Small-town gold buyers fuel jewellers’ hopes

Consumers in India’s smaller towns are increasingly buying jewellery from organized retailers, drawn by brand trust, better designs, and transparent pricing.

- Vaeshnavi Kasthuril & Dipali Banka

This has brightened prospects for PN Gadgil Jewellers Ltd and Senco Gold Ltd, which are targeting 20% revenue growth to $1 billion.

The shift in shopping preferences has also prompted many unorganized jewellers to become franchisees of organised chains that offer a readymade platform for growth.

“Franchisees see value in aligning with an established brand as it offers instant credibility and access to a scalable business model,” said Bhavya Gandhi, an equity research analyst at Dalal and Broacha. “With rising per capita incomes in tier-II and tier-III cities, consumers are no longer just buying gold—they’re choosing branded jewellery for its perceived quality, reliability and aspirational appeal.”

The positive outlook for jewellery retailers is driven by gold exchange schemes, rising gold prices, store expansion and new product lines.