Demand for imitation jewellery up by 85pc
Demand for imitation jewellery has suddenly gone up by over 85pc due to drastic hike in gold and silver price and increased interest in gems and stones during wedding and current festive season as per the quick survey undertaken by ASSOCHAM-Social Development Foundation (ASDF).
The local imitation jewellery market has seen almost 85 percent rise in the last one year and the exports have seen a rise of 35pc , reveals the ASSOCHAM survey.
In a recent survey undertaken by the According to the Associated Chamber of Commerce and Industry of India (ASSOCHAM) reveals that the main reasons that attribute to the increase in the demand for imitation jewellery include volatile gold prices in the span of an year, disposable incomes, fashion conscious, international exposure, easy to carry, adds the survey.
While releasing the ASSOCHAM survey its Secretary General D S Rawat said, this ruling high price is changing the customer preference from fine jewellery to relatively inexpensive but equally flashy costume jewellery. The imitation jewellery market is about Rs 8,000 crore (growing at the CAGR of 20pc y-o-y) in India and expected to touch Rs 15,000 crore by 2015.
The best thing about these jewelleries is that they are available in different designs and colours and they are so affordable that one can customize according to the dress worn, said 75pc of shopkeepers.
According to ASSOCHAM estimates, the price of gold plated jewellery have increased by over 80pc in the last one year, similarly, the rates of other gold plated jewellery items have also increased by 45pc , but there is no depreciation in the sale of these products.
People now-a-days believe that gold plated jewelleries are better to wear in parties, festive ceremonies, and while travelling, opines another shopkeepers, the survey says.
Interestingly, the increase in gold prices has also increased the prices of some artificial jewelleries. However this difference in cost has not affected sales as the difference is much less as compared to gold jewelleries, adds the paper.
Majority of the shopkeepers said that people want attractive and affordable jewelleries in accordance with the current fashion. Even if the gold prices will decrease, artificial jewelleries will continue to sell like this only.
The paper further adds that India is the second largest manufacturer of imitation jewellery after China with 8.50 pc world share. Indian costume jewellery has a huge demand in the US, Europe, Canada, Australia and many Asian countries and the organised market is nearly three-fourth of unorganised sector.
The availability of skilled artisans at low cost and base metals, faux gems and stones has encouraged the sector's growth in India, The paper further points out that Rajasthan, Uttar Pradesh, West Ben gal, Bihar and Madhya Pradesh are the important states for such products.
Imitation jewellery is largely made of brass, cast iron, nickel, plastic beads and stones, instead of precious metals and gems. It does not have resale value and is available at a range of - less than Rs 100 to over Rs 30,000. Imitation jewellery is equally popular in rural areas and the rural: urban divide is almost 40:60, adds the paper.
Artificial jewellery witnessed a record of around 85 per cent increase in the sale of such jewelleries in the last 10 months.
The high rate of gold has led to people looking for alternatives during festivals and weddings. As a result, artificial jewelleries, specially the ones with gold plating, have become popular and are selling in large numbers, highlights the ASSOCHAM paper.
The demand for Indian imitation jewellery has always been high in the international market but this year a major shift in the local market. The sales have doubled in the last three month, with customers mostly belonging to middle income families, says majority owner of a jewellery shop.
More young working women are looking for ornaments that are independent of dress code and are suitable on western wear.
Shopkeepers say that women usually go for colorful and chunky pieces, mostly Rajasthani, Gujarati or Hyderabadi as the designs they get are more diverse than real jewellery. Being an economical option, a greater number of upper middle women are reaching out for it as a smart festival buy.