By Invitation
The Jewellery Industry’s Biggest Risk Isn’t Gold Prices. It’s Sustainability.
Amit Choksi
CMD-Eka Group
The recent practice around reducing labour charges to gain market share highlights a much larger challenge facing our industry.
For decades, the Indian jewellery industry has been built by manufacturers, entrepreneurs, artisans, designers, and retailers working together to create one of the world’s most respected jewellery ecosystems. However, the industry today stands at an important crossroads.
While gold prices have risen significantly over the years, the earnings retained by many manufacturing businesses have not increased in the same proportion. In many cases, manufacturers are operating with thinner margins despite rising costs of compliance, technology, infrastructure, employee welfare, finance, and working capital.
At the same time, almost every other industry has successfully increased prices to keep pace with inflation and rising costs. Education, healthcare, hospitality, transportation, professional services, and real estate have all witnessed regular price increases over the years. Yet many jewellery manufacturers continue to face intense pressure on labour realization and manufacturing margins.

The reality is that jewellery itself has become a more challenging category. Traditionally, after “Roti, Kapdaa aur Makaan”, jewellery was one of the most important aspirational purchases for Indian families. Today, it competes with international travel, premium education, smartphones, automobiles, entertainment, investments, luxury experiences, and countless lifestyle choices. Consumers have more options than ever before, making value creation and sustainable profitability increasingly important.
The challenge is not about opposing growth, scale, or public market participation. Growth is essential. However, growth should strengthen the ecosystem rather than weaken its foundations. An industry cannot thrive indefinitely if manufacturers, who invest capital, create employment, bear operational risks, and drive innovation, continue to face shrinking profitability.
Another reality that deserves attention is the changing workforce.
Today’s generation has different aspirations from previous generations. They value work-life balance, modern workplaces, career growth, flexibility, and even concepts such as weekend culture that were almost unheard of in traditional manufacturing environments. Gen Z has grown up experiencing corporate offices, technology companies, organised retail, and modern workspaces. They are unlikely to choose manufacturing careers simply because previous generations did.

If we want the next generation to join our industry, we must create workplaces that inspire them. Clean and air-conditioned facilities, modern equipment, digital systems, structured training, professional management practices, employee welfare, and clear career progression are no longer optional. They are essential investments in the future of manufacturing.
India is already witnessing shortages of skilled manpower across sectors. Even major infrastructure companies such as L&T have publicly highlighted the challenge of finding and retaining skilled workers for large-scale projects. The jewellery industry should view this as an early signal of what may lie ahead if we fail to make manufacturing an attractive long-term career.
The conversation therefore needs to move beyond turnover, market share, and short-term growth metrics. We must focus equally on sustainable profitability, manufacturing excellence, workforce development, artisan welfare, innovation, and modern workplace culture.
The future strength of the Indian jewellery industry will not be determined solely by gold prices, exports, or valuations. It will be determined by whether manufacturing businesses remain profitable enough to invest, innovate, employ, and attract the next generation.
India became a global jewellery leader because generations of manufacturers and craftsmen worked together to build an ecosystem admired across the world.
If we fail to strengthen that ecosystem today, we risk creating a future where capital is available, demand exists, and gold is abundant, but the businesses and people needed to create value struggle to survive.
ORIGINALITY IS THE ONLY LUXURY. SUSTAINABLE MANUFACTURING IS ITS BACKBONE. CRAFTSMANSHIP IS ITS SOUL.
By Shivaram A
The Core Issue
The owner carries the entire risk of the business — investment, gold stock, working capital, loans, everything is in their name. The long-term asset also belongs to the owner — reputation, brand, the customer base built over years, often meant to pass to the next generation. But the moment that matters most — when the customer is standing at the counter, when trust is being built or broken — that moment is entirely controlled by the staff.
The person with the most risk is not present at the decisive moment. And the person with the least to lose holds the most power in that moment. This structural mismatch creates frustration on both sides — and it’s rarely discussed openly.
Making the Conflict Explicit

The real tension is this: the owner wants business growth and profit, while staff are under pressure to hit targets.
The owner thinks long-term — how does the brand grow, how does a customer come back after ten years, how does the business pass to the next generation. For the owner, every transaction is a building block toward something bigger.
The staff’s reality is completely different. Their monthly target is fixed. Their salary, incentive, and sometimes even job security depend on how much they sold this month, this Diwali. For staff, every customer is a chance to hit today’s number — right now, this moment. They cannot afford to think about whether this customer comes back in three years, because their performance is reviewed at month-end, not three years later.

So when the owner says “build the relationship, be patient,” and in the same breath increases the target by 20%, these two instructions directly contradict each other. Staff are not confused about what they should ideally do — they understand it perfectly. But they don’t have the choice. The target has to be met, so pressure-selling becomes necessary — even if it means pushing a customer slightly, or using lines like “buy today, rate will go up tomorrow” that create small cracks in trust.
These cracks don’t show up immediately. But after Diwali, when that customer doesn’t return a second time, the owner assumes it’s the staff’s fault. The staff believes the owner set an unrealistic target. Both are right, and both are wrong — because the real problem is in the system, not in the people.
The Challenges on Both Sides
- Owner wants both profit and brand, but only measures the profit number
- Owner puts pressure on staff to hit targets, then also expects “relationship-building” — without acknowledging the two often can’t coexist
- Owner hesitates to invest in long-term things (training, ownership, trust) due to fear that staff will leave anyway
- Staff’s target pressure is so real that there’s no time left to think about the long-term customer
- Staff gets no financial or professional credit for the relationships they build
- Incentive structures reward only this month’s number, not next year’s loyal customer
- Both sides see each other as a risk factor rather than a partner — the owner assumes staff will eventually leave, staff assumes the owner only cares about numbers
What Owners Can Actually Do — Starting the Mindset Shift
- Stop treating targets and relationships as separate — align them. Don’t set targets purely on sales numbers. Tie a small portion of the target to repeat customers or referrals, so staff know that long-term customers count too.
- Name the asset explicitly. Tell staff directly: the relationship you’re building with a customer is your professional asset, not just the store’s. This has to be shown in practice, not just said out loud.
- Extend the reward horizon. Don’t reward only Diwali-week sales — when a customer returns six months later and asks for that staff member by name, recognize that, even if the sale itself is small.
- Give staff ownership of the follow-up. Make each staff member the named owner of their customers’ after-sale journey — repairs, exchanges, the next occasion. This helps them feel the relationship is theirs, not just a transaction.
- Show patience even under pressure. If Diwali week only rewards closed sales, staff will only chase closing. If a staff member who handles a “not buying today” customer well is also appreciated, that’s when the mindset actually starts to shift — because staff notices what the owner actually rewards, not just what they say.
Top 3 CTAs for owners this Diwali
- Review your target structure this week. Does it only measure sales numbers, or does it also give weight to repeat customers and referrals? If not, try a small adjustment starting this Diwali.
- Ask each staff member to list their top 20 known customers. Tell them this is their list, not just the store’s. This builds a sense of ownership.
- After Diwali, start a “best follow-up” recognition. Base it not on the sale number, but on how patiently and well a difficult customer was handled. Staff need to see that patience is rewarded too, not just closing.
Shivaram A
Retail Gurukul
-
JB Insights1 week agoDhanteras Shopping Guide 2026:Gold, Silver, Diamonds & Festive Jewellery Trends To Watch
-
BrandBuzz1 week agoThe Solenne Collection: A Celebration Of Diwali By Bharti Bangur Fine Jewels
-
BrandBuzz1 week agoFrom Diya Puja To Diwali Soirées: Jewellery Designed To Go Beyond The Festive Season
-
National News1 week agoIndriya, Aditya Birla Jewellery Unveiled India’s Largest Sustainable Jewellery Rangavalli

