The gold market has changed! Rising gold prices and branded jewelers are adding to the difficulties of small jewelers.

News Topical, Digital Desk : Small and family jewelers across the country are currently facing a difficult time. Gold prices and large retail players are being blamed for this. According to the India Bullion and Jewelers Association (IBJA), local jewelers and goldsmiths have seen a nearly 45 percent decline in sales. The high and constantly fluctuating prices of gold have severely impacted demand.

Ashok Sakaria, who runs a private jewelry shop in Mumbai's Worli area, said, "It's now difficult for the middle class to buy gold. Their income is already going towards household expenses." He explained that the situation has worsened since Diwali. Customers are rarely coming to the shop, and new stock hasn't been ordered in months. He added, "Gold prices continue to fluctuate. When prices are stable, people are mentally prepared, but during times of turmoil, customers postpone their purchases. During this time, they only buy gold for weddings or other compelling reasons." 

According  to industry estimates, there are approximately 300,000–350,000 small and medium-sized jewelry retailers in India, whose primary focus is bridal jewelry. This segment generates approximately 60–65 percent of their business. However, this segment is under the most pressure in the current situation. According to Surendra Mehta, National Secretary of IBJA, the cash crunch has deepened since the beginning of the year. He explained, "India is completely dependent on gold imports, so we have no control over prices. Small jewelers don't have enough reserves to continuously purchase new stock." Deepak Rastogi, a Noida jeweler, said that while demand increased during the festive season, it wasn't as high as in 2024. They are now focusing on lightweight jewelry, fast-moving designs, and made-to-order pieces to avoid wasted stock. 

Branded chains have strengthened their hold.  According to brokerage firm PL Capital, unorganized jewelers are lagging behind due to a lack of hedging and limited cash. Large companies like Tanishq, Kalyan Jewellers, and Senco Gold are directly benefiting from this. Market leader Tanishq has launched 9-carat jewelry in a country with a 22-carat tradition. These branded companies reported a 40-50 percent sales increase in the third quarter. PL Capital says that due to high prices, it is becoming expensive for small jewelers to expand their stores and introduce new designs, due to which the market share is rapidly shifting in favour of big brands.

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