The report also highlights the expansion strategies of major players like Kalyan Jewellers, which plans to open 80 new stores in India by the end of March 2025, driven largely by the franchisee model. Titan and Senco are also expanding, with plans to add 40-50 and 15-20 stores, respectively, the report added.
This expansion occurs in a competitive landscape where regional players are scaling up, and national brands are adopting more professional setups to maintain their market share. The report notes that while the lower customs duty will help formalise the industry, higher marketing spends and promotions will be necessary to remain competitive.
Despite these pressures, JPMorgan expects operating margins in the jewellery sector to remain stable. The one-off inventory impact from the duty cut will be spread over the next few quarters, minimising its effect on profitability, it said, noting that the medium-term outlook, however, could face pressure from lower studded diamond sales, a focus on gold, and increased promotional expenses.
Large retailers are also looking at overseas markets to leverage their brand equity. Titan plans to open nine new Tanishq stores abroad by March 2025, while Kalyan is set to launch its first store in the US before Diwali. Senco has already opened a store in Dubai.