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Deferred gold jewellery purchase schemes see decline

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India’s gold jewellery retail sector is undergoing a structural transformation as deferred gold purchase schemes — once central to retailer financing and customer retention — record their first major contraction in a decade. FY25 saw Tanishq’s deposits fall 19% to Rs.3,458 crore and Reliance Jewels’ decline 5% to Rs.333 crore, amid a 56% surge in gold prices to Rs.22 lakh per 10 grams.

Rising gold prices have eroded affordability, strained monthly commitments, and triggered defaults, exposing the rigidity of traditional savings-linked purchase models. Consumers increasingly prefer digital gold platforms offering flexibility, liquidity, and transparency — features absent in conventional schemes.

The World Gold Council now projects India’s gold consumption to fall to 600–700 tonnes in 2025 from 802 tonnes in 2024, underscoring behavioral shifts rather than cyclical correction.

While legacy jewellers plan to innovate through hybrid models and digital integration, the future of such schemes hinges on adaptability, regulatory modernization, and consumer-centric redesign. The market’s direction is clear — flexibility and digital convergence will define the next chapter of gold retail in India.

Key Insights

1. Structural, Not Cyclical: The decline represents fundamental misalignment between rigid scheme design and volatile market conditions, not merely temporary disruption.

2. World Gold Council : The rise of digital gold is permanent and will continue capturing market share from traditional schemes unless incumbents adapt.

3. Price Sensitivity Threshold: Consumer psychology shifts dramatically when gold crosses psychological price barriers (₹1 lakh per 10 grams), triggering behavioral changes.

4. Segmentation Imperative: One-size-fits-all schemes no longer viable; retailers must develop multiple product variants for different consumer segments.

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National News

Abaran Timeless Jewellery Champions Heritage Conservation To Safeguard Traditional Craftsmanship

Support For Hastashilpa Heritage Village Reflects A Commitment To Preserving India’s Architectural and Artisanal Legacy For Future Generations.

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As India’s historic buildings continue to face mounting pressure from urbanisation, redevelopment, and changing lifestyles, concerns are growing not only about the loss of architectural landmarks but also the disappearance of the traditional skills and craftsmanship that created them. Recognising this challenge, Abaran Timeless Jewellery has extended its support to Hastashilpa Heritage Village, reinforcing the importance of preserving cultural heritage and artisanal knowledge.

Through the Abaran Foundation, the philanthropic arm of the Bengaluru-based jewellery house, the company supports a range of initiatives spanning education, healthcare, community welfare, arts, and heritage conservation. Its association with Hastashilpa Heritage Village reflects a deeper commitment to protecting India’s rich cultural legacy beyond the jewellery industry.

Located in Manipal, Hastashilpa Heritage Village is regarded as one of India’s most significant heritage conservation projects. Founded by conservationist Vijaynath Shenoy, the village has successfully rescued and reconstructed traditional homes from across coastal Karnataka, preserving architectural styles and craftsmanship that may otherwise have been lost to neglect or redevelopment.

The conservation process shares many similarities with the art of jewellery making. Every carved beam, decorative element, and handcrafted detail requires meticulous documentation, restoration, and respect for traditional techniques. Much like restoring an heirloom jewel, preserving heritage architecture demands both technical expertise and cultural sensitivity.

For Pratap Kamath, Managing Director of Abaran Timeless Jewellery, the initiative holds personal significance. He noted that the heritage village is located in Udupi, where Abaran was originally founded by his grandfather, Sri Sadanand Kamath. According to Pratap Kamath, the company was inspired by the efforts to preserve heritage homes that might otherwise have vanished as younger generations moved away in search of new opportunities.

His observations reflect a wider concern within the luxury and craft sectors. Whether restoring a centuries-old structure or creating a handcrafted jewel, both disciplines depend on knowledge and expertise that cannot be easily replicated through mass production. Once lost, such skills are extremely difficult to recover.

At the same time, consumers are increasingly drawn to brands that demonstrate authenticity, cultural relevance, and a commitment to preserving heritage. As a result, heritage conservation is evolving from a philanthropic activity into an important reflection of a brand’s values and identity.

Initiatives such as Hastashilpa Heritage Village serve as an important reminder that heritage extends beyond products—it also includes the ecosystems of craft, culture, knowledge, and tradition that make those creations possible.

As India’s architectural treasures and jewellery traditions navigate similar challenges, efforts to preserve one may ultimately help protect the other, ensuring that valuable skills and cultural legacies continue to inspire future generations.

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