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JEWELLERY & WATCHES

PRESENTED BY GROUP 2 :-
RAJU SHAW ( 04 )
AUSTIN FERNANDIS ( 11 )
VAIBHAV SETHIYA ( 19 )
PRERNA PANCHOLI ( 23 )
MOLLY JAISWAL ( 26 )
SANJAY GUPTA ( 38 )
Indian Retail Jewellery
Overview
• India is one of the largest
Jewellery markets

• 97% of Jewellery sales are by


“Family jewellers”

• Change in the demographics


and increased consumerism
of Indian retail market.

• Organized retail is growing at


a rapid pace across all
sectors.
 Major Segments

 Gold
• Comprises around 80% of Indian Jewellery
Market
• 20% comprises fabricated studded
jewellery
• High level of manufacturing and domestic
consumption

 Diamonds
• World’s largest cutting & polishing
industry
• India is the largest consumer of gold and
also the largest diamond processor .
• Well supported by the banking sector and
government policies.
MARKET SIZE

• Indian Jewellery market Rs. 80,000 Crore
billion in the year 2005
• 8.3 per cent of world Jewellery sales.
• Annual growth rate of 15%.
• Largest consumer – 20% of global
consumption
• Organised Sector is Rs 2400 Crore
• Unorganised sector
• Market for branded jewellery will be
worth $2.28 Billion by 2010.
• Reliance Retail is planning an aggressive
entry into the jewellery retail market
through its about 400 to 500 jewellery
retail outlets across the country. 

• 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. 

• Swarovski, the global crystal goods
manufacturer and marketer plans to set
up 30 stores by 2009, from the current
13. 

 • The Gitanjali Group bought 'Nakshatra', the


premium brand of jewellery promoted by
Diamond Trading Company (DTC) 
M u m b a i-b a se d V a rd h a m a n D e ve lo p e rs
p la n s to b u ild fo u r m o re je w e lle ry m a lls in
th e city a n d is a lre a d y se t to la u n ch Je w e l
W o rld -M u m b a is
’ first je w e lle ry m a ll .

 D u b a i-b a se d Jo y A lu kka s h a s re ce n tly


o p e n e d its la rg e st sh o w ro o m in C h e n n a i 
.

 V isw a a n d D e vjiD ia m o n d s a p a rtn e rsh ip


b e tw e e n th e In d ia n g ro u p a n d th e to p
je w e lle ry re ta ile r in U A E o p e n e d its first
d ia m o n d re ta ilo u tle t.  

 G ita n ja liG e m s Ltd o p e n e d its first lu xu ry


je w e lle ry m a llin G u rg a o n , w h e re a
n u m b e r o f in te rn a tio n a lb ra n d s h a ve
sta rte d th e ir re ta ilb u sin e ss.  

 G o ld S o u k In d ia h a s p la n s fo r b rin g in g
1 0 0 S o u ks in 1 0 0 m o n th s
Changing Scenario
Fashion Jewellery


• It includes costume jewellery,
designer jewellery, imitation
jewellery.

• Costume jewellery contributes
9% to the world sales.

• Materials used in manufacturing
includes semi-precious
stones, beads, ivory, lac,
leather, terracotta, plastic
Market share of Jewellery
segments
Key world markets for
Jewellery
EXPORTS
• During 2008-09, 1.45 percent growth.

• Exported US$ 20.8 billion in 2007-08.

• Growth of 9 percent in this year.

• India accounts for 50 percent of the
international market.

• Government allows 51 percent FDI in
single brand retail outlet.

MAJOR PLAYERS
vGitanjali
v
vTanishq
v
vAgni

vOrrah
v
vCygnus
v

Business Overview
• Established in 1986.

• Bought 'Nakshatra', the premium brand of
jewellery promoted by Diamond Trading
Company (DTC)

• Approximately 1,246 retail outlets in India and

• 143 outlets in the U.S.

• First luxury jewellery mall in Gurgaon.

• Announced its foray into the luxury retail market
through a new entity ‘Luxury Connexions'.
Integrated business model

• Diamond processing
• Jewellery manufacturing
• Jewellery retailing in India
• Branded jewellery
• International jewellery retailing
• Samuels and Rogers
• Gems & jewellery SEZs
Retail
• Among the first branded jewellery in
India

• Strong sales and distribution


• 112 distributors and 1,250 outlets.


• Gili and Nakshatra - “Superbrands”


in 2004 by ICSE.

• High value acquisitions in the U.S.


Multi channel distribution
network
Diversification
• Gitanjali Lifestyles to focus on
manufacture and distribution of
luxury and lifestyle products

• Developing 200 acres gems


&jewellery SEZ in Hyderabad

• Plans to develop more SEZs focused


on gems & jewellery across India

• To partner for developing real estate


infrastructure.
TANISHQ TODAY – A BRIEF OVERVIEW

•Strongest and most aspirational brand in the jewellery


Brand category
•Awarded most admired brand and Retailer of the year by
Images Fashion
•Enjoys a market share of over 40 % in branded jewellery

•India’s only national jewellery retailer


Network
• 115 stores in 70 towns – prime high street locations
• Many of these stores are run by franchisees

Customer •Over 1 . 5 million customers shopped at Tanishq last year


Base
 Challenges

 Shortage in supply of Raw Materials


 Changing fashion trends and increased


consciousness of the consumers

 competition from other luxury goods,


declining investment in the sector and
increasing consumer sophistication.

 Ethical Challenges

 Local players
WATCHES


T h e a n n u a l m a rke t size o f th e In d ia n W a tch
M a rke t is e stim a te d to b e U S $ 1 9 5 M illio n .

T h e size o f th e w a tch m a rke t cu rre n tly is


e stim a te d to b e a ro u n d 4 0 to 4 5 m illio n p ie ce s
a n n u a lly.

T h e to ta l in ve stm e n t in th e ‘ o rg a n ize d ’ se cto r is


U S $ 2 1 8 m illio n .

O rg a n ize d se cto r a lo n e co n trib u te s u p to 3 0
p e rce n t o f th is fig u re .

A ro u n d 2 0 to 2 5 w a tch e s a re b e in g so ld fo r
e ve ry 1 0 0 0 citize n s.

T h e a ve ra g e g ro w th in th e size o f th e m a rke t
is sla te d to b e a ro u n d 1 0 -1 5 p e rce n t p e r
ye a r.

In d ia 's p e n e tra tio n o f w a tch e s is a m o n g st


th e lo w e st in th e w o rld .

Indian Watch Industry –
Trends
• Rapid increase in target audience
• Rise of consumerism and purchasing
power of the middle class
• Bulk of the demand exists in lower and
middle segments
• Newer segments – jewellery segment,
etc.
• Rise of demand of trendy watches

27
The Watch Market in
India Premium (> Rs 5000)
Valued at Rs 370 crores
Swiss brands: Tissot, Omega,
Mass (< Rs 400) Rolex
Fashion brands: Fossil, Calvin
Valued at Rs 300 crores Klein,
11% 13%
Grey market, Chinese, Giordano, Esprit
etc.

3 3%
Low-end (Rs 400- 4 3%
1000) Mid-upper (Rs 1k-5k)
Valued at Rs 938 crores
Valued at Rs 1200
crores Titan, Citizen, Timex,
Sonata, HMT, Maxima Swatch, Espirit

Classification by value FY’07


28
Volume – value matrix
 Major Players

 Titan – More than 50 % of the


organized market

 HMT - 10-15% due to its retail clout in
urban and rural India built
over four decades

 Other brands such as Timex, Maxima,
Citizen and other regional brands
constitute the rest

Titan Industries
• Leader in the watch business in India
– >50% share of the organized watch market
– Over 60 million watches sold across 30
countries

• Brands offered: Steel, Edge, Raga, Sonata,
Fasttrack, Regalia, Bandhan, Sonata, Nebula,
Flip

• Recently Titan has taken a drive to improve its


image as a maker of contemporary style and
design in wrist watches

• Titan is trying to offer international quality/style



Multi Channel
Retailing

 Own stores (World of Titan, Time


Zone and Sonata Stores

 142 Time Zones, which are multi
branded outlets operating in the
watches business.

 Titan has recently started using
ITC's e-Choupal channel to
penetrate the rural markets


Watches

1000
I ncome in Rs. Cr. 877 908

800 738

600

400

200

0
2006-07 2007-08 2008-09

Year
THANK YOU