Home lifestyle Watches and Jewellery Rising Gold Prices Boost Deman...

Rising Gold Prices Boost Demand for Affordable 14-Karat Jewellery

Watches and Jewellery

Business Honor
31 March, 2025

Rising gold prices drive demand for affordable 14-karat gold jewellery, boosting sales for brands like Mia.

With gold prices still on the move upwards, jewellers who sell on a daily basis are noticing a change in the growing demand for 14-karat gold jewellery, something more price-conscious customers can afford. The rise in gold prices, which touched an all-time high of Rs 90,670 for 10 grams on March 21, has prompted consumers to move to more affordable alternatives. For instance, 14-karat gold at Rs 6,000 a gram is much more affordable compared to 18-karat gold at Rs 9,000 a gram and hence makes a good option for everyday wear.

Titan's bestselling brand Mia by Tanishq has jumped on the trend and hopes for a 30% increase in sales on a year-on-year basis, especially in advance of the upcoming wedding season. With 50% of Mia's products purchased for gifting, the brand has competitively priced studded products from Rs 4,999, making them affordable to a wider consumer base. Mia, which has crossed the Rs 1,000-crore turnover mark this year, is looking to grow further, targeting tier 2 and tier 3 cities to grab a larger share of the expanding market for lightweight, multi-utility jewellery.

The jewellery segment of daily-wear is in transition, with organized players increasing in the segment. Big players such as Kalyan Jewellers and Senco Gold are betting on affordable and accessible jewellery, while formalization in the industry continues to increase. Organized jewellers now hold 36-38% of the market share, as compared to 22% in FY19. As consumer confidence in branded retailers increases, the tendency towards lighter and less expensive jewellery continues, with 14-karat gold set to displace 18-karat as the de facto norm for everyday wear.