Silver is the second most preferred jewellery of Indians. Silver, which in India has been known as a poor man’s gold, is finding its space with franchisors.India's consumption of silver jewellery jumped 16% in 2018. The ever-increasing price of gold as well as the shifting consumer taste where silver is looked at as a ‘cool’ metal, has shifted the investor’s attention to the silver market. The craze for silver jewellery can be seen by the fact that major jewellery players such as Tanishq, has forayed into this segment with their own line of silver jewellery. Brands like Amrapali and Flaunt Basket have been the pioneers of exquisite silver jewellery.
In fact, realising the potential of the silver jewellery in today’s time, various brands are entering into the market with their own line of silver jewellery and opting for the franchise route to expand their business. This has opened up an array of the opportunity of people willing to venture into the jewellery segment with low investment. A younger generation of millennials has become the driving factor for any business currently. Over 50 per cent of India’s population is less than 25 years of age. This generation has grown with evolving technology. This has brought a paradigm shift in their lifestyle and purchase behaviour. Millennials consumers explore products on the internet and often make online purchases.
Also, silver jewellery, being a precious, is a great investment opportunity for the future. Whereas artificial jewellery has no resale value and gold jewellery comes in traditional designs and cannot be purchased regularly owing to high costs. Hence, with jewellery brands offering a variety of designs in silver, women are increasingly switching from artificial to silver, boosting the revenue of silver jewellery franchises.
The rise in demand for silver jewellery made it a profitable franchise opportunity. Earlier, silver was a small part of gold & diamond jewellery stores. But, now the craze for silver jewellery has given rise to independent stores and even many home-based businesses.
A silver jewellery franchise demands for far less investment than other precious jewellery stores. The initial investment starts from 25 lakhs and may range up to 50 lakhs depending upon the area requirement, this includes the franchise fee. The area requirement ranges from 500-700 sq. ft and anticipated percentage return on investment would reach up to 20 % within the payback period of minimum 3 years.