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
Worlds 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.

DDamas 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

Indias 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.

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

Classification by value FY07

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