Vikas Chain & Jewellery (P) Ltd of Delhi is one of the leading manufacturers and wholesalers of gold chains, gems and diamond jewellery in India. The company’s collections comprise superbly crafted jewellery embellished with diamonds and precious stones of the finest quality. In an interview with Rough&Polished, Sulish Verma, the company’s managing director, touches upon the present conditions prevailing in India, its effects on the jewellery sector’s growth and cautions jewellers to focus on design and quality to survive in the competitive business scenario, as well as to gain the confidence of today’s discerning customers.
Your company, Vikas Chains & Jewellery, has been around for decades. How was the journey down the road fr om when the company was formed to its present status as a leading jewellery manufacturer, wholesaler of India?
Our company, Vikas Chain & Jewellery, is now a leading jewellery house engaged in manufacturing, retailing and wholesale of exquisite jewellery. But we began as a small gold chain manufacturing unit four decades ago. With sheer hard work and dedication we have now grown into one of the largest gold chain manufacturers and traders in the North Indian market. Over the years, we strove to build a name and gain trust with the customers through our quality jewellery and succeeded. Today, the faith of our clients has helped us emerging as a complete jewellery house, for every need of gold and diamonds jewellery. We are known for a wide price range of jewellery, right fr om entry-level everyday jewellery pieces to high-end couture/wedding jewellery collections for the jewellery connoisseurs.
What is your opinion about the current Indian domestic jewellery sector? Do you think there has been substantial growth over the past few years, and in which specific area?
There has been a humungous growth in the Indian domestic jewellery market over the past few years. Purchasing power of the people has shot up immensely thanks to the growing economy of the country. But though the domestic jewellery market has grown a lot over the years, I still feel the ‘high tide’ is yet to come. Interest in investment options is also on the rise. So, besides jewellery, there is an increase in demand for bullion for own consumption as well as gifting purposes. This trend is expected to take a tremendous upward curve as a prediction in price rise, especially in diamonds, is anticipated during the current year and future years. It is forecasted that the Indian jewellery market is to cross 500,000 crore by 2018 fr om the level which it is now…that is around 250,000 crore. So, it would not be wrong to say that the “high tide” is yet to arrive. We, therefore, look forward to a major leap in growth in the future for the local jewellery market.
In the last few years, many changes have been seen in the jewellery demand pattern in the local market. Why and what do you think is the change, say in terms of diamond content, gold content, design etc., and what is the trend at present?
I must say that the Indian market has matured as of now…in the sense that design, texture, fashion, luxury, etc., have a place to play too. People are not satisfied with the regular jewellery designs of yesteryears anymore. Tastes in jewellery have changed drastically and so along with the contemporary gold jewellery, latest trends in all types of jewellery are in demand. Of course, the traditional designs still hold forth especially in bridal collections, but demand for various designs and varied precious material, mainly by youngsters, is making the jewellery market scene very different every year. The demand for diamond jewellery is growing too. But essentially, what plays a vital role to boost up the sales is designing and quality manufacturing, not forgetting promotional activities to catch the consumers’ eyeballs.
Going back to your company’s jewellery, how important is the gold content in your jewellery? From where do you source your gold requirement? And how has the gold import restrictions affected your manufacturing business?
Without forgetting the love for gold in India, the importance of gold is always going to remain in jewellery. But with changing times, demand may change and the karatage can vary according to how deep customers can dip into their pockets. It all depends on the market forces and one would rather wait and watch to see how the gold availability scenario turns out eventually.
And talking about how gold import restrictions have affected our manufacturing, of course it has to an extent. With the restrictions, one had to keep in tune by making preparations in accordance with the physical market. Exports, too, get affected, so much so that last year gold jewellery export fell to $3.30 billion from $7.5billion in the previous year.
While diamond studded silver jewellery is popular in overseas markets, do you think Indian market, too, will follow suit? Given the cost and shortage of gold in the country, will silver be used for diamond jewellery, at least in the entry level jewellery?
In my opinion, silver will never be a substitute for gold. In India, gold jewellery has and will remain more than just an accessory to wear. It is a vital part of the Indian culture, values and tradition.
However, knowing the fact that trends keep changing, we might experience fall in the gold karatage in future but it cannot be replenished by silver. In India, gold reigns.
But do you see a future wh ere less karatage gold-diamond jewellery being accepted in the Indian market, especially in the couture jewellery category, which is considered heirloom in India?
Yes, this is highly anticipated in the future. If the current situation continues to be the same, diamond jewellery using less karatage gold will be accepted by everybody, even in high-end couture diamond jewellery category. As diamond prices are showing signs of firming up and appreciating, people may be ready to pay more for the diamonds, rather than the gold content of a jewellery piece. This makes sense, especially in high-end couture diamond jewellery, wh ere the value of the diamonds used is very high and one doesn’t need gold to increase the price of the jewellery further.
The Government/RBI’s step to curb imports of gold has been a major hurdle, especially for the domestic sector. How do you see this gold curb panning out in due course?
The government curbing imports of gold will affect the domestic sector to an extent only… by this all the speculations will be taken away.
In my view it seems this is only a precautionary step and will not have a major impact.
The Indian consumers’ jewellery preferences seem to have transformed vastly in the last few years? Is diamond jewellery finally making a mark for itself in the gold-loving Indian consumers’ psyche?
The consumer is more aware about jewellery today than in the past. Today an Indian connoisseur has a greater sense of style and design than before owing to the global exposure. The jewellery as a buying category is no longer confined within the domains of weddings. This has lead to a great surge in the demand of diamond jewellery in the recent past.
Gold, undoubtedly, will remain the most loved metal in India for the next few generations but exquisite and timeless pieces of diamonds are also making heavy inroads in the mindsets of the rich and affluent. Young spenders are no longer looking at buying jewellery for its intrinsic value… rather they are more inclined towards experiential buying. This is wh ere diamond as a category scores over gold.
Aruna Gaitonde, Rough&Polished, India
