– By MP Ahammed
For the last few years, consumer preferences in India have been undergoing a profound transformation, with a distinct shift towards conscious consumerism which means evaluating the social, economic and environmental and economic consequences of making a purchase. According to PwC Global Consumer Insights Pulse Survey February 2023, over 70 per cent respondents mentioned that they were willing to spend more for sustainably produced goods ‘to some or to a great extent’. Indian consumers are also increasingly becoming conscious. According to a report by Capgemini Research Institute on India consumers, 79 percent of consumers have confessed that they have changed their buying preferences on the basis of environmental implications, social responsibility and inclusiveness.
The trend is percolating to the jewellery industry as well. Today’s discerning customers are not merely in pursuit of exquisite jewellery; they are investing in a narrative, a commitment to ethical practices, and a vision for a sustainable future. A growing number of consumers are now going beyond purity assurance and seeking credible assertion on responsible sourcing. Responsible sourcing means gold, diamonds or other precious metals or stones for that matter are mined, distributed and retailed in an ethical manner without the interference of any unprincipled practices. The jewellery industry stakeholders need to come forward to embrace responsible sourcing and set new standards of consumer trust.
The Rise of Conscious Consumerism
Consumers have become increasingly discerning, actively seeking brands that align with the values of sustainability and responsible sourcing. Environmental sustainability, responsible use of natural resources, traceability, human rights, and corporate governance have emerged as pivotal considerations in purchase decisions. Jewellers need to realise the significance of these principles in building supply chain integrity and demonstrate commitment to incorporating them into the core of the business, as more and more consumers are showing keenness to trace the sources of the metals and stones.
Gold Sourcing: A Commitment to Responsibility
Gold is an integral part of our socio-economic fabric, symbolizing timeless elegance. So, ideally there should not come at the expense of ethical concerns. Recognizing the pivotal role of responsible sourcing, we need to reorganise our gold supply chain to ensure that every piece of jewellery tells a story of craftsmanship based on ethically sourced gold. Collaboration with refiners, partners and industry bodies that share this commitment is critical for establishing stringent responsible sourcing guidelines that extend from the mining sites to the display shelves at the jewellery showrooms.
Independent Verification: Elevating Transparency and Assurance
In the pursuit of ethical gold, the importance of transparency is paramount. Adherence to responsible sourcing guidelines should not merely be a claim but a commitment verified by independent bodies such as London Bullion Market Association (LBMA). Every link in the supply chain, from miners to refiners, needs to undergo independent scrutiny, providing investors and customers with a substantial level of assurance regarding the origin and integrity of the gold they are dealing with.
Embracing Traceability: Building Consumer Trust
In 2024, the jewellery industry needs to take the commitment a step further by focusing on strengthening traceability. Traceability is not a mere buzzword; it is a strategic move to build the ESG profile and, more importantly, to gain the trust of discerning consumers. Every piece of jewellery has a story, and that story begins with knowing the origin of the gold. By enhancing traceability, customers are empowered to make informed choices, allowing them to connect with the journey of their cherished pieces.
The Essence of Trust in Jewellery Retail
Trust is the cornerstone of the jewellery retail business and it is earned through actions. Improving traceability is not just a business strategy; it is a testament to an unwavering commitment to transparency, ethics, and sustainability. It’s a legacy that goes beyond the beauty of its jewellery; it encompasses a responsibility to leave a positive impact on the world.
A Future Defined by Traceability
The commitment to ESG principles is a conscious choice that consumers are making to contribute to a better world. There is an urgent need to craft the narrative of gold jewellery —one that is not just about beauty and craftsmanship but about responsible sourcing and transparency. Every piece of gold jewellery must reflect commitment to the planet, its people, and the timeless beauty of responsible investment and indulgence. In 2024, the traceability of gold will emerge as a key element of building consumer trust.
(MP Ahammed is the chairman at Malabar Gold & Diamonds.)
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