Jewellery companies in India are finding new hope in smaller towns. While rising gold prices have made many urban buyers cautious, people in small towns are continuing to shop for gold, especially in the form of jewellery. This trend is helping jewellers improve their sales and keep their growth steady.
Several big jewellery companies including Titan, Kalyan Jewellers and Senco Gold have noticed that small-town customers are becoming important for their business. These buyers are not just purchasing gold for weddings or festivals. Many are now investing in gold jewellery as a store of value, especially when other investment options seem uncertain.
Rural and Semi-Urban Growth Beats Cities
Kalyan Jewellers reported that nearly half of their India revenue now comes from non-metro cities. This includes places where shopping habits are changing. People are becoming more brand-conscious and prefer buying from trusted retailers. The company’s chairman Ramesh Kalyanaraman said their focus has been on improving customer service in smaller towns. They have also increased marketing efforts to explain the value of branded jewellery.
Titan, which owns Tanishq, also saw steady demand in small towns. They posted a 9 percent year-on-year growth in jewellery sales for the April to June quarter. According to their business update, although overall demand was moderate due to high gold prices, the company’s wedding jewellery segment performed well. This was driven by buyers in smaller cities.
Senco Gold, which is among the top five jewellery retailers in India, also experienced strong sales in non-metro areas. The company opened 17 new showrooms last year. Most of them were in places where gold is still seen as a key part of social and cultural life.
Gold Prices Remain High but Buyers Adjust
Gold prices have remained above ₹70,000 per 10 grams for many months. Normally, such high prices discourage new purchases. But jewellers say that small-town buyers continue to buy gold by either going for lower-weight jewellery or exchanging old gold for new designs.
Retailers are offering exchange schemes and value-added services to attract these customers. Many jewellers also allow customers to book gold at current prices and pay in installments, making it easier for middle-income households to buy.
In states like Tamil Nadu, Karnataka and Andhra Pradesh, jewellers have seen steady footfall during festivals and wedding seasons. In Punjab and Uttar Pradesh too, branded chains are seeing interest from both first-time buyers and loyal customers.
Digital Shopping Rises but Physical Stores Still Rule
Jewellery shopping has also become easier with the help of technology. Companies have launched digital gold buying platforms and improved their websites. However, most buyers in smaller towns still prefer visiting stores in person.
Jewellers say that while online searches help customers compare prices and designs, the final purchase is often made in-store. Trust plays a big role when buying gold. That is why local showroom presence remains important.
Titan and Kalyan have invested in digital tools that allow customers to view collections online and then visit the store to make the purchase. This combination of digital and physical presence is helping brands connect better with semi-urban customers.
Investors Watch Retail Performance Closely
Stock market investors are also keeping an eye on the jewellery sector. Shares of Titan, Kalyan Jewellers and Senco Gold have shown positive movement over the last few months. Analysts believe that companies with strong rural reach will continue to perform well, especially if gold prices remain stable.
For instance, Titan’s jewellery business earned ₹8750 crore in revenue in the latest quarter. This was supported by steady sales in small towns despite macroeconomic pressures. Similarly, Kalyan Jewellers' revenue stood at ₹4753 crore, with the India business seeing a strong 34 percent growth.
Senco Gold’s recent IPO also generated interest, showing that investors believe in the company’s expansion plans. Their success depends on how well they can maintain growth in tier 2 and tier 3 cities while improving profit margins.
A Market Full of Promise
India’s love for gold is deep-rooted. Even when global prices rise or interest rates go up, many Indian households continue to invest in gold jewellery. What is changing now is who is buying and where they are shopping from.
Smaller cities and towns are no longer ignored corners of the market. They are emerging as key growth drivers for jewellers who are willing to understand their needs and offer affordable, stylish, and trustworthy options.
This shift may not only help jewellery companies grow faster but also reshape how the industry views rural and semi-urban India. If this trend continues, the glitter of gold in small-town showrooms could become the new face of retail success.
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