legal foundation.

Registering your jewellery business for GST in India involves a few important steps and considerations:

Key Components of GST

  • Central Goods and Services Tax (CGST): Levied by the Central Government for intra-state transactions.
  • State Goods and Services Tax (SGST): Imposed by the State Government for intra-state transactions.
  • Integrated Goods and Services Tax (IGST): Charged on inter-state transactions.

Benefits of GST Registration

  • Ensures legal compliance and avoidance of penalties.
  • Enables claiming of Input Tax Credit.
  • Facilitates smoother inter-state business operations.
  • Eliminates the cascading effect of taxes.

Mandatory GST Registration

GST registration is compulsory if:

  • Your business’s annual turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for special category states).
  • For service providers, the limit is Rs. 20 lakhs (Rs. 10 lakhs for special category states).

GST Rates for Jewellery

  • GST on gold and diamond jewellery is 3%.
  • GST on making charges for jewellery is 5%.

Online GST Registration Process

  • Visit the GST Portal and select “New Registration” under the “Registration” tab.
  • Choose the “Taxpayer” category.
  • Complete the GST REG-01 form with necessary details like PAN, mobile number, email, etc.
  • Verify the information using the OTP sent to your registered mobile and email.
  • Upon submission, you will receive an Application Reference Number (ARN).
  • Upload required documents as per the checklist on the portal.
  • The GST authorities will verify your application and approve the registration.
  • Once approved, you will receive your GSTIN.

Obtain All the Legal Permits

Along with GST & BIS registration, let’s look at some other key licences and compliances needed.

Firstly, acquire any industry-specific jewellery business licences mandated by state/central government.

Additionally, you may require a trade licence, import-export code depending on business model.

Seek professional legal guidance from experts in India on this industry.

You can confidently establish a thriving jewellery enterprise in India.

How Much Money Do I Need to Start a Jewellery Business?

We have explored diverse jewellery venture options in India.

But a key question remains – how much capital do you need?

There’s no one figure applicable to all. A small home based jewellery startup may require just 2-3 lakhs initially. Retail stores you can expect ₹30-80 lakhs in inventory to ₹10-15 lakhs for setup to interiors. Big stores or jewellery shops can demand over ₹1 crore based on scale, space, inventory and operations.

Major costs include purchasing precious metal and stones, retail or manufacturing store space, skilled staff salaries, utility bills and more.

This helps determine the funding or financing necessary for your specific jewellery venture idea to glitter with success!

Here are a few more discussions on money needed to start a Jewellery business.

Marketing and Selling Strategies for Jewellery Business

Now let’s learn about marketing strategies for Jewellery business.

Define your unique selling proposition

USP stands for Unique Selling Proposition. It refers to the unique and distinctive qualities or features of a product, service, or business that sets it apart from competitors and makes it appealing to customers.

Your unique selling proposition (USP) makes your jewellery business stand out from the competition in India.

It is what sets your jewellery business apart from others and makes it attractive to potential jewellery buyers.

Understand your target audience

Understand which jewel products will be most appealing to your target audience and can help you develop better marketing campaigns that target the right people.

Additionally, it can help inform your pricing strategy to ensure that you’re charging the right price for your products or services.

Focus on product quality

Quality craftsmanship and durability are essential for any jewellery, as it will ensure that customers are satisfied and can trust the product.

Quality jewellery craftsmanship will also help to ensure that the jewellery is aesthetically pleasing and will last for a long time.

Build your online presence

Having a strong online presence is key to the success of any business.

It provides potential customers with the opportunity to research your products, compare prices, read reviews, and make purchases quickly and easily.

Additionally, it makes it easier for businesses to reach a wider audience, which can result in more sales.

Implement digital marketing

Digital India is growing really fast so having solid digital marketing for jewellery business in India.

Online advertising campaigns allow you to target specific demographics and interests, which can help increase your website’s reach and boost your profits.

SEO optimization helps your website rank higher in search engine results, which in turn drives more traffic to your website.

Content marketing involves creating content that is relevant to your target audience and using it to promote your website.

Encourage customer reviews

Positive customer reviews help to create a positive reputation, as potential customers are more likely to trust a company that has been recommended by other buyers.

Superior service quality also ensures customer satisfaction, which is an important factor in customer retention and word-of-mouth marketing.

Stimulate customer loyalty

By providing customers with incentives for their loyalty, such as discounts, free products, or exclusive access to discounts, you can help them feel appreciated and recognize their commitment.

This will make them more likely to continue to do business with you and be more likely to recommend your Jewellery shop to their friends and family.

Partnership & networking

By partnering with local vendors, a company can gain access to new markets and potential customers.

Participation in trade fairs gives them the opportunity to showcase your jewellery to a large number of people, which can lead to increased sales and brand awareness.

Perfect your packaging

Packaging is often seen as the first impression a customer has about a product, so it is important to ensure that it stands out in a positive way.

Good packaging should be attractive, simple, and functional.

That’s why Jewellery shops focus a lot on product packaging.

How to Manage Your Jewellery Business

Managing the Business Resources for Jewellery Business

  • Efficiency Tools: Deploy integrated software solutions to systematise major functions – inventory management, billing, accounting, customer data, analytics dashboards and more. Technology heightens accuracy, control and productivity.
  • Market Analysis: Actively analyse target consumer behaviour, purchase patterns and trend forecasts through primary and secondary research. Accordingly evolve product designs, assortments and messaging.
  • Compliance: Consult professionals to proactively comply with all applicable central and state laws governing product quality, hallmarking, taxes, imports and more. This ensures ethical and lawful enterprise.

Production And Raw Materials Management

  • Supplier Evaluation: Thoroughly check and shortlist reliable suppliers of precious metals, diamonds and gemstones based on quality assurance, pricing and delivery reliability. This forms the crux of the end product.
  • Inventory Management: Carefully forecast ongoing inventory requirements for smooth production planning. Balance just-in-time stock to avoid over or under supply through historical data analysis and demand sensing.
  • Quality Control: Institute robust quality control frameworks with trained experts, equipment, processes and checks before, during and post production to maintain unflinching standards in craftsmanship and finish.

Analyse And Adopt Changes

  • Market Adaptability: Actively track consumer preferences, purchase patterns and market trends through ongoing primary and secondary research. Be receptive to feedback.
  • Strategy Refinement: Accordingly evolve jewellery collections, designs, assortments and communications approaches. Nimbly realign production plans and resources.
  • Ongoing Research: Set up processes for continual data gathering through surveys, focus groups, interviews and analytics. Derive insights to refine functional and strategic decisions.

Understanding the Latest Trends in the Fashion Industry

  • Industry Observation: Keenly observe styles, collections and campaigns of leading domestic and global fashion houses each season. Attend premier fashion weeks. Follow influencers, magazines and runways.
  • Style Incorporation: Be prompt in taking cues and incorporating upcoming popular aesthetics into your jewellery assortment plans. Conceptualize adaptable multipurpose ornament designs aligning with forecast directions.
  • Social Media Engagement: Follow fashion commentary on leading social platforms like Instagram and YouTube for real-time insights on rising trends. Allow online audience reactions to guide your creative process.

Conclusion

That’s it for this guide on how to start a jewellery business in India.

I have covered all aspects of starting a jewellery business.

I hope now you are clear and if you need any more tips or advice please comment below and I will help you.

Let’s see you in another business starting guide like this.

2 thoughts on “How to Start Jewellery Business in India 2024”

  1. Thank you for sharing your expertise and empowering others to pursue their entrepreneurial dreams in the fascinating world of jewelry.

    Reply

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