Jewellery Business Plan In India: How To Start A Jewelry Business

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The jewellery trade in India is one of the largest contributors to economic growth.

Although starting a jewellery business may seem a daunting task, with the right knowledge and strategy the process is made much simpler.

In this guide, you will learn about the jewellery industry in India, how to create a business plan for your business, and the different types of marketing strategies to help develop your business.

Outlook of the Jewellery Industry In India

The demand for jewellery has always been high in the Indian market owing to the traditional value that jewellery holds in the Indian culture. In recent times, the demand and value have increased many folds. According to India Brand Equity Foundation (IBEF), the trade of gold and diamond in India has contributed around 7.5% to the Gross Domestic Product (GDP) as of February of 2021. The jewellery sector has also contributed 14% to the total merchant exports done in India.

The Indian gems and jewellery industry report shows expected employment of 8.23 million people in the gem and jewellery industry by the end of 2022 from the existing 5 million people in 2020. India has exported gems and jewellery worth USD 417 crores in October 2021 from USD 292 crores in October 2020.

The export of gems and jewellery is expected to grow to a value of USD 7000 crores by 2025 from an export value of USD 3500 crores in 2020. The demand for jewellery both as an investment and a personal accessory continues to increase and the growth rate is expected to remain high in the coming years.

Types Of Jewellery Categories

Being a versatile industry, there are many types of jewellery manufactured and being sold.

Here are a few different types:

  • Antique Jewellery: Traditionally, antique jewellery is any jewellery that was made at least 100 years ago. The antique style jewellery in stores now is new jewellery that mimics the design of those antique ones
  • Bead Jewellery: Bead jewellery is typically made by beads sewed one after another along a thread, thin metal or plastic wire
  • Gold Jewellery: It is the most common jewellery that is made as an alloy with other metals such as copper, silver, zinc, etc.
  • Pearl Jewellery: Modern pearl jewellery is typically made from cultured freshwater or saltwater pearls
  • Kundan Jewellery: It is a traditional jewellery set made of gemstones in between gold foils. The most common Kundan Jewellery are elaborate necklaces
  • Gemstone Jewellery: It is a type of jewellery made of rocks or mineral crystals that are cut into shapes and polished into beautiful designs
  • Tribal Jewellery: It is a unique type of jewellery made of earthly substances such as bones, clay, shells and crude metals
  • Terracotta Jewellery: It is one of the oldest forms of jewellery where natural clay is moulded into shapes and baked

Drafting A Jewellery Business Plan

A solid business plan for a jewellery business is important to have a good start. A business plan is a written blueprint of the whole structure of the business including finance, operations and marketing.

A well-detailed business plan also helps you figure out the weaknesses in your business and help form a solution for it. So, here’s a guide to help you create a business plan for your jewellery business.

Executive Summary

This is the most important section of a business plan since any investor reading your business plan will get a glimpse of your whole business in this section.

The executive summary must contain information and achievements of your business that will hook the reader’s interest and keep them reading further.

Below is an example of how to write the executive summary for a jewellery business:

“We are designers and manufacturers of customisable pearl jewellery. We are experts in manufacturing different types of jewellery in the form of earrings, necklaces, bracelets etc. Our uniqueness stands in that we are one of the few manufacturers of Melo. Melo Pearl Jewellery, a rare type of pearl and are certified at the A level for quality.”

Name Of Business And Trademark

The name of the business is very important because it is the identity of the business. The business name must be relevant to the industry, trade or product and have a meaning to it rather than a generic name. It is also important to make sure that the name is unique to differentiate the brand from any other brands in the industry.

Secondary to the name, the next thing that customers remember about a store or business is the logo of the business. Just like the name, the logo too must be relevant and have a significant meaning to it in order for it to be remembered by the customers. An additional catchy slogan or motto can act as a marketing tool for your brand.

Location of Business

The store location is one of the most important aspects of the success of a business. The store location can be offline (a retail outlet) or online (store website, or social media platforms). Although online stores are increasing, customers may still not have trust when it comes to purchases of jewellery that costs a lot of money. So, an online store alone may not be a good place, to begin with.

Choose a place where there is a good footfall for your target audience. The location can also serve as a centre of attraction to gain customers.

The three most important things in retail are location, location, location. The three most important things for our consumer business are technology, technology, technology.”

Jeff Bezos

Competitor Analysis

The jewellery business is a highly competitive industry. There are around 25 lakh jewellery shops, 4.5 lakh goldsmiths and 1 lakh gold jewellers in India according to India Filings. Performing competitor analysis helps you analyse your jewellery business in comparison to other top players in the industry.

Think about what makes your jewellery business stand out. Does your business offer to customise jewellery design according to the needs of the business? Does it have any unique jewellery material? Is your jewellery rare or designed specifically by famous jewellery designers?

Here are a few steps to perform competitor analysis for your jewellery business:

  • Perform a SWOT analysis of your business in comparison to other top players in the industry
  • List out the unique qualities of your jewellery
  • List out the benefits and value that customers gain from buying your jewellery
  • Find out established jewellers and emerging jewellers in your niche
  • Determine what sets these two categories of jewellers apart
  • Figure out how your pricing stands in comparison to established and emerging jewellers

Financial Structure

The financial structure of a business is the backbone for it. Starting a jewellery business requires a lot of money.

You need to form a financial structure to figure out what percentage of the capital is going to be invested by yourself, and what percentage of the capital is going to be sourced from outside such as bank loans, private financial institutions, friends etc.

Create A Business Budget

The first step in forming a financial structure is to create a budget for the finance. Jewellery businesses have a lot of expenses in different areas including raw materials, operational costs for manufacturing the jewellery, employee salary (jewellery designers, administrators, marketers, store workers etc), store rent, marketing costs etc.

Creating a budget ensures that the finance is utilised as per the needs of the business and no other area overspends the amount. To work under a budget, the budget for the jewels to be manufactured should also be designated beforehand.

Manufacturing Method

Jewellery businesses either design and manufacture jewels on their own or buy in wholesale from another jewellery manufacturer and sell it in their stores. Depending on the way you choose to procure the jewellery the investment and operational costs may be different.

Jewellery businesses that choose to manufacture their own jewellery may have to invest more capital owing to the increase in buying the jewellery manufacturing cost, raw materials, and hiring jewellery designers, but the overall operational cost is low in the long run. It also has additional benefits such as the ability to create unique designs, and customise them according to needs.

Buying from a wholesale jewellery manufacturer on the other hand does not need much investment in the beginning, and needs less time to procure but doesn’t give much freedom when it comes to designing and creating a unique brand. Hence, weigh the pros and cons carefully before choosing a manufacturing strategy for your business.

Marketing Strategy

To stand out from the competition, a solid marketing strategy is necessary. Studying the marketing strategy of competitors is a good place to start. Your marketing strategy depends on the budget you have allocated for marketing. Print media, television ads, internet ads, radio ads etc are different modes that can be used to market your jewellery business.

In addition to it, a unique marketing method can kickstart your jewellery business. Here are a few example strategies that jewellery businesses can implement:

  • Showcase your jewellery in galleries, and malls
  • Hire a celebrity or influencer to wear your jewellery to an important event
  • Create a website for your business
  • Sponsor an event to get your brand name out to consumers
  • Create a brand image and story to match your business
  • Invest in content marketing (YouTube videos, Instagram content, blogs, etc)

Step Into The Digital World

Although an online store alone may not be trustworthy to customers, an online presence is definitely necessary in order to reach more customers and grow your business. Digital marketing is at the forefront today. A website makes your store more accessible to your target audience. People can access your products even without being physically present at your store.

Blog posts and social media platforms help people connect with your brand by creating an image with relevant content. Digital platforms are also an easy way to reach your customers directly than to have a middleman in retail stores. So, make use of the internet to gain insights into your target audience, the current trend and design a marketing strategy to increase conversion rates.

Pure Pearls, an Indian pearl jewellery store, operating as a small business in Chennai, India, has positioned itself as a global brand thanks to digitization and is able to cater to customers all over India and abroad!

Jewellery Insurance

Jewellery business is an expensive business with a high risk of theft, damage, repair and accident. Insuring the jewellery business is a must in order to get over any unwanted mishaps or unforeseeable events.

Jewellery Certification

Jewellery certification ensures that the Jewellery that you sell is of high quality. This helps customers gain trust in your brand. There are many different types of certifications for different types of jewellery (For eg., BIS hallmark for gold and silver). If you manufacture your Jewellery apply and get certification for your specific type of jewellery.

Conclusion

In India, every business person has their own way to start a business. No two businessmen have the same way of doing business. Some start their business with a capital of a few lakhs, some others start from a capital of a few crores. But the point is that, when you start a business, you should know what you want to do; what you want to achieve from your business.

A jewellery business is a great place to begin if you’re on the lookout for a business with a higher profit margin and you also have enough capital.

With a good business plan and tactical marketing, your business can reach new heights before you know it!

This post is also available in: English

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