| Page 2 of 2 < |
Young Urbanites in India Shun Their Parents' Gold Standard
(By Sanjit Das -- Bloomberg News)
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
"Gold rules supreme in the traditional wedding market in India. But we want to capture the non-wedding occasions by introducing internationally designed gold jewelry that looks light, trendy and feels contemporary," said Madhumita Dutta, head of marketing development for the World Gold Council in India. "Among the urban affluent, gold competes with lifestyle products that you can flaunt -- like an exotic vacation, a new car or a designer watch. As an investment, gold is pitted against real estate, mutual funds and stock markets."
About 80 percent of gold in India is bought for weddings, and gold advocates say that will not change. Their product has a hallowed place in this country's cultural heritage. As soon as a daughter is born in India, parents begin to accumulate gold jewelry for her. At her wedding, she is presented with the gold -- known as "streedhan," literally "woman's wealth." And after she is married, a woman seldom wears the heavy jewelry, for fear of what are known as "chain-snatching" crimes.
Most of the gold ends up in bank safes, viewed as a hedge against inflation and as the source of a woman's security. Indian banks accept gold jewelry as a pledge against personal loans, and gold coins are offered as an investment tool.
The diamond company De Beers entered the wedding market in the mid-1990s, using diamonds as add-ons to gold purchases. Then the company started to market its products as gifts for engagements, anniversaries, births and festivals. Diamonds now hold a 12 percent share of the total jewelry market, mostly in cities.
"During this year's wedding season, we are launching a new campaign about the contemporary Indian bride. She does not see gold as modern enough for her. She is a diamond bride," said Rajeshree Naik, director of the Diamond Information Center at DeBeers. "The diamond bride wants jewelry that she can wear, not the old-fashioned 'locker jewelry.' "
On a recent afternoon, a 28-year-old businessman from Bangalore, Hothur Shadab, browsed a Christian Dior store for a "classic-looking" purse for a friend. He said that giving jewelry is passe and that he prefers to give luxury brands such as Bulgari or Louis Vuitton. He drives a Lexus 470.
"By gifting a big brand, I want to say that I am trendy, that I am aware of fashion," Shadab said. "And more importantly, that I use it, too."
