Executive Summary

This research assesses the four most important factors of the macro business climate for Pippa
Small, an ethical jeweler established in London, while evaluating the choice to expand its
company in India. Pippa Small is one of the most well-known ethical jewelry designers in the
United Kingdom and has been creating ethical jewelry for over 19 years. The paper provides a
comprehensive examination of the Political, Sociocultural, Economic, and Technological
elements of India for Peppa's expansion into India. In India, Peppa Small Business has a
favorable political, environmental, and economic climate, according to the research. However,
the firm must design the jewelry with the current cultural transformation in India in mind. The
structure of the research report is as follows: The first part presents a summary of Peppa Small
and highlights its most significant potential in India. The second section provides a
comprehensive macroeconomic study of India, taking into account political, economic,
environmental, and sociocultural variables. Finally, Section 3 closes the research by presenting
suggestions based on Section 2's findings.
Introduction

Pippa small jewelry, founded in 2003 by Pippa Small and headquartered in Northampton, has
been in operation for almost nineteen years (suite.endole, 2022). Pippa Small Designs Ltd. is a
small firm having an annual turnover between £2 to £10 million with a total assets of worth
£2.07 million (suite.endole, 2022) (Figure 1). The company has endeavored to create stunning
jewelry while ensuring that it is founded on the creation of sustainable livelihoods, the cultural
preservation of old handcrafted artisanal processes, and, when feasible, the promotion of cleaner,
fairer mining practices (Pippa Small, 2022). In the last eighteen years, Pippa Small has engaged
in a number of collaborations. For instance, the company has collaborated with partners with the
Turquoise Mountain Foundation in Bolivia, Kabul, and Myanmar, while also working with Tom
Ford at Gucci and providing the Duchess of Cambridge with apparel (The Resident, 2021).

Figure 1. Net Assets, Total Assets & Total Liabilities (2006 - 2021), Source: Suite.endole.co.uk
(2022)

When it comes to expanding Pippa Small jewelry business internationally, India is the most
suited country for Pippa Small jewelry, as jewelry is nearly indispensable to Indian culture,
regardless of region (Statista, 2022). The firm is already having new collection crafted by Jaipur,
Rajasthan, artisans. The collection was designed in conjunction with Joseph Coplin, co-owner of
Antiquarium, Ltd. Fine Ancient Arts Gallery in New York (Gjepc. 2022). Some of the most
beneficial elements for the company's expansion in India include the cultural transformations
(McMillin, 2006) like changing lifestyles, religious values etc., rising disposable income among
the people (Tradingeconomics, 2022), technological advancements, and the availability of skilled
human resources.

2. Macro-Economic Analysis

Both macro and micro-Environmental factors, have a substantial impact on businesses operating
in every sector of the economy. The growth of a nation's GDP, the disposable income of its
citizens, the rate of inflation, the level of political risk, cultural attitudes, and other factors can all
have an impact on the jewelry sector. As a consequence, having an awareness of these aspects
that are particular to the country is essential prior to the planning of its expansion. This section
provides an in-depth macroeconomic analysis of the four most significant factors Pippa Small
must examine prior to growing its business to India. Political, economic, socio-cultural, and
environmental factors are included.

2.1 Political Factors

Political factors are crucial to the Pippa Small as Political stability, interaction with neighbor
nations, Foreign trade policies are going to play a crucial role in the Success of the business in
India.

i) Political Stability of India

Political stability index is an institutional indicator that reflects the stability in political and
governmental concerns in the Country (Igi-global, 2021). It reflects perceptions of the chance
that the government will be destabilized or toppled by unlawful or violent means, including
politically motivated violence and terrorist acts. India has a Stable democracy, with peaceful
changes of government.
 Figure 1. Political stability Index of India (2013-2020), Source: The global economy (2021)

Figure 1 offers India’s Political Stability Index, (-2.5 weak, 2.5 Strong). The Political stability in
India is growing, it was -1.23 in 2013 and it has improved to -0.86 (The global economy, 2021).
The increased political stability has acted well for businesses in India. In spite of this, the
Kashmir region continues to be unstable and a potential source of war. In recent times, tensions
have also increased between India and China as a result of border conflicts (BBC News, 2021).

ii) Foreign Trade Policies of India

At this point in time, India is recognized as one of the most significant participants in the terrain
of the global economy. Its trade policies, government reforms, and innate financial strengths
have contributed to its reputation as one of the most sought-after locations for foreign
investments anywhere in the globe. The primary initiatives' goals were to increase exports of
both goods and services by methodically addressing domestic and global trade constraints in
order to reduce transaction costs; implementing policies that are compliant with WTO standards
should help the economy reach the target of $5 trillion by 2025 (IBEF, 2022a).

The ease of doing business in a country is measured by a number called the ease of doing
business index, which is an aggregate figure that takes into account a variety of criteria that
characterize ease of doing business. Every year, the World Bank puts out this publication (The
Economic Times, 2022). The rankings of India's ease of doing business are displayed in figure 2,
which demonstrates a remarkable rise in the country's position over the past decade, from 131 to
63. (Tradingeconomics, 2021). This suggests that the ecosystem of policies and regulations
surrounding firms has gotten more adaptive and user-friendly over the course of the past several
years.
 Figure 2. Ease of doing business Rankings of India (2012-2019), Source: Tradingeconomics
(2021)

2.2 Economic Factors

Pippa Small's performance is heavily dependent on economic factors, such as the level of
disposable income in the population, the rate of inflation, the pace of gross domestic product
growth in the country, and the unemployment rate in the country. All these elements are
presented comprehensively in this section.

i) Disposable income of Population

At the macro level, one of the important economic indicators that is used to measure the overall
status of the economy is the amount of disposable personal income. This indicator is regularly
monitored. After taking into account withholdings for income taxes, an individual or household
is left with a sum of money that can be spent or put away in the form of disposable income,
which is also referred to as disposable personal income (DPI) (Investopedia, 2022). An increase
in the disposable personal income of a country's population signifies an increase in the
purchasing power of the people, which has a big impact on the businesses that deal in luxury
goods like jewelry, automobiles, and other similar items.

India is the world's second most populous country and is consistently ranked among the top five
largest consumer markets. The DPI in India has been noted to be rising on an ongoing basis.
From 199689740 INR Million in 2020, India's Disposable Personal Income rose to 238573760
INR Million in 2021. This represents a significant gain (Tradingeconomics, 2022). As a
consequence of this, the consumption among the people living in India is consistently increasing,
which is a factor that is favourable to the expansion of Pippa Small. in India. The progression of
the DPI among Indian population (2012-2021 is displayed in Figure 3.
 Figure 3. India Total disposable personal Income (2012-2022), Source: Tradingeconomics.com
(2022)

ii) Trend in GDP growth

The expansion of the Gross Domestic Product (GDP) is occurring at a rate that is typically
between 5 and 7 percent annually. In the second quarter of 2021, India's GDP Annual Growth
Rate shot up to an all-time high of 20.10 percent, surpassing any previous record. After
contracting by 7.3 percent in 2020-21, it is anticipated that the Indian economy will expand by
9.2 percent in real terms the following year, 2021-22. It is anticipated that the real growth rate of
GDP will be between 8 and 8.5 percent in 2022 and 2023. The most recent World Economic
Outlook published by the IMF projects that India's real GDP will grow at a rate of 9 percent in
both 2021-22 and 2022-23, and that it will grow at a rate of 7.1 percent in 2023-2024. This will
make India the major economy with the fastest growth rate throughout all three years (IBEF,
2022b). Figure 4 shows the India’s Real GDP growth rate from 2017-2027 (*Includes forecast).
A steady GDP growth in the country demonstrates that new businesses can prosper in India’s
economic landscape.

Because of this consistent increase in GDP, we are able to state that the conditions for
conducting business in India are favourable for new firms. The international businesses will
benefit from making Foreign Direct Investments as well as Joint Ventures in the future. Pippa
Small has the option of pursuing a Green Field investment, which involves the establishment of
its branches directly within the nation.
 Figure 4. India’s Real GDP growth rate from 2017-2027, Source: Statista (2021)

iii) Inflation Statistics

The rate of inflation in a nation is of critical importance since it has a negative influence on the
purchasing power of people. It is calculated by determining the percentage increase in the
general cost of a standard basket of goods and services over a certain time period, often one year.
The erosion of real income caused by inflation is the single most significant expense associated
with inflation. Inflationary environments are characterized by unevenly rising prices, which
eventually diminish the purchasing power of some customers. Additionally, over the course of
time, inflation can distort purchasing power for both beneficiaries and payers of fixed interest
rates.

Over the course of the previous 60 years, the annual rate of inflation for consumer prices in India
has ranged anywhere from -7.6 percent to 28.6 percent. A rate of inflation equal to 6.6% was
determined to be appropriate for the year 2020 (Worldinfo, 2021). Figure 5 shows the trend in
the Inflation rate of India from 2017-2027, which is showing a declining trend. This is a positive
element for the Pippa Small Business to expand in India. This is due to when there is a high rate
of inflation, the nation's central banks will often raise interest rates, which will ultimately make it
more expensive to borrow money. On the other hand, in nations where the inflation is kept under
control, firms who are investing in the nation are able to take advantage of the cheap interest
rates that are available on loans.
 Figure 5. Inflation statistics in India (2017-2027), Source: Statista (2021)

iv) Unemployment rate in India

The level of unemployment in any economy is one of the most important factors to consider
because it has a substantial impact on the purchasing power of the country's customers.
Unemployment makes poverty more widespread among a country's people, which ultimately has
a chilling effect on the economy. The number of people claiming unemployment benefits in
India has been on the decline recently. The unemployment rate (UR) in India was 5.8 percent in
2018-19 and 6.1 percent in 2017-18, as indicated by current figures. In 2019-20, the UR stood at
4.8 percent, which is lower than the previous two years. Even the labour force participation rate
(LFPR) in the country has increased year-on-year, according to the annual report, reaching 41.6
percent in 2020-21, up from 40.1 percent in 2019-20, 37.5 percent in 2018-19, and 26.9 percent
in 2017-18 (Sharma, 2022).

Figure 6 shows the Unemployment rate in India from 1999-2020. The unemployment rate is
continued fall until 2019, but because to the spread of Covid19 and the corresponding economic
slowdown, it has recently increased. According to surveys conducted in 2021 and 2022, this
circumstance has changed however. Despite this, the nation remains at the top of the list of
nations having the greatest supply of low-cost labor. Because of this, international companies
that make their entry through green field investments can benefit from it, which is a significant
advantage for those kinds of companies.

Figure 6. Trend in Unemployment rate in India (2019-2020), Source: Statista (2021)

2.3 Socio-Cultural Conditions

Wearing jewelry can help accentuate one's natural beauty. Additionally, it is a representation of
wealth, power, and position. Because the jewelry sector is more closely associated with the
cultural roots of India, Peppa Small must take into account a number of socio-cultural variables
as crucial elements. In Hindu culture, it is customary to purchase new jewelry on the occasion of
significant life events. In India, valuable jewelry made of gold, diamonds, and platinum are
popular purchases for significant life events such as weddings (NYU, 2022). On the other hand,
the culture of the Indians is undergoing change right now. The culture of the joint family is
fading away while the culture of the nuclear family is becoming more prevalent. People are
opting more for lightweight and reasonably priced jewelry these days rather than bulky and
expensive pieces. Pippa Small needs to take into account the shifting cultural patterns in the
country in order to develop designs that successfully merge the most recent fashion with aspects
of Indian culture.

As the globe becomes more globalized, the importance of international commercial activity is
growing, which has led to an explosion of the number of foreign enterprises operating in
developing nations. In the retail market of India, just like everywhere else, there is a tone of
competition between local and imported goods. Studies have shown that customers in developing
countries have a stronger preference for products manufactured in other countries when
compared to those manufactured in their own countries (Sharma, 2011). In spite of the fact that
this is the case in India, when it comes to jewelry, Indians prioritize trustworthiness and aesthetic
appeal. People in the jewelry business are not yet completely open to people of other cultures.
According to the ecocentrism theory, there is a negative correlation between cultural openness
and ethnocentrism. But in India, where a shift in cultural revolution is currently taking place, it is
a good time for foreign jewelers to enter the market, and doing so will offer them with the first
mover advantage in this area.

2.4 Technological Factors

To thrive in today's environment, companies in every industry need to have access to appropriate
technology infrastructure. The jewelry industry is also interested in technology as a result of the
rising popularity of online jewelry sales in the modern world. When it comes to India's
technological infrastructure, the country's success and the rise of more technology-driven
startups in the country are largely due to the country's advanced technological infrastructure as
well as its human resource experience in information technology. The most recent economic
survey report (2022) indicates that India has over 61,400 startups, the majority of which are in
the information technology sector (The Economic times, 2022).

Since 2010, when high-speed mobile internet became more widely available, the number of
people using mobile internet has increased dramatically. In the first three months of 2017, the
average Internet download speed in India increased to 6492.06 Kbps, up from 5567.50 Kbps in
the final three months of the previous year. The number of mobile internet users in India was
0.62 million in 2010, and it is projected to reach 1341.90 million in 2030. In 2020, the number
would have climbed to 744.06 million (statista, 2020).
 Figure 7. Internet speed in India, Source: Trading Economics.com, 2021.

3. Recommendations and Conclusion

This research examines the four most significant macroeconomic factors (political, economic,
socio-cultural, and technological) for Pippa Small, a jewelry small business established in
London, to grow its operations in India. The report comes to the conclusion that India is the most
suitable country for Pippa Small to expand its business. This is because the socio-cultural aspects
of India revealed that the country is culturally transforming, and it is beneficial for the foreign
retailers in the jewelry industry to introduce their designs to the Zen Y and Zen z population in
India. Because of this, the corporation has the advantage of being a first mover. In addition, India
discovered a nation that was both politically secure and economically expanding. Pippa Small
may profit from India's sizable consumer market and its rising per capita income thanks to
economic growth. By expanding her company's operations in India, Pippa Small can really
position herself to benefit from the country's highly developed technology infrastructure as well
as its affordable human resources. Pippa Small has been given the following suggestions, all of
which are geared toward ensuring the company's continued success in the Indian jewelry market.

 India is a country that is home to a great deal of cultural variety. Pippa Small may find
success in the Indian market by developing products that combine components that are
traditionally Indian with a flavor that is inspired by the most recent fashion trends. This is
because the culture of the country is undergoing change.
 The company may focus its attention on urban working women between the ages of 18
and 50 years old. Pippa Small may be able to reach its targeted clients by utilizing digital
 marketing strategies, including social media marketing and influencer marketing
techniques, as well as by capitalizing on recent technological advancements such as
artificial intelligence and machine learning.
 Established firms in India's jewelry sector such as Kalyan, Malabar, and Khazana
Jewelers, amongst others, currently hold a dominant position in the market for gold and
diamond jewelry. On the other hand, these companies sell jewelry that is more traditional.
There aren't many people in India that manufacture jewelry that's considered
contemporary or modern. Pippa Small can promote its one-of-a-kind precious stone and
metal jewelry in the Indian market by utilizing the collaborations it currently has in place.

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