Counterfeits, Certifications and Consumer Fear: Why Authenticity Will Drive the Next Decade of Retail Growth
India’s jewellery industry offers a clear lens into this transformation. Jewellery is an emotional purchase, a financial asset, and often a legacy investment. When trust erodes in such a category, the impact is long lasting. Over the past few years, reports from industry bodies have repeatedly highlighted the growing circulation of counterfeit jewellery, mislabelled pearls, undercarated gold, and uncertified diamonds. While regulation has improved, the consumer’s fear has not entirely disappeared.
By Deepak Kumar, Head of Retail & Marketing, Sri Jagdamba Pearls
For decades, retail growth was driven by aspiration, availability and price competitiveness. Today, a new and far more decisive factor has entered the equation: authenticity. Across categories, but especially in jewellery, consumers are no longer asking only what they are buying. They are asking whether what they are buying is real, verified, responsibly sourced, and worth trusting.
This shift has not happened overnight. It is the result of three parallel forces shaping modern retail. The rapid rise of counterfeits, increasing access to online marketplaces, and a more informed consumer who has learned to question rather than assume.
India’s jewellery industry offers a clear lens into this transformation. Jewellery is an emotional purchase, a financial asset, and often a legacy investment. When trust erodes in such a category, the impact is long lasting. Over the past few years, reports from industry bodies have repeatedly highlighted the growing circulation of counterfeit jewellery, mislabelled pearls, undercarated gold, and uncertified diamonds. While regulation has improved, the consumer’s fear has not entirely disappeared.
Compared to Gold & Diamonds, Consumers in India often lack understanding about pearl grading and the importance of certification. The absence of a certificate increases the risk of buying fake pearls.
Always request a Certificate of Authenticity, Certifications are crucial for verifying pearl quality (luster, Origin, shape, color, Carat) and also After sale service exchange or Lifetime Guarantee on Pearls
What has changed, however, is consumer behaviour.
Today’s buyer enters the store or clicks “buy now” armed with research, screenshots, comparison tools, and a basic understanding of certifications. According to multiple retail studies, more than 70 percent of Indian consumers now check for hallmarks, lab certificates, or authenticity seals before making a jewellery purchase. This is a significant shift from a generation that relied primarily on family jewellers and verbal assurance.
Certifications have therefore moved from being backend compliance tools to frontline trust builders. BIS hallmarking, GIA and IGI diamond certificates, pearl grading standards, and transparent return and buyback policies are no longer optional. They are expected. Retailers who treat certification as a hygiene factor rather than a value proposition are missing the point. In an environment shaped by uncertainty, verification becomes reassurance.
At the same time, omnichannel retail has amplified both opportunity and risk. Online-first buying behaviour has grown rapidly, especially among younger consumers who may be purchasing jewellery independently for the first time. While digital platforms offer convenience and choice, they also expose consumers to anonymous sellers and inconsistent quality. One negative experience can permanently push a buyer away from an entire category.
This is where established retailers have a strategic advantage. Physical presence, legacy, and scale can be leveraged to create a layered trust ecosystem. The future of jewellery retail will not be online versus offline. It will be online supported by offline credibility. Stores will evolve into experience and assurance centres, where customers touch, verify, ask questions, and feel confident before transacting.
Experiential retail will also play a crucial role. Authenticity is not communicated only through certificates. It is conveyed through knowledgeable staff, transparent conversations, storytelling around sourcing and craftsmanship, and consistent brand behaviour over time. Consumers are increasingly drawn to brands that explain rather than persuade, and that educate rather than overwhelm.
Looking ahead, authenticity will not just protect retailers from risk. It will actively drive growth. Brands that invest early in transparent supply chains, visible certifications, technology-led traceability, and honest communication will win consumer loyalty in a crowded market. Trust compounds. Once earned, it lowers acquisition costs, increases repeat purchases, and turns customers into advocates.
The next decade of retail growth will belong to brands that understand one simple truth. In an age of abundance, trust is the real scarcity. As counterfeits grow more sophisticated and consumers grow more cautious, authenticity will become the strongest differentiator a retailer can offer. Retailers should focus on awareness and educate customers about the metal and gemstones used in jewellery so that they are not cheated and build trust and loyalty.
Retailers who embrace this reality will not only survive the changing landscape. They will define it.
