Learn how to start a jewellery business in India in simple steps in the following article. Read to know all about it.
India has created one of the largest markets of Jewellery in the world with a tremendous appetite for gold and diamond. India is also the largest importer of gold and other gems and contributes around 6-7% of the Indian GDP. The demand for gold is only increasing with each day which means that the jewellery business is definitely great to set foot into.
If you too are interested in starting your own business in Jewellery, here is how you can do it.
Types of Jewellery Business
The Indian Jewellery Business can be divided into different types as follows:
- Retail Jewellery Shops
- Online Jewellery Retail
- Gold Trading
- Gold Importers
- Jewellery Manufacturers
Step By Step Process To Start A Jewellery Store
Follow these steps to start a jewellery store in India.
Do Proper Research
Before starting out on the franchise, it is essential to do your research well and know everything about the business. You must decide on a niche and have knowledge about the products you will sell, operations and market.
Learn about the market and understand what should be your objectives and business goals.
Study the Competition
Before you start a business, you must always scan the market and find out about your competition. Knowing your competitors, you can strategise your marketing plans accordingly by evaluating their strengths and weaknesses. You can come up with great ideas for your business and attract customers.
Also Read: HOW TO START A TIFFIN SERVICE IN INDIA?
Choose the Location
This is an important decision to make while looking for a location for your business. The location can make or break your business therefore it is of utmost importance that you select an area which is accessible to all customers and has a big footfall. The showroom should have better accessibility to the customers and also offers easy parking.
You must invest in the infrastructure of the showroom which would play a vital role in grabbing people’s attention. Inspect everything about the property like cooling, heating, plumbing, electricity and also internet services and only once you are satisfied, you can approve a location.
To start any business you require a lot of money and this is more important when you are starting a jewellery business whether you are buying a franchise or starting your own business. You would require a lot of capital as an investment hence the funds are crucial.
You would require money for inventory, store set-up, employee salary, working capital, franchise financing, royalty fees and others.
Select the Franchise Partner
Get the right franchise for your business. For this create a list of all the potential companies and brands and get a third-party lawyer on board or even a franchise consultant to help you make a better-informed decision.
Understand the proposal for each of these companies, their disclosure document and the agreement copy. Study all the pros and cons of working with them and get the legal support and trade rights for the franchisor for the jewellery store.
You can also negotiate on the profit-sharing percentage and royalty fees. You can go ahead with the franchise partner only once you are satisfied.
Obtain all the Legal Permits
Whenever you start a business you have to acquire industry-specific licenses and government permits from the government to run and manage the activities. Know all the necessary permits and licenses that you must have and apply for them.
Customers today purchase jewellery that has a hallmark on it for which you must have a BIS license which is granted to a store if the brand has many showrooms.
All jewellery businesses must also obtain their GST registration to run their business smoothly in India.
Hire Efficient Staff
No matter how big your store is and where it is located, if you do not invest in good and talented staff, you would not be able to run a business. You must hire great craftsmen who are able to execute all the innovative designs.
You must also focus on skilled salesmen who would understand the need of people and show them designs as per their needs and requirement and also convinces them to purchase.
Bank Account for Jewellery Business
Opens a bank account in the name of the shop. This would also help you apply for a loan for which bank statements are also needed. Many banks also offer various schemes that you can make the most of. A separate bank account would help you in keeping your accounts and records straight.
Marketing of The Business for the Jewellery Business
As soon as your business is ready to operate, you must start marketing it aggressively both offline as well online. You must promote your business and create a demand for your jewellery in the market. You can promote your business in newspapers, TV ads, hoardings, theatre ads and more.
This is how to promote the jewellery business in the best way possible.
How To Start Jewellery Business At Home
If you are thinking about how to start an online jewellery business in India, then here are the top steps.
Decide How you Want to Sell Jewellery at Home
One of the most important decisions is for you to decide is what kind of jewellery you want to sell, whether it is artificial or real. Think about all the pros and cons and each of them and make a well-informed decision.
Start a Wholesale Business
You can start a wholesale business in which you would be purchasing jewellery wholesale at a cheaper price and then you can quote your own cost. But in this kind of business, you would require a lot of investment and also a place for storage.
Become a reseller
jewellery business does require a lot of money as an investment but if money is something that you are struggling with then you can start a business as a reseller. You can make your own margin while doing so.
Sell on Online Platforms
Rather than buying a space or renting one out to sell the jewellery, you can also sell it online. You can either create your website and a page on social media where you can showcase your jewels and people can purchase from there.
Register a Creative Name for Your Business
Once you have decided on what your niche is going to be and what kind of jewellery you want to sell, it is time for you to pick a nice and catchy name for your business. A name that would catch people’s attention and helps you sell a lot.
Also Read: HOW TO MAKE AN ATTENDANCE SHEET IN EXCEL
Understand the Latest trends in the Fashion Industry
It is of utmost importance that you keep your business relevant by staying updated on the latest trends and fashion so that you can update your collection as per that and what people are demanding. This would truly help you in being on top of your game.
Launch a Website
All businesses need a good website so that people can rely on your business. It is more important for a business like jewellery hence, you must create a website for your brand where people can know your story, know who you are and connect with your brand and products.
Market your Business
To run any business marketing is very important. You need to know how and where to sell your site,s. You need to spread the word and do the right advertisement and marketing for your brand to get the attention of as many people as possible.
How To Export Jewellery From India
To export jewellery from India, you would require a few documents and here is the list:
Permanent Account Number (PAN)
2. Authorized Dealer Code (AD code)
3. Goods and Services Tax Identification Number (GSTIN)
4. Importer-Exporter Code (IEC) by DGFT
5. PAN-based Business Identification Number (BIN) from the Customs departments
6. Registration cum membership certificate (RCMC) by GJEPC
7. Certificate of Origin
8. Certificate of Insurance
Apart from these documents, you would also require a few more which would be dependent on the shipping mode and the importing country.
GST On Gold
GST influences gold to a great extent. GST on gold is different based on different levels, rights to purchasing and manufacturing. GST on gold is applied to both supply and manufacture of gold ornaments. A GST of 3% is charged on gold in India. Moreover, jewellers charge 5% of the price as GST making charge.
Maximize Your Online Business Potential for just ₹79/month on Lio. Annual plans start at just ₹799.
How Lio Can Help You Staring A Jewellery Business
When starting a business in jewellery, expect a lot of lists, numbers, contact details, cash transactions and other such things to become your life. You would need to track these and have them with you at all times. So how do you do that?
You can’t carry all this or have them with you at all times, right? Wrong. You can have all this information and much more and carry it in your pocket at all times. Thanks to Lio.
Lio is that one app where you can store and organise all kinds of data. No matter what information you want to save, you can do it over here. It is here to put your life in order in the most hassle-free way.
There are several features and all make the use of the application very easy and helpful. You can add photographs, download your documents and folders, dedicate one folder to each piece of information, collaborate and share with others and lock the information.
Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.
Step 1: Select the Language you want to work on. Lio on Android
Step 2: Create your account using your Phone Number or Email Id.
Verify the OTP and you are good to go.
Step 3: Select a template in which you want to add your data.
Add your Data with our Free Cloud Storage.
Step 4: All Done? Share and Collaborate with your contacts.
Frequently Asked Questions (FAQs)
What is the Profit Margin on Jewellery?
42% to 47% is the profit margin on jewellery.
How Much Money do I Need to Start a Jewellery Business?
The jewellery business requires a lot of money. It is advised for you to take a big hefty loan to run a business smoothly.
Is the Jewellery Business Profitable in India?
This is definitely a profitable business in which you can make a lot of margins and excel in your business.
What Type of Jewellery is Most Profitable?
Fine jewellery is an incredibly lucrative market, with costs per item being far higher than that of costume/fashion alternatives.
Which Gold is Best for Jewellery?
22Kart gold is best for jewellery making.
Which Metals are used for Making Jewellery?
Gold, platinum, silver, palladium, titanium, and many more are used in the jewellery-making process.
A jewellery business is definitely a great business idea if you have a lot of money or can arrange for a good investment for the business. If done right, you can be making a lot of profit and excel at it. Just keep in mind to be done with all the formalities especially legal and regarding the government.