Artificial Jewellery Business in India | Business | Sarthak Ahuja

Diamonds are rapidly falling in value and its not just because of Lab Grown Diamonds...
The price of diamonds is down by over 6% since Jan 2024, and they’ve fallen by almost 30% since their high in August 2022...
In fact, over the past 10 years, the prices of diamonds have fallen by over 16%
The largest buyers in the world, US and China are giving up on diamonds on account of economic slump in favour of gold, if at all.
A third of all buyers are said to now go for LGDs, which are cheaper and environmentally friendly, not requiring mining that pollutes the world immensely...
But there’s a larger undercurrent...
How many younger folk do you now see obsessing over wanting a diamond?
Most Gen Z don’t care...
They rather spend that money on travel and experiences than on a stone which may not be fashionable next season.
In fact, their parents care about gold, but they don’t care that much about the golden metal either.
I think there’s a better opportunity here when it comes to business.
Over the past 5 years, a number of artificial jewellery brands have sprung up on platforms like Instagram that have fabulous unit economics.
Jewellery pieces - pendants, earrings, bangles made of alloys but gold plated that sell for between Rs 5k to Rs 10k...
And the cost of goods sold is barley 25%... add to that the logistics cost, it’s another 15%
With a 60% margin left to cover ad spends and overheads... most such pages draw their customers from content...
And the moat is in the stylist network...
If you can build a rapport with stylists from Mumbai, and shower them with designs and samples ever so often, you might find an A lister wearing your (artificial) jewels, which skyrockets the demand for these pieces.
You also get the rights to use pictures of these Bollywood celebrities who adorn your jewels without paying a dime in celebrity endorsements.
It’s more common than you think.
And almost half the chunk of the market lies among NRIs living abroad, not having access to authentic designs in their countries of residence.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.