Chapter-1 INTRODUCTION

1.1 INDIAN JEWELLERY INDUSTRY The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond and gemstone studded jewellery. Besides, India is world's largest cutting and polishing Industry for diamonds, w ell supported by government policies and the banking sector with around 50 banks providing nearly $3 billion of credit to the Indian diamond industry. A predominant portion of the gold jewellery manufactured in India is consumed in the domestic market. However, a major portion of the rough, uncut diamonds processed in India is exported, either in the form of polished diamonds or finished diamond jewellery. The largest consumer of gold worldwide, India is also the leading diamond cutting nation. Gold and precious gems have played a pivotal role in the Indian social fabric and economy. Precious gems and jewellery are a part and parcel of Indian traditions and customs. Gold has traditionally been valued in India as a savings-and-investment vehicle and even today, continues to be the second most popular instrument after bank deposits. Gems and jewellery is one of the fastest growing sectors in the Indian economy with an annual growth rate of approximately 15 per cent. employs over 1.3 million people, directly or indirectly. The Gems and Jewellery (G&J) market essentially comprises of sourcing, processing, manufacturing and selling of precious metals and gemstones, such as, Gold, Platinum, Silver, Diamond, Ruby, and Sapphire etc. The G&J market is a significant contributor to the Indian economy, based on the size of the domestic market and through its contribution to the countrys exports. India is
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The gems and

jewellery industry accounts for nearly 20 per cent of the total Indian exports and

the largest consumer of gold (around 20 percent of global consumption) and also the largest diamond processor (around 90 percent by pieces and 55 percent by value of the global market). 1.2 Brief History Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. mining ventures. In 1993, gold and diamond mining were opened up for In 1997, overseas banks and bullion suppliers were also private investors and foreign investors were allowed to own half the equity in allowed to import gold into India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act. This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single shop operations. In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery. 1.3 Structure of the Gems and Jewellery (G&J) Industry Indias G&J industry is highly unorganized and fragmented with 96 percent of the total players being family owned businesses. The gold processing industry has around 15,000 players, with only 80 having revenues over USD 5 million. India is also home to around 450,000 goldsmiths, 100,000 gold jewellers along with 6,000 diamond processing players and 8,000 diamond jewellers. The value chain of the industry starts from sourcing and mining of the metals and extends
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to jewellery retail. While India is not a major miner of previous metals and stones, the countrys inexpensive and well skilled workforce makes it a world leader in processing of diamonds. The countrys jewellery retail sector is also expected to evolve with a shift among consumers towards branded jewellery, driven by greater quality consciousness. India was one of the first countries to start making fine jewellery from minerals and metals and even today, most of the jewellery made in India is hand made. The industry is dominated by family jewellers, who constitute nearly 96 per cent of the market. The country at present has a small but growing organized sector. Organised players such as Tata with its Tanishq brand, have, however, been growing steadily to carve a 4 per cent market share. India was the first country to introduce diamonds to the world, the first to mine, cut and polish them as well as trade them. The cutting and polishing of diamonds and other precious stones is one of the oldest traditions in India and the country has earned a considerable reputation both in the domestic and international markets for its skills and creativity. In the global diamond market today, Indian diamonds account for 55 per cent share in value terms, 80 per cent share in caratage (weight) terms and 90 per cent share in volume terms. Today there is a ready availability of an entire range of diamonds in nearly every size, quality and cut. India offers the twin advantages of skilled labour and low cost in the area of gemstone processing. India's significance in the global gems and jewellery industry can be largely attributed to its strength in diamond processing. The export industry mainly comprises of small-to-large units based in various special economic zones (SEZs), export processing zones (EPZs) and in Electronics Exports Processing Zone (SEEPZ). 1.4 Regulating Bodies The Gem and Jewellery Export Promotion Council (GJEPC): This is the apex body of the gem and jewellery trade in India, which was set up in 1966 for promoting precious stones and jewelry exportations. With strength of 6,500
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members spread all over the country, the Council is primarily involved in introducing the Indian gem & jewellery products to the international market and promotes their exports. To achieve this, the Council provides market information to its members regarding foreign trade inquiries, trade and tariff regulations, rates of import duties, and information about jewellery fairs and exhibitions. as: Preparation of a medium term exports strategy for various sectors including gems and jewellery by the Ministry of Commerce. Exploring the possibility of direct procurement of rough diamonds from mining countries. Promotion of Indian diamonds and jewellery abroad through advertisements, publicity and participation in international fairs, buyer-seller meets and direct approach to market retailers. Market study through experts in the field to identify new markets. Promotion of export of 'hallmark' jewellery from India to assure foreign customers of quality and purity of jewellery made in India. The Gem and Jewellery Trade Council of India (GJTCI): This council is established with the main aim of boosting the gem and jewellery trade of India. It plays an important role in showcasing the Indian gem and jewellery to the international market. It is a council formed to enhance & boost the jewellery trade of India by resolving various issues of the trade by escalating various to the relevant high authorities. It also indulges itself in disseminating latest information to its jeweler-members through a monthly newsletter, various educative
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The following in`itiatives have been taken by the Gem and

Jewellery Export Promotion Council in order to enhance competitiveness such

& trade-motivational events such as seminars, workshops, exhibitions, festivals etc. The Bureau of Indian St. 1.5 Market Trends The Indian jewellery market is one of the largest in the world, with a market size of $13 billion. It is second only to the US market of $ 40 billion and is followed by China at $11 billion. The gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market at 27 per cent per annum. As per the recordings of the Gems and Jewellery Export Promotion Council (GJEPC), the total gems and jewellery exports from India stood at US$ 20.88 billion for 2007-08. The United States and Hong Kong were the largest importers of gems and jewellery from India, with a share of 26 per cent each, followed by UAE at 21 per cent. Gold jewellery exports increased from US$ 5.2 billion in 2006-07 to US$ 5.6 billion 2007-08. India is the largest consumer of gold in the world, followed by China and Japan. India consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption, of which nearly 600 tonnes go into making jewellery. India is the largest diamond cutting and polishing centre in the world - the Indian diamond cutting and polishing industry enjoys 60 per cent value share, 85 per cent volume share and 92 per cent share of the world market in terms of number of pieces. In other words, nearly 9 out of 10 diamonds sold worldwide are cut and polished in India. With its cut and polished diamonds, colored gemstones, gold jewellery, pearls, non-gold jewellery and fashion jewellery, India accounts for almost 50% of the international market. The gems and jewellery sector contributes nearly 55% of the worlds net exports of cut and polished diamonds in value, 90% in terms of pieces and 80% in terms of carats. Every 11 of 12 diamonds sold around the globe are processed in India, irrespective of where these are mined. Even though India does not contribute
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much to the world market in terms of rough diamonds -- India exported rough diamonds worth only US$ 566 million in 2007-08 -- it is the world leader in cutting and polishing of diamonds, with exports worth US$ 14.18 billion in 2007-08. In terms of carat, India's share in the diamond sector is about 80% of the world market. Employing over 90% of the global diamond industry workforce, India also accounts for 90% of the volume of diamonds processed in the world. 1.6 Government Initiatives Over the years the Indian Government has taken the following measures to boost the gems and jewellery sector: In 2004-05 the government lowered import duty on platinum from US$ 13.82 per 10 gm to US$ 5.03 and exempted rough coloured precious gems stones from customs duty at the first stage itself, instead of claiming reimbursements later. Rough, semi-precious stones are already exempt, a move aimed at further promoting the exports of studded jewellery and platinum jewellery.

Import of gold of 8 carat and above allowed under the replenishment scheme subject to the import being accompanied by an Assay Certificatespecifying the purity, weight and alloy content.

Setting up of SEZs and gems and jewellery parks to promote investment in the sector.

In May 2007, the government abolished import duty on polished diamonds.

 Cutting and polishing of gems and jewellery treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act. In the New Annual Supplement to Foreign Trade Policy (20042009) announced on April 19, 2007, the Government has extended the following facilities to this sector: Service Tax on services (related to exports), which are rendered abroad have been exempted. Re-import of Diamonds & Jewellery (either in complete or partial lot) exported on consignment basis have been allowed. To reduce the transaction cost for the diamond sector, testing facility at International Diamond Laboratory (IDL), Dubai, has been incorporated in the list of laboratory/certifying agencies. Duty free import entitlement of tools, machinery & equipment has been allowed. For metals other than gold, platinum, it will be 2 per cent and for gold and platinum, it will be 1 per cent of FOB value of exports during the previous financial year. In addition, the Government has decided to make gold hallmarking mandatory from January 1, 2008. It has also made the import of polished diamonds completely duty free. Also, special economic zones dedicated to gems and jewellery are to come up in Surat, Kolkata, Goregaon, Dhulia and Hyderabad.

The Government is also set to unveil the new mining policy to make it easier for foreign and domestic firms to invest in the exploration and mining of diamonds, gold and other metals.
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Currently, India produces merely 0.4 per cent of its gold consumption despite having 9 per cent of global gold reserves.

1.7 Key Brands in the Indian Jewellery Segment The following are some of the major brands in the Indian Jewellery segment: Gili: In 1994, Gili Jewellery was established as a distinct brand by Gitanjali Jewels, soon after the abolition of the Gold Control Act by the Indian government. Gili offered a wide range of 18-carat plain gold and diamondstudded jewellery, designed for the contemporary Indian woman. The designs combined both the Indian and western styles and motifs. With sales of Rs.0.14 billion for the year 2000-01, Gili had a 0.03 percent share of the 400 billion jewellery market in India and a 1.4 percent share of the branded jewellery market. Tanishq: In 1984, Questar Investments Limited (a Tata group company) and the Tamil Nadu Industrial Development Corporation Limited (TIDCO) jointly promoted Titan Watches Limited (Titan). Initially involved in the watches and clocks business, Titan later ventured into the jewellery businesses. In 1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan Industries Ltd.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same year, it also started its jewellery division under the Tanishq brand. Among the branded jewellery players in the Indian market, Tanishq is considered to be a trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewellery. Realizing that such jewellery did not sell well in the domestic market, the 18-carat jewellery range was expanded to include 22 and 24-carat ornaments as well. When Tanishq was launched, it sold most of its
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products through multibrand stores. In 1998, Tanishq decided to set up its own chain of retail showrooms to create a distinctive brand image. By 2002, Tanishq retailed its jewellery through 53 exclusive stores across 41 cities. To meet increasing demand, Tanishq planned to open 70 stores by the end of 2003 and offer a range of 'wearable' products with prices starting at Rs. 400. With sales of Rs. 2.66 billion in 2000-01, Tanishq had a 0.66 percent share of the total jewellery market and a 27 percent share of the branded jewellery market. Carbon: In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian consumer's relationship with gold jewellery would grow beyond an investment need towards a lifestyle and personality statement. In 1996, within the Peakok fold a new brand of 18-carat gold-based jewellery called Carbon was launched. In 2000-01, with sales of Rs. 0.14 billion, carbon had a 0.03 percent share of the jewellery market and a 1.4 percent share of the branded jewellery market. The company expected Carbon sales to touch Rs. 1.5 billion by 2005-06 and exports to start by 2008. The brand was available at 40 outlets in 16 cities in 2002 and would be made available in 23 cities by 2005. Oyzterbay: Oyzterbay was founded by Vasant Nangia and his team in July 2000. It began operations in March 2001. By November 2002, the company had 41 outlets across the country. Oyzterbay seeks to build a national brand in the jewellery industry in India and aspires to be the largest branded jewellery company in the country with a chain of 100 stores and several hundreddistribution points by 2004. With sales of Rs. 0.17 billion in 2000-01, Oyzterbay had a 0.04 percent share of the Rs.400 billion jewellery market and a 1.7 percent share of the branded jewellery market
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Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewellery business since 1864, saw tremendous scope in the branded segment and opened its new concept store 'Trendsmith' in Mumbai in December 2001. Encouraged by the response towards its first store, the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over the nation by opening as many as 50 stores by 2006. Trendsmith offered eight lines of exclusive designer jewellery from well-known export jewellery manufacturers and designers from Mumbai and Delhi. 1.8 Promotional strategies adopted by Branded Jewelers Tanishq: Among the branded jewellery players in the Indian market, Tanishq is considered to be a trendsetter. Tanishq began with 18-carat jewellery. Realizing that such jewellery did not sell well in the domestic market, the 18-carat jewellery range was expanded to include 22 and 24-carat ornaments as well. When Tanishq was launched, it sold most of its products through multi brand stores. In 1998, Tanishq decided to set up its own chain of retail showrooms to create a distinctive brand image. As the jewellery market was highly fragmented, lacked branding, and allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase. Tanishqs strategy was to create differentiation and build trust. Differentiation plays the role of primary attraction; trust takes care of lifelong loyalty. The differentiation was created through designs. The emphasis had to be on design because local jewelers could offer to design any pattern according to the customer's specifications. For a national brand a generic design concept with regional variations had to be evolved.

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Oyzterbay: Oyzterbay seeks to build a national brand in the jewellery industry in India and aspires to be the largest branded jewellery company in the country with a chain of 100 stores. Oyzterbay has been taken over by Rajesh Exports Limited in 2009. Rajesh Exports Limited is one of the largest gold jewellery manufacturer and distributor in the world. Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewellery business since 1864, saw tremendous scope in the branded segment and opened its new concept store 'Trendsmith' in Mumbai in December 2001. Encouraged by the response towards its first store, the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over the nation by opening as many as 50 stores by 2006. Trendsmith offered eight lines of exclusive designer jewellery from well-known export jewellery manufacturers and designers from Mumbai and Delhi. Gili: Gili offered a wide range of 18-carat plain gold and diamond-studded jewellery, designed for the contemporary Indian woman. The designs combined both the Indian and western styles and motifs.

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CHAPTER- 2 LITERATURE REVIEW

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Literature Review The emergence of branded gold jewellery In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. Instead of being regarded as only an investment option, jewellery was being prized for its aesthetic appeal. In other words, the focus seemed to have shifted from content to design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the country. Traditional jewelers also began to bring out lightweight jewellery, and some of them even launched their in-house brands. However, the share of branded jewellery in the total jewellery market was still small (about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to 30 percent annually The branded jewellery segment occupied only a small share of the total jewellery market because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover, consumers trusted only their family jewelers when buying jewellery. Consequently, the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices.

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Gold Jewellery Becomes Fashion Accessory Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Confidence in the local jeweler was the hallmark of the gold jewellery trade in India. A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith in his jeweler. Additionally, the local jeweler catered to the local taste for traditional jewellery. However, since the late 1990s, there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to 25 age group, who regarded jewellery as an accessory and not an investment. The new millennium witnessed a definite change in consumer preferences. According to Samrat Zaveri, CEO of Trendsmith, "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment." In October 2002, Trendsmith conducted a survey to understand the shifting needs, motivations and aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The research study arrived at the following conclusions: The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy, traditional gold jewellery. The consumer wanted a wider selection at a single convenient location and expected an international shopping experience.
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 The Indian consumer was willing to experiment with new designs. The late 1990s and early 2000s, with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT), a wide range of new designs became available. In addition, the growing number of manufacturers needed a retailing platform with global and national reach. All these led to the proliferation of branded jewellery players.

Indian Customers Showing Interest in Branded Jewellery Posted by RNCOS on October - 27 - 2009 As per our recently published research report Indian Gems and Jewellery Market Future Prospects to 2011, gems and jewellery market in India posses tremendous potential for future growth since it has an added advantage of low production cost and highly skilled labor that separate it from its competitors. It is projected that the overall gems and jewellery market will grow at a CAGR of around 14% during 2009-2012. India possesses worlds most competitive gems and jewellery market due to its low cost of production and availability of skilled labor. As per our new research report Indian Gems and Jewellery Market - Future Prospects to 2011, highly skilled and low cost manpower, along with strong government support in the form of incentives and establishment of SEZs, has been the major driver for the Indian gems and jewellery market. The market also plays a vital role in the Indian economy as it is a leading foreign exchange earner and accounts for more than 12% of Indias total exports. Currently the Indian market remains highly fragmented, but is rapidly transforming into an organized sector. Currently, the industry is facing a slowdown due to global economic turmoil. But due to various government efforts and incentives coupled with private sector initiatives, the Indian gems and jewellery sector is expected to grow at a
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CAGR of around 14% from 2009 to 2012. At present, the Indian gems and jewellery market is dominated by the unorganized sector; however, the trend is set to change in near future with the branded jewellery market growing at an expected CAGR of more than 41% in the coming four years. As per our research report, with its consumption pegged at nearly 20%, India remains worlds largest gold consumer and this share is expected to grow further. Given the fact that majority of market share is occupied by family-owned jewelers, the domination of unorganized segment still continues on the Indian gems and jewellery market. However, this scenario is gradually changing with the entrance of organized players who primarily focus on customer satisfaction by giving better and finer quality products. Thus, consumers are now moving towards branded jewellery which is more reliable in terms of quality and design. With changing customers attitude towards branded jewellery and entrance of organized players in the market, this segment will grow at much faster pace (annual growth of more than 40%) than the overall jewellery market in coming years, said a Research Analyst at RNCOS. The future outlook given in the report is based on past growth trends, current industry and regulatory developments besides base drivers, opportunities and challenges faced by the gems and jewellery industry in India.

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CHAPTER- 3 RESEARCH METHODOLOGY

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RESEARCH METHODOLGY
Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedure and technical rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances.

3.1SELECTION OF THE TOPIC

My topic for research is CONSUMER PERCEPTION TOWARDS BRANDED JEWELLERY. I have selected this Topic as I am having a interest in this and I want to do business of Jewellery in future. The study would also help to find out the consumer preference and their buying behavior towards branded and non branded jewelers, this would help both the retailers to know what are the consumer preference and what strategies should they adapt to grab the market.

3.2OBJECTIVES OF THE STUDY

1. To study the Customer perception towards Branded Jewellery.
2.

To evaluate the promotional strategies adopted by jewellers to attract customers.

3.

To know the consumers buying preference regarding branded jewellery.

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3.3NATURE OF THE STUDY

The nature of my study is Descriptive as well as Analytical. It is descriptive because I have explained various brands of Indian jewellery market. It is analytical due to analysis of various brands of jewellery on the basis of their services, marketing strategies and customer preferences.

3.4SAMPLING PROCEDURE AND DESIGN

The research design is the blueprint for the fulfillment of objectives and answering questions. It is a framework, which determines the course of action towards the collection and analysis of required data. Sample design is definite plan determine before any data is actually obtaining for a sample from a given population. The researcher must decide the way of selecting a sample. Samples can be either probability samples or nonprobability samples.

Sampling Technique: Sample Size:

Convenience Sampling 100 Respondents

3.5 METHODS OF DATA COLLECTION

The data can be collected by two ways: Primary source Secondary source

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PRIMARY DATA: The data collected for the first time by the researcher himself is called primary data. There are several methods of collecting primary data like questionnaire, Personal interviews etc. The method adopted for the study is: Questionnaire SECONDARY DATA: The data already available is called secondary data. This data may be present in the form of journals, publishings etc. under this report the information are collected from different sources like: Internet Newspapers

Books etc.

3.6 ANALYSIS AND INTERPRETATION OF DATA

Data, after collection, has to be analyzed in accordance will the outline laid for the time of developing the research plan. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. Data presented in raw state appear unrecognized and complex. Statistical processors are used this complex data into some significant understandable form. I analyzed the data mathematically and then presented the results with the help of pie charts, bar graphs and other charts.

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3.7 SCOPE OF THE STUDY

This project is helpful for the students to enhance the knowledge about the various brands of the jewellery. This project is helpful to know customer preference/perception about Branded Jewellery. This project is helpful for buyer to make effective buying decision.

3.8 SAMPLING METHOD

There are two types of sampling methods: Probability sampling methods Non- Probability sampling methods In this research Convenient sampling method is used which comes under NonProbability sampling methods.

3.9 SIGNIFICANCE OF THE STUDY

The gems and jewellery industry occupies an important position in the Indian economy and is one of the fastest growing industries in the country. The study has the following significance: 1) Understand the consumers preference while purchasing jewellery 2) Does price play an important role in guiding their purchase decision 3) The various promotional strategies adopted to combat competition 4) The impact of the promotional strategies.

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3.10 LIMITATIONS OF THE STUDY

A study without some constraints is just like an illusion I have tried to put my maximum efforts to obtain the best possible data but despite of all hardships, I sincerely accept some limitations which were beyond my control in this research. The limitations of the present study can be summarized as follows: Data gathered from secondary sources cannot be checked for validity. Time constraints were the major limitation. It was difficult to get proper information from respondents. Study in limited geographical area may not be able to give appropriate results. Another problem was knowledge constraint and this report was an attempt to gather as much relevant data as possible. The survey could be done by taking the sample size of just 100 people.

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CHAPTER- 4 LATEST DEVELOPMENTS

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Latest Development in Gems and Jewellery

Gems and Jewellery symbolise Indian tradition in a lot many ways. A legacy that passes from one generation to another, the components of jewellery include not only conventional gold but also diamond, platinum accompanied by a variety of precious` and semi-precious stones. The Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 13 per cent during 2011 2013, on the back of increasing government efforts and incentives coupled with private sector initiatives, according to a report 'Indian Gems and Jewellery Market Forecast to 2013', by RNCOS. The diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand, as per the credit rating agency Crisil. On the back of healthy demand from Western markets like the US and Europe, India's gems and jewellery exports rose by about 22 per cent year-on-year (yo-y) to US$ 2.86 billion in January 2011. Rajiv Jain, Chairman, Gems and Jewellery Export Promotion Council (GJEPC), said that they are expecting the jewellery exports to surpass the

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target of US$ 30 billion in 2010-11. At the Basel World 2011 show in Switzerland held recently, Mr Jain said that Indias gems and jewellery exports are estimated to rise by an impressive 35 per cent in 2011.

Industry Structure Although the market is highly dominated by unorganised players, with increase in consumer income and economic prosperity, the future of organised branded jewellery in India is very bright. In its bid to enhance the market strategy, a gems and jewellery special economic zone (SEZ) sprawling over 40 acres with an investment of US$ 441.1 million is being planned to be set up by Gold Souk, the jewellery mall developer. The company plans to have residential apartments named Gold Souk City, apart from having gems and jewellery manufacturers from Thailand and Dubai who will open their units in India. The US and European markets constitute about 60 per cent of Indias gems and jewellery exports. Indian exporters are also exploring other new markets including South America and East Asia in order to reduce their dependency on the West.

Gold India is one of the largest bullion markets in the world. It has been until now,

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the undisputed single-largest Gold bullion consumer. As per the study Heart of gold' by the World Gold Council (WGC), the industry association for the gold industry, India owns over 18,000 tones of above-ground gold stocks (all physical and gold holdings, including private, Reserve Bank of India and institutional) worth around US$ 800 billion. WGC maintains a highly positive outlook on gold demand for future considering a 30 per cent jump in the imports during December 2010. For the quarter ended December 31 2010, India's gold jewellery demand rose 47 per cent to 210.5 tone from a year ago, the WGC data showed. India's share of global demand, which stood at 16 per cent in 2009, rose to 25 per cent in 2010. The country is also the biggest buyer of gold jewellery with a 20 per cent share of the market. Gold import is likely to rise by 15 per cent in 2011 to around 805 tones, as compared to 2010 due to growing demand for gems and jewellery, according to Vinod Hayagriv, Chairman, All India Gems and Jewellery Trade Federation. In terms of the percentage share held in gold of total foreign reserves, as calculated by the World Gold Council, India stood at 11th position with 557.7 tones of gold and 8.5 per cent of gold reserves. Diamond India is the largest diamond cutting and polishing centre in the world, accounting for about 95 percent share of the global market by number of pieces. The country is also the third largest consumer of polished diamonds. Surat is India's diamond processing hub, contributing over 80 per cent of the
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country's diamond processing industry with annual revenue of around US$ 13.03 billion. The diamond jewellery industry grew 30 per cent in calendar year 2010, as consumers are attracted towards using items as both luxury fashion and investment. The industry is set to continue its growth momentum this year. During calendar year 2011, it is poised for 20 per cent growth.

Platinum Due to the increasing gold prices, platinum jewellery has gained momentum in the past few years not only worldwide but also in India. As per the Platinum Guild International (India), the number of outlets selling platinum jewellery increased from 12 in 2000-01 to over 300 currently. It is predicted that the number of outlets selling platinum jewellery would increase to around 1,000 outlets in the next 2-3 years. Most platinum jewellery manufacturers are targeting 20-40 years age group consumers with high disposable income. Costume jewellery The Indian costume jewellery market is also witnessing growth in the international market, as per the Export Promotion Council for Handicrafts. The industry body further stated that the Government is also working towards formulating an international compliance code for manufacturing costume jewellery. The current global costume jewellery and accessories market is estimated at US$ 16.3 billion, of which India only exports around US$ 53 million, thereby, providing a huge opportunity area for the Indian costume manufacturers.
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Exports Gems and jewellery exports from India, the largest supplier, rose by 39 per cent in the April 2010-January 2011 period, according to the Gem & Jewellery Export Promotion Council. Shipments increased to US$ 30.6 billion from US$ 22 billion a year earlier, the trade group said on its website, citing provisional estimates. Exports in January 2011 gained 22 per cent to US$ 2.9 billion. Exports of cut and polished diamonds saw the maximum growth of 23.44 per cent year-on-year in January 2011, followed by gold jewellery (15.38 per cent) and colored gemstones (3.8 per cent), as per the GJEPC data. During the April 2010-January 2011, period, exports of precious items increased by 38.81 percent to US$ 30.59 billion in comparison to the same period last fiscal.

Government Initiatives In order to open a new avenue for the bullion trader community with improved trading practices and increased delivery centres, the recent strategic tie-up between Bombay Bullion Association (BBA) and Indian Commodity Exchange Ltd (ICEX) has opened an avenue to harness the huge investment potential lying with the small and the unorganised players. It further offers membership to all the BBA members. It jointly deepens the markets in order to encourage wider participation, by providing multiple delivery centres across the country by leveraging on MMTC's and BBA's pan-India network. BBA will be an important stake holder in exchange's efforts in strengthening the delivery infrastructure and also in launching customised contracts suited to requirements of Indian markets.
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In a move to boost the industry, the government has formulated new rules for faster clearance of import and export consignments of specific goods including jewellery and gems. Furthermore, the government has incorporated some other measures like providing interest subvention of two per cent to labour intensive export sectors and duty drawback facilities, in order to promote gems and jewellery export. The Road Ahead The Gems and Jewellery Export Promotion Council has initiated IIJS Signature to promote India as the preferred source for jewellery and eventually build brand 'India'. Signature was conceptualised to showcase India's ability to produce quality jewellery that will match the lifestyle trends world over. European diamond certifying agency, EGL (European Gemological Laboratory) is setting up a diamond certifying laboratory in Ahmedabad, the sixth for the company in India. EGL has laid out ambitious plans to expand its presence in the country in 2011. The global diamond certification agency has so far five laboratories located in New Delhi, Kolkata, Bengaluru and Mumbai. Further, the All India Gems & Jewellery Trade Federation (GJF) recently held the first of its kind leadership summit for the jewellery industry in an effort to corporatise the ways of working and streamlining policies.

30

CHAPTER- 5 ANALYSIS AND INTERPRETATION

31

Analysis and Interpretation

Ques. 1) How often do you purchase Jewellery? TABLE 1:Particulars Once in a six month Once in a year Only on special occasion Any other Table showing how often the customer purchase jewellery. No.of Respondents 30 45 25 0

25

3 0

Once ina6m onth Inayear onlyonspeciaocca sion Anyother

45

32

Fig.1:- Figure showing how often customers purchase the jewellery. Interpration:Out of 100 respondents, 30% purchase once in a six month, 45% once in a year and 25 % only on special occasion.

Ques.2) Do you prefer Branded Jewellery or Unbranded Jewellery? TABLE 2. Table showing the customer preference about branded jewellery or un branded jewellery. Particulars Branded Unbranded No. of Respondents 86 14

1 4

B randed Unbranded

86

33

Fig.2:-Figure depicts customer preference about Branded Jewellery and Unbranded Jewellery. Interpretation: Out of 100 respondents, 86%respondents prefer branded jewellery and 14% prefer unbranded jewellery.

Ques.3) Are you Aware about Branded Jewellery (Tanishq,Geetanjali Group, PCJ , Nakshatra )? Table 3:-Table showing the awareness about branded jewellery. Paticulars YES NO No.of Respondents 88 12

12

B randed Unbranded

88

Fig.3:-Figure depicts customer awareness towards Branded Jewellery. Interpretation:

34

Out of 100 respondents 88% are aware about branded jewellery (Tanishq,Geetanjali Group, Tanishq,PCJ, nakshatra )but 12% dont aware about branded Jewellery. Ques.4) Why do you prefer Branded Jewellery? Table 4:- Table showing why customer prefers branded jewellery. Particuars Purity Customized Design Brand Name No. of Respondents 37 0 28 35

35

37

Purity D ig es n Brand Nam e

28

Fig.4:-Figure depicts why customer prefer Branded Jewellery. Interpretation:

35

Out of 100 respondents, 37% prefer because of purity, 28% because of design and 35% due to brand name. Ques.5) How satisfies are you with your present purchases? Table 5 :-Table showing satisfaction of customer about their present purchase of jewellery. Particulars Satisfied Highly Satisfied Dissatisfied Highly Dissatisfied Neither Satisfied Nor Dissatisfied No. of Respondents 37 33 7 0 23

23 37 7

S fied atis H hly S fied ig atis D s fied is atis Neither S fied Nor atis D s fied is atis

33

Fig.5 Fig depicts satisfaction of customers about their present purchase of Jewellery. Interpretation: out of 100 respondents, 37% are satisfied with their present purchases, 33% are highly satisfied, 7% are dissatisfied and 23% are neither satisfied nor dissatisfied.
36

Ques. 6) From where do you purchase your jewellery? Table6:- Table showing from where customer would like to purchase jewellery. Particulars Branded Showroom Local Jewellers Exhibition & Jewellery No. of Respondents 64 12 24

24
B randed S howroom L ocal Jewellers Exhibition & Jewellery

12

64

Fig.6:- Figure depicts from where customer would like to purchase Jewellery. Interpretation:

37

Out of 100 respondents, 64% respondents purchase their jewellery from branded showrooms, 12% respondents purchases their jewellery from local jewellers,and 24% purchases from Exhibition and Jewellery Shows. Ques.7) Who Influence you in the purchase in the jewelery? Table 7:- Table showing who influence the customer in purchase of Jewellery.

Particulars Friends Family Members Relatives Others

No.of Respondents 17 40 43 0

17

43

F riends F ily Mem am bers R elativ es 40

Fig.7:-Figure depicts who influence the Customer in the purchase of Jewellery. Interpretation:

38

Out of 100 respondents 17% are influenced by friends, 43% from relatives and remaining from family members in the purchase of jewellery.

Ques. 8) Do you consider the image of Brand Ambassdor endorsing the Product? Table 8:- Table Showing that customer consider the image of Brand Ambassdor endorsing the product. Particulars Yes No May be No.of Respondents 74 14 12

12

14

Yes No May be
74

Fig.8:- Figure depicts that customer consider of Brand Ambassdor endorsing the product.

39

Interpretation: Out of 100 respondents,74% considers the image of Brand while 14% not consider and remaining are not sure. Ques. 9) What promotional factors motivate you in buying Jewellery? a) Advertisement-57 b) Fashion Show-23 c) Exhibition-20

Table 9:-Table showing promotional factors which motivate customers in buying Jewellery. Particulars Advertisement Fashion Show Exhibition No.of Respondents 57 23 20

20

5 7 23

Advertis ent em F hion S as how Ex hibition

Fig.9:- It depicts promotional factors which motivate customers in buying Jewellery. Interpretation: Out of 100 respondents, 57% were motivated through Advertisement, 23% through Fashion Shows and remaining through Exhibitions.
40

Ques10.) Are you satisfied with the Jewellery Brand offered in the market? a) Satisfied-57 d) Highly Dissatis b) Highly Satisfied-7 c) Dissatisfied-9

e) Neither Satisfied nor Dissatisfied-27

Table 10:-Table showing the satisfaction of customers about branded jewellery Particulars Satisfied Highly Satisfied Dissatisfied Highly Dissatisfied Neither Satisfied nor Dissatisfied No.of Respondents 57 7 9 0 27

S atisfied 57 27 Hig S hly atisfied Dissatisfied Neither S atisfied nor Dissatisfied

7 9

Fig.10:-Figure depicts the satisfaction of customer about Branded Jewellery. Interpretation: Out of 100 respondents, 57% are satisfied with Jewellery Brand offered in the market, 7% are highly satisfied, 9% are dissatisfied and remaining 27 %are neither satisfied nor dissatisfied. Ques11.) Are you aware about the Hallmark Brand?

41

a) Yes-77

b)

No-23

Table11:-Table showing the awareness of customer about HallMark brand. Particulars Yes No No. of Respondents 77 23

23

Y es No

77

Fig.11:-Figure depicts the awareness of customer about Hallmark Brand. Interpretation: Out of 100 respondents, 77% are aware about Hallmark brand while 23% are not aware.

Ques12.)Advertisements are important to create awareness about Branded Jewellery? a) Agree-53 b) Strongly Agree-12
42

c) Disagree-23

d) Strongly Disagree-0 Disagree-12

e) Neither Agree nor

Table12:-Table showing the importance of advertisement in creating awareness. Particulars Agree Strongly Agree Disagree Strongly Disagree Neither agree nor Disagree No .of Respondents 53 12 23 0 12

12

Ag ree S trong Ag ly ree

23

53

Neither Ag nor ree Disag ree Disag ree

12

Fig.12:-Figure depicts the importance of Advertisement in creating awareness. Interpretation: Out of 100 respondents,53% are agree,12% are strongly agree,23 % are disagree and remaining 12% are neither agree nor disagree. Ques13.)Rate the following of Branded Jewellery as per your preference? (Rating on scale where 6 is highest and 1 is lowest) Table13:-Table showing the ranking of Jewellery.
43

Attributes Cost Quality Purity Design Resale Value Customization

Rating 3 5 6 4 2 4

3 Cost Quality Purity Desig n R esale Value Custom ization

4 6

Interpretation:- : On the basis of the above analysis purity is considered the most important factor in selecting the branded jewellery . There after customer also consider the quality, design, and customization as pull factors contributing towards the segment. Cost and resale value are also very carefully considered. Ques14.) Is there a significant difference between Branded Jewellery and Unbranded Jewellery? a) Strongly agree-37 b) Agree-19 0 c) Neither agree nor Disagree-34 d) Disagree-10 e) Strongly Disagree-

44

Table14:-Table showing significant difference between Branded Jewellery and Unbranded Jewellery.
Particulars Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree No. of Respondents 37 34 19 10 0

10 19 37
S trong Ag ly ree Ag ree Neither Ag Nor D ag ree is ree D ag is ree

34
Fig.14:-Figure depicts significant difference between Branded Jewellery and Unbranded Jewellery. Interpretation: Out of 100 respondents,37 %strongly agree that there is a significant difference between Branded and Unbranded Jewellery,19% only agree to this,10% disagree and remaining 34% neither agree nor Disagree. Ques15.) Do you get Certificate every time you purchase Jewellery? a) Yes-77 b) No-23

Table15:-Table showing that customer get certificate everytime they purchase Jewellery. Particulars No. of Respondents
45

Yes No

77 23

23

Y es No

77

Fig15:-Figure depicts that customer get certificate everytime they purchase Jewellery. Interpretation: Out of 100 respondents, 77% get certificate at the time they purchase Jewellery, while 23% dont get.

46

CHAPTER- 6 FINDINGS & CONCLUSION

FINDINGS
Following are the main findings of my study:
1. The guiding factor behind purchasing jewellery is purity, price and design

Other factors are variety, the brand image, influence of family and friends. The least guiding factor for purchasing jewellery is the service and display.
47

2. Branded jewellery is extremely popular since it has 100% awareness. This

may be due to the wide spread publicity taken up by the various brands. Brands like Gili, Ddamas, and Tanishq are again the most popular brands.
3. The level of satisfaction that the population has for branded jewellery is

higher than that for non branded jewellery making branded jewellery more popular.
4. Advertisments , fashion show of branded jewellery play significant role in

selecting the brand while purchase.

5. The branded jewellery endorsed by brand ambassadors helps it in

successful selling.
6. The study reveals that customer buy jewellery on special occasions like

marriage , anniversary, birthday etc.

7. The entire way that people buy jewellery is changing and younger women -

who are buying for fashion, rather than investment - are driving the change.
8. Branded jewellery also takes care of the credibility issue as it usually

comes with a certificate of authenticity.

9. Besides the growth of disposable incomes, increasing numbers of women

in the workforce and greater organisation in retail, another aspect that is fuelling the branded jewellery segment is the maturing of the jewellery market. There is a gradual move from unbranded to branded jewelry, from gold to diamonds, and from conventional to designer jewelry.
10. Besides consumers, jewelers and retalers have also realised the value of

brands

48

CONCLUSION
Branded jewellery as a lifestyle product has undergone a rapid change in its profile. Market for branded jewellery has already touched the Rs. 2000 crore mark by 2008. The craze for only branded jewellery has clearly caught up with consumers. Tanishq, the Titan brand, can be considered a leading light in this regard, although others like Gili, Carbon, and Cygnus are not far behind. In the past few years around 35 different brands have been launched in the country. Savvy marketing has ensured impressive growth for almost all these jewellery brands in India. A large section of gold buyers though, still favour small jewellers but trend is rapidly changing. Consumers are becoming more brand conscious and therefore are moving towards designer concept. Advertisements have also played a very significant role in creating popularity for branded jewellery. More over endorsements by celebrities also help in creating favorable image of branded jewwelery. Thus efforts should be on attracting more and more customers towards branded jewellery by focusing on its unique selling preposition i.e. the designer concepts. Along with this advertisement and exhibitions should be a part of the continuous promotion strategy of the branded jewellery segment.

49

CHAPTER- 7 RECOMMENDATIONS

RECOMMENDATIONS
50

Branded jewelry players will continue to face lot of competition from local jewellers. In order to gain market share, they will have to come up with designs that customers want. To compete with traditional players, branded players must find a way to differentiate themselves in terms of attractive designs also maintaining quality. They must try to win the trust and confidence of consumers by hallmarking and demonstrating the purity of the gold used by them. The players in the Branded Jewellery segment should target the younger generation and workingwomen because that is the target audience, which wants to buy attractive designs at affordable prices. The players must adopt a different reach i.e. jewelry should be brought out of the locker. So it must be positioned (it) to accessorize the dress of the young, collegegoing crowd, which otherwise sported junk jewelry. The second target segment would be the working woman for whom they can seek to build a wardrobe of jewelry by making it affordable, so that she could pick up pieces regularly. The branded players also require focused advertising and astute salesmanship to compete with traditional jewellers. The players must promote the products in a way to remove the misconception amongst buyers that a "Brand means expensive" and is out of the reach of a common man.

51

ANNEXURES

52

QUESTIONNAIRE
Name of the Respondent: Gender: Male Age: 18-24 56 Occupation: Self-Employed Management / Administration Government Employee Specify_____________________ Annual Income: < 1.5 Lakhs 7.5-10 Lakhs 1.5-3.5 Lakhs Above 10 Lakhs 3.5-7.5 Lakhs Private Sector Employee Sales / Marketing Others Pl. 25-40 41-55 Above Female

Ques. 1) How often do you purchase Jewellery? a) Once in a six month c) only on special occasion
53

b) once in a year d) any other

Ques2) Do you prefer Branded Jewellery or Unbranded?

a)

Branded

b)Unbranded

Ques3) Are you aware about (Tanishq,Geetanjali group,PCJ)?

a)

Yes

b)No

Ques4) Why do you prefer Branded Jewellery?

a)

Purity

b)Customized d)Brand Name

c)Design

Ques5) How satisfied are you with your present Purchases?

a)

Satisfied

b)Dissatisfied d)Highly Dissatisfied

c) Highly Satisfied

e) Neither Satisfied nor Dissatisfied Ques6) From where do you purchase your Jewellery? a) Branded Showrooms b) Local Jewellers c) Exhibition

Ques7) Do you get certificate every time you purchase Jewellery?

54

a) Yes

b) No

Ques8) Who influences you in the purchase of Jewellery?

a)

Friends

b) Family Members
c)

Relatives

d) Any other (Please Specify) ..

Ques9) Do you consider image of Brand Ambassador endorsing the Product? a) Yes b)No

Ques10) What promotional factors motivate you in buying Jewellery?

a)

Advertisement

b)Fashion Show

c)Exhibitions

Ques11) What is your purpose of buying Jewellery?

a) b)

Investment c)Status

b)Interest

Ques12) Are you satisfied with the Jewellery Brand offered in the market? a) Satisfied c) Highly Satisfied
55

b) Dissatisfied d)Highly Dissatisfied

e)Neither Satisfied nor Dissatisfied

Ques13) Are you aware about the Hallmark Brand? a) YES b)No

Ques14) Advertisements are important to create awareness among Branded Jewellery? a) Agree c) Disagree b) Strongly Agree d) Strongly Disagree

e) Neither agree nor Disagree

Ques15) Is there a significant difference between Branded and Unbranded Jewellery?

a)

Strongly agree

b) Agree d) Strongly Disagree

c) Disagree e) Neither agree nor disagree

56

BIBLIOGRAPHY
REFERENCE TO BOOKS: AGGARWAL P.K., MARKETING MANAGEMENT, S. Chand

Publication, New Delhi, Second edition (2005). PHILIP KOTLER MARKETING MANAGEMENT, pearson publishers twelfth revised edition (2006).

Kothari C.R. Research Methodology; New Age International Publications, 2nd Edition. Malhotra K. Naresh Marketing Research An Applied Orientation, 4th Edition.

Beri G.C., Marketing research, Tata McGraw Hill Publishing House, Third Edition.

Gupta, S.P, Statistical Methods, Sultan Chand and sons, New Delhi, 2004 Kotler Philip (2003), Principals of Marketing, Pearson publishing, New Delhi

MAGAZINES: Admired brands, Vol. 2, 2005 Fashion trends in jewelry and rings, Vol.5, 2004 Diamond Trends, Jan., 2005 Diamond World, May-June, 2005 Gold Inspirations Gold Jewelry Magazine The Art of Jewelry, Vol. 3 Issue 10, 2004
57

 Timeless Jewels, Vol. 4, 2005

WEBSITES: Secondary data collected from the internet. The web sites are:
1) http://www.icmrindia.org/free%20resources/casestudies/branded-gold-

jewellery1.htm
2) http://www.flonnet.com/fl2223/stories/20051118003809800.htm 3) Source: http://www.rncos.com/Report/IM148.htm 4) http://www.pressabout.com/indian-customers-showing-internet-in-

branded-jewellery-24860/
5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison 6) http://www.ibef.org/industry/gemsjewellery.aspx 7) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-

lure-Indians-23837-3-1.html
8) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902 9) http://www.diamondworld.net/contentview.aspx?item=2465 10) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html 11) http://www.icmrindia.org/casestudies/catalogue/Business

%20Strategy1/BSTR041.htm
12) http://www.rncos.com/Market-Analysis-Reports/Indian-Gems-and-

Jewellery-Market-Future-Prospects-to-2011-IM148.htm
13)

http://www.allheadlinenews.com/articles/7017272531
58

59