High prices for original diamond and gold jewelry in India have driven consumers towards imitation jewellery. Consequently the Indian jewellery industry has changed drastically over the years due to more people now opting for affordable artificial jewellery.
The demand for imitation jewellery in India has grown rapidly in the past few years. In 2012, the market grew around 85% compared to the previous year and by the end of 2013, the imitation jewellery market reached an estimated INR 98.5 Billion.
As a result to the growing demand, brands such as Juvalia and You, Delhi Artificial Jewellery and Lotus Jewellery are involving themselves more in the industry. A recent study by RNCOS, a leading industry research and consultancy firm, reveals that the imitation jewellery market in India is anticipated to grow at a compound annual growth rate (CAGR) of around 23.5% during 2013-2017. This is due to skyrocketing gold and silver prices, rising consumer preference availability of more innovative designs and variety in artificial jewellery.
Apart from high demand, variety and affordability, RNCOS research revealed that imitation jewellery is in fact safer to wear compared to original jewellery. With rising theft and crime in society these days, customers feel more secure wearing fake jewellery.
As India is the second largest manufacturer of imitation jewellery after China, the export market is supporting the industry’s growth, due to the high demand in Europe, US, Canada, Australia and many other Asian countries. Mumbai is the main hub for imitation jewellery in India.