Rising incomes & changing tastes: Smaller cities driving fast fashion jewellery boom

Bengaluru: Tier-2 and tier-3 cities in Karnataka are redefining the fast fashion jewellery market, with demand surging by up to 50%, according to industry leaders.
The revenue potential from smaller cities and towns came to the fore at the India International Jewellery Show-2025, organised by the Gem and Jewellery Export Promotion Council at BIEC in the city Saturday.
Unlike previous generations that bought gold primarily as a long-term investment, today's consumers are prioritising trendy, branded designs influenced by movies, social media, and evolving fashion trends, industry trackers said at the gem and jewellery exhibition.
Karnataka is home to more than 5 lakh jewellers, and industry players believe the demand from smaller cities will shape the future of jewellery retail.
Highlighting the change in consumer preference, Adarsh K, president of the Mysore Jewellers Association, said, "Previously, buyers valued personal relationships with their jewellers, but today, convenience, transparency, and quality assurance are the key decision drivers. This shift has enabled corporate chains to expand beyond metros, with over 60% of new showrooms now opening in tier-2 and tier-3 cities. Improved infrastructure, rising disposable incomes, and evolving aspirations have made branded jewellery more accessible and desirable in smaller cities."
Varghese Alukka, managing director of Jos Alukkas, emphasised that while gold remains an investment in smaller towns, the fast fashion jewellery segment is rapidly becoming popular.
"Metro cities are saturated with jewellery stores, but in smaller towns, customers approach it in two ways—they see gold as both an investment and a fashion statement. The growing popularity of fast fashion jewellery—stylish, and affordable designs—has fuelled demand by up to 50%. Additionally, the govt support for agricultural income enables more people to purchase gold. Lower operational costs, such as minimal rent and inventory expenses, make these markets highly profitable. Our metro showrooms act as feeder stores, supplying high-value wedding jewellery orders from these smaller towns, making regional expansion critical for long-term growth," he said.
BA Ramesh, joint MD of Thangamayil Jewellery, echoed the same, saying, "There are only two major investment options—land and gold—and gold is often seen as the safer bet. We witnessed nearly 70% growth in recent years from small cities, where customers tend to be more loyal and expect transparency in transactions. Unlike metros, where you might find 20 jewellery stores on a single street, smaller towns have fewer options, making branding and strong customer relationships essential for success."
"Firstly, corporate chains, which once focused only on metros, are now expanding aggressively into tier-2 and tier-3 cities, where over 60% of new showrooms are opening. This shift is fuelled by changing consumer aspirations and improved access to branded retail. Secondly, smaller cities offer better profitability due to lower operational costs... Lastly, customers in these regions are highly value-conscious. Unlike metro buyers who may prioritise trends, tier-2 and tier-3 consumers focus on purity, resale value, and brand trust," said Srikanth Kari, chairman, Karnataka State Jewellers Federation.