Novel Jewels: A golden opportunity

Aditya Birla Group's consumer-centric venture is betting on shifting consumer preferences in jewellery ownership

For millennia, jewellery has represented so much more than mere wealth – it is a symbol of tradition, legacy, and even social status. Gold, in particular, has always held a special place in the hearts of Indians, with many of our festivals and traditions centred around this precious metal. Take, for instance, the festival of Diwali, which commences with Dhanteras, a day considered auspicious for new purchases including gold ornaments.

Today, the jewellery industry stands as one of the largest in India, contributing 7% to the nation’s GDP and 15.71% to its total merchandise exports. India's gems and jewellery sector accounts for 3.5% of the total global exports, making us one of the leading exporters worldwide. With India’s jewellery industry projected to reach an astonishing USD 100 billion by 2027, this presents yet another opportunity for Aditya Birla Group to be 'big in the life' of consumers and transform the way India purchases its fashionable jewellery.

A strategic venture into jewellery retail

In June 2023, the Group announced its entry into the branded jewellery retail business. Backed by an investment of Rs. 5,000 crores, this new venture is called 'Novel Jewels'. Plans are underway to build large-format exclusive retail stores across the country featuring in-house jewellery brands with bespoke designs.

Novel Jewels is a strategic portfolio choice for the USD 65 billion conglomerate, allowing it to tap into new avenues of growth and engage with a whole new segment of consumers who aspire to acquire high-quality designer jewellery and enjoy a seamless purchasing experience.

The rise of branded jewellery

For decades, India’s jewellery landscape has been dominated by the unorganised sector, primarily consisting of local standalone jewellery stores. However, this trend is undergoing a radical shift in favour of national branded jewellery chains. From constituting a mere 5% of the jewellery market in 2005, today branded players make up an impressive 35% of the market. One of the primary reasons behind the increasing preference for organised jewellery retailers over local jewellers is the wide array of contemporary and unique designs offered by these new-age establishments.

Moreover, several awareness drives have helped consumers insisting on hallmark certifications to guarantee the purity of their jewellery. The unorganized segment only recently started providing this certification after the Bureau of Indian Standards (BIS) mandated the inclusion of a Hallmark Unique Identification Number (HUID) for gold jewellery purchases. As one of the newest entrants in the organised jewellery segment, Aditya Birla Group’s Novel Jewels aims to establish itself as an aspirational national jewellery brand, offering consumers not only modern designs, but also unmatched quality and a transparent buyback and exchange policy.

Reimagining the customer journey

When it comes to purchasing jewellery, Indian customers have traditionally preferred in-person transactions. However, in recent years, consumers have consciously voted for convenience offered by branded jewellery retailers, including a seamless experience through brand-owned ecommerce platforms.

According to an estimate from Metals Focus, an independent precious metals research consultancy, global online sales now account for 3 – 5% of total jewellery sales, with most of these sales being driven by consumers under the age of 45.

Furthermore, while gold has historically been the go-to choice of jewellery for older generations, millennial high-income earners are exploring other options, such as diamonds and gem-studded jewellery. In response to these evolving market trends, Novel Jewels is poised to offer consumers modern jewellery with a distinctive regional touch, all while providing a transparent and convenient shopping experience.

With Novel Jewels, Aditya Birla Group is eager to connect with consumers in newer ways and delight them with a seamless jewellery shopping experience.