Marketing

Management Project
Jewellery buying
Preference

Submitted to:
Submitted by:
Ms. Vandana Gupta Group
number 04
Garima Nagpal
(A04)
Prerna Gupta (A06)
Tulika Agarwal
(A13)

1
 Laveena Taneja
(A14)
Sharvi
Raghuvanshi(A22)

CERTIFICATE OF COMPLETION

This is to certify that the research project entitled

"Consumer’s preference among the branded and non
branded jewellery “has been submitted by Group
number, MBA- HR(2010 – 2012)

This report is the result of their own work and to the best of
their knowledge, no part of it has earlier comprised any
other report, monograph, dissertation or book. This project
was carried out under our overall guidance.

Signature of Faculty Guide

Date

Place

2
CONTENTS

Contents........................................................................................................... 3

aCKNOWLEDGEMENT....................................................................................4
OBJECTIVE OF STUDY....................................................................................5
DESCRIPTION PROBLEM................................................................................6
significance of the study...............................................................................7
introduction...................................................................................................8
research methodology................................................................................22
Data analysis...............................................................................................23
Conclusion...................................................................................................37
RECOMMENDATION.....................................................................................38
literary review.............................................................................................39
bibliography................................................................................................44
QUESTIONNAIRE..........................................................................................45

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 ACKNOWLEDGEMENT
A study such as this cannot be the work of a single group
of six people. I hereby express deep gratitude to all those
who have helped us directly or indirectly in completing
this work and who have encouraged and inspired us all
through the project.

Words are inadequate to express our deep sentiments

and gratitude towards my project mentor and guide, Mrs.
VANDAN GUPTA, for her zeal and scholarly guidance
during this pursuit in spite of her multifarious
responsibilities. The word of acknowledgement is an
expression of heart-felt thankfulness for her inspiration.

Finally, we would like to thank the people who have taken

time off from their busy schedule to help by providing us
with their valuable inputs.

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 OBJECTIVE OF STUDY

The objective to study the “A comparative study on the consumer’s

preference among
Branded and non branded jewellery” is to find out:

1) To compare between the consumer preference among the branded

and non branded jewellery.

2) To know consumer perception towards jewellery.

3) Brand awareness of various brands in the jewelery market.

4) To have an idea about the parameters the consumers consider while

buying jewellery.

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 DESCRIPTION PROBLEM
The scope of study is limited due to the following reasons:

1) Time constraint - since the time span for the study was only one
month, an in depth study and analysis will become a little difficult

2) Sample size - the sample size of the study is only 100 which would
not give a comprehensive result. Many important samples may not be
considered at all. The conclusion of the study may not result to
an accurate outcome due to the sample size being small.

4) Awareness - the sample taken and the conclusion drawn can be

led to only one side if there is lack of awareness about branded
jewellery.

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 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.

Hence the research conducted would help us to:

1) Understand the consumers preference while purchasing jewellery.

2) How much impact does a brand/ retailer has on their purchase
decision.
3) Does price play an important role in guiding their purchase decision.
4) Are the various promotional strategies adopted to

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combat competition.

INTRODUCTION

India has a historic relationship with Jewellery.

Many kings, emperors and dynasties featuring countless wars,

conquests and political
upheavals have ruled the Indian sub-continent. Different dynasties
ruled different parts of India with different monetary systems. Jewellery
acted as a common medium of

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exchange or store of value across the monetary systems of different
kingdoms across the sub-continent especially gold. Hence wealth could
still be preserved in spite of wars and political turbulence. Gold also
helped preserve wealth through natural calamities and disasters and
for centuries was the only means of saving in rural India, land being
the other main asset of economic value. This has largely helped
formulate, or evolve, the Indian sentiment and fanatical passion for
gold, which holds true even today. India is
estimated to hold more than 11,000 tonnes of gold.

Apart from its historical religious significance, Jewellery is valued as an

important
savings and investment vehicle in India. Even in present times,
Jewellery remains the
Indian bride’s `Streedhan’, the wealth she takes with her when she
marries and which
remains hers. Gold jewellery is the preferred jewellery worn by women
in India
irrespective of their religious beliefs. In marriages, gold jewellery is the
gift preferred by
the near relatives of the bride and the groom. Jewellery is very popular
among
farmers, with an upsurge in gold sales after a good agricultural season.
Buying of gold is
an important part of every stage of an Indian citizen’s life— at birth,
marriage,
construction of home, festivals, religious ceremonies, setting up of new
business, and
death.
As India makes rapid progress in the retail arena, the Indian Jewellery
market is

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undergoing a gradual metamorphosis from unorganised to organised
formats. The
jewellery business in India is estimated to be at Rs 50,000 crore.
According to the
independent estimation studies conducted by World Gold Council and
McKinsey, out of
the overall market share, the share of organised jewellery market is
less than Rs 1,000
crore. This accounts to about 2-3 per cent of the total market share.
But given that this is a relatively new segment of the market, it is
poised to grow. Jewellery retailing is moving from a ‘storehouse of
value’ to a precious fashion accessory. Plain gold is gradually easing its
stranglehold on the Indian consumer psyche to give way to diamonds,
platinum and coloured gemstones. The way jewellery was worn before
is undergoing a tremendous change.
The young Indian woman who is the prime market for the organised
retailers differr from the traditional jewellery customer in many ways
as enumerated below.

•She is well educated and more in tune with international trends

•Increase in working women with high disposable incomes

•Greater mobility

•Less constrained by traditions.

All these reasons and more ensure that the modern Indian woman is
looking for jewellery from a perspective different from the past. In
addition, organised retailing offers quality products, follows
standardised practices and uniform pricing strategy. Organised retail
formats work on transparent policies that are not necessarily available
at the traditional jewellery shops. Today, goods and services offered by

10
any retailer are strongly driven by their identified Target Group . There
are several examples of retailers who are drawing in consumers either
across a wide swathe or a segment of socio-economic classification,
clearly defined by them. This has been the first step towards organized
jewellery retailing in India. In a short span of time, organised retailers
have successfully implemented a change in the buying pattern of the
Indian consumer.

In addition, branded players require focused advertising and astute

salesmanship to compete with traditional jewelers. Besides the major
brands- Tanishq, Carbon, Oyzterbay, Gili and Trendsmith -
several regional players have opened branches to leverage the trust
and reputation that they have built up over the years.

STRUCTURE OF JEWELLERY IN INDIA

•Plain gold Jewellery

•Studded Jewellery

•Silver Jewellery

•CostumeJ ewellery
India is the largest consumer of Gold in the world with annual demand
close to 800 tons. It is believed that 90% of this demand is directed
towards manufacturing of jewellery. The bulk of the Indian jewellery
buying is still rooted in tradition and jewellery is sold in traditional
designs. Jewellery designs vary in different regions of India, making the
style unique to each region. In South India the designs are inspired by
nature - paisley motif of the mango, rice grains, melon and cucumber
seeds, etc. In Western and Northern India, the Mughal influence can be
seen in the meenakari (enamelling) and kundan work. Jewellery is

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crafted not just for humans but also for the deities, ceremonial
elephants, and horses. Hence the variety of gold jewellery in India is
truly mind-boggling and bears testimony to the excellent skills of
Indian jewellers of today. Ornaments are made practically for every
part of the body - nose rings, bangles, necklaces and special jewellery
for the head, ankles, waistbands, and so on.

Plain gold jewellery is fabricated mainly in 22-karat gold and even 18-
karat is not favoured, as the mindset does not accept low purity gold
jewellery. The logic is that the jewellery is primarily bought as an
investment in gold, and investing in a low purity product does not
appeal to the Indian consumers. However for the studded gold
jewellery, 18 karat has become acceptable.

CONSUMER BUYING BEHAVIOUR WHILE BUYING

JEWELLERY

While buying a product, consumer displays different kinds of

behaviours towards different kinds of products from a tube of
toothpaste to a new car. More complex decisions usually involve more
buying participants and more buyer deliberation.

While buying an expensive product for jewellery, which satisfies a

consumer’s self esteem needs( according to the Maslow’s heirarchy of
needs) a consumer displays complex buying behaviour. Consumers
undertake complex buying behaviour when they are highly involved in
a purchase and perceive significant differences among brands.

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Consumers may be highly involved when the product is expensive,
risky, purchased infrequently, and highly self expressive.

This buyer will pass through a learning process, first developing belief
about the product, then attitudes, and then making a thoughtful
purchase choice. Marketers of high involvement products must
understand the information gathering and evaluation behaviour pf high
involvement consumer, they need to hellp buyers learn about the
product- class attributes and their relative importance.

GOLD JEWELLERY MARKET IN INDIA

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. In 1993, gold and diamond
mining were opened up for private investors and foreign investors
were allowed to own half the equity in mining ventures. In 1997,
overseas banks and bullion suppliers were also 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. The bulk of the jewellery purchased in India
was designed in the traditional Indian style.
Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As
Hallmarking was not very common in India, under-carat age was
prevalent. According to a survey done by the Bureau of Indian

13
Standards (BIS), most gold jewellery advertised in India as 22-carat
was of a lesser quality. Over 80% of the jewelers sold gold jewellery
ranging from 13.5 carats to 18 carats as 22-carat gold jewellery.
The late 1990s saw a number of branded jewellery players entering the
Indian market. Titan sold gold jewellery under the brand name Tanishq,
while Gitanjali Jewels, a Mumbai-based jewellery exporter, sold 18-
carat gold jewellery under the brand name Gili. Gitanjali Jewels also
started selling 24-carat gold jewellery in association with a Thai
company, Pranda. Su- Raj (India) Ltd. launched its collection of
diamond and 22 -carat gold jewellery in 1997.
The Mumbai-based group, Beautiful, which marketed the Tiffany range
of products in India, launched its own range of studded 18-carat
jewellery, Dagina. Cartiers entered India in 1997 in a franchise
agreement with Ravissant. Other players who entered the Indian
branded gold jewellery market during the 1990s and 2000-01 included
Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri
(TBZ).

BRANDED DEALERS

TANISHQ

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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 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. The market of
tanishq jewellery is growing since long time.

15
Figure 1 growth in sales from 2000 to 2008 in Million Rupees

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 GILLI

Gili launched a collection of traditional Indian ornaments made of 18-

carat gold. In 1999, the Gili Gold range was introduced. This range
included rings, pendants, earrings, necklaces and bangles made of 24-
carat gold. All Gili products came with a guarantee of diamond and
gold quality
Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000
through lifestyle and department stores across the country to increase
accessibility among its target segment, the 15 to 30 age group. Gili
distributed its jewellery priced between Rs. 500 and Rs. 40,000
through lifestyle and department stores across the country to increase
accessibility among its target segment, the 15 to 30 age group. The
collection was promoted at college campuses with banners, pamphlets
and a few advertisements targeted at teens. Gili soon realized that just
pushing its product was not enough; it also had to customize its
products for special occasions. Following this, it launched a Diamond
Heart Collection specially designed for Valentine's Day. This collection
consisting of tiny, heart-shaped diamond jewellery was well received
by teens. Special packaging, catchy advertising and extensive press
coverage contributed to the success of the collection. Gili also made
special promotional offers during festive seasons like Christmas and
Diwali. Having captured the low price point market of Rs.2000 to Rs.10,
000, the company is focused on penetrating the premium market of
customized jewellery. For this Gitanjali jewels opened a jewellery salon,
Gianti, to provide customized jewellery to clients in India.

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 NAKSHATRA

A diamond is a symbol of power and beauty –a creation that captures

the essence of nature’s magical process through millions of years. The
Indian jewellery market has been transformed in much the same way
by Nakshatra. In less than a decade after launch, the brand has
appropriated the physical values of the diamond – its quality, brilliance
and clarity – and made a deep impact on the Indian psyche. So
stunning has this impact been that within one year of its debut
Nakshatra had registered a 93% top-of mind recall – surpassing every
other diamond jewellery brand by a long margin (Source: Global
Tracking Study conducted by Research International, January 2003).
This recall has also been reflected in the volumes Nakshatra had
achieved. Between 2005
and 2007 the brand grew eleven times. It has impacted the jewellery
trade in other ways, too. More than 70% of jewellery retail outlets have
reported that Nakshatra has not only played a key role in generating
overall diamond jewellery sales it has also helped them increase their
own sales of floral jewellery to people who had come asking for
Nakshatra. The effort to promote Nakshatra has gained recognition
from more than just the retail trade.
In 2003, the Nakshatra Utsav won the Best Trade Promotions award at
the McDowell’s Signature All India Promo Awards. In 2007 the brand
was given the Retail Jeweller Award for the Best TV Campaign of the
Year. The in-house design team at Nakshatra with its wide repertoire of
innovative designs, fresh ideas and novel concepts also won multiple
honours including the CK– New Delhi Gold Souk Design Award in 2006,
the IIGJ Award in 2007 and the Tahitian Pearl Awards in 2005 and
2007.

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 LOCAL DEALERS

TALWAR JEWELLERS

A name that evokes history, quality and commitment. A name that

evokes exquisite fires that gold and diamond inspire the heart.
The TALWAR JEWELLERS have been providing with gold and diamond
jewels for more than 5 decades. The Late Shri Tasrem Lal Talwar
established a presence in Chandigarh from the year the city was
founded in 1954. The showroom was first and the oldest. Their fame
for quality and being on the leading edge of fashion in 22 carat gold
and diamonds from all over India have been built on dedication to their
clients expectations. Their commitment and dedication towards their
customers have made them one of the leading jewelers in northern
region.

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 KHANNA JEWELLERS

The Khanna Group of companies was founded in 1953 by Late Shri

Wazir Chand Khanna and his three sons. Their first showroom opened
its doors to customers at Karol Bagh, New Delhi. Now the Khanna
group of companies has, over the years, diversified into several new
areas. Khanna jewelers India has been adding the magical sparkle of
diamond, gold and platinum jewellery to the lives of the jewellery
connoisseur for over 50 years.

OTHERS

There are many other local dealers for jewellery such as Champalal
jewelers, Mahaveer jewelers, Chawla jewelers etc. who are earning a
good name in jewellery market. Although they sell their own produced
jewellery yet they have many consumers who prefer buying jewellery
only from them. These dealers are preferred by consumers because of

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their good quality products and strong personal relations with
consumers.

SECTOR PROFILE
BRANDED VS. NON BRANDED JEWELLERY

BRANDED JEWELLERY NON BRANDED JEWELLERY

Name and reputation give a Customers can tailor make
confidence to the consumer. jewellery according to their
preferences.
It comes with a written lifetime No written lifetime guarantee,
trust is purely based on the
gurantee, considering the
consumer.
emotional quotient of the
consumer.
Excellent quality, good selling Minimum efforts in packaging,
policies andd backup services for finishing, sales and low
jewellery. advertising.
Has a more contemporary, stylish Is usually bulky and traditional.
and classicoutlook, which easily
segments itself amongthe
traditional ones
Available in multiple outlets Available only in traditional
jewellery outlets.

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 RESEARCH METHODOLOGY
Research is initiated by examining the secondary data to gain insight
into the problem. The primary data is evaluated on the basis of the
analysis of the secondary data.

TYPE OF RESEARCH: Exploratory research

DEVELOPING THE RESEARCH PLAN

The data for this research project would be collected through
questionnaire. A structured questionnaire would be framed as it is less
time consuming, generates specific and to the point information,
easier to tabulate and interpret. Moreover respondents prefer to give
direct answers.

COLLECTION OF DATA
a) Secondary Data: It was collected from internal sources. The
secondary data was collected from the articles, newspapers, journals
and internet.

22
b) Primary data: They were the main source of Primary data. The
method of collection of primary data would be direct personal interview
through a structured questionnaire.

SAMPLING PLAN
Since it is not possible to study whole population, it is necessary to
obtain representative samples from the population to understand its
characteristics.

1) Sampling Units would comprise of men and women.

2) Research instruments- questionnaires.

SAMPLE SIZE 100 respondents

DATA ANALYSIS

Question 1 Yes No
Do you wear jewellery? 99 1

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By studying the 100 questionnaire we have come to the conclusion
that 99% of the total population wears jewellery whereas just 1%
doesn’t wear the jewellery.

Whenever any
Question 2 Once in a long Once in a occasion comes
time year up

24
How frequently do you
make jewellery 20 45 35
purchases?

45% of the total population buys jewellery in a year and 35% of the
population buys whenever any occasion comes up whereas remaining
20% buys in a long time.

Question 3 Local Dealers Brands

(Tanishq,

25
 D’damas , etc..)

From where do you prefer 45 55

purchasing jewellery?

From the analysis we came to know that 45% of the people prefer
purchasing jewellery from local dealers and 55% of total poplution
prefer buying brands.

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Question 4 I can The The They The
choose quality stores are provide jewellery
from a of the easily good is
wide product accessibl exchang certified
variety of is e as they e offers
designs excellen have
t their
outlets at
many
places

If brands, what 32 47 20 16 35
are the factors
responsible for
this choice (one
or more)?

27
From the above pie chart we have concluded that why the people
purchase brand is the quality of the product and its certification.

Question 5 I can The store The price The The retailer

buy the is located are products is very
product near my negotiabl are reliable as I
s on house, and e, I do comparativ have been
credit so is easily not have ely priced dealing with
approacha to buy at low him since a
ble the M.R.P long time
If local
retailers, 11 16 23 21 37
what
factors
affect this
decision
(one or
more)?

28
The reason why 45% of the total population goes to the local retailers
is there relaibility and low prices.

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Question 6 Schemes Recommendati Pamphlets
launched by the ons from distributed
stores Friends/
Relatives

From where did 24 62 21

you get the
knowledge of this
store/ brand?

Recommendation from friends and reletaives contribute much more in

spreading the knowledge about the store/ brand rather then
distributing pamphlets or launching schemes.

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Question 7 I recently From past 5 Since a very
started visiting to 10 years long time,
this store/ almost always
Brand

How long have you been 22 39 39

making your purchases of
jewellery from this store/
brand?

Most of the population says 70% are buying jewellery from the same
store/ brand from past 5 to 10 years or a long time respectively.

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Question 8 Very Satisfied Neither Dissatisfie Very
satisfied satisfied d dissatisfi
nor ed
dissatisfie
d

How 45 48 7 - -
satisfied are
you with the
jewellery
you buy?

Almost everyone is satisfied with the jewellery they buy.

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Question 9 Extremel Very Somewh Not very Not at
y importan at importa all
importan t importa nt importa
t nt nt

How important is 9 23 28 34 3
the
advertisement
campaign
followed by the
store to make
you opt for it?

35% of the population is not affected by the advertisement campaign

but on the contrary advertisement is somewhat important for the 29%
of the population.

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Question 10 Very Significant Partially Neutral Not at
significant ly all
ly significa
nt

Does the 14 39 24 20 1
ambience and
the services
provided in the
store affect
your purchase?

The above pie chart represents that 40% of the population is

significantly affected by the ambience and the services provided in the
store.

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Question 11 Always Often Sometim Rarely Never
es

Before making any 12 14 30 28 16

jewellery purchases,
do you compare the
designs and prices of
the same between
the branded
showroom and the
local dealers?

People generally don’t compare the prices between the branded

showroom and the local dealers.

35
Question 12 Yes No Maybe

Do you plan to shift or 9 48 43

change the source of
purchasing jewellery?

From the about the data we have concluded that almost half of the
population is satisfied with their retaliers and doesn’t want to change.

36
 CONCLUSION
We have concluded from the above study that the individuals are
moving towards brands rather than local retailers. Most of the
population buys jewellery frequently and the reason why people people
going for more of branded jewellery is the certification of the jewellery.

It is not that people are ignoring local retailers large number of total
population still demands local jewelers and the reason is the reliability
of the retailers. People generally don’t compare the prices between the
branded showroom and the local dealers. From the about the data we
have concluded that almost half of the population is satisfied with their
retaliers and doesn’t want to change.

37
 RECOMMENDATION

From the above analysis we have come to the conclusion that the local
retailers should adopt the certification for the jewellery they are
offering to the consumers. They should also provide wide range of the
product they are offering so that they can capture larger share in the
market.

Branded retailers should focus on reducing the cost and try to develop
the trust factor with the consumers so that it will help them to increase
there sales.

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 LITERARY REVIEW

GEMS AND JEWELLERY

The gems and jewellery industry is one of the fastest growing

industries in India, The growth in the purchasing parity of the middle
class and surging income levels have resulted in consumtion growth of
gems and jewellery by about 11 percent in the five years preceeding
2006-2007. it also contributes over 15 percent of India’s total exports
and provides employment to 1.3 million people directly and indirectly.

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 diamonds as well
as gemstone
studded jewellery.
India consumes nearly 800 tonnes of gold accounting for about 20 per
cent of the world
gold consumption, of which nearly 600 tonnes goes into making
jewellery. The Indian
jewellery market, estimated to be US$ 13.5 billion in fiscal 2006-07,
accounts for 8.3 per
cent of world jewellery sales, according to a study by KPMG.
The industry is well supported by Government policies and the banking
sector -- around50 banks provide nearly US$ 3 billion credit to the

39
Indian diamond industry. In addition,India is expected to have a
diamond bourse soon.

India Advantage

India is the world’s largest diamond processing (cutting and polishing)

country with an
estimated 1 million processors handling over 57 per cent of the world’s
rough diamonds
by value. According to industry estimates, 11 out of 12 stones
(diamonds) set in jewellery
are cut and polished in India. Processing is done on rough diamonds in
full range of sizes
and qualities, including stones larger than 10 carats.
In terms of carat, India's share in this sector is about 80 per cent of the
world market.
Employing over 90 per cent of the global diamond industry workforce,
India also
accounts for 90 per cent of the volume of diamonds processed in the
world.

Exports

After making its mark in the world diamond processing industry, India
is well on its way
to becoming the leading global gems and jewellery hub. India’s gems
and jewellery
industry is now on a high growth trajectory.
Exports from the industry fetched US$ 17.1 billion in 2006-07 against
US$ 16.64 billionin 2005-06, showing a growth of 26 per cent. While
diamonds accounted for 64 percent of the total exports, gold jewellery

40
accounted for 30.47 per cent, colored gem stones andothers
accounted for 1.44 per cent and 1.04 per cent respectively last year.
Cut and polished diamond segment exports were US$ 10.90 billion,
while gold jewellery
exports fetched US$ 5.21 billion last year. Coloured gemstone exports
yielded US$
246.48 million last fiscal, against US$ 232.35 million in 2005-06.
The growth momentum has continued into the current fiscal. The gems
and jewellery
export industry grew by a robust 27 per cent export during the first
half of the current
fiscal at US$ 9.4 billion, as compared to US$ 7.4 billion in the
corresponding period of
2006, according to the Gems and Jewellery Export Promotion Council
(GJEPC).
The growth in diamond exports was 28 per cent, in jewellery it was 21
per cent and in
coloured gemstones, it was 22 per cent. The major destinations for
exports have been the
US, UAE, Hong Kong, Belgium and Israel. In fact, the US, UAE and Hong
Kong
together accounted for over 70 per cent of the total exports in the
previous fiscal year.

Consumption

The increasing levels of disposable household income have resulted in

record
consumption levels in the domestic market. Indian jewellery demand
rose by 70 per cent during the first half of 2007 compared with the

41
same period last year. Jewellery demand increased to 387 tonnes from
227 tonnes during the period.
Also, gold consumption during the first six months of 2007 grew by 70
per cent to 528
tonnes compared to 307 tonnes in the same period last year. India’s
total gold
consumption in 2006 was slightly over 700 tonnes. While jewellery
accounted for around
73 per cent of gold demand, investments in the forms of coins and
bars accounted for the rest.
According to the World Gold Council (WGC), India’s gold consumption
this year could in fact cross the 1,000-tonne mark for the first time.
The booming domestic market along with export advantage of the
industry and the Government's decision to allow foreign direct
investment of up to 51 per cent in single brand retail stores has
attracted a large number of players to the sector.

• Swarovski, the global crystal goods manufacturer and marketer, is on

an
expansion spree in India and hopes to achieve 5 to 10 per cent of its
global
turnover from the country in the next 10 years. The company plans to
set up 30
stores by 2009, from the current 13.

•D’Damas India, part of one of the largest jewellery retail outlets in the
world, is

adding 16 new stores to its present dozen stores in India.

• Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively

42
purchased a 7 per cent stake in Gitanjali Gems for around US$ 27.8
million.

• Goldman Sachs and UBS Securities have acquired 6.28 per cent in
Shrenuj & Co

at around US$ 2.07 million and US$ 2 million, respectively.

• Gemology Headquarters International (GHI), a US-based gemological

grading
and research laboratory, has opened its first Indian branch at Opera
House,
Mumbai.

• Reliance Retail is planning an aggressive entry into the jewellery

retail market through its 400 to 500 jewellery retail outlets in the
country.

Looking Ahead

The booming economy along with the rapid increase in income levels is
estimated to
further accelerate the growth of this industry. According to a KPMG
study, India’s
growing importance in the global jewellery market is only expected to
increase in the
future with total estimated jewellery sales of US$ 21 billion by 2010
and US$ 37 billion
by 2015. Diamond jewellery consumption in India is also estimated to
jump by 78 per
cent in 2010.

43
 BIBLIOGRAPHY

The magazines and journals referred:

Solitaire International

Web sources:

www.google.com

www.indiandata.com

www.valuenotes.com

44
 QUESTIONNAIRE
Jewellery buying preference : Local retailers or Brands

1. Do you wear jewellery?

□ Yes

□ No

2. How frequently do you make jewellery purchases?

□ Once in a long time

□ Once in a year

45
□ Whenever any occasion comes up

3. From where do you prefer purchasing jewellery?

□ Local Dealers

□ Brands (Tanishq, D’damas, etc.)

4. If brands, what are the factors responsible for this choice (one or
more)?
□ I can choose from a wide variety of designs

□ The quality of the products is excellent

□ The stores are easily accessible as they have their outlets at

many places.

□ They provide good exchange offers.

□ The jewellery is certified.

5. If local retailers, what factors affect this decision (one or more)?

□ I can buy the products on credit .

□ The store is located near my house, and so is easily

approachable.

□ The prices are negotiable, I do not have to buy at the M.R.P.

□ The products are comparatively priced low .

46
□ The retailer is very reliable as I have been dealing with him
since a long time.

6. From where did you get the knowledge of this store/ brand?
□ Schemes launched by the store.

□ Recommendations from Friends / Relatives.

□ Pamphlets distributed.

7. How long have you been making your purchases of jewellery

from this store/ brand?
□ I recently started visiting this store / brand.

□ From past 5 to 10 years

□ Since a very long time, almost always.

8. How satisfied are you with the jewellery you buy?

□ Very satisfied

□ Satisfied

□ neither satisfied nor dissatisfied

□ Dissatisfied

□ Very dissatisfied

9. How important is the advertisement campaign followed by the

store to make you opt for it?
□ Extremely important

□ Very important

□ Somewhat important

47
□ Not very important

□ Non at all important

10. Does the ambience and the services provided in the store
affect your purchase?
□ Very Significantly

□ Significantly

□ Partially

□ Neutral

□ Not At All Significant

11. Before making any jewellery purchases, do you compare

the designs and prices of the same between the branded
showrooms and the local dealers?
□ Always

□ Often

□ Sometimes

□ Rarely

□ Never

12. Do you plan to shift or change the source of purchasing

jewellery?
□ Yes

□ No

48
 □ Maybe

NAME: ________________________ ADDRESS:

_____________________________________________

PROFESSION: __________________ MONTHLY INCOME: - □ 3

FIGURES □ 4 FIGURES □ 5 FIGURES

49