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has struck a deal with the three major Indian diamond processors. Diamond India, Rosy Blue, and Ratilal Becharlal and Sons have announced a $490 million deal with Alrosa to supply rough diamonds over the next 3 years. ³Alrosa overtook De Beers last year as the biggest diamond producer after the Russian government supported the company by purchasing about $1 billion of gems,´ reported Lucian Kim of Bloomberg. In contrast to the government support of Alrosa, this new wave of long-term contracts with India will help the company dig out of long term debt, putting the company on solid financial ground. This marks the first wave of deals between Indian companies dealing directly with miners. ³The deal is unique in that as it is a direct source of supply for local diamond companies, which till recently imported roughs mined elsewhere from centres such as Belgium and Israel, thereby adding to their costs. This agreement will lead to cost savings of at least 3-4% for the companies, as it is a direct deal with the miner, bypassing the other centres,´ said Vasant Mehta, chairman of the Gems & Jewelry Export Promotion Council.
µA diamond is a girl¶s best friend¶, holds true in the contemporary world like never before. Matched with Indian ethnicity and beauty, the precious stone is on a roll, with more and more customers attracted towards it. The retail revolution has opened the flood gates for national and international brands to make in roads into the Indian market, luring the customers with creativity and innovation. This has made branded jewelry, the new market mantra, which promises to suit the needs and budget of every Indian pocket. The Trend! The market strategy of the diamond companies are cleverly cashing on the Indian customs and traditions, which offer the best opportunity for the promotion and sales of the brands. Another reason for the rise in the trend of branded jewelry is contributed to the fact that gold is faring too high in the market. This has compelled the buyers to drift towards diamond jewelry, as the price margin between the two has lowered. Thus, people want to invest in stylish diamond jewelry, which is a status symbol they can flaunt. Top Diamond Brands in India Branded Jewelry has transformed the Indian jewelry market significantly and hopes to do well in future too. Some of the top diamond brands in India include:
y Adora is as diamond jewelry brand, which was launched by a Mumbai based Jewelry Corporation. The
brand is themed on love and celebration of life and is trusted by many celebrities. The list includes µthe Nightingale of India¶, Lata Mangeshkar. An exclusive collection Swaranjali was designed for the admirers of the legendary singer as well for all music lovers. Adora boasts of about 65 outlets in 35 cities. y Tanishq is one of the most popular diamond jewelry brands in India and is known for its innovative designs. It is the jewelry business group of Titan Industries Ltd, which is promoted by the TATA group. It was launched in 1995 and boasts of 84 outlets in 61 cities. Tanishq introduced the µcollections¶ strategy in jewelry. y Kiah is another brand which is deemed stylish, light weight and yet striking. It was launched by Sheetal manufacturing company in October 2004. Celebrating womanhood, the brand name, Kiah stands for µbeautiful place¶. It even won the Best showroom in DTC Diamond Season 2005-2006.
y Nirvana Diamonds were launched by Fine Jewelry (I) Ltd in 1987. Implementing the state of the art
technology, the collection is targeted at fashion conscious, modern and independent women. To prove its authenticity, Nirvana even offered lifetime warranty to its customers. y D'damas is one of the oldest diamond houses of India. It forms a part of the Gitanjali Digico Group and was founded in 1966. The brand offers world class cutting and polishing facilities at five locations in the country. The Gallery With so many diamond jewelry brands in the market, the customers are assured to find a wide variety to choose from. This implies that all the young and pretty lasses, ready to be wooed by their Prince Charming, can accessories their cherished dream with diamond jewelry items in gold and platinum. The sparkle of those studded ear rings, necklaces, bangles, rings and pendants will make you the perfect bride you always wanted to be. However, just in case you are the bridesmaid, you can choose from a lot more offered, apart from the bridal collections Nakshatra Diamonds were launched in the year 2000 and since that time, the gorgeous Aishwarya Rai has been its brand ambassador. Quite befitting that one of the most beautiful women in this world promotes one of the most exquisite diamond jewelry brands. Today, the brand has become one of the leading fashion diamond jewelry brands in India, which is patronized by the women belonging to almost all the segments of the society. The reason for this is their amazing designs, combined with the reasonable price range. The diamond jewelry sold by the brand has been priced from Rs 15,000 upwards and even their starting range designs are simply awesome. Amongst the most popular designs of Nakshatra diamonds is the traditional one, in the form of a flower. For the dusky beauties of India, Nakshatra diamonds signify passion, attitude and independence. The combination of traditional charisma and contemporary style, that the diamond jewellery by Nakshatra offers, makes it simply irresistible to women. The stunningly beautiful and sparkling clear diamond jewelry has never failed to impress any women till date. The slogan that says Nakshatra diamonds are the 'Brightest Circles of Light' could not have been more perfect. The shine and brilliance of Nakshatra diamond jewelry is enough to make it one of the best gifts a man can take for his wife or girlfriend. The certificate of authenticity and a special hologram that come with it will remove all the doubt you had about their quality. So, go ahead and gift Nakshatra diamond jewelry to the most special women in your life.
Gitanjali Group was established in 1966 and is one of the earliest diamond houses in India. Having received over 50 National and Council awards from the Ministry of Commerce.
What started as in 1966 as a modest enterprise in diamond cutting and polishing is no longer just a vendor to the mighty but a $ 900 million group of businesses. But it all started with diamonds.
Gitanjali Group a 5000 crores company, strategically positioning itself as the leading diamond studded jewellerymanufacturing company, today has one of the largest fully integrated diamond and jewellery manufacturing plants in the country. The Group, which has been a pioneer in the branded jewellery industry, has always been at the threshold of boosting the production of quality jewellery, which has obliquely proved to be an excellent, branding and marketing strategy backed by a formidable retailing network - all ensuring the group an enviable advantage in the jewellery arena. The Gitanjali Group is engaged in the business of sourcing rough diamonds, its manufacture, import and export of diamonds, manufacture of plain and diamond studded gold and platinum jewellery and its marketing
and domestic retailing. As Jewellery exports form one of the largest contributors to the foreign exchequers, the jewellery major Gitanjali, is one of India¶s high-end contributors to the foreign exchequer as well as a major player in the domestic market. Gitanjali has four decades of experience, being one of the earliest diamond houses in India. Having received over 50 National and Council awards from the Ministry of Commerce for outstanding exports, it is today one of the largest diamond exporting companies in India. Presently the Gitanjali Group has highly modernized diamond cutting and polishing facilities at 5 locations in India and globally diversified manufacturing operations in Bangkok, Vietnam and China and a marketing network spread across Europe, Hong Kong, USA and Japan. The very basis of their existence is to successfully develop, produce and sell high-quality jewellery brands worldwide & helps the customers in getting the maximum Value ± For ± Money in the process. Gitanjali Group was established in 1966 and is one of the earliest diamond houses in India. Having received over 50 National and Council awards from the Ministry of Commerce, India for outstanding exports, it is today one of the leading diamond and jewellery export companies in India. Gitanjali, a $900 million multinational group, is a Public Listed Company. Gitanjali's unique business model encompasses a wide range of activities like rough diamond sourcing, diamond manufacturing and distribution, jewellery manufacturing, jewellery branding and jewellery, lifestyle and watch retailing at the domestic and international level. The Group has its business spread across the globe including countries like USA, UK, Middle East, Thailand, Belgium, China, Japan, Italy and South East Asia. Gitanjali's firsts include: >> Introducing the concept of affordable branded diamond studded jewellery in India >> Offering jewellery in Superstores, Department Stores and other such retail outlets at MRP >> Offering the same quality, designs and prices throughout India with a certification of authenticity for the same from renowned diamond grading laboratory >> Producing the smallest heart shaped diamond (0.03 carat) >> A mail-order catalogue for branded diamond jewellery. >> Gitanjali Luxury Lifestyle Festival ± a unique celebration for International Luxury and Lifestyle products.
RAPAPORT... Mehul Choksi makes no secret of his plans for Gitanjali Group. ³We want to be LVMH and beyond that,´ the company¶s managing director told Rapaport News in a recent interview. He also has a clear vision on how to achieve that goal through a branding strategy which is lacking in the diamond industry today.
³There is very little branding of diamonds in the global market,´ Choksi explained. ³This is what we need to do and when that happens the market will grow exponentially.´ Branding, he stressed, is what creates the "pull factor" so that customers are thinking of the product before they come to the store. Gitanjali¶s focus is evident in its portfolio of brands, which has enabled the company to capture an estimated 60 percent of organized space in India's jewelry retail market. The company had 185 exclusive stores and 215 franchised stores in the country at the end of fiscal year ending March 30, 2010, and has since opened more. The brand-focused strategy is especially apparent during the Diwali season, which begins November 5 this year, and the company has reportedly allocated approximately 25 percent of its annual marketing budget to promote its brands during the festival. Gitanjali is expecting Diwali to give its Indian sales a strong boost this November, which Choksi estimated could set the platform for 50 percent growth in the value of India¶s jewelry retail sales this fiscal year.
³Diwali is extremely important as it gives you two and a half months worth of sales. So that¶s about 20 percent of your annual sales which take place in a one month period,´ Choksi explained. ³Sales by value will be up like anything, while by volume, the increase will be less.´ The Gold Effect Choksi noted that high gold prices would continue to impact jewelry sales but he added that the mood in India is very different to Diwali 2009 as consumers still believe gold prices will increase further. Gold has increased about 27 percent from a year ago to trade at around $1,354.90 an ounce in London on November 2. While Choksi estimated that about 80 percent of India¶s jewelry retail market is focused on gold, he noted a changing trend that is working in favor of the investment diamond market, which he classifies as stones above 0.50-carat. ³I believe that gold will rise further and that will have a great impact on the market,´ he said. ³That is why I believe that below investment category, the diamond market is going to be under pressure.´ Choksi clarified that less gold is needed for the investment category and diamond jewelry whereas fashion jewelry requires a higher gold weight. In addition to hedging against high gold prices, Choksi forecasted strong movements in the currency markets over the next two to three years which would present further opportunities in emerging markets. ³From a strategic point of view, since we are governing the product in U.S. dollars, it is better to expand in eastern rather than western countries,´ he explained. ³There is going to be a currency war and I think the dollar will depreciate over the next few years, which will help our sales in the eastern markets. It¶s easy money.´ While Choksi agreed that the dollar will eventually stabilize and remain the central currency for the trade, he noted that businesses will start to accept more currencies in the trade. Expansion Strategy Gitanjali has been aggressive in its expansion policy in the east, but its focus is on organic growth there rather than growing through acquisitions. ³Except in Japan, there is nothing to acquire there,´ he explained. Acquisition opportunities are more appropriate in mature markets such as Japan and the U.S., but Choksi stressed that now is not the time to buy. Gitanjali has 126 stores in the U.S., after it acquired Samuels and Rogers stores in 2007. Sales there have in fact declined since the company¶s entry to the country as it has closed many stores. ³Until we have satisfactory results in the U.S. we will not expand,´ he said. ³We will selectively [acquire] once things settle down, but at this point our priorities are in markets like India and China so we are going to slow our expansion in the U.S.´ Choksi stressed that the U.S. is still the most important market even if sales there have softened in the past two years. He estimated that sales during Christmas will rise about 4 percent by value driven by higher prices compared with 2009, while by volume, sales will decline. India remains its flagship market and accounted for 40 percent of the group¶s total sales in fiscal 2009-10, slightly up from the previous year. Consolidated sales grew 28 percent to $1.47 billion (INR 6.52 billion) during the year with diamond sales up 17 percent to $719 million (INR 3.19 billion) and jewelry sales increasing 34 percent to $817 million (INR 3.63 billion).
Mehul Choksi. especially D¶Damas.jewellery brand that is reaching out to jewellery lovers in India and also many parts of the world.´ he explained.S. across the country and the globe. 112 distributors and 1246 outlets in India and 143 outlets in U. With the launch of Ezeediamonds. the group has seen it fit to bring stars to interact with public. Maya.´ Choksi added. Samuels etc. The Gitanjali Group¶s efforts have not just built the company¶s more than 30 different brands but also made jewellery ± diamond or otherwise . Gili. Strong marketing & distribution network. with the consumers. D¶damas.Choksi noted that the shift has been a result of the company¶s strategy as it moves away from diamonds towards branded jewelry. Desire. Strong brand equity and broad product range Such as. By retailing the µaspirational¶ quality of diamonds. and men. . ³We are developing brands for each market which will develop aspiration which will not only be in our stores but in others too. Chairman. Towards this purpose. On the star visits to the showroom. as with the rest of the group¶s other jewellery brands. Asmi.´ ³Our aim is that price should be immaterial. None other than the World Gold Council endorses D¶Damas Gold jewellery. SWOT ANALYSIS OF GITANJALI JEWELLERY LTD Strengths Large integrated diamond & jewellery player and having an international presence. D·damas. is today worn with pride by women. With an extensive and highly intensive branding exercise built upon by an impressive & aggressive advertising campaign and the wholehearted support of a pro-active media. Gitanjali Gems commented. age-groups and levels. Gitanjali Gemsaims to revolutionize the diamond market and change the way the common man currently looks at Diamonds. And in a bollywood crazy country like India. Vivaaha. ³Ezeediamonds is essentially about selling loose diamonds on a retail platform. we want to bring it within the consumer¶s reach ± not only for the elite class but also for a much larger target audience. Pioneers of branded jewellery in India. Strong retail presence in India and in U. D¶damas is today a household name. Sangini. in just the way µgold¶ in India is. ³My major work is going to be in the brands. ³Consumers should want to possess the item regardless. across different strata.into an accessible and affordable luxury commodity that most Indians now know they can buy and posses with immense confidence and delight. Giantti.S.´ The Gitanjali Group lays great emphasis on celebrity endorsements and has associated itself with Bollywood intricately to bring about a larger than life association of its various brands. what would have been a better option but to tie up with the much awaited flick like CASH and reach out to a wider audience ³ D¶DAMAS is a mega . Nakshatra.
leather goods. Expansion possibilities in lifestyle and luxury products in India like watches. Samuels.Visionary leadership (Acquiring Nakshatra. Marketing & Distribution related factor: Strong retail presence in India and the U.S.37 million Rs. As the major raw material requirements need to be imported. Other local competitors.) Expanding manufacturing capabilities in Mumbai and at special economic zone in Surat to address increasing demand.460. Sri Lanka and Thailand's entry in small diamond jewellery. Strong brand equity and broad product range: It is the pioneer of branded jewellery in India. According to the data 97% jewellery sales are by family jewelers. Industry moving from a phase of consolidation. It brand equity is too high. qualified and motivated employee Weaknesses There may be conflicts of interest between them and certain of their Promoter group companies. Threats International Competition:-China. Gitanjali has a strong network of distribution. companies normally stock huge quantities of inventory resulting high inventory carrying costs.A. Here Strong retail presence in India and in US. Increase in the price of Gold & Diamonds. Threat from producing nation like S. Opportunities New markets in Europe & Latin America. Growing demand in South Asian & Far East countries. Sight holder status with DTC through a promoter group company. Platinum jewellery because increasing disposable income of people.: The company is occupying good position in retail jewellery provider in both India as well as U. So we can say that it is financially very strong company. .S. & Russia. Highly skilled. Rogers etc. Net Worth is 3. It has 112 distributors and 1246 outlets in India and 143 outlets in US. Technology is less improved compared to China and Thailand¶s company.
86 billion last year and has over 200 exclusive stores. crowded diamond hub near Opera House in South Mumbai. he gave up eye glasses and the assortment table for a chic office to play host to high profile guests. Choksi unabashedly talks of revenues of billion from his 60-odd brands. Choksi operates from the city¶s latest financial district. Its long term loans stood at Rs. which owns 50 brands netting it over 17 billion euros in revenue in 2008. D¶damas and Gilli under his belt. 700 crore. 1.´ By any standards. He also has over 150 retail stores in the US by virtue of two acquisitions his company made last year.Significant focus on retail and distribution network to drive growth: It also keeps in mind distribution network which provide the product to end users. Gitanjali has been achieved economies of scale and learning curve effects which is benefited in low cost production because in India skilled labor is available at cheaper rate For a traditional diamantaire.600 crore and the company had an inventory of Rs. if you read a little deeper into Gitanjali Gem¶s financial statements for 2008-9. something on the lines of LVMH. The company sold goods worth Rs. 1. which sell well known brands.2 billion in the next ³few years. advertising expenditure and balance sheet. which had net sales of . mostly Bollywood actors. Its sundry debtors owed it Rs. Choksi is already the largest integrated diamond jewelry retailer in India with brands like Nakshatra.600 crore. Manufacturing related factor: Sophisticated manufacturing facilities including upcoming Hyderabad SEZ: The company is having good infrastructure facility in various special economic zones. Even more so.´ says Choksi. Even as his peers continue to hunch over the table sorting out prime diamonds. He is aiming to be the world¶s biggest jewelry retailer. Mehul Choksi is on unfamiliar territory. branding and selling them through retail outlets. managing director of the Mumbai-based Gitanjali Gems. that¶s a tall order. For Gitanjali. He talks of brands. the 50-year-old college dropout ² whose clothes come stitched from Hong Kong with his initials embroidered on them ² talks passionately about making jewelry. Two years ago. 2. at the same time. A mere look would tell you that the company¶s cash is not gainfully employed and any default from debtors may well send it into a financial quagmire. 40 percent of it on consignment basis for which it gets paid upfront. nearly as much as its remaining sales. ³The next LVMH (the international luxury group with brands like Louis Vuitton and Christian Dior) will be born out of India. something his hush-hush industry has often shied away from. growing bigger than Tiffany. . from the current consolidated sales of . He has a flashy ambition. create a group full of well known brands. The company is having its retail outlets also. Unlike his brethren from the billion diamond cutting and exporting business who haven¶t moved from the old.700 crore.
Gitanjali went ahead with the IPO with a new lead manager and mopped up the targeted Rs. Its two lead managers. The company¶s retail jewelry sales are growing fast too. known names in the financial world.´ says Nair. According to the International Diamond and Jewelry Exchange.Choksi says though export sales of diamonds were a problem last year due to the slowdown. Says Choksi: ³Our business model is changing and some of (the) legacy is reflected in the numbers. Gitanjali had made a statement. It also didn¶t help that the industry is eyed with suspicion and its detractors talk in hush tones about money laundering and ³terror money´ finding its way into the business. I might have not taken up Mr. the same two lead managers came back and asked to be part of Gitanjali¶s latest fund raising initiatives ² a 0 million foreign currency convertible bond and a 0 million global depository receipt. Next week. if I had known the industry as well as I do today. In an industry known to work more on oral contracts than written ones. ³Our confidence stems from the fact that our retail jewelry business has been growing more than 20 percent even during the downturn.8 billion after they were cut and polished by the likes of Gitanjali. According to a senior industry official. rough diamonds of billion in the mines were worth . But the icing on the cake lies in the profitability. Choksi saw the writing on the wall pretty early. Today. Choksi¶s move to bring in a corporate-like structure at Gitanjali had been beset with hurdles. They were politely refused. thanks to the fast growth of retailing through malls and shopping arcades. The initial public offering (IPO) in 2006 was a particularly difficult affair. his sales realisations have long led times. as he is making substantial investments in building a chain of stores and associated infrastructure. whereas more than 70 percent of the additional value accrued to the companies that sold those diamonds in branded jewelry. He has leased up a dozen more places in the last couple of months when real estate was available cheap to enlarge his retail presence. ³Back then.000 square feet retail outlet in a plush south Mumbai mall. They value increased exponentially to billion when they got sold in stores across the world. in 200607. 330 crore. Though the Gujarati businessman already had 15 brands under him by 1997. A year later.K. that Choksi had an opportunity to hone his skills in actually building a popular brand. Choksi also had to go against the tradition and push his business through branding. He also wants to be classified as a retail company. it was only after DTC ² the trading arm of miner De Beers ² introduced Nakshatra in India in 2000. Gitanjali¶s executive director and in charge of finance. Gitanjali¶s net margins at 8 percent already seem to indicate that trend. diamond companies profit margins lie between 2-3 percent.´ There is some proof to back up Choksi¶s claim. compared to 9-12 percent for jewelry companies. or IDEX.´ says G. Gitanjali is opening a sprawling 10. jewelry accounts for 40 percent of Gitanjali¶s sales but Nair expects that the diamond business to eventually contribute just 20 percent of its increased sales. backed out in the last minute citing ³reputation´ problems with the diamond industry. about 15 years ago. . We want to be there when the tide turns. Choksi¶s offer. It wasn¶t easy. Though most of the growth in the jewelry business came in recent years. Choksi realized that he was in the lowest end of the value chain. Nair.
After four years.2 billion in 2008. They revolted but Choksi ignored them.DTC¶s retailing model ² giving consignment rights to its site holders like Gitanjali to sell the brand through family-owned retail shops ² backfired.100 crores over the next 2 years. The continued branding media blitzkrieg sucks out about Rs. This year.1 Diamond Jewellery Brand . ³Today all our brands follow the FMCG model. Angola. only about five are profitable. The South African company changed tack and handed over the management to Gitanjali Gems. GCC & Lahore. it is expected to hit Rs. Investment by Gitanjali so far exceeds Rs. 250 crore. set up a team of designers. Realising that he needed to do something out of the box to drive Nakshatra. He got in a new marketing team with experience in selling FMCG products. Each of my brands should have its own identity and not known for their association with Gitanjali Gems. from 0 million in 2005 to .´ The confidence is reflected in his move to increase prices of his brands when others were slashing to stimulate demand. 100 crores which includes brand nurturing. introduced new product lines and tied up with big retail chains like Shopper¶s Stop to sell his brand. He opened zonal offices. The Company would pump in another Rs. Choksi brought in Samsika Marketing Consultants. 400 crore and become the biggest jewelry brand in the country. Out of his many brands. Gitanjali Group acquires India's No. Last year. 500 crore a year. the move has paid dividends..). For Mehul Choksi hasn¶t believed in retaining the status quo.Nakshatra Gitanjali buys De Beers Groups Flagship brand in India . In 2008. Now he wants to double the retail presence in the US. where it has production facilities. Its products didn¶t have uniform prices and the site holders and the retailers were under no obligation to sell the brand in preference to their own jewelry items. Strengthens its position as pioneers of branded diamond jewellery in India owning the largest & top most brands.´ says Amrish Masalia. it is planning to double its retail network to 100 stores. but we have brands for masses. Similarly in China. Ltd. has got the industry hooked. Singapore. Choksi has changed from a diamond trader to a globetrotting executive with the same penchant for board room discussions as for Page 3 parties attended by Bollywood celebrities (25 of whom are his brand ambassadors). ³Tiffany is a brand for classes. DTC's most premium brand 'Nakshatra' is sold to over 480 jewellers in India and also worldwide in United Kingdom. Gitanjali has tied up with Damas International to open 100 stories in another three years. Over the years. The Jagdeep Kapoor-led consultancy advised Choksi to use the fast-moving consumer goods model to sell Nakshatra. the Gitanjali subsidiary that owns Nakshatra. But Gitanjali¶s scorching growth. CEO of Brightest Circle Jewellery Pvt. Each day three to four outlets will be added and a new brand will be launched every few months. the Katrina Kaif-endorsed premium luxury brand had sales of Rs. 100 crore. the most experienced among the site holders in selling branded jewelry. 7 crore in annual sales. Nakshatra had logged only Rs. In West Asia. Choksi never sounded more confident. a blasphemous advice for the then marketing team that was full of jewelers. Gitanjali Gems completely bought out Nakshatra for Rs. There are talks about a billion dollar acquisition in the US. brand purchase and stake Nakshatra brand purchase and 100 % stake in BCJPL (Brightest Circle Jewellery Private Ltd. Nakshatra . Another three to four have broken even but not made considerable money.
Also this acquisition brings unparalleled depth and breadth of lifestyle and product offerings to existing and prospective customers of Gitanjali.´ Gitanjali has a reputation of bringing world-class brands in the country. ³Nakshatra has been a key component in the rapid growth of the Indian diamond market since its launch in 2000. D¶Damas. Maharashtra. hence positioning India as the house of luxury & premium brands. On the other hand Gitanjali will not only have access to the entire spectrum of Nakshatra but also leveraging its existing brand value that will give control over the entire value chain in the diamond jewellery business. (a joint venture between Gitanjali and two other companies. Louis Vitton.The Rs. etc. airports.. thus ensuring greater shareholder value and boost to the bottom line. Gianti and several others to establish itself as the pioneers in innovation and technology. Director of International Markets. The acquisition is a significant step towards moving up the industry value chain and will offer a range of synergies to Gitanjali¶s existing operations. Mr. The group will soon introduce other lifestyle accessories like designer bags. Gitanjali aims to blend this popularity to bring Nakshatra to the next level ± a brand that truly speaks class. Nakshatra was a brand owned by the DTC.DTC¶s most premium brand. The company now plans to extensively broaden the Nakshatra brand portfolio hitherto restricted only as a diamond jewellery brand. 3500-crore Gitanjali Gems Ltd. which includes stand-alone stores.in shops. One of the brands under the Gitanjali fold. De Beers Group Marketing. a rare achiever. µWe are aggressively pursuing opportunities that will synergies with the company¶s philosophy to add incremental value at every level of the supply chain. & India¶s most recognised and loved film star as its brand ambassador. etc. This acquisition gives Gitanjali Group sole rights over the world¶s most supreme diamond jewellery brand and also 100 % stake in BCJPL. belts etc to complement the contemporary global citizen. We are happy to see the successful conclusion of the transfer of the brand to Gitanjali Ventures.). with manufacturing. Mehul Choksi. Gili.¶ commented David Rudlin. Mumbai. one of the most beautiful women on the planet.. It may be recalled that the company has introduced renowned brands such as µAsmi. Speaking on the momentous occasion. 1000 crores over the next 5 years. an important partner in its success to date. It desires to be at par with the international brands like Gucci. India¶s largest integrated diamond and jewellery manufacturer and retailer. Gitanjali to expand and manage Nakshatra sales through various avenues and maintain the leading position in the branded jewellery segment. . With Aishwarya Rai. and partners of Gitanjali Group.will now be available in over 200 different retail formats. Chairman Gitanjali Group said. Gitanjali aims to position Nakshatra as a Jewellery and Lifestyle brand worldwide and report sales worth Rs. watches. 2008 /India PRwire/ -. today announced the complete acquisition of Nakshatra Diamonds . January 8. Ltd. This powerful acquisition will drive much more value to key stakeholders including end customers. distribution and marketing rights held by done by Brightest Circle Jewellery Pvt. the brand has a great aspirational value attached to it. it can leverage the group¶s well-earned reputation for ethics and values in a business where such attributes are critical to win the trust of consumers. This all adds up to advantages including better deals for consumers and access to the world¶s most coveted brand than ever before. shop.
The Effie is the most significant award in advertising that recognize effectiveness and honours tangible results. and its diamond and other jewellery products to various international markets in Europe. the United States. including to Antwerp and Italy. The continued success of Nakshatra is a result of its constant metamorphosis. Collection G.e. Nakshatra also manifolds over 11 times growth in terms of volume in the last three years. in India through its network of approximately 840 outlets. Its operations include sourcing of rough diamonds from primary and secondary source suppliers in the international market. and the sale of diamond and other jewellery through GGL's retail operations in India. The Gitanjali Group has extensive knowledge and experience with US product ranges for over two decades. Gold Expressions and Vivaha Gold. such as Nakshatra. It¶s offered in superior quality diamonds of 4 Different Grades certified by the most reputed International Gemmological Institute. as one of India¶s leading brand in Diamond Jewellery Segment. a DTC sightholder. Gitanjali Gems Limited is also playing a key role in adding capabilities to the Jewellery industry in India by building two SEZs. is one of the largest integrated diamond and jewellery manufacturers and retailers in India. GGL also sells its branded diamond and other jewellery products under brands. In its first year. The in-house designing team at Nakshatra is extremely innovative and comes up with fresh ideas and . Hong Kong and Thailand. Its available in three collections Nakshatra collection. including Japan. the Middle East. as well as to markets in Asia. for every one Nakshatra sold the retailer is able to sell 4 more pieces of floral jewellery. Such is the strength of Nakshatra that 70% of retail outlets stocking the brand credit it for playing a key role in boosting overall diamond jewellery sales and increasing consumer footfalls The Halo of Nakshatra on floral sales is 1:4 i.With 170% growth in value since its inception Nakshatra has retained its position as the most preferred brand in the Diamond Jewellery Segment. Sangini. In 2007 Nakshatra was awarded the Retail Jeweller Award for the best TV campaign of the year. The brand is available in 18 Kt BIS Hallmarked Gold. The company exports its cut and polished diamonds. Asmi. In 2003. The Nakshatra Collection has unique floral designs with multiple diamonds encircling a single large diamond to signify the constellation effect. as well as in international markets. China. the Nakshatra Utsav was awarded the Best Trade Promotions award at the McDowell¶s Signature All India Promo Awards. Notes to Editor About Gitanjali Gems & Jewellery: Gitanjali Gems Limited. including one across 200 acres in Hyderabad. Nakshatra was awarded the Effie (Silver) in 2001 and in the following year the Effie (Bronze). one of the largest of its kind. Gili. Eternity Collection & Solitaire Collection. About Nakshatra Launched in 2000 Nakshatra reached the iconic stage in just three years. D'Damas. Nakshatra has emerged. cutting and polishing the rough diamonds for export to its international markets. Special Packaging and its own guarantee certificate promising the purity and sparkle of Diamond. an achievement no other diamond jewellery brand can boast of.
Gili¶s primary brand value is ³Genuine diamond and gold jewellery at affordable prices´.Under D¶damas are numerous brands that have made a mark on the Indian milieu like Forevermark Solitaire.concepts which have received recognition at the JCK. its brand portfolio. Over the years the group has launched many other superior brands and today it successfully manages over five of the ten best-known jewellery brands in India. Nakshtra has established itself as an ethical player in the market as it comes with its certificates of authenticity and assuring transparency in the buying decision of the consumers Overt Nakshatra brand values include beauty. Capitalising on the strength and flexibility provided by Italy¶s industrial districts. Asmi in Sanskrit means. radiance. Bollywood Gold. Sangini is positioned as a brand that glorifies women in a relationship. Ballerina.´ ³Innovativeness. Vivaaha. the IIGJ Awards 2007 and the Tahitian Pearl Awards 2005 and 2007. The Brand factory: In 1994 the group introduced India¶s first ever branded jewellery Gili.´ D¶damas has been recognized and awarded as a Jewellery Masterbrand.´ ³Assurance´ ³Dynamism. The Asmi Diamond Jewellery Collection is carefully crafted to beautifully compliment and complete her. class. the brand still ranks as one of the top ten jewellery brands in the country. Rated as a super brand. Inspirations. The Group¶s aim is to become one of the leading players in the accessible luxury market worldwide by further developing its product offering. world renown for their excellence in the development of luxury products. D¶damas is a generic brand that combines international quality with Indian values. Collection G. Every action of a woman is a passionate exposition of the intensity and drive with which she lives her life. Nakshatra is synonymous with trust and purity in a category that is fraught with questionable practices. celestial splendour and mystery The Nakshatra Collection has unique Floral designs with multiple diamonds encircling a single large diamond to signify the constellation effect Special Packaging and its own guarantee certificate promising the purity and sparkle of Diamond. D¶damas is about ³Luxury and Aspirations. elegance and quality. It e pitomizes the expression of love and affection in women¶s life. Sangini diamond jewellery is characterized by a bezel set centre stone being slightly larger than the others in the same piece signifying the focal position of the woman in the man¶s life. and its global distribution network .New Delhi Gold Souk design award 2006. Glitterati. Desire Desire Lifestyle is a diversified product range that addresses the lifestyle needs to reflect the style and upcoming trends among the masses. Gold Expressions. Amongst the symbolic values are feminity. ³I am´. Damas Solitaire. The first jewellery brand that brought diamond jewellery within the reach of masses.
This case study examines the lessons learned by a µcommodity marketer¶ who fundamentally changed the value that customers placed on its commodity offering and made it an essential part of customers¶ lives. Harry Oppenheimer. could already make out the distinct façade of the N. Specifically. perhaps the awe he felt looking at the grand building as he approached it was an auspicious sign. He had come to enlist the services of what was considered the most experienced advertising agency in America in order to save his family¶s jewels ± the DeBeers diamond company. as he walked through the square. and choosing whom to sell to is critical Why customers appreciate a brand even in a commodity market How emotional connect is critical to building brands. Ayer & Son building a short distance to the northwest. Although only in passing. 1938. Jr. He hadn¶t travelled all the way to Philadelphia from South Africa. He also couldn¶t help feeling a little hopeful. Oppenheimer thought to himself that it seemed like a somewhat ironic relic of the not-too-distant past as it had only been completed a year before the Crash of ¶29. to reflect on modern architecture. . however. when everything took a nosedive as the Depression set-in. Though he was seeing it for the first time. it offers the reader useful lessons in: y y y How end-users and buyers have different motivations. there was no question that this was the right place. Home to the first advertising company in the United States. the ten year old building was already considered a fine example of Art Deco architecture.W. even at the worst of times In Search of Salvation One day in September.
DeBeers had fallen on very hard times. he believed that an artificial scarcity would make them more valuable and get the company better prices. Demand was so low that the company had to reduce production from over 2 million carats before 1930 to only 14 thousand carats by 1933 ± less than one percent of the prior volume! Despite having cut production to a trickle. there was a stockpile of unsold diamonds by 1937 ± people simply weren¶t buying! As a wholesaler. what reason would there be to stock-up in bulk? Earlier in the decade. The company was in trouble ± serious trouble. They were barely afloat as it was. diamonds were seen as super-expensive objects meant for a small aristocracy. who in turn worked with individual shops. In other countries such as the U. Diamonds were simply not a viable commodity in such a climate. The diamonds would eventually end up on the tennis bracelets of sporty young wives.Hard Times Hard Rocks Like so many other luxury product firms. Since diamond prices in Europe had collapsed. luxury items like diamonds would be even less in demand. And they simply weren¶t buying.K. sales simply didn¶t pick up after this move. but it was the companies in the supply chain who did the actually buying from DeBeers. Why would they? If business men weren¶t inclined to splurge on jewelry for themselves or their wives. Oppenheimer decided that he would need to place all his eggs in the American basket. his father had attempted to reinvigorate the market by shutting down their major mines to promote scarcity and cut back on costs. Many European countries such as Germany and Italy had no tradition of diamond rings being gifted at an engagement or any other event. who then worked with the jewelers. While the move cut costs. the new market would have to be dealt with very differently. Not just that. DeBeers primarily focused its attention on selling its products to large manufacturers. for Make them . with a major war brewing in Europe. or the cuff links of debonair entrepreneurs. And now. since the onset of the Depression.
It hadn¶t gone far enough. though. was going to remake DeBeers from a mining company that sold wholesale gems to manufacturers.beg for more! Despite the failure of his father¶s plan. While the plan had focused on making the diamond rarer (and therefore something to be coveted). As they sat at a desk in the firm¶s office overlooking the square they probed the relationship between the end-customer and diamonds. it hadn¶t done anything to stir demand among the people who would ultimately buy it. Jr. retailers would soon be begging DeBeers to give them more stock! And that¶s precisely why he was now passing through those huge bronze doors as he entered 210 West Washington Square. Oppenheimer felt absolutely certain that the end-customer was where they needed to focus their energies. into a company that sold diamonds to consumers. Oppenheimer still felt that it had been a step in the right direction. Oppenheimer. If they were . Ayer¶s ad execs and copywriters began working on this task.W. Getting the truth from the horse¶s mouth Over the next several days Oppenheimer and a top team of N. If consumers wanted to buy diamonds.
they needed to know what buttons to press. it was young men who bought engagement rings. He offered to pay for the cost of the research. people the world over were thinking of their loved ones. This allowed the company to move the American market towards better quality (and higher priced) diamonds. DeBeers also introduced subtle cues to highlight that the larger and finer the diamond. Now they had to work on making that association even stronger. caressing their treasured keepsakes as they prayed for their safety and better days to come. The retailer may be the one to buy the diamond from DeBeers directly. but Oppenheimer felt these answers to these questions would give them the breakthrough they needed.going to talk to customers directly and get them to buy more. consumer research wasn¶t common. DeBeers had to convey that diamonds were more essential than ever. This implied that there was already a relationship between diamonds and romance. but it was that young wife who saw her husband as she glanced at the delicate bracelet around her wrist. Movie stars were roped in to wear diamonds and fashion magazines talked about the diamonds that celebrities had been gifted as µa symbol of love¶. With war all around. DeBeers research suggested that in over 90% of cases. they thought about the current mood around the world and where diamonds fit into that picture. They set about this task by strongly associating diamonds with the courtship process. A diamond wasn¶t a rare gem ± it was a symbol of love and family. As the team worked together. was so significant about diamonds? Why did people buy them? Who wore them and why? How did they make the recipient feel? In those days. and Europe already under the heavy hand of totalitarianism and bloody conflict. What. A . With the dark clouds of the war brewing on the American and Asian horizons. the better it reflected a man¶s love for his woman. for instance.
the DeBeers name or logo did not feature in this campaign. Now. to the point. sales of diamonds in the United States rose 55%. struggling to capture this new meaning. It was in that year that Frances Gerety. the downward trend in retail sales had been entirely reversed. and a powerful message that appealed directly to the buyer ± it was the ultimate tagline. any growth in the market would automatically be to its advantage. a copywriter for N. It was simple. By 1941. but to get even more people to buy one. Ayers. The company had already created a solid-foundation for themselves by establishing a relationship with the end-customer. Diamonds were now seen as a symbol of love. she could also pass it on to her children as a family heirloom and an everlasting symbol of love. the company acted to further strengthen the positioning it had adopted. Interestingly. they also had to convince them that diamonds were good value in themselves. It was a campaign in 1948. The company reasoned that since it controlled the bulk of diamond mining. scrawled the message ³a diamond is forever´ on the bottom of a picture of two honeymooning lovers. Not only could the wearer take pleasure in them. that did this and forever changed DeBeers and the diamond industry as a whole. In the early 40s. and in just three years.W. DeBeers began to regain its former success as people came to view diamonds as the ultimate symbol of love.(Repositioned) Diamond is Forever Over the next several years. Diamonds Lasting for . Gerety developed a slogan that suggested that diamonds were immortal.
however. the company found that many young people. who could not afford a diamond ring at the wedding. a slight increase over the previous year in difficult circumstances. While diamond rings had been exchanged in the past. It was also DeBeers that set the standard of two months salary on these rings. would still save up to buy one a little later.W.Success With this campaign and other initiatives supporting the same message. In 2008. it was after Gerety penned her famous line that no bride-to-be was to be found without a sparkling diamond gleaming on her finger. the company continues to thrive and controls about 40% of the world diamond market. but they also spearheaded the birth of a new tradition ± the diamond engagement ring. DeBeers made gross profits of $1. DeBeers not only remade public understanding of the meaning of what a diamond represented. which so many young men eagerly work towards setting aside. By 1960. fast-growing markets such as India and China. DeBeers continues focusing on maintaining and strengthening the meaning of diamonds and translating it to newer. Since 2000. a global diamond brand promising quality and integrity (ethical mining and trading practices) in an attempt to gain a premium for its own diamonds. Oppenheimer Jr.2 billion. Today. DeBeers continued to take its demand-led approach further and started focusing on quality diamonds from its own mines rather than surfeit quantity due to representing numerous others. sixty years later. Ayer¶s went on to successfully oversee one of the greatest company resurrections in business history. This is actually a come down from the days when DeBeers controlled 80% of the world diamond trade. as many other companies entered the market. Today. and N. Its long-term association with romance and love still makes it a preferred supplier for retailers and it enjoys better profitability than when it dominated trade and had to constantly work on creating scarcity. They repeated the American success in other countries around the world. In the 1990s. the company has launched ³Forevermark´. .
India as a country has always been jewellery-centric. Tanishq is the first and only jewellery brand to have organized mass jewellery retail chains across the country. more discerning and wanting the best of brands.The Indian Consumer is changing. unmatched collections and assured purity. The past decade has seen a gradual shift towards diamonds. trendy and modern. With a strong presence in 70 cities across India.It is no surprise then that diamonds as a category has grown tremendously.Nakshatra Diamonds were launched in the year 2000. Tanishq has quickly become the first choice of discerning customers. More aware. . Diamonds are being perceived as being fashionable. this consumer wants it all and is ready to experiment.Today. the brand has become one of the leading fashion diamond jewelry brands in India.Here is a list of the topmost diamond jewellery brands in India today which women choose to wear : y Tanishq Having embarked on the retail journey a decade ago. Tanishq is the largest jewellery retailer in India.Although there are several small scale unorganized jewellery markets. y Nakshatra Nakshatra is a brand renowned for being the first branded diamond jewelry range in the country and it has produced some great designs.
bracelets and sets. y D¶Damas One of the predominant forces in the jewellery retail franchise sector. For her. D¶damas offers Indians a vast array of world class gold.D¶damas range comprises ornaments like pendants. chains. combined with the reasonable price range. necklaces. Prospective franchisees are sought throughout. bangles. social or professional responsibilities. y Asmi Asmi in Sanskrit means ³I AM´ It is jewellery for the new age Indian woman. diamonds and other jewels.which is patronized by the women belonging to almost all the segments of the society.The brand aims to fulfill . is one of the largest manufacturers of diamonds in India. earrings. celebrating her new found economic & social independence. The reason for this is their amazing designs.D¶damas the flagship brand from the house of Gitanjali Group. self indulgence & self rewards are needs that co-exist with her family.
Asmi Jewellery has a contemporary delicate and feminine look. It is not just in the field of design that the company has been innovative and contemporary.every woman¶s innate need for self expression while lauding her inner fire. rather than just a mere valuable. one of India¶s largest exporters of Diamond Jewellery. the first branded jewellery of India. shifted this paradigm ³from occasionally« to the need of every occasion´. with a vision and passion to .A team of people.. y Nirvana Nirvana is a range of exquisitely crafted diamond jewellery launched in Indian in 2002 by Fine Jewellery Ltd.It has been launched with a view to the new age customer who buys jewellery as a fashion statement. y Gili Gili. started in 1994 when jewellery was treated as a possession but Gili with the clear image of future needs.
each jewellery piece has been created based on in-depth research. Her spirit. her grace. Designed to depict versatility.venture into the jewellery market led to the establishment of the brand that you discern. A word that epitomises the person it was created for. the invisible glow that . y Orra A light called Orra is a leading diamond jewellery brand of the nation today. her grit and most importantly. conducted to find the prevalent design preferences amongst young people.A collection of alluring diamonds studded in white and yellow gold. A legacy that spanned decades can now be summed up in one word ± Orra. it is an assortment of pendants. and devour as Gili today. distinguish. y Kiah Kiah diamond jewellery. rings and earrings. from the house of Sheetal Group. has created an exquisite line of jewellery for women.
y Sangini The Diamond Trading Company announced the launch of its new collection ± Sangini Diamond Jewellery (SDJ). What better way to express it than through a gift that speaks a thousand words. both affordable and high-end. Sangini understands the delicacy of the emotional bond that exists between a couple and has come out with an entire collection that highlights this emotion.It is a brandname that focussed on a woman¶s nurturing spirit as well as her soaring ambitions. in the year 2004.surrounds her persona. Ltd. Adora was launched in July 2003 by Mumbai-based Concept Jewellery (India) Pvt. that rises above the concept of jewellery and . the perfect expression of love from a husband to his wife. Adora is now established as an accessible brand. y Adora Adora diamond jewellery is themed on love and celebration of life.
besides restricting the size of the market and avenue of growth for the countries with . they end up purchasing the merchandise from the main metros. According to Anil Prabhakar. He says.approaches the bigger concept of lifestyle expression. as no country could export more than the quota allocated to it. the savour of the customers remains more or less the same who prefer world class design. franchising is likely to be one of the credible business models among the retailers. Starting from Milan to Paris to Mumbai. IMPLICATIONS OF END OF MULTI-FIBRE AGREEMENT (MFA) FOR TEXTILES AND GARMENTS INDUSTRY IN INDIA The MFA has governed the world trade in textiles and garments since 1974. Owner. Also. At the same time. However. This. i. domestic brands are also converting and upgrading them from the mass to class luxury retail. Vice President (Business Development). daily wear or light weight jewellery. large numbers of players are venturing into this gem and jewellery retail sector. Swarovski also aims to add over 25 outlets by the end of 2009. India does not require further customisation as the customers have built up their taste over a period of time which is very subjective. In other words. ³At this particular stage of luxury jewellery business. despite having the potential of the customers of tier I or II cities to buy luxury jewellery.´ He further elaborates.e. There are brands like Gitanjali. Gitanjali Lifestyle.´ More market penetration Recognising the potential of the emerging luxury jewellery market. It has been the main instrument for protecting the domestic textile industry of the US and the EU from the increasing competition from developing Countries and was meant to be a transitional measure to provide time to their industry to adjust. Paradigm shift: from mass to class luxury With the upsurge of the foreign players¶ entry into India the branded diamond jewellery is getting established and is making its own identity in the market. Mangatrai. it is not true that the consumers never prefer to purchase a jewellery piece designed by foreign designer. Textile industry therefore developed in these countries like Bangladesh and Mexico to exploit the lack of quota restrictions. MFA was not applicable to trade between the rich developed countries and to exports from the Least Developed Countries. The MFA resulted in restricting the size of the textile industry in the exporting countries with natural competitive advantage in the area. Future Group-owned Navras is also foreseeing to have around 100 in-stores in Big Bazaar by 2011. a Hyderabad-based company admits to expand to towns to sustain in the market. ³Though there are Indian designers and manufacturers to give the taste of traditional and Indianised jewellery. Cygnus and Tanishq who have already successfully expanded through franchise route. the big players still cherish a mindset to expand their retail chains in the metros. Adora was conceived and launched as a brand with a high aspirational value backed by the highest degree of customer trust. Reliance Jewel has an aggressive plan to open over 300 stores in 5 years across the nation. creating a move from lower to medium range of product-line. Orra.. Considering increased competition as a result of entry of large number of foreign players in luxury jewellery retail. Darpan Gupta.
64 of China. Malasiya.9%.98. 2. The size of the world textile and garment export market is projected to grow to about $ 655 billion by 2010. which is worth $ 400 billion currently. 0.90 compared to 3. 0. This is because India has a comparative advantage in textiles and garments. . It is estimated that India¶s share in total world textiles and garments exports can reach 8. India¶s comparative advantage India is placed in an advantageous position to exploit the larger market available in the post MFA regime. For the garments sector the market share is expected to increase by 50% from 6% to 9%. India will be one of the principal beneficiaries of the large market available in the post MFA. According to a study of the WTO.0% by 2010 from the present 3. India¶s market share in textiles in the EU is estimated to increase to 11% from the present 9% after the elimination of quotas.16. India¶s market share of textiles and garments is going to jump substantially in both the US and EU which are its principal exports market. In textiles India¶s advantage stands at 4.12 respectively as compared to 4. The figures for comparative advantage in textiles for Indonesia. A study of revealed comparative advantage of various countries in textile and garments done by WTO shows that India¶s comparative advantage is higher than China and South East Asia in both textiles and clothing.67 of India¶s.67 as compared to 3. In garments too it is marginally higher at 3. Philippines. Thailand and Vietnam are 1. In the case of USA.41. 1. India¶s market share in garments is estimated to quadruple to 15% in post MFA from the present 4%.18 of china.comparative advantage also perpetuated an inefficient production structure in the world textiles and garment industry. South Korea. which emanates from the low wage costs and access to domestically produced fabrics and other inputs. 1.49.36. The Opportunities for India The completion of phasing out of the MFA on 1st January 2005 would expand the size of the market available to the countries that have been restricted by the quotas till now.
For example. which would come in the way of maximizing the gains from the opening of the market. Italy-14. which can cater to the rapidly changing fashion trends and demands.6% for china.2% in China. Also the quality of Indian products suffers.3%).7% in India textile industry and 7. despite our inherent comparative advantage the study of the costs suggests that the Indian garment and textile industry has a high cost structure. (USA-21. Since a large portion of our exports is from the lower priced segment where labour intensity is high. The proportion of capital costs to gross output is 6. India has all the requisites for maximization of the gains from the emerging opportunity. South East Asian countries and China who are India¶s main competitors have a lower labour cost. Thus. This fact comes out clearly in the study of capital costs. Unskilled labour costs as percent of gross output of garment industry for India is 21. This is higher than even some developed countries. (ii) There are big players who can do everything under one roof.6% for Vietnam and. exploiting the economies of scale available in post MFA.0%. (iv) India has a large base of skilled workers.1% as against only 9% in Vietnam. Thus. This is lower than that of its main competitor China. The present constraints However.8% in garment industry.8% for India as against 1. which would provide it a strong base for accelerating the growth post MFA are: (i) the easy availability of almost all raw materials from fiber to yarn to fabrics and others domestically. it is important to improve the efficiency and productivity to increase the cost competitiveness of these segments. 1. 2. It is only then that India can compete in this segment where competitiveness is driven by lower costs. This is going to be one of the most important factors in determining India¶s competitiveness.3% for South Korea. This is one of the reasons for lower efficiency and productivity in the Indian textile and clothing industry.2% of gross output for clothing . The skilled labour costs too are higher than South East Asian countries. It is 2. where capital costs form 12. 15% in Korea and 18. The industry is also suffering because of very slow technological up gradation. (iii) India has a well-developed fashion design industry. especially in the standardized mass production market.The other strengths of the Indian textile industry. The same is the case with the textiles sector too.
ports and power infrastructure needs to be up graded on a war footing. This is going to be the real challenge before the Indian textiles and clothing industry in the post MFA regime. The retail market today has become concentrated and has considerable buying power thus should be the focus area for the Indian garment exporters. The information flow starts from the customer and forms the basis of what is to be produced and when. most of whom do not have their own manufacturing units but outsource from mainly the developing countries. The focus segment The garments segment is where maximum growth of exports is projected. The lower capital costs are reflecting the low capital utilization in the textiles and clothing industry. Some other suggestions for the textiles and garment industry are given as under: Infrastructure is a major bottleneck for exporters in meeting delivery schedules. They do not keep stocks. This enables them to reduce supply time in meeting new demands. This segment provides the highest per unit realisation and has high value added content. Roads. the Indian exporters have now to meet very rigid delivery schedules. IT has also allowed firms to know latest fashion trends very quickly. this lower capital costs do not provide any competitive advantage to India. Retailers accounted for more than 1/2 of total garment imports in the EU. . The garments segment broadly comprises the high-fashion garments. Therefore. Thus.0% for textiles. With rapid advance in use of information technology in supply and stock management most firms want supplies only at the time when needed.and 12. The maximum waiting time at Indian ports is still 8 to 12 days. Challenges before the textile and garment industry The study of the supply chain of the garment industry indicates that it is a demand-pulldriven market. low quality mass-produced / standardized products and low to medium priced segment. A dominant role is played by big retail companies these days like WAL-MART or companies like NIKE and ADDIDAS.
One solution could be a credible debt restructuring exercise to reschedule past debt of the industry at a revised lower rate of 7-8 percent to improve company balance sheets and enable access to fresh credit. There is a need to simplify the language of the laws to make them easily comprehendible to industrialists and reduce chances of discretionary interpretations. At present government issues 50 to 60 notifications on an average throughout the year. While improving quality and efficiency. The high interest rate structure in the past have created huge non-performing portfolios making it difficult for manufacturers to secure fresh credit for technological up gradation. Irritants in the TUF for textiles should also be suitably removed so that the fund could be used for effecting modernization of this industry. which directly or indirectly has an impact on the textile industry. as it creates an environment of uncertainty for exporters at the time of negotiating contracts. There is a possibility that the developed nations may resort to innovative non-tariff barriers as environmental conditions. which accounts for 60% of the fabric production. like the recent reduction in rates in the DEPB scheme. The government must restrain from issuing notifications throughout the year and keep them to the minimum required. unexpected changes in policy should be avoided. social clauses. One estimate puts the amount required for the modernization of the Indian textile and garment industry at Rs. a proactive marketing of the ³made in India´ brand as a quality product is a must for cornering a bigger share of the world market. especially the decentralised power loom sector.Improving India¶s competitiveness requires modernization of the Industry. Similarly. to protect their . safety standards etc.150000 Cr. This unnecessarily complicates matters creating procedural hassles and leading to delays.
improvement in dyeing and packaging technology to reduce the rejection rate. this segment requires investment in quality control. The competitive ability in high-quality fashion garments would be determined by the ability to produce designs that captures the tastes and preferences. An expired international agreement that set quotas on the textiles and clothing developing countries could export to developed countries. It is formally called the Agreement on Textile and Clothing SPECIAL FEATURE: MAHARASHTRA KALEIDOSCOPE Brand appeal A SPECIAL CORRESPONDENT . It was in effect from 1974 through the end of 2004. Competitiveness of the Indian industry. Therefore. which would have had a negative effect on the developed countries' economies. With the industry tightening its belt and government providing an export friendly facilitative environment. It was thought that developing countries could flood the markets in developed countries with less expensive textiles. India can very well exceed the target of achieving US $50 billion exports by 2010. which is around 5%.industry. R&D in design and product development and. At the same time one has to be cost effective. MIS etc. Therefore. An effective governmentindustry-institution partnership should be evolved to address this issue. More importantly. This requires investment in and maximum use of IT and systems like ERP. the government and the industry should regularly interact to track such cases and undertake remedial measures. which could produce the same textile products much more cheaply. India is quite favourably placed in terms of designs in high fashion segment but quality will be the determining factor. Critics of the Arrangement argued this hampered development. The purpose behind the Mulit-Fibre Arrangement was to allow developed countries time to adjust to competition from developing countries. is going to depend on their efficiency of supply chain management. better still influence such tastes and preferences. it is important that the Indian industry should go in for quality certifications and adopt best practices. especially the garment sector.
40. According to Mehul Choksi of the D'Damas and Gitanjali Group.10. even Valentine's Day calls for "a special something [read diamond] for a special someone".Branded jewellery has found a niche for itself in the tough Indian market. The diamond branded jewellery. he says. is especially impressive with the segment witnessing a 20 per cent rise annually as against 10 per cent a decade ago. at an exhibition in Mumbai. a study has concluded that it is growing in popularity at a tremendous pace of 20-30 per cent annually. having rapidly acquired a niche over the past few years. 30 brands were launched in 2004. In spite of pessimism about the marketability of branded jewellery in a country rooted in buying ornaments from the traditional goldsmith. . Jewellery is now marketed for every occasion. several companies have made inroads into the traditional jewellery industry. and its increasing growth rates show that before long it will corner a significant share of the jewellery market. PAUL NORONHA A replica of the Koh-i-Noor diamond created by De Beers.000 crores by 2010. WITH the retail industry in India burgeoning. Such is the potential of this industry that the consulting firm McKinsey estimates the branded jewellery market in India to grow at the rate of 40 per cent per annum to touch Rs. However. selling the product that was never really "marketed" in "brand" new ways. this does not take away from the fact that India is a tough market. branded jewellery has witnessed more than 50 per cent growth in the last three years. Some of the companies have even cleverly played on Indian customs and tradition to advertise and establish their brands. Although branded jewellery accounts for less than 10 per cent of the Rs. So much so that branded jewellery is the new mantra in the market.000-crore jewellery market.
window shop and decide at their own what they would like to buy. "Research conducted world-wide shows that nothing is more desirable than a diamond. One of the reasons branded jewellery is doing well is that now anyone can walk into a mall. film actors. endorsed by models. PAUL NORONHA Television anchor Mandira Bedi unveils a promotional offer at a Tanishq boutique. Some designs of these brands are so popular that local jewellers have begun to copy them. The entire culture of shopping has changed with attentive and helpful attendants and well-displayed products. But as these brands sell diamonds at prices that range from as low as Rs.500 a piece.1. DTC says. "Suddenly jewellery has become accessible and affordable for all income brackets. "You no longer have the sales staff who look at you and decide whether you are worth serving or not.1. you are assured of a good product. the sales and marketing arm of the De Beers Group. And as branded is equated with quality. What helps the growth of diamonds is that gold or platinum is not seen as competition. India is one of the fastest growing markets in the world. Almost 94 out of 100 women polled want the real thing. it could also affect the company because the cost may be lower. the country has seen a section of the population gaining exposure to designer wear. fashion accessories and globally branded products.4 million. "Why not have access to them?" asks Rima Khan." says Rima Khan.500. India is still largely a gold-dominated market." according to DTC. "While it is a compliment to the industry that people like the product. a brand executive." she says. Yet the most important part of branded jewellery is that you can get a piece of jewellery with a diamond for as little as Rs. The stone complements the metal or the other way round. In the past decade. According to Diamond Trading Company (DTC). "Of course jewellery is harder to brand but it has done well given the tough competition. The growth in diamond jewellery has been particularly remarkable. Everyone is a potential customer in the new market. sports celebrities and other wellknown faces. The diamond market in India is over $1. "the demand for diamonds has never been stronger"." says Rima Khan.Big drivers of this kind of jewellery are the numerous malls opening across the country with the emergence of an affluent class following the successful growth of the new economy companies. Today there are more than 50 brands. ." The shift was visible in 2004 when more than 30 players entered the market. diamonds have become relatively affordable.
The biggest challenge perhaps is in educating the consumer. "It plans to stimulate advertising and marketing investment to the levels that a luxury product like diamond jewellery deserves. though in its nascent stage in India. PAUL NORONHA The gold rush on the auspicious day of Dhanteras in Mumbai.Cut. which aims to grow consumer demand for diamond jewellery in the context of the expanding competitive luxury goods sector.The growth in the market for diamond jewellery brands in India is actually in direct response to DTC's Supplier of Choice strategy. "Buying jewellery is a very personal thing and we need to understand what we are buying. Branded diamond jewellery." says Cherie Tandon Saldanha. Consumers need to understand the four Cs . Extremely value-conscious consumers are willing to pay a premium for brands only if the brand appeal is high. DTC says it is encouraging the development of multiple competing diamond jewellery brands for the benefit of the entire industry. "DTC believes that strong brands are an essential ingredient in the transformation of the market for diamonds. There should also be an effort to transform trade to the standards required for selling diamonds. has shown encouraging signs but it still competes with other luxury goods." "Investing in diamond jewellery also makes sound financial sense. DTC's Supplier of Choice encourages clients to operate efficient and value-added distribution channels. educating consumers on this type of jewellery. As a pioneer in the industry. Carat. developing and establishing successful brands takes a long time. As in any industry. Companies that brand their products place a lot of emphasis on educating and therefore helping the customer make his purchase. To build a market for diamonds. it is imperative that quality spending is generated in the category through advertising and marketing. This is especially true of luxury goods. unique and eternal so there are a lot of emotions associated with buying or gifting a diamond. Colour and Clarity. According to DTC." according to DTC. Some of the challenges the industry faces are: tough competition from the luxury goods segment. and fragmentation of the market. DTC India's marketing director. multiple competing brands create category excitement and bring new consumers to the market. Of course diamonds are also rare." says .
"We have an average of 50 people on a week day and at least 100 on a weekend who walk in and look around the shop." And the big selling point is: "If you can spend Rs. Perhaps the best compliment to the branded segment is that old jewellery showrooms have also begun to design jewellery lines under a brand name . If you make the product look special. appeal to a young gentleman to buy it for a loved one.000 on two music CDs." The branded jewellery industry is still in its infancy. an attendant in a jewellery store at a mall in Mumbai. for instance. he is often interested.Seema Thakur.1. why not spend for that special person in your life. but increasing growth rates show that in a short time it will corner a significant chunk of the market.
drawing new customers into its sixty stores located across the country. GILI WORLD (AIRPORT). The brand has a 40% share of the organized jewellery market and a 1% bite of the overall jewellery pie. building long-term relationships with the existing. PANTALOONS. Gitanjali: Gili has it s manufacturing outlet at Andheri East. This small but significant niche is largely the creation of Tanishq. and for introducing pioneering concepts in an industry where tradition once ruled. 10 billion. and second. Gili is known for its Diamond Heart collection. Globus and Hi-style. JUST IN VOGUE.jewellery stores and brands managed by corporate houses . Gili is also available at up-market stores like Shopper's Stop. Successful demand generation through a slew of marketing measures is. which Tanishq has witnessed during the past years. LIFESTYLE. It has 256 outlets of which 3 are exclusive stores Gili is also present in stores like AKBARALLYS. SHOPPERS' STOP. Gili is spread throughout the cities of India.stands at about Rs. In 1997 Gili introduced Rivaaz . The critical success factors in the business were quality. Hence. profitable growth. at the core of the rapid. The company has two key marketing objectives-First. Many potential customers thought the products were over priced and associated the brand only with the rich. 400 billion a year and the share of the Tanishq:I nd ia s organized sector . When Titan launched Tanishq in 1995. WESTSIDE.Strategies adopted by top three players jewellery market is estimated to be worth Rs. Titan realized that there was a huge untapped market for branded jewellery in India. ASIATIC. Titan decided to change its strategy on two fronts: Value proposition Retailing. a collection of ethnic Indian jewellery Gili to attract its costumers and satisfy its consumers comes up with . Lifestyle. The Tanishq strategy for the coming couple of years relies on two things ²increasing penetration in the domestic markets and going abroad in order to diversify its revenue portfolio. Apart from the conventional jewellery stores.breaking effort that has earned a welldeserved reputation for reliability and excellence. popularised through the Valentine Day concept. CITI PLAZA. and good after sales service. This collection can also be bought through a mail-order catalogue. fashionable design. a path.
It will open between 400 to 500 jewellery retail outlets across the country. the global crystal goods manufacturer and marketer. It helps Gili to retain their customers & forms a good relation. also a promise of trendsetting seasonal innovations. Swarovski.69 . On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. Adora also offers its customers a unique Certificate of Authenticity. to ensure that both diamond ownership and gifting become a suitable and valued purchase proposition Emerging trends in diamond industry Infrastructure development: 19 more special economic zones (SEZ) approved (one SEZ specially for Surat in Gujarat). The Gitanjali Group has bought Nakshatra. Guarantee of Authenticity of its products. is adding 16 new stores to the 12 stores it currently has in India. part of one of the largest jewellery retail outlets in the world.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds. Adora Diamonds: Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd. up from the current 13. indicating a shrink in the distribution chain and Indian players have started to dominate Reliance Retail is planning an aggressive entry into the jewellery retail market. plans to set up 30 stores by 2009. Each piece of Swaranjali collection is conceptualized and approved by Lata Mangeshkar and bears her laser printed signature. b) provides with certificate of Authenticity Gili also comes up with special offers on top selling products Online shopping concept is also adopted by Gili Gili introduced Exchange Policy& Buy Back Policy at any point of time & anywhere in India. the premium brand of jewellery promoted by Diamond Trading Company (DTC) In an endeavour to expand its retail footprint and market share. Adora means glory in Spanish and claims that its diamond collection is themed on love. this would greatly facilitate export Setting up of the Bharat Diamond Bourse (BDB) to centrally locate diamond trading operations and would greatly benefit the Indian industry Joint ventures / Alliances on the rise. and phase of life through its up and downs. also customers become Brand Loyal because of such services. reposing the faith and trust evoked by patrons. Damas India. Adora diamonds are for adornment of every moment. occasion.e. diamond and jewellery manufacturer Gitanjali Gems has entered into an agreement with the Mineral and Metal Trading Corporation of India (MMTC). Gitanjali Gems would invest US$ 12.strategies like:a) Gili promise i. a leading bullion trader.
Multi-national jewelery brands such as Tiffany. domestic players are also drawing aggressive plans: y y y Shrenuj & Company Ltd has acquired 84. is adding 16 new stores to its present dozen stores in India. Now they are making inquiries for possible tie-ups in India. a Mumbai-based jeweller. some of the world's biggest names in the jewelery and luxury items such as watches and cuff-links are making inquiries to set up shop in India. the global crystal goods manufacturer and marketer. has incorporated a wholly-owned subsidiary in Dubai. is on an expansion spree in India and hopes to achieve 5 to 10 per cent of the global turnovers from the country in the next ten years. Also. will set up two exclusive stores in Mumbai and Delhi within the next three months. The company plans to set up 30 stores by 2009. Damas India. from the current 13. part of one of the largest jewelery retail outlets in the world. The company will invest US$ 24. whose main activity is trading in diamonds. (MMTC). both in Maharashtra. precious stones. the Gitanjali Group has announced its foray into the luxury retail market through a new entity µLuxury Connexions'. Gitanjali Gems Ltd. Italian luxury silverware manufacturer. y Two new special economic zones (SEZs) for gems and jewelery are to come up at Goregaon and Dhulia. through a marketing tie-up with Gitanjali Lifestyle ± a subsidiary of Gitanjali Gems. Kerala-based jeweller Malabar Gold will spend US$ 48 million over the next year in order to expand its presence in southern India as well as abroad. Swarovski. the state-run Minerals and Metals Trading Corp.Major Players in the Jewelery Market Of late. plans to establish a gems and jewelery special economic zone (SEZ) in partnership with a private company . diamond jewelery and pearls.7 million.5 million over three years to set up luxury malls in eight leading cities across the country. Zales and Harry Winston are all said to be interested in coming here following the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores. Other existing and new foreign players are drawing plans for expansion and launch of their operations in India: y y De Beers has got permission to survey for diamonds in Jharkhand. Also. Gitanjali Ventures DMCC. y y Simultaneously. Cartier.6 per cent stake in the US-based jewelery distributor Simon Golub & Sons Inc for US$ 22. Greggio Argento. Most of these stores have been sourcing cut and polished diamond and gold items from Indian firms.
Orra. The company is expecting a double-digit growth in its exports to the US in the current year. We will be raising funds through the private equity route by August this year. chief executive of leading diamond retail chain Orra. Thai company Pranda Jewellery is foraying into retailing in India. The company. Bangalore and Hyderabad. The Indian diamond market is likely to grow at 20% to touch Rs. 1trillion in the next five years whereas gold will grow at 8-10% year. which has introduced 99. Jain said. the domestic diamond market is pegged at Rs12. Flawless Diamond India Ltd has planned to open 75 additional outlets within the next 24 months. the economic downturn in the US has not affected Orra from a price point of view. told PTI in Mumbai. that has 30 stand-alone stores across 20 cities in India. adding the total jewellery market in the country is worth Rs70. Jain said. exports diamonds to 15 countries.000 crore.29 million. The company will be adding six monobrand outlets by 2011 Mumbai: The Indian diamond market is poised to grow at 20% annually to over Rs1trillion in the next five years on the back of improved demand.´ Jain said.000 sq ft) in the next three years at an investment of Rs70 crore.15 million towards retail expansion in the country. According to Jain. ³Demand for diamond jewellery is improving world-wide and people in India are buying more diamonds these days as it is a good mode of investment. At present. Mumbai. ³We will open five large format stores (3. the largest market being the US.on-year.9 per cent pure gold jewellery will be investing US$ 21. Geneva-based luxury watch and jewellery brand de Grisogono is firming up its plans to foray into the Indian market.´ Vivek Jain.8 billion Belgian Group Rosyblue. a part of the $1. It has set up its first flagship boutique for US$ 5. adding it will be opening five large-format exclusive stores in the next three years at Delhi. is poised to grow at 20% year-on-year. a top industry player said on Friday. Jain also said the company¶s same-store sales rose by 30%t month on month. The company. .000 crore. Gold Souk India has plans for opening 100 Souks in 100 months. The process has already started and we have shortlisted three investors.million in the first phase of the joint venture.
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