Jewellery sector’s market value reached Rs 6.4 lakh crore: Ramesh Kalyanaraman

As we conclude another year, it is essential to reflect on the key developments, challenges, and achievements that have shaped different sectors throughout the past 12 months. The year 2024 has been marked by dynamic shifts, rapid innovation, and the continued adaptation to both external factors and emerging trends.

Adgully’s annual feature – REWIND – revisits different sectors and identifies the key developments as well gauges the long-term impacts of those developments. We speak to a cross-section of industry leaders to bring a 360-degree view of the industry landscape, the growth trends, financial performance, disruptions, innovations, challenges and more.

In this REWIND 2024 article, Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, shares his insights into the year’s defining trends and developments that shaped the jewellery industry and the Indian economy at large. Highlighting Kalyan Jewellers’ performance during the year, Ramesh Kalyanaraman also sheds light on the key achievements and milestones that marked the company’s journey in 2024.

Over of the Indian economy in 2024

The Indian economy witnessed a significant shift towards digital consumption post pandemic, with increased screen time on digital, social media, and OTT platforms. This shift compelled brands across sectors, including us, to adapt similar marketing strategies. The result was a growing focus on digital advertising, targeted content, and consumer engagement through new-age platforms, ensuring businesses remained competitive and relevant in a rapidly evolving environment.

Overview of the Jewellery sector in 2024

Kalyan Jewellers operates in the highly competitive jewellery sector. This sector thrives on cultural and traditional demand, with strong consumption linked to weddings, festivals, and auspicious occasions. Companies are prioritising customer experience and omni-channel retail strategies to gain an edge.

In this context, the Indian jewellery market achieved substantial growth in 2024, driven by the rapid formalization of the sector. The market’s value reached Rs 6.4 lakh crore, supported by an average annual revenue growth of 8% from fiscal 2019 to fiscal 2024. The organised market’s share grew significantly, accounting for approx 40% of the total jewellery sector by fiscal 2024, up from 35% in fiscal 2019. This shift was driven by rising consumer preferences for premium products, better shopping experiences, and a wider variety of offerings. Additionally, the emergence of the franchise model has enabled Kalyan Jewellers to expand into new markets through an asset-light approach, promoting quicker market penetration and store expansion.

Key trends and developments

Kalyan Jewellers, as well as the jewellery sector at large, experienced a wave of transformation and innovation in 2024, marked by several notable trends and developments. The rise in digital marketing and omnichannel sales channels allowed Kalyan Jewellers to cater to tech-savvy younger consumers. Hyperlocal marketing strategies gained traction, as companies tailored campaigns to regional tastes and preferences.

Consumer demand for unique, personalised, and multi-purpose jewellery options continued to grow. The sector also witnessed an increased emphasis on sustainable sourcing and ethical practices, with a shift from unorganised to organised channels driven by consumer preference for higher-quality products and better shopping experiences. Celebrity and influencer-driven marketing campaigns played a significant role in brand visibility, while the franchise model emerged as a crucial strategy for store expansion and market penetration.

The 2024 Union Budget brought a significant boost to the industry with a reduction in customs duties on gold, silver, and platinum, a move that is expected to drive up demand and support growth in the organised jewellery sector even next year. This combination of evolving consumer preferences, technological adoption, regulatory changes, and innovative marketing campaigns underpinned the sector's strong performance in 2024.

Performance of Kalyan Jewellers during 2024

Kalyan Jewellers achieved notable success in 2024, reflecting its ability to adapt to emerging industry trends. The company prioritized a digital-first approach, allocating a significant level of its media budget to digital marketing, with a strong emphasis on vernacular content. This strategy facilitated deeper market penetration and enhanced customer engagement with next-gen consumers. Its hyperlocal strategy played a significant role in its growth, enabling the brand to cater to local tastes and preferences across different regions. This approach contributed to Kalyan’s continued success across India.

The brand’s marketing efforts were marked by high-impact campaigns that drove visibility and consumer engagement. Notable initiatives included the Women’s Day #SimplyMe campaign, the Gudi Padwa campaign with Pooja Sawant, and product-specific promotions for Nimah and Antara jewellery lines. Celebrity collaborations with prominent figures like Rashmika Mandanna, Kalyani Priyadarshan, Jahnvi Kapoor, and Kriti Sanon further amplified brand visibility, with many campaigns achieving viral status on social media. Kalyan maintains consistent ad spends at approximately 2% of its revenue, ensuring sustained brand presence and top-of-mind recall among consumers.

Kalyan Jewellers also delivered a strong financial and operational performance in 2024. It recorded consolidated revenue growth of 37 per cent in the September quarter from the year-ago period. The company recorded a 39% revenue growth in its India operations, driven by robust same-store sales growth of 23%. The reduction in customs duty on gold imports announced in the Budget led to a surge in footfalls from July to August, helping offset the usual slowdown during the Shradh period. The brand launched 26 showrooms across its Kalyan and Candere formats, increasing its total showroom count to 303 as of September 2024.

Kalyan’s Middle East operations also performed well, achieving 21% revenue growth compared to the previous year and contributing 14% to consolidated revenue in H1 this year. The company’s digital-first jewellery platform, Candere, recorded 22% revenue growth in H1 2024-25, and has close to 50 showrooms, highlighting its focus on omnichannel expansion and operational efficiency.

Also Read: How startup jewellery brand Palmonas is taking the storytelling route to success