Smaller cities in Karnataka driving fast fashion jewellery growth

Bengaluru: Smaller cities in Karnataka are experiencing a boom in the fast fashion jewellery market, with demand increasing by up to 50%. This was highlighted at the India International Jewellery Show-2025 held in Bengaluru. Industry leaders noted that younger consumers are now favoring trendy and branded designs, influenced by social media and fashion trends, rather than simply investing in gold. Karnataka has over 500,000 jewellers. Experts believe that growing demand from tier-2 and tier-3 cities will shape the future of jewellery retail. Adarsh K, president of the Mysore Jewellers Association, mentioned a shift in consumer preferences. Today, buyers value convenience, transparency, and quality instead of personal relationships. Corporate chains are expanding beyond metro areas, with more than 60% of new showrooms opening in smaller cities. Varghese Alukka, managing director of Jos Alukkas, noted that while gold remains a traditional investment, fast fashion jewellery is gaining popularity. Customers in smaller towns see gold both as an investment and a fashion statement. He added that government support for agricultural income is increasing the purchasing power for gold. BA Ramesh, joint MD of Thangamayil Jewellery, confirmed the trend. He mentioned that the market in small cities is growing rapidly, with a 70% increase in recent years. Customers there tend to be more loyal and expect transparency. Smaller towns have fewer jewellery options, making branding and customer relationships essential for success. According to Srikanth Kari, chairman of the Karnataka State Jewellers Federation, corporate chains are now aggressively entering smaller cities. These areas offer better profitability because of lower operating costs. Additionally, consumers in tier-2 and tier-3 cities prioritize quality, resale value, and brand trust more than metro buyers who focus on the latest trends.