Jewellery Franchise Business-The Most Profitable Business Opportunity In 2021
Written by Deepak 20 Sep , 2021
The gems and jewellery industry plays a vital role in the Indian economy. It contributes about 6-7 percent of the GDP and employs over 2.5 million workers, according to FICCI. The Government of India recently declared the gems and jewellery industry as a focal point for exports. India is considered a global hub for low costs and inexpensive skilled labour. Government policies support the polishing and gem cutting industry, making it the world's largest.
During the pandemic and after, the Government has continued to support the industry. The gold prices soared during the lockdown period and saw a rise in sales. Gold picked up momentum in the festive season and continued to show promise. The gradual growth in the gold market is testimony that the industry is making a steady recovery.
Experts have predicted that the industry will soon shine like a star and will sparkle like a precious diamond in the near future.
Let's see what makes the jewellery market so profitable.Jewellery statistics worth knowing for 2021
The global estimated market size of the gems and jewellery sector is expected to reach over US$480 billion by 2025 even though there can be times of slow growth post-pandemic. According to the Indian jewellery industry analysis, the market size of the Indian jewellery industry is expected to grow by US$103.06 billion by 2023 compared to 2019.
The Indian jewellery market size is amongst the biggest in the world. China and India are amongst the top consuming countries in the world. In fact, 29% of global jewellery consumption is done by India. Currently, there are more than 300,000 gems and jewellery companies in India and there is expected to be an increase in this number as new players enter the market.
7% of India’s total GDP contribution is made by the gems and jewellery industry. The industry plays a crucial role in India’s economic growth. Additionally, 15% of the total merchandise export is by the gems and jewellery industry, further showing its significance. Currently, more than 4.5 million people are employed in this industry but according to experts, this number will surpass 8 million by 2022.
The GJEPC (Gem and Jewellery Export Promotion Council) has said that the industry has largely contributed to foreign exchange earnings. India exports 75% of polished diamonds globally and this trend is likely to continue well into the future.
The Indian jewellery industry saw a slump during the pandemic. But the interest remained and customers started to look for jewellery online which boosted online jewellery shopping. By the end of 2020, as restrictions eased, demand for jewellery started to increase and exports reached the same levels as pre-pandemic levels soon after.
Benefits of having a Jewellery Franchise
One may ask himself/herself what's the need of having a business that revolves around a Jewellery Franchise instead of their own new brand. The answer for most of them is quite simple, however, the major benefits are mentioned as follows.
The number one benefit which you would derive from owning a Franchise is the ability to start your business with an established and well-known brand in the market that has a customer base. That’s a known benefit, however, an important one with respect to the jewellery market.
Jewellery is a crucial item for a customer on a purchase, they would not randomly buy any Jewellery that they have never heard of or seen before. It’s not always the design but the brand name and the trust that matters for them. Having a Jewellery Franchise of a known brand can help you bridge the gap of trust with your customer and make your sale easy.
You may have many customers on a daily basis, but to have those skills, training, and the ability to close your customer for the jewellery has been taught to you by the representatives of the brand whose Franchise you have acquired. Such skills or training are required to be learned for running your business successfully.
Best profitable Jewellery Franchise opportunities and Jewellery Franchise costs
Gitanjali jewels: One of the best and renowned jewellery brands in India, Gitanjali Jewels masters in classic, ethnic and casual designs and comes with a varied range of collections.The best thing about opening a Gitanjali Jewels franchise is that you have a wide range of partnering brands and therefore you’ll target customers from a wide range of budget and price segments. The partner brands of Gitanjali Jewels include Nakshatra, Gili, D'damas, Asmi, Diya, Maya Gold, Parineeta and many more.Gitanjali Jewels has become one of the leading jewellery brands in India (it was awarded as the Best Jewellery Retail Chain of the Year in the Multi brand category by Retail Jeweler's India Award 2009). Since the inception of Gitanjali Jewels franchises in India in 2005, the brand has become a prime destination for people who want to invest in branded jewellery consumers. As of now, there are 69 retail outlets of Gitanjali Jewels in India across 37 cities. Opening a Gitanjali Jewels franchise business requires high capital and will need an investment of Rs. 2 to 5 crores. The cost involves Gitanjali Jewels franchise fee of Rs. 3 to 5 lacs, no royalty. The anticipated return on investment for Gitanjali Jewels franchise is 25 to 27 percent PA and the expected payback period of capital is 3 to 4 years. You can go for both owned or rented premises for inaugurating a Gitanjali Jewels franchise.
Tanishq : It is always a wise choice to go with the best in the Jewellery Industry. Tanishq Jewelers was founded in the year 1994 and over the years it has received a huge response and trust from its customers. The brand name and Franchise comes with an investment that ranges between 1 to 3 Crores INR, it is a heavy investment for any business owner, however, the brand also gives the business owner a profit percentage of 75% which is very generous as well. The minimum area required for being eligible is between 2000 sq. ft to 5000 sq. ft, with a staff of 6 to 9 members. Overall, the Franchise is one of the best brands in the market to put money on.
PC Jewellers: PC Jeweller is one of the top India's jewellery platforms where every product is crafted with perfection with the aim of Customer Satisfaction, from elaborated wedding jewellery to affordable wearables, PC Jeweller offers fashionable exceptional designs with unmatched superior quality. Over time, classic treasures from PC Jeweller have helped intimate moments become lifetime memories.PC jewellers were established in 2005, Karol Bagh, New Delhi with a vision and aim to redefine elegance, charm and style in the form of sober yet stunning pieces of jewellery. Today they have 87 showrooms across 71 cities and 19 states. Investment Required : 3 crores to 5 crores.
Kalyan Jewellers:Kalyan Jewellers Headquarters is situated in Kerala, it is a part of the Kalyan brand that not only manufactures jewellery but also sarees, silks, etc. It is counted as one of the largest jewellery store chains in India. Kalyan Jewelers was founded in the year 1993. It is headquartered in Thrissur, Kerala. It was founded by T. S. Kalyanaraman. The company is owned by the famous Kalyan Group. It is one of the largest and most famous jewellery store chains in India. The company has made goodwill of authentic Gold Jewellers and sells 100% Hallmarked Gold only. They are also famous for their mini-stores named “My Kalyan Mini Stores”, it sells affordable diamond jewellery with the finest quality of diamonds. The retail outlets are situated in 10 states in India and 1 in Kuwait and 3 in UAE. The company has around 100 showrooms in India. The investment required is around 50 lakh to 3 crores.
Aisshpra Gems and Jewels: They are 3rd Generation Jewellers, established in 1940. For the last 78 years, the Group has been providing exceptional jewellery pieces and unmatched service to their customers.70 years of India and more than 78 years of the Hari Prasad Gopi Krishna Saraf Group, resulted in the formation of its evolved identity AISSHPRA GEMS & JEWELS. The fundamental existence has been revamped to cater to the needs of the newer audience in and around Uttar Pradesh. The jewellery at Aisshpra is largely for the masses with gold, diamonds and gemstones dominating the entire range of inventory. There is also a fair amount of silver jewellery and artefacts and soon Aisshpra is also starting a bit of fashion jewellery in response to the needs of the local consumers. Aisshpra launched its forthright campaign “Parivartan ki aur Hamara Kadam” which educated the local masses that Hallmarking needs to be embraced before it becomes a mandate. The call of 100% Hallmarking = 100% Buyback with an option of 18K Hallmarked Gold Jewellery received appreciation and acceptance by their customers and a big mind-gap was bridged for the industry as a whole. It also positions Aisshpra as a Brand of Trust, Integrity & Ethics and the region's premier jewellery player that talks the language of the industry. The investment required is around 10 crore . Aisshpra now is available across 2 stores in Gorakhpur and also through Franchisees in Padrauna, Basti, Deoria, Lucknow, Ballia and Azamgarh. A high-end AISSHPRA JEWELLERY BOUTIQUE has also been set up in Lucknow to cater to the elite audience.
Bluestone: A recently established brand in the market that has been an eye-catchy cause for the customers is Bluestone. It was founded in the year 2011 in Bangalore and had made it to the top 10 Jewellery Franchise in India. Here, the Franchise fees are lower, it goes for around 5 lakhs for a term lasting for 5 years, however, the infrastructure fees go up to 2 Crores. The brand allows a profit percentage of 90% to the business owners and the minimum area required lies between 600 to 100 sq. ft.
These are the Most promising brands to invest in in 2021 and if you are planning to join hands with these franchise opportunities, you can visit franchiseBazar and you can also select other opportunities listed on the website and can select according to your investment plan and can get guidance from industry experts.
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