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, well 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 vital 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. The gems and jewellery industry accounts for nearly 20 per cent of the total Indian exports and 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 country’s exports. India is
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 India’s 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
India was one of the first countries to start making fine jewellery from minerals and metals and even today. the country’s inexpensive and well skilled workforce makes it a world leader in processing of diamonds.4 Regulating Bodies The Gem and Jewellery Export Promotion Council (GJEPC): This is the apex body of the gem and jewellery trade in India. With strength of 6. who constitute nearly 96 per cent of the market. which was set up in 1966 for promoting precious stones and jewelry exportations.to jewellery retail. however. India was the first country to introduce diamonds to the world. Organised players such as Tata with its Tanishq brand. The country’s jewellery retail sector is also expected to evolve with a shift among consumers towards branded jewellery. 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. Today there is a ready availability of an entire range of diamonds in nearly every size. driven by greater quality consciousness. 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). 80 per cent share in caratage (weight) terms and 90 per cent share in volume terms. The country at present has a small but growing organized sector. the first to mine.500
. Indian diamonds account for 55 per cent share in value terms. India's significance in the global gems and jewellery industry can be largely attributed to its strength in diamond processing. The industry is dominated by family jewellers. have. cut and polish them as well as trade them. India offers the twin advantages of skilled labour and low cost in the area of gemstone processing. In the global diamond market today. While India is not a major miner of previous metals and stones. most of the jewellery made in India is hand made. 1. been growing steadily to carve a 4 per cent market share. quality and cut.
• Promotion of Indian diamonds and jewellery abroad through advertisements. It also indulges itself in disseminating latest information to its jeweler-members through a monthly newsletter. various educative
The following in`itiatives have been taken by the Gem and
Jewellery Export Promotion Council in order to enhance competitiveness such
. the Council provides market information to its members regarding foreign trade inquiries. 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. • Exploring the possibility of direct procurement of rough diamonds from mining countries. and information about jewellery fairs and exhibitions. • Market study through experts in the field to identify new markets. as: • Preparation of a medium term exports strategy for various sectors including gems and jewellery by the Ministry of Commerce. rates of import duties. To achieve this. trade and tariff regulations. 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. the Council is primarily involved in introducing the Indian gem & jewellery products to the international market and promotes their exports. buyer-seller meets and direct approach to market retailers. publicity and participation in international fairs.members spread all over the country. • Promotion of export of 'hallmark' jewellery from India to assure foreign customers of quality and purity of jewellery made in India.
Even though India does not contribute
.& trade-motivational events such as seminars. the total gems and jewellery exports from India stood at US$ 20. 90% in terms of pieces and 80% in terms of carats. As per the recordings of the Gems and Jewellery Export Promotion Council (GJEPC). Gold jewellery exports increased from US$ 5. exhibitions. colored gemstones. of which nearly 600 tonnes go into making jewellery. Every 11 of 12 diamonds sold around the globe are processed in India. non-gold jewellery and fashion jewellery. India is the largest consumer of gold in the world. workshops. pearls. festivals etc.2 billion in 2006-07 to US$ 5. The gems and jewellery sector contributes nearly 55% of the world’s net exports of cut and polished diamonds in value. The Bureau of Indian St. With its cut and polished diamonds. The gold jewellery market is growing at 15 per cent per annum and the diamond jewellery market at 27 per cent per annum. In other words. 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 China and Japan. nearly 9 out of 10 diamonds sold worldwide are cut and polished in India.5 Market Trends The Indian jewellery market is one of the largest in the world. 1. 85 per cent volume share and 92 per cent share of the world market in terms of number of pieces.88 billion for 2007-08.the Indian diamond cutting and polishing industry enjoys 60 per cent value share. followed by UAE at 21 per cent. India consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption. gold jewellery. India accounts for almost 50% of the international market. India is the largest diamond cutting and polishing centre in the world . with a market size of $13 billion. irrespective of where these are mined.6 billion 2007-08. It is second only to the US market of $ 40 billion and is followed by China at $11 billion.
18 billion in 2007-08.it is the world leader in cutting and polishing of diamonds. a move aimed at further promoting the exports of studded jewellery and platinum jewellery. the government abolished import duty on polished diamonds. Employing over 90% of the global diamond industry workforce.03 and exempted rough coloured precious gems stones from customs duty at the first stage itself. In terms of carat.
In May 2007. 1. India's share in the diamond sector is about 80% of the world market.
Import of gold of 8 carat and above allowed under the replenishment scheme subject to the import being accompanied by an Assay Certificatespecifying the purity.India exported rough diamonds worth only US$ 566 million in 2007-08 -.much to the world market in terms of rough diamonds -.
• Setting up of SEZs and gems and jewellery parks to promote investment in the sector. instead of claiming reimbursements later. • Rough.
.82 per 10 gm to US$ 5. India also accounts for 90% of the volume of diamonds processed in the world.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. weight and alloy content. semi-precious stones are already exempt. with exports worth US$ 14.
platinum. testing facility at International Diamond Laboratory (IDL). • In addition. special economic zones dedicated to gems and jewellery are to come up in Surat. • In the New Annual Supplement to Foreign Trade Policy (20042009) announced on April 19. Dubai. It has also made the import of polished diamonds completely duty free.
• To reduce the transaction cost for the diamond sector. it will be 1 per cent of FOB value of exports during the previous financial year. Also. 2007. Kolkata. For metals other than gold. gold and other metals. has been incorporated in the list of laboratory/certifying agencies. • Duty free import entitlement of tools. Dhulia and Hyderabad.
Re-import of Diamonds & Jewellery (either in complete or partial lot) exported on consignment basis have been allowed. 2008. the Government has decided to make gold hallmarking mandatory from January 1. machinery & equipment has been allowed.
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.
. Goregaon. it will be 2 per cent and for gold and platinum. which are rendered abroad have been exempted. the Government has extended the following facilities to this sector: • Service Tax on services (related to exports).• Cutting and polishing of gems and jewellery treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act.
Tanishq began with 18-carat jewellery. 1. In 1998. India produces merely 0. With sales of Rs. When Tanishq was launched. Tanishq: In 1984.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. it sold most of its products through multibrand stores.4 percent share of the branded jewellery market. Tanishq is considered to be a trendsetter. Among the branded jewellery players in the Indian market.14 billion for the year 2000-01. The designs combined both the Indian and western styles and motifs.03 percent share of the 400 billion jewellery market in India and a 1. Tanishq decided to set up its own chain of retail showrooms to create a distinctive brand image. 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.0. the 18-carat jewellery range was expanded to include 22 and 24-carat ornaments as well. In 1995. In the same year.7 Key Brands in the Indian Jewellery Segment The following are some of the major brands in the Indian Jewellery segment: Gili: In 1994. designed for the contemporary Indian woman. Realizing that such jewellery did not sell well in the domestic market. Gili had a 0. Initially involved in the watches and clocks business. it also started its jewellery division under the Tanishq brand.Currently. Gili Jewellery was established as a distinct brand by Gitanjali Jewels. When it was launched in 1995.4 per cent of its gold consumption despite having 9 per cent of global gold reserves.' to 'Titan Industries Ltd. Titan changed its name from 'Titan Watches Ltd. Questar Investments Limited (a Tata group company) and the Tamil Nadu Industrial Development Corporation Limited (TIDCO) jointly promoted Titan Watches Limited (Titan). Titan later ventured into the jewellery businesses.
2.4 percent share of the branded jewellery market.14 billion. In 1996. To meet increasing demand. The brand was available at 40 outlets in 16 cities in 2002 and would be made available in 23 cities by 2005. (Peakok) was incorporated and Mahesh Rao (Rao) was appointed director.5 billion by 2005-06 and exports to start by 2008.17 billion in 2000-01. with sales of Rs. 0..7 percent share of the branded jewellery market Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri (TBZ). In 2000-01. the Bangalore based Peakok Jewellery Pvt. 0. Tanishq planned to open 70 stores by the end of 2003 and offer a range of 'wearable' products with prices starting at Rs. 1. Tanishq had a 0.04 percent share of the Rs. Oyzterbay: Oyzterbay was founded by Vasant Nangia and his team in July 2000. 400.66 billion in 2000-01. 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. The company expected Carbon sales to touch Rs. Carbon: In early 1991. With sales of Rs. within the Peakok fold a new brand of 18-carat gold-based jewellery called Carbon was launched. With sales of Rs. Oyzterbay had a 0. Ltd. Peakok realized that the Indian consumer's relationship with gold jewellery would grow beyond an investment need towards a lifestyle and personality statement.By 2002.400 billion jewellery market and a 1. which had been in the jewellery business since 1864.66 percent share of the total jewellery market and a 27 percent share of the branded jewellery market. the company had 41 outlets across the country. saw tremendous scope in the branded
. By November 2002.03 percent share of the jewellery market and a 1. It began operations in March 2001. Tanishq retailed its jewellery through 53 exclusive stores across 41 cities. carbon had a 0.
and allowed many unethical practices to flourish. Tanishq’s strategy was to create differentiation and build trust. all over the nation by opening as many as 50 stores by 2006. the Zaveris planned to take Trendsmith (India) Pvt. As the jewellery market was highly fragmented. Tanishq began with 18-carat jewellery. Realizing that such jewellery did not sell well in the domestic market. it sold most of its products through multi brand stores.8 Promotional strategies adopted by Branded Jewelers Tanishq: Among the branded jewellery players in the Indian market. trust takes care of lifelong loyalty. Ltd. 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. Differentiation plays the role of primary attraction.segment and opened its new concept store 'Trendsmith' in Mumbai in December 2001. Oyzterbay has been taken over by Rajesh Exports
. Tanishq is considered to be a trendsetter. 1. For a national brand a generic design concept with regional variations had to be evolved. 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. In 1998. Encouraged by the response towards its first store. The emphasis had to be on design because local jewelers could offer to design any pattern according to the customer's specifications. When Tanishq was launched. the 18-carat jewellery range was expanded to include 22 and 24-carat ornaments as well. The differentiation was created through designs. Trendsmith offered eight lines of exclusive designer jewellery from well-known export jewellery manufacturers and designers from Mumbai and Delhi. Tanishq decided to set up its own chain of retail showrooms to create a distinctive brand image. lacked branding.
designed for the contemporary Indian woman. Ltd.Limited in 2009. Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri (TBZ). the Zaveris planned to take Trendsmith (India) Pvt. saw tremendous scope in the branded segment and opened its new concept store 'Trendsmith' in Mumbai in December 2001. 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.
. The designs combined both the Indian and western styles and motifs. which had been in the jewellery business since 1864. Rajesh Exports Limited is one of the largest gold jewellery manufacturer and distributor in the world. Encouraged by the response towards its first store. Gili: Gili offered a wide range of 18-carat plain gold and diamond-studded jewellery.
2 LITERATURE REVIEW
10 billion of the Rs. 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. Gili and Carbon opened outlets in various parts of the country. jewellery was being prized for its aesthetic appeal. the number of gold retailers in the country increased sharply. the share of branded jewellery in the total jewellery market was still small (about Rs. Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding. Traditional jewelers also began to bring out lightweight jewellery. In other words. Moreover. Given the opportunities the branded jewellery market offered. the focus seemed to have shifted from content to design. the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. Branded players such as Tanishq.
. Instead of being regarded as only an investment option. and some of them even launched their in-house brands. the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices. 400 billion per annum jewellery market in 2002). Oyzterbay. Consequently.Literature Review The emergence of branded gold jewellery In the late 1990s. affordable and lightweight jewellery soon gained familiarity. Trendy. consumers trusted only their family jewelers when buying jewellery. However.
especially from consumers in the 16 to 25 age group. However. The new millennium witnessed a definite change in consumer preferences. contemporary jewellery and clearly avoiding heavy. "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. The focus had shifted from content to design • The younger generation was looking at trendy. 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. motivations and aspirations of consumers in the jewellery market." In October 2002. There was a rise in demand for lightweight jewellery. Trendsmith conducted a survey to understand the shifting needs. Additionally. who regarded jewellery as an accessory and not an investment. A jeweler or goldsmith in a local area had a fixed and loyal clientele.Gold Jewellery Becomes Fashion Accessory Till the early 1990s. traditional gold jewellery. The buyer had implicit faith in his jeweler. CEO of Trendsmith. Confidence in the local jeweler was the hallmark of the gold jewellery trade in India.
. 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. the local jeweler catered to the local taste for traditional jewellery. and to identify new trends and opportunities. According to Samrat Zaveri. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. the average Indian bought jewellery for investment rather than for adornment.
• The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. The late 1990s and early 2000s. has been the major driver for the Indian gems and jewellery market. As per our new research report “Indian Gems and Jewellery Market . but is rapidly transforming into an organized sector. with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT). 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.
. In addition. • The Indian consumer was willing to experiment with new designs. the growing number of manufacturers needed a retailing platform with global and national reach.Future Prospects to 2011”. a wide range of new designs became available. highly skilled and low cost manpower.
Indian Customers Showing Interest in Branded Jewellery Posted by RNCOS on October . All these led to the proliferation of branded jewellery players. along with strong government support in the form of incentives and establishment of SEZs.27 . Currently the Indian market remains highly fragmented. India possesses world’s most competitive gems and jewellery market due to its low cost of production and availability of skilled labor. It is projected that the overall gems and jewellery market will grow at a CAGR of around 14% during 2009-2012.2009 As per our recently published research report “Indian Gems and Jewellery Market – Future Prospects to 2011”. 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 India’s total exports.
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 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 world’s 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.
CHAPTER- 3 RESEARCH METHODOLOGY
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 jeweler’s, 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.
Sample design is definite plan determine before any data is actually obtaining for a sample from a given population.
To evaluate the promotional strategies adopted by jewellers to attract customers. marketing strategies and customer preferences. It is descriptive because I have explained various brands of Indian jewellery market.3NATURE OF THE STUDY
The nature of my study is Descriptive as well as Analytical.
To know the consumer’s buying preference regarding branded jewellery. which determines the course of action towards the collection and analysis of required data. The researcher must decide the way of selecting a sample.
3. It is a framework.
3.5 METHODS OF DATA COLLECTION
. Samples can be either probability samples or nonprobability samples. It is analytical due to analysis of various brands of jewellery on the basis of their services.4SAMPLING PROCEDURE AND DESIGN
The research design is the blueprint for the fulfillment of objectives and answering questions.
Sampling Technique: Sample Size:
Convenience Sampling 100 Respondents
3. publishing’s etc. Data presented in raw state appear
.The data can be collected by two ways:• Primary source • Secondary source PRIMARY DATA: The data collected for the first time by the researcher himself is called primary data. This data may be present in the form of journals. There are several methods of collecting primary data like questionnaire. has to be analyzed in accordance will the outline laid for the time of developing the research plan. Personal interviews etc.6 ANALYSIS AND INTERPRETATION OF DATA
Data. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. after collection. under this report the information are collected from different sources like: • Internet • Newspapers
Books etc. The method adopted for the study is: • Questionnaire SECONDARY DATA: The data already available is called secondary data.
7 SCOPE OF THE STUDY
• This project is helpful for the students to enhance the knowledge about the various brands of the jewellery. bar graphs and other charts. Statistical processors are used this complex data into some significant understandable form.9 SIGNIFICANCE OF THE STUDY
.unrecognized and complex.
3. • This project is helpful to know customer preference/perception about Branded Jewellery.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. I analyzed the data mathematically and then presented the results with the help of pie charts.
3. • This project is helpful for buyer to make effective buying decision.
.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. • Another problem was knowledge constraint and this report was an attempt to gather as much relevant data as possible. • Time constraints were the major limitation. • It was difficult to get proper information from respondents. I sincerely accept some limitations which were beyond my control in this research.The gems and jewellery industry occupies an important position in the Indian economy and is one of the fastest growing industries in the country. • Study in limited geographical area may not be able to give appropriate results. 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. • The survey could be done by taking the sample size of just 100 people. The limitations of the present study can be summarized as follows: • Data gathered from secondary sources cannot be checked for validity.
platinum accompanied by a variety of precious` and semi-precious stones. according to a report 'Indian Gems and Jewellery Market Forecast to 2013'. as per the credit rating agency Crisil. A legacy that passes from one generation to another. the components of jewellery include not only conventional gold but also diamond.LATEST DEVELOPMENTS
Latest Development in Gems and Jewellery
Gems and Jewellery symbolise Indian tradition in a lot many ways. 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.
. The diamond industry in India is predicted to remain stable during 2010-11 due to improved prices and steady demand. on the back of increasing government efforts and incentives coupled with private sector initiatives. by RNCOS.
apart from having gems and jewellery manufacturers from Thailand and Dubai who will open their units in India. India's gems and jewellery exports rose by about 22 per cent year-on-year (yo-y) to US$ 2. Rajiv Jain. At the Basel World 2011 show in Switzerland held recently. 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. Indian exporters are also exploring other new markets including South America and East Asia in order to reduce their dependency on the West. Gems and Jewellery Export Promotion Council (GJEPC).
Industry Structure Although the market is highly dominated by unorganised players. said that they are expecting the jewellery exports to surpass the target of US$ 30 billion in 2010-11.On the back of healthy demand from Western markets like the US and Europe. with increase in consumer income and economic prosperity.86 billion in January 2011. Mr Jain said that India’s gems and jewellery exports are estimated to rise by an impressive 35 per cent in 2011. The company plans to have residential apartments named Gold Souk City. the future of organised branded jewellery in India is very bright. Chairman. The US and European markets constitute about 60 per cent of India’s gems and jewellery exports.
. In its bid to enhance the market strategy. the jewellery mall developer.
according to Vinod Hayagriv. Diamond India is the largest diamond cutting and polishing centre in the world. India owns over 18.Gold India is one of the largest bullion markets in the world. Gold import is likely to rise by 15 per cent in 2011 to around 805 tones. All India Gems and Jewellery Trade Federation. as compared to 2010 due to growing demand for gems and jewellery. the industry association for the gold industry. It has been until now. as calculated by the World Gold Council. As per the study ‘Heart of gold' by the World Gold Council (WGC). rose to 25 per cent in 2010. Chairman. WGC maintains a highly positive outlook on gold demand for future considering a 30 per cent jump in the imports during December 2010. India's gold jewellery demand rose 47 per cent to 210. which stood at 16 per cent in 2009. Reserve Bank of India and institutional) worth around US$ 800 billion. including private. India's share of global demand. the undisputed single-largest Gold bullion consumer. For the quarter ended December 31 2010. In terms of the percentage share held in gold of total foreign reserves. The country is also the biggest buyer of gold jewellery with a 20 per cent share of the market. India stood at 11th position with 557.5 per cent of gold reserves. accounting for about 95 percent share of the global market by number of
.000 tones of above-ground gold stocks (all physical and gold holdings.7 tones of gold and 8. the WGC data showed.5 tone from a year ago.
as per the Export Promotion Council for Handicrafts. contributing over 80 per cent of the country's diamond processing industry with annual revenue of around US$ 13. platinum jewellery has gained momentum in the past few years not only worldwide but also in India. During calendar year 2011.
Platinum Due to the increasing gold prices. The industry body further stated that the Government is also working towards formulating an international compliance code for manufacturing costume jewellery. As per the Platinum Guild International (India). The industry is set to continue its growth momentum this year. The country is also the third largest consumer of polished diamonds.pieces.
. Most platinum jewellery manufacturers are targeting 20-40 years age group consumers with high disposable income. it is poised for 20 per cent growth. 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. Surat is India's diamond processing hub. Costume jewellery The Indian costume jewellery market is also witnessing growth in the international market. It is predicted that the number of outlets selling platinum jewellery would increase to around 1.03 billion. the number of outlets selling platinum jewellery increased from 12 in 2000-01 to over 300 currently.000 outlets in the next 2-3 years.
38 per cent) and colored gemstones (3. rose by 39 per cent in the April 2010-January 2011 period. citing provisional estimates. the trade group said on its website. the largest supplier. as per the GJEPC data.3 billion.81 percent to US$ 30. Shipments increased to US$ 30.6 billion from US$ 22 billion a year earlier. of which India only exports around US$ 53 million. by providing multiple delivery centres across the country by leveraging on MMTC's and BBA's pan-India network. thereby.9 billion. followed by gold jewellery (15.44 per cent year-on-year in January 2011. period. It further offers membership to all the BBA members. 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.8 per cent). according to the Gem & Jewellery Export Promotion Council.59 billion in comparison to the same period last fiscal. Exports Gems and jewellery exports from India. Exports of cut and polished diamonds saw the maximum growth of 23. Exports in January 2011 gained 22 per cent to US$ 2. During the April 2010-January 2011. BBA will be an important stake holder in exchange's efforts in strengthening the delivery
. exports of precious items increased by 38. It jointly deepens the markets in order to encourage wider participation. Government Initiatives In order to open a new avenue for the bullion trader community with improved trading practices and increased delivery centres. providing a huge opportunity area for the Indian costume manufacturers.The current global costume jewellery and accessories market is estimated at US$ 16.
Furthermore. In a move to boost the industry. Bengaluru and Mumbai.
.infrastructure and also in launching customised contracts suited to requirements of Indian markets. in order to promote gems and jewellery export. EGL has laid out ambitious plans to expand its presence in the country in 2011. EGL (European Gemological Laboratory) is setting up a diamond certifying laboratory in Ahmedabad. the government has formulated new rules for faster clearance of import and export consignments of specific goods including jewellery and gems. Further. The global diamond certification agency has so far five laboratories located in New Delhi. European diamond certifying agency. Signature was conceptualised to showcase India's ability to produce quality jewellery that will match the lifestyle trends world over. Kolkata.
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'. the government has incorporated some other measures like providing interest subvention of two per cent to labour intensive export sectors and duty drawback facilities. the sixth for the company in India. 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.
5 ANALYSIS AND INTERPRETATION
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.of Respondents 30 45 25 0
of Respondents 86 14
. Table showing the customer preference about branded jewellery or un branded jewellery.25
Once ina6m onth Inayear onlyon speciaocca sion Anyother
Fig. 30% purchase once in a six month. 45% once in a year and 25 % only on special occasion. Interpration:Out of 100 respondents.Figure showing how often customers purchase the jewellery.1:.2) Do you prefer Branded Jewellery or Unbranded Jewellery? TABLE 2. Particulars Branded Unbranded No.
3) Are you Aware about Branded Jewellery (Tanishq.1 4
B randed Unbranded
Fig. Paticulars YES NO No.
Ques. Nakshatra )? Table 3:-Table showing the awareness about branded jewellery.2:-Figure depicts customer preference about Branded Jewellery and Unbranded Jewellery.of Respondents 88 12
. Interpretation: Out of 100 respondents.Geetanjali Group. PCJ . 86%respondents prefer branded jewellery and 14% prefer unbranded jewellery.
nakshatra )but 12% don’t aware about branded Jewellery. Interpretation: Out of 100 respondents 88% are aware about branded jewellery (Tanishq. Tanishq.PCJ.Table showing why customer prefers branded jewellery.Geetanjali Group.4) Why do you prefer Branded Jewellery? Table 4:. Ques. of Respondents 37 0 28 35
.3:-Figure depicts customer awareness towards Branded Jewellery. Particuars Purity Customized Design Brand Name No.12
B randed Unbranded
37% prefer because of purity. 28% because of design and 35% due to brand name. Particulars Satisfied Highly Satisfied Dissatisfied Highly Dissatisfied Neither Satisfied Nor Dissatisfied No.5) How satisfies are you with your present purchases? Table 5 :-Table showing satisfaction of customer about their present purchase of jewellery. Interpretation: Out of 100 respondents.35
Purity D ig es n Brand Nam e
Fig.4:-Figure depicts why customer prefer Branded Jewellery. 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
Fig. Particulars Branded Showroom Local Jewellers Exhibition & Jewellery No. Ques. 37% are satisfied with their present purchases. of Respondents 64 12 24
.Table showing from where customer would like to purchase jewellery.5 Fig depicts satisfaction of customers about their present purchase of Jewellery. Interpretation: out of 100 respondents. 33% are highly satisfied. 7% are dissatisfied and 23% are neither satisfied nor dissatisfied. 6) From where do you purchase your jewellery? Table6:.
7) Who Influence you in the purchase in the jewelery? Table 7:.6:. 12% respondents purchases their jewellery from local jewellers.24
B randed S howroom L ocal Jewellers Exhibition & Jewellery
Fig. 64% respondents purchase their jewellery from branded showrooms.and 24% purchases from Exhibition and Jewellery Shows.Table showing who influence the customer in purchase of Jewellery.Figure depicts from where customer would like to purchase Jewellery. Ques. Interpretation: Out of 100 respondents.
of Respondents 17 40 43 0
F riends F ily Mem am bers R elativ es 40
Fig. 43% from relatives and remaining from family members in the purchase of jewellery.Particulars Friends Family Members Relatives Others
No.7:-Figure depicts who influence the Customer in the purchase of Jewellery. Interpretation: Out of 100 respondents 17% are influenced by friends.Table Showing that customer consider the image of Brand Ambassdor endorsing the product.
Ques. 8) Do you consider the image of Brand Ambassdor endorsing the Product? Table 8:.of Respondents
. Particulars No.
8:. Ques.Yes No May be
74 14 12
Yes No Ma be y
Fig.Figure depicts that customer consider of Brand Ambassdor endorsing the product. Particulars No.74% considers the image of Brand while 14% not consider and remaining are not sure.of Respondents
. 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. Interpretation: Out of 100 respondents.
9:.of Respondents 57
. Interpretation: Out of 100 respondents. 57% were motivated through Advertisement.) 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 No.Advertisement Fashion Show Exhibition
57 23 20
5 7 23
Advertis ent em F hion S as how Ex hibition
Fig.It depicts promotional factors which motivate customers in buying Jewellery. Ques10. 23% through Fashion Shows and remaining through Exhibitions.
Highly Satisfied Dissatisfied Highly Dissatisfied Neither Satisfied nor Dissatisfied
7 9 0 27
S atisfied 57 27 Hig S hly atisfied Dissatisfied Neither S atisfied nor Dissatisfied
Fig. Interpretation: Out of 100 respondents.10:-Figure depicts the satisfaction of customer about Branded Jewellery. Ques11. 7% are highly satisfied. 9% are dissatisfied and remaining 27 %are neither satisfied nor dissatisfied. of Respondents 77 23
. 57% are satisfied with Jewellery Brand offered in the market. Particulars Yes No No.) Are you aware about the Hallmark Brand? a) Yes-77 b) No-23
Table11:-Table showing the awareness of customer about HallMark brand.
Ques12.11:-Figure depicts the awareness of customer about Hallmark Brand. Particulars Agree Strongly Agree Disagree No . Interpretation: Out of 100 respondents.)Advertisements are important to create awareness about Branded Jewellery? Disagree-12 Table12:-Table showing the importance of advertisement in creating awareness.of Respondents 53 12 23
b) Strongly Agree-12
d) Strongly Disagree-0
e) Neither Agree nor
. 77% are aware about Hallmark brand while 23% are not aware.23
Y es No
)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. Attributes Cost Quality Purity Design Resale Value
Rating 3 5 6 4 2
. Ques13.53% are agree. Interpretation: Out of 100 respondents.12:-Figure depicts the importance of Advertisement in creating awareness.Strongly Disagree Neither agree nor Disagree
Ag ree S trong Ag ly ree
Neither Ag nor ree Disag ree Disag ree
Fig.23 % are disagree and remaining 12% are neither agree nor disagree.12% are strongly agree.
) 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-
Table14:-Table showing significant difference between Branded Jewellery and Unbranded Jewellery. and customization as pull factors contributing towards the segment. Ques14.
Particulars Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly Disagree No. design. of Respondents 37 34 19 10 0
. There after customer also consider the quality.: On the basis of the above analysis purity is considered the most important factor in selecting the branded jewellery .Customization
3 Cost Quality Purity Desig n R esale Value Custom ization
Interpretation:. Cost and resale value are also very carefully considered.
) 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.10% disagree and remaining 34% neither agree nor Disagree.37 %strongly agree that there is a significant difference between Branded and Unbranded Jewellery.19% only agree to this. of Respondents 77 23
.10 19 37
S trong Ag ly ree Ag ree Neither Ag Nor D ag ree is ree D ag is ree
Fig.14:-Figure depicts significant difference between Branded Jewellery and Unbranded Jewellery. Interpretation: Out of 100 respondents. Ques15. Particulars Yes No No.
Interpretation: Out of 100 respondents. while 23% don’t get.23
Y es No
Fig15:-Figure depicts that customer get certificate everytime they purchase Jewellery. 77% get certificate at the time they purchase Jewellery.
price and design
Other factors are variety.
2. and Tanishq are again the most popular brands.FINDINGS & CONCLUSION
Following are the main findings of my study:
1. the brand image. This
may be due to the wide spread publicity taken up by the various brands. Branded jewellery is extremely popular since it has 100% awareness. The guiding factor behind purchasing jewellery is purity. The least guiding factor for purchasing jewellery is the service and display. influence of family and friends. Ddamas. Brands like Gili.
jewelers and retalers have also realised the value of
Branded jewellery as a lifestyle product has undergone a rapid change in its profile.are driving the change. increasing numbers of women
in the workforce and greater organisation in retail. rather than investment . Branded jewellery also takes care of the credibility issue as it usually
comes with a certificate of authenticity. another aspect that is fuelling the branded jewellery segment is the maturing of the jewellery market. The entire way that people buy jewellery is changing and younger women -
who are buying for fashion. The craze for only branded jewellery has clearly caught up with consumers. Besides consumers. can be considered a leading light in this
5. fashion show of branded jewellery play significant role in
selecting the brand while purchase.
8.3. Besides the growth of disposable incomes.
9. the Titan brand. anniversary. from gold to diamonds. There is a gradual move from unbranded to branded jewelry. The level of satisfaction that the population has for branded jewellery is
higher than that for non branded jewellery making branded jewellery more popular. Advertisments . Market for branded jewellery has already touched the Rs.
6. The study reveals that customer buy jewellery on special occasions like
marriage . 2000 crore mark by 2008. birthday etc. and from conventional to designer jewelry. Tanishq.
4. The branded jewellery endorsed by brand ambassadors helps it in
Savvy marketing has ensured impressive growth for almost all these jewellery brands in India. still favour small jewellers but trend is rapidly changing. although others like Gili. Consumers are becoming more brand conscious and therefore are moving towards designer concept.
. the designer concepts. A large section of gold buyers though. In the past few years around 35 different brands have been launched in the country. 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. Carbon.e. Along with this advertisement and exhibitions should be a part of the continuous promotion strategy of the branded jewellery segment. Thus efforts should be on attracting more and more customers towards branded jewellery by focusing on its unique selling preposition i.regard. and Cygnus are not far behind.
In order to gain market share. they will have to come up with designs that customers want.CHAPTER.7 RECOMMENDATIONS
Branded jewelry players will continue to face lot of competition from local jewellers. To compete with traditional
which wants to buy attractive designs at affordable prices. The players in the Branded Jewellery segment should target the younger generation and workingwomen because that is the target audience. 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. They must try to win the trust and confidence of consumers by hallmarking and demonstrating the purity of the gold used by them. so that she could pick up pieces regularly. branded players must find a way to differentiate themselves in terms of attractive designs also maintaining quality. jewelry should be brought out of the locker.e. which otherwise sported junk jewelry. The players must adopt a different reach i. So it must be positioned (it) to accessorize the dress of the young. The second target segment would be the working woman for whom they can seek to build a wardrobe of jewelry by making it affordable.players.
. collegegoing crowd.
Name of the Respondent:
5 Lakhs 7.5-7.5-10 Lakhs 1.Gender: Male Age: 18-24 56 Occupation: Self-Employed Management / Administration Government Employee Specify_____________________ Annual Income: < 1.5-3. 25-40 41-55 Above Female
Ques.5 Lakhs Private Sector Employee Sales / Marketing Others Pl. 1) How often do you purchase Jewellery? a) Once in a six month c) only on special occasion b) once in a year d) any other
Ques2) Do you prefer Branded Jewellery or Unbranded?
.5 Lakhs Above 10 Lakhs 3.
Ques3) Are you aware about (Tanishq.PCJ)?
Ques4) Why do you prefer Branded Jewellery?
b)Customized d)Brand Name
Ques5) How satisfied are you with your present Purchases?
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? a) Yes b) No
Ques8) Who influences you in the purchase of Jewellery?
b) Family Members
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?
Ques11) What is your purpose of buying Jewellery?
Ques12) Are you satisfied with the Jewellery Brand offered in the market? a) Satisfied c) Highly Satisfied 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?
b) Agree d) Strongly Disagree
c) Disagree e) Neither agree nor disagree
2005 Fashion trends in jewelry and rings. S. 2004 Kotler Philip (2003). New Delhi. New Age International Publications. Chand
Publication. Second edition (2005). 3 Issue 10. Statistical Methods. Third Edition. 2005
. Principals of Marketing. Malhotra K. 2nd Edition.
Gupta. 4th Edition. Marketing research. “Research Methodology”.5. pearson publishers twelfth revised edition (2006).K. May-June. 2004 Diamond Trends... New Delhi. Sultan Chand and sons. 2004 Timeless Jewels.. S.C.BIBLIOGRAPHY
REFERENCE TO BOOKS:• AGGARWAL P. 2005 Gold Inspirations Gold Jewelry Magazine The Art of Jewelry. Vol. Pearson publishing.
Kothari C.P. • PHILIP KOTLER “MARKETING MANAGEMENT”. 2005 Diamond World. 2. Naresh “Marketing Research – An Applied Orientation”. Vol. Vol.R. New Delhi
MAGAZINES: Admired brands.
• Beri G. Jan. Vol. 4. Tata McGraw Hill Publishing House. “MARKETING MANAGEMENT”.
12) http://www.rncos.net/contentview. The web sites are:
2) http://www.com/NewsDetails.aspx 7) http://www.WEBSITES: Secondary data collected from the internet.diamondworld.aspx?storyid=266902 9) http://www.flonnet.htm 4) http://www.com/fl2223/stories/20051118003809800.allheadlinenews.rncos.com/archive/v5n2/v5n2-indian_jewelry.gulf-daily-news.org/casestudies/catalogue/Business
.htm 3) Source: http://www.com/Report/IM148.com/doc/19901085/Jewellery-Companies-Comparison 6) http://www.aspx?item=2465 10) http://travelersindia.scribd.com/indian-customers-showing-internet-in-
Jewellery-Market-Future-Prospects-to-2011-IM148.org/industry/gemsjewellery.icmrindia.html 11) http://www.