MARGINS MATTER

The Silent Crisis Threatening the Jewellery Industry

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The Indian jewellery industry — rooted in heritage, rituals, and emotion — is facing a silent but dangerous crisis. Behind the glittering showcases and gold price tickers lies an uncomfortable truth: shrinking margins and an unhealthy culture of price wars are eroding the soul of the business.

This is not just a manufacturer or retailer problem — it’s an industry-wide threat that could reshape the future of Indian jewellery in a very grim way.

Manufacturers Under Pressure

With margins getting tighter, manufacturers find themselves increasingly unable to innovate, experiment with design, or enhance services for their retail clients. Manufacturing excellence requires resources – skilled artisans, design technology, quality control, and customer support. But when margins are stripped to bare minimums, even sustaining operations becomes a challenge.

Retailers in a Dangerous Spiral

Retailers are no better off. With soaring gold prices, the cost of stocking inventory has multiplied, while operational expenses – rent, salaries, digital tools – continue to rise. Instead of building strong retail experiences, many are resorting to deep discounting just to survive.