ICRA expects the organised jewellery retailers in India to continue to outpace the industry over the medium term on the back of industry tailwinds in the form of accelerated shift in market demand from unorganised retailers and planned expansion of retail presence to capitalise on the tailwinds.
In its recent research report, the rating agency estimates its sample set of 15 major organised jewellers to record revenue growth of 20% YoY in FY2023 against the expected industry growth of 15% YoY in FY2023.
Domestic gold jewellery retail industry is likely to record a healthy growth of 15% YoY in FY2023 owing to robust growth recorded during H1 FY2023 mainly on account of Akshaya Tritiya and a low base, which was impacted by the pandemic last year. Demand growth in H2 FY2023 is likely to remain muted due to a high base on account of pent-up demand in Q3 FY2022. While the ongoing festive and wedding season sees healthy demand, evolving domestic inflation scenario, slow rural economic recovery and soft consumer sentiments remain the key demand constraints.
Kaushik Das, Vice President and Co-Group Head, ICRA: “The industry growth is likely to moderate to ~5% YoY in FY2024 due to the high base of FY2023, coupled with evolving macro-economic scenario."
Vipin Jindal, Assistant Vice President and Sector Head, ICRA, reiterated: "The total store count of ICRA’s sample set is expected to increase by 10% in the next 12-18 months, which is expected to translate into market share gains and economies of scale.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
In its recent research report, the rating agency estimates its sample set of 15 major organised jewellers to record revenue growth of 20% YoY in FY2023 against the expected industry growth of 15% YoY in FY2023.
Domestic gold jewellery retail industry is likely to record a healthy growth of 15% YoY in FY2023 owing to robust growth recorded during H1 FY2023 mainly on account of Akshaya Tritiya and a low base, which was impacted by the pandemic last year. Demand growth in H2 FY2023 is likely to remain muted due to a high base on account of pent-up demand in Q3 FY2022. While the ongoing festive and wedding season sees healthy demand, evolving domestic inflation scenario, slow rural economic recovery and soft consumer sentiments remain the key demand constraints.
Kaushik Das, Vice President and Co-Group Head, ICRA: “The industry growth is likely to moderate to ~5% YoY in FY2024 due to the high base of FY2023, coupled with evolving macro-economic scenario."
Vipin Jindal, Assistant Vice President and Sector Head, ICRA, reiterated: "The total store count of ICRA’s sample set is expected to increase by 10% in the next 12-18 months, which is expected to translate into market share gains and economies of scale.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
