How Much Does a Jewelry Store Owner in India Make?
Indians are very much fond of Gems and Jewelry, especially women of India. India is the largest consumer of Gold and Jewelry business is one of the oldest businesses in India and have gone several transformations in its monetization and business plan.
There are about 2-3 jewelry stores per area in urban parts of India. Most of the rural towns have at least 2 jewelry stores and villages in India rarely have a jewelry store. There are more than 3 lakh Jewelry business owners all over India with a market size of Rs. 785075 crores. One can expect that a jewelry business is different in different areas depending on the standard of living of the people and the type of jewelry sold.
In general, a common jewelry business owner in India not only retails (sells) the jewelry but also makes jewelry using his/her skill along with employees. Though there are several types of business models each individual business owner follows, the most common one is related to making changes. The gold price remains constant whereas the rate of a jewelry set varies with its making charges.
Different brands and different business charge their customers accordingly. The making charges in most of the jewelry stores in India vary from Rs.200 to Rs.1000 per gram of gold or silver.
Jewelry business owners also earn by charging for melting the old gold and making a new piece. India has so many middle-class families who cannot always afford to buy new jewelry and thus choose the method of melting old gold.
There are 5 types of jewelry overall and a jewelry business owner produces one or more of them, they are:
- Art jewelry- The size is irrelevant, and these are mostly bought for history, relevance and story behind the jewelry and hence these are a little high-priced.
- Craft Jewelry- These are made by micro-business owners with 1-2 employees. The designs are unique and mostly simple. The price is a little high than normal jewelry, but one can have the most unique jewelry.
- Fashion Jewelry- These are everyday jewelry. The cost of the jewelry differs from the brand, however, most of the time, these are the cheapest jewelry one can get due to less making charges.
- Fine Jewelry- These are heavy, traditional and complicated jewelry made for occasions. Due to skilled craftmanship and quality, these can be very costly to buy.
- Academic Jewelry- These are made for experimental purposes and are made in universities.
So, in conclusion, a normal jewelry store owner in India makes and sells mostly craft and fashion jewelry and could make about Rs.400 per gram of gold or silver. This is not the exact number as there are hundreds of other factors that are to be considered and thus how much exactly a jewelry owner makes depends on the individual business owner.