Decades ago buying diamonds, especially in South India, involved a ritual the women folk followed with utmost seriousness. The friendly neighbourhood family jeweller would visit the buyers’ homes on an auspicious day/time to hand over the jewellery piece... and, more often than not, it would invariably be a pair of studs/earrings with seven high-end colourless stones in each (De Beers’ Nakshatra for you). No, the deal was not over yet, as this traditionally designed studs were lovingly but cautiously locked away for safe keeping during the ‘waiting period’. One tends to believe that the rest of India did the same, going by hearsay. Why? The myth was that if the supposedly clean solitaires had inclusions that were not seen by the naked eye, they would bring bad luck to the family. Therefore the ‘wait’ for few days... and in the event of no unpleasant happenings, the diamonds stay!
However, PC Jeweller has another take and with its strong presence in Northern and Central India, who but they who can assess the market better. And rightly so, R.K.Sharma, COO of PC Jeweller rounds up as “Diamond jewellery usage in India was once the preserve of the rich and famous. In the past decade or so, however, after the country liberalised its economy in July 1991, the global winds of change began blowing across India and a turnaround in diamond jewellery perception and usage patterns gradually came about.
In the pre-liberalisation era, low diamond jewellery usage was mainly due to gold being perceived as a safe haven – for investment as well as ornamental purposes. Also, with social security schemes being unknown in India, gold was the only ‘liquid’ asset that could be converted into hard cash on rainy days.
As per Indian social traditions, from the birth of a child up to marriage and thereafter, gold was considered auspicious for gifting. Adornment with gold jewellery on all occasions was a traditional status symbol in Indian society.”
“In contrast, diamonds were not popular since the stones were considered somewhat esoteric in nature. Unless there was a trusted family jeweller to help in its purchase, customers were unwilling to risk buying diamonds. Without a trusted family jeweller’s assistance, the intricacies of diamonds, lack of transparency in product prices and abysmal knowledge about the stones all acted as inherent hurdles in impulse or planned purchase,” he thinks.
But that was ages ago, when diamonds were really rare and hard to procure. Today, the Indian market has come a long, long way from there with a totally different perception in people’s ideas and thoughts...what with the effect of globalisation in every sphere. Or is it the ‘democratisation of diamonds’ that has brought about this dramatic change in consumer behaviour? Today, it would not be unusual to see a young woman walk into one of the numerous fancy jewellery stores dotting her town/city, purchase a pair ‘nakshatra’ earrings , or even a solitaire studded ring for herself without batting an eyelid and saunter out. This is the new India for you, showing the refection of the changing country ... new times, new scene, and new consumer behaviour.
In recent times, many top luxury retailers have opened shop in the India market where many Indian brands - Tanishq, Gili, Nakshatra and a few more - have become household names thanks to the promotional push by their companies.
Studies reveal that many elements of the global diamond consumer experience remain universal. So the Indian consumers taste in major metros / cities falls in line too with other parts of the world. However, in India the demand for high end and heavy jewellery, especially the wedding jewellery, is throughout the length and breadth of the country with of course typical to the various regions and cultural differences in design, etc. But assessing the country in toto, the rise of the middle class consumer is having a profound impact on supply and distribution models in the diamond industry... different times giving birth to different tastes.
India boasts of more than three lakhs stand alone jewellery stores and the number is increasing by the day, what with the many retail chains opening outlets all over the country. Many more stores may crop up but it will take much more to satiate the Indians’ hunger for jewellery. The Indian consumers of today are rather discerning when it comes to design, both in everyday wear or couture jewellery. In the past, diamond jewellery was bought from the trusted family jeweller but the present market conditions demand much more. Consumers in India stress on the availability of quality certificates to determine store choice and at times look for guarantees like ‘buy back’ etc. from the jeweller.
Unlike in the West, most women in India receive diamonds as a gift. But if it is from a family member, they prefer to be closely involved in choosing their jewellery - especially their wedding jewellery. Democratisation of diamonds in India has removed the myth that diamonds are meant for the affluent only. With mass produced jewellery studded with small diamonds crowding the market place, diamond jewellery is in the reach of lower economic groups as well. Though traditionally, solitaires set in a yellow gold band are the preferred design for weddings and engagements, the younger generations are becoming more adventurous and going in for rings with coloured diamonds or even coloured precious stones as centre stone surrounded with sparkling white diamonds.
Diamond jewellery connoisseurs in India have well-developed tastes in diamonds, having been educated about diamonds by their jewellers. They not only understand about valuing a stone’s clarity ahead of its cut, size and colour but favour different designs for different occasions and dress. They opt for the evergreen looks for everyday wear like something which will go with western or Indian clothes. And for fun occasions such as birthdays and Valentine’s Day, they prefer trendy and quirky designs. Here, the smaller stones, be it rounds, baggettes, princess or any other fancy cuts are a big hit. But in case of a wedding, being a day for traditional heavy jewellery from the couture collection of their favourite jeweller, it is mostly high end caraters, coloured diamonds, which rule. Even if coloured precious stones have a central place, rounds as well as princess cut, pears and baggettes or tapers of better colour are liberally used in the jewellery.
Sharma of PC Jewellers sees the future in the light of “Liberalisation, burgeoning prosperity, soaring disposable incomes and the Internet era, however, brought about a sea of change in jewellery perception and purchase patterns. During the last decade, a perceptible shift from gold to diamond jewellery gradually gained traction due to increasing purchasing power, the emergence of branded players in the jewellery market and the rise of certifying agencies. Whether it was the colour, clarity or cut of diamonds, there were now experts customers could turn to for pointed advice before making up their minds on what to purchase, depending on purses and predilections.
As the demand for diamond jewellery spawned the emergence of new players, increasing competition further boosted the trade, leading to the adoption of better trade practices. These factors in turn boosted customer confidence and led to changing purchasing patterns and evolving tastes. In the past few years, particularly in metro cities and state capitals, branded jewellers began selling certified diamond jewellery. To further boost sales, buyback schemes and exchange policies also came into vogue.
Simultaneously, gold prices kept going through the roof, making diamond jewellery more affordable in comparison. Stones once perceived as the preserve of the elite were increasingly being purchased and worn by middle-class women. When it comes to the cut, colour and clarity of jewellery purchase, the deciding factor is the customer’s wallet. In metro cities, GH colour and VVS is preferred, while in small towns, JK colour and VS SI is purchased more often.”
Like in other countries around the world, engagement rings are becoming increasingly popular in India too and diamond jewellery is at or near the top of most women’s lists of preferred presents. Due to this, the popularity and penetration of diamond jewellery is considerably high in recent times making up more than half the jewellery market. So much so that some pure gold jewellers are making all efforts to re-project themselves as diamond jewellers as well, by making changes in their stocks / displays and also giving a make-over to their outlets with new décor, etc. The Indian consumers’ purchasing power has been on the rise as incomes are rising and consumers are clamouring for luxury goods including diamonds. So, currently, retailing is in the midst of an expansion drive, focused on Tier-2 and Tier-3 cities, besides major cities and towns.
Independent stores in Metros like C.Krishniah Chetty & Sons Pvt Ltd, Bhima Jewellers, and Ganjam Nagappa Sons dominate the prestige market in Bangalore, but more confined to the region. Big chain-store players are claiming a growing share of the mass and premium-mass segments. Tanishq, Malabar Gold, Joy Alukkas, are making a mark for themselves as chain-retailers with outlets all over the country.
C. Vinod Hayagriv, the Past-Chairman of ‘The All India Gems & Jewellery Trade Federation’ and Managing Director of C.Krishniah Chetty & Sons Pvt Ltd, a 140-year Heritage Jewellery House in Bengaluru very aptly sums up the diamond consumption pattern over the past few decades in Southern India, “Diamond quality in south India is strongly focused on higher colours, cut and clarity grades. Traditionally, the top jewellers of the South have been quality conscious for over seven decades. Additionally, the retailers have been knowledgeable people. Therefore, the retailers’ handling of clients was such that they cultivated a high degree of quality concourse clients, by educating them of value and quality rather than size. Therefore the South, mainly Bangalore and Chennai became buyers of DEFG colours, IF to VVS 2 clarity diamonds, from melees, stars to solitaires. To expand the market and to cater to migrating population, in last two years the grades are now very slowly changing to include H and VS diamonds.”
Northern India, with its mixed bag of cultures, has some very interesting changes in its consumption pattern of diamonds. According to Suhail Kedia, CEO, Shanker Maliram Jewellers (Amritsar), “Diamond jewellery has made considerable shift both in terms of colour and size. The trend of big solitaires have now paved way to more sophisticated smaller and coloured diamond settings. To a large extent media has brought in this air of change and people today are more trend conscious. While they do want to stand out in the crowd with a hi-end statement jewellery piece but usually the piece goes alone and is not clubbed with other jewellery. Today people do their homework before venturing out to buy jewellery. They are aware of what they are buying and they are ready to pay more if they are convinced of quality and value. There is a huge pool of buyers for quality and design. While gold jewellery with diamonds and gold jewellery with studded gemstones have always been favourite, platinum jewellery with diamond settings have also come up in a big way and has received many admirers.”
Ashutosh Sharma, Managing Director of Shreem Jeweller is in New Delhi, the fashion centre of India. According to him, “Since our first flagship store in New Delhi at Karol Bagh, we have seen a major transition with respect to trends in the jewellery sector. Delhi as a city is an extremely competitive market yet holds a very high purchasing power. To eliminate competition, we focus on the quality, exclusivity of our jewellery and use only those diamonds which are extensively evaluated by our company. Each diamond used for in our product has gone through a refinement program and intensive quality check. Having said that, the quality used only GH quality diamonds. This has enabled us to create a niche for ourselves and has enabled to retain our existing customer base. Diamonds being status symbol and a favourite amongst women, it is our commitment to find the diamond that fits them best.”
To say that Indian women love jewellery, especially diamond studded jewellery, is an understatement. It surpasses even their love for clothes and other accessories. Rings and earrings are the most widely owned jewellery types but necklaces, pendants, bracelets and nose rings also do figure for sure in their collections to suit every occasion. Here, the size and cut vary from design to design - from stars/melees to high end stones up to 5 carats. According to studies, more than 90 percent of India’s affluent women own diamonds, with most receiving their first diamond to celebrate a wedding, engagement, birthday or anniversary. The future for ‘diamonds’ looks bright in India; and India being the fastest growing diamond market as of now, may outdo China very soon.
Aruna Gaitonde, Rough&Polished, Mumbai
