Introduction

JewelBuzz spoke to jewellery manufacturers, wholesalers and retailers  across the country to check out  the consumer mindset. Indian jewellery buyers this Diwali are not abandoning gold; they are shopping it differently. Reading industry voices through the buyer’s eyes, one picture emerges: shoppers watch the gold rate like a stock ticker, shrink the piece rather than skip the purchase, hunt for proof of fairness, and plan their buying around weddings and festivals, with Dhanteras on 6 November the next big test.

Overall Outlook

• Industry sentiment is cautiously optimistic: most jewellers expect healthy value growth during Dhanteras, Diwali and the wedding season, even though physical gold volumes may remain subdued due to elevated prices.
• Recent corrections in gold and silver prices have improved affordability, revived footfalls and encouraged advance bookings ahead of Dhanteras on 6 November.
• Retailers broadly expect value growth to outpace volume growth, as consumers continue buying but choose lighter, lower-carat and more versatile pieces.
• Sales expectations vary widely: some retailers project 15–25% year-on-year value growth, while more cautious players say matching last year’s volumes with modest growth would be a good outcome.

Demand Drivers

• Festive and wedding demand remains the strongest support: Dhanteras, Diwali, Bhai Dooj and the November-onwards wedding calendar are expected to sustain purchases.
• Gold’s cultural, emotional and investment appeal continues to drive buying, particularly for bridal jewellery, gifting and auspicious occasions.
• Lower gold prices, rate-booking schemes, old-gold exchange programmes and promotional offers are helping convert deferred demand into actual sales.
• Retailers report improving footfalls, early bridal orders and healthy inventory replenishment by manufacturers ahead of the peak season.

Key Consumer Trends

• Consumers are becoming more value-conscious and discerning, comparing design, purity, craftsmanship, price and wearability before purchase.
• Lightweight jewellery is the dominant trend, especially among younger buyers and first-time purchasers.
• Demand is rising for 9KT, 14KT and 18KT gold, allowing customers to access traditional designs at more affordable price points.
• Buyers prefer versatile, multi-use pieces that work for daily wear, festive occasions and weddings, rather than heavy occasion-only sets.
• Old-gold exchange is playing a major role, with exchange volumes rising and accounting for a significant share of sales at several retailers.

Category-wise Outlook

• Gold jewellery:

Volume growth is likely to remain limited, but value sales should stay strong due to higher prices; bridal sets, rani haars and traditional pieces continue to attract wedding buyers.

• Diamonds: Natural diamond jewellery is seeing positive momentum, particularly lightweight studs, pendants, rings, bangles and versatile festive designs; Senco reports 25–30% diamond growth and Zen Diamond reported 30% Dussehra sales growth.
• Lab-grown diamonds: Expected to outperform the wider category, driven by larger stones at accessible prices, certification-led trust, transparent pricing and rising acceptance among younger and Tier 2/3 consumers.
• Platinum:

Seen as a premium, contemporary growth category, with potential beyond weddings into self-purchase, everyday luxury and younger consumers.

• Silver:

Silver lamps, coins and articles are gaining festive traction, although some silver jewellers note temporary sales slowdown due to falling prices; lower price points could support stronger consumer purchases during Diwali

• Fashion jewellery: Strong demand is reported during Navratri, Dussehra and Karwa Chauth, with Kundan, antique, temple, Polki-look, jadau-inspired and CZ designs expected to lead Diwali and wedding-season sales.

New Collections & Product Innovation

• Jewellers are launching festive, bridal and everyday collections focused on lightweight gold, diamonds, platinum, silver and versatile designs.
• Notable launches include NAC’s Surabhi traditional cow collection, ABARAN’s festive and bridal lines, Nemichand Bamalwa’s Eden Collection, Aisshpra’s Navni 9-in-1 diamond bridal collection, Bharti Bangur’s Elumé collection and Avama’s wedding-festive edit.
• Manufacturers are focusing on design innovation, faster inventory rotation, consistent availability, competitive pricing and market-relevant collections to support retail partners.
• Modular, convertible and multi-styling jewellery is gaining importance, particularly for modern brides seeking statement pieces with multiple wear options.

Challenges & Risks

• High and volatile gold prices remain the biggest constraint, reducing the quantity consumers can afford and encouraging smaller-ticket purchases.
• Some industry voices describe sentiment as muted, warning that inflated pricing or artificial discounts could damage consumer confidence.
• The key uncertainty is whether advance bookings and rate-lock schemes convert into final Dhanteras and Diwali purchases.
• A shift from jewellery towards investment gold is visible in some segments, with bars and coins gaining share as consumers prioritize value preservation.

Market Data & Expectations

• India’s gold jewellery consumption fell 20% year-on-year to 100 tonnes in Q3 2026, the weakest third quarter since 2020, though spending value rose 19% to US$38 billion in the first nine months.
• Between April and June 2026, jewellery demand fell 15% by volume, while total gold spending reached a record Rs 1.98 lakh crore, reflecting the shift from quantity to value.
• Listed jewellers reported 20–30% year-on-year revenue growth in July–September, supported by weddings, festive buying, lightweight designs and e-commerce.
• The World Gold Council expects full-year India gold demand of 625–675 tonnes, with the festive and wedding season providing a favourable near-term backdrop despite price-related volume pressure.

Strategic Priorities for Retailers

• Focus on lightweight, lower-carat and studded collections to align with affordability-led demand.
• Strengthen exchange offers, rate-booking schemes, financing options and genuine promotions to build trust and improve conversion.
• Curate a balanced range across budgets, from everyday and gifting pieces to premium bridal jewellery.
• Invest in design innovation, quality assurance, faster stock rotation and digital engagement to meet evolving consumer expectations.
• Target younger consumers, self-purchasers and Tier 2/3 markets with contemporary, wearable and certified jewellery options