India Jewelers Pump up Advertising as Domestic Sector Takes Off

With the branded jewelry business growing to be a $2 billion industry in India, leading jewelry firms are pumping up their advertising spend to take advantage as the sector continues to expand.

With economic growth up 40 percent in the last five years and further expansion on the way as foreign investment continues to flood into the country, a growing middle class with increasing disposable income is spending its money on a range of luxury goods, including diamond jewelry.

Among the first jewelry retailers to supply branded gold and diamonds to the Indian market was Gili in 1994. Today, however, India has approximately 30 local operators, including Tanishq, Oyzterbay and Intergold, in the branded jewelry sector with another 30 estimated to enter the market by 2009.

Gili has increased its spend on communication and increasing consumer awareness of its branded jewelry to around $1 million per year from around $90,000 in the last decade, according to media reports.

Another major company to increase its advertising and promotional spending is Intergold of the Rosy Blue group, also investing around $1 million annually. Meanwhile, major players such as Oyzterbay and Tanishq are investing even more.

With the entry of international firms, such as Platinum Guild International (PGI) and the DTC, most domestic brands are investing in adding some sparkle to their retail operations and increasing the number of outlets.