Indian Manufacturers Target Youth Segment

A growing number of Indian jewelry manufacturers are launching special collections targeted at the youth market. Currently, jewelers in the Indian market appear to be lagging behind manufacturers of other high value items in their ability to attract the huge amounts of money that Indian youth are spending, according to the recently released Jewelbiz India Youth Survey report.

The findings, released in the May-June issue of Jewelbiz India, indicate that the interface Indian youth have with jewelry in the Rs 3000+ ($65) price range is very low. Only 18 percent have received jewelry as a gift; 15 percent have bought a piece of jewelry for themselves; while only 8 percent have given jewelry to others. Jewelry as a category lags behind clothes, cell phones and accessories in attracting rupees spent by the youth.

The youth market is huge –a massive 72 percent of the Indian population is below the age of 35 years, and an estimated 54 percent of the population is below the age of 25 years. India's median age is calculated at 24.66 years.

The post liberalization economic changes and the explosion of the BPOs (business process outsourcing) in particular have fuelled the earning capacity of the youth. Offices in many sectors, including the glamour industry or the media, today flout a younger look. This translates into a significant disposable income, with media reports estimating that the discretionary spending power of the youth amounts to roughly $6.5 billion, including both, what they earn, as well as what their families spend on them. The Young Asian survey, conducted across eight countries including India, by Synovate, reports that 62 percent of the youth have their own mobile phone, 45 percent have their own desktop computer and 23 percent own MP3 players.

Rajiv Shah of B. Vijaykumar says, “The youth constitutes a key segment in the current market scenario; it also happens to be market that’s not being specifically catered to. Studies clearly show an increase in spends of disposable income towards jewelry amongst other lifestyle categories.”

The company has recently launched Hoop jewelry which encompasses silver, titanium, tungsten, steel, rubber and leather with diamonds and colored stones. The collection also has some ‘youth specific’ products, like nose rings, navel rings and anklets. “The idea is to create a paradigm shift from traditional jewelry buying and wearing,” says Shah. Hoop jewelry is priced at between Rs. 900 to Rs. 10,000 ($19.50 - $215).

Ola jewelry from Goldiam comes in an even lower price bracket. Styled in silver and combined with colored stones and zircons, even after considering the import duty of 12 percent (the collections are designed and manufactured at the company’s overseas plants), it will be available in a range of Rs. 250 to Rs. 5000 ($5.50 - $108), with the major chunk being between Rs. 500 to Rs. 2000 ($11 - $44).

“Ola which carries a tagline “Style Expressions,” is just that – defined by style, with a new look and beautiful to wear,” says Rashesh Bhansali of Goldiam. “But its greatest USP is that its quality far exceeds its price.”

Sucheta Khandelwal of Hammer Plus believes, “Now with the BPOs, and even 20-year old graduates taking up jobs, there is a huge increase in purchasing power amongst this segment. This generation thinks independently and makes decisions on their own. They may go into a shop with their mother or grandmother, but they are clear about what they want and like.” The company has its Karma and Tamorri collections for the youth segment.

Summit is another player to enter the youth market with offerings like Romany, inspired by the area of origin of the Central European gypsies using vibrant colors in gradation to strike a youthful chord; and Patio with an innovative use of “caps” transforming their use from the practical to the ornamental. But its jewelry caters to the upper niche of the youth market and is priced in a higher range - retailing at anywhere between Rs. 50,000 to 150,000 ($1,010 - $3,300).