What’s the secret behind India’s gold obsession? It’s not what you think

financialexpress.com:

The Indian wedding industry, valued at $130 billion, is dynamic and multifaceted, comprising a range of products and services. Among the major categories of these products and services are jewelry, apparel, event management, catering, photography, entertainment, etc.

From a spend perspective, wedding jewellery typically accounts for the largest proportion of the wedding spend, making up approximately a quarter of the total spend followed by catering at 20% and events at 15%, etc, according to a report by foreign brokerage Jefferies.

Service providers to the wedding industry largely fall in the unorganized and highly fragmented category, consisting of many small scale businesses and individual service providers who cater to both low and high spenders, it said adding that this is partly due to the extreme divergence in regional preferences which means smaller and regional players are better-placed in addressing consumer needs.

Also read: How much a Rs 1 lakh investment in gold, real estate and Indian stocks has grown in 20 years

“However, this is also an opportunity for large organized players to gain market share, as they build capabilities to cater to regional preferences. Several companies such as Titan, Kalyan Jewellers, Vedant Fashions, ABFRL etc. are well-placed from
this shift to organised players in a growing market,” the report said.

Jewellery is often the largest purchase category in an Indian wedding, given its deep cultural and religious significance, the brokerage emphasised.

For the jewellery industry too, wedding is a key demand driver – 50% to 55% of the total jewellery market by weight is wedding jewellery, followed by daily wear at 35% and fashion wear at 20%, the report said. “India also has an age-old