India’s jewellery market is dazzling with growth and innovation. But for Bluestone Jewellery, the sparkle is fading. Let’s take a closer look at why Bluestone is struggling and what lies ahead for this well-known brand.
Indian Jewellery Market Is Growing Fast
India’s love for gold and diamonds is legendary. In 2024, the industry was valued at nearly ₹6,340billion and grew steadily at 13–15% CAGR since 2021. By 2029, it’s expected to almost double. Young Indians want trendy designs and affordable prices. More shoppers are choosing branded, organized retail stores instead of small family jewelers. The market is changing fast with digital-first brands gaining ground.
Bluestone’s Big Ambitions
Bluestone entered with the promise of fresh designs, easy online shopping, and a growing showroom chain across India. By March 2025, it managed 275 stores in 117 cities, servicing thousands of pin codes. Its customer base nearly doubled in two years. Repeat buyers are now almost 45% of revenue, showing strong loyalty and trust in their collections.
Losses Mount Despite Sales Growth
While revenues jumped from Rs771crore in FY23 to Rs1,770crore in FY25, profits remain elusive. Bluestone’s losses rose sharply, hitting Rs222crore in FY25, up from Rs142crore last year. Expanding the showroom network costs money. Rents, staff salaries, and inventory all add up. The brand also spends a lot on marketing to compete with giants like Tanishq.
Digital Sales Dip, Offline Stores Dominate
Bluestone started out as an online-first jeweller. But now, most shoppers walk into stores before buying. Online sales contribution fell to just 6% in FY25, while offline surged to 93%. That means more operational costs, inventory, and staffing needs.
Cash Flow Worries And Rising Borrowings
Bluestone is burning cash. Negative cash flows from operations in FY24 and FY25 strain its finances. Borrowings ballooned from Rs228crore to Rs728crore in two years, mostly for inventory and new stores. Promoter shares are pledged, risking dilution if lenders enforce their claim.
Trends, Challenges, And The Road Ahead
- Intense competition from big brands and startups makes it tough to stand out.
- Gold and diamond price swings can squeeze profit margins.
- Heavy investment in inventory and tech means higher risks.
But India’s jewellery market is set to grow in the coming years. If Bluestone can steady its cash flow, trim losses, and win over even more repeat buyers, the brand can rediscover its sparkle in the world’s fastest-growing jewellery market.