The Gems and Jewellery sector in India needs attention of both government and industry members to drive innovations in terms of new designs, processes and skill development of work force to sustain in global markets, says a survey.
Consumer preferences have rapidly changed with the advent of globalisation and demand for new and innovative designs has increased rapidly. In such a scenario, it is high time that Indian manufacturers adopt new methods and engage in research, according to the joint study of Assocham and TARI.
The Associated Chambers of Commerce and Industry of India (Assocham) and Thought Arbitrage Research Institute (TARI) survey also calls for overhauling of this "unorganized sector" which constitutes around 80 per cent of domestic market.
"Due to westernisation of lifestyles, Indian consumers are demanding new designs and varieties in jewellery, and branded jewellers, who are around 15-20 per cent, are able to fulfill their changing demands better than the local unorganised players," it said.
"Consumer demand is shifting from unbranded to branded jewellery globally. It has jumped to 20 per cent of total demand in 2011 from just 10 per cent in 2003, and it is expected to reach 30 per cent by the end of 2020," it added.
As unorganised players constitute a majority in the industry, India should focus on building their brand in the global market to meet the growing international demand of branded jewellery, the survey suggested.
Pointing out the importance of innovation (in designs), it said, "In order to fulfill the changing requirements, innovations are essential. Though family-owned players are proficient in traditional designs, there is lack of design-led innovations. This could be a limiting factor in meeting global and domestic demand".
It further said that "traditional trading and manufacturing have failed to provide any meaningful results for brands and retailers. Now, the industry needs… modern methods and new market techniques".
