Simon Mudaliar


UGP/FW/08-11 11/MUM/MKT/056





UGP/FW/08-11 11/MUM/MKT/056





UGP/FW/08-11 11/MUM/MKT/056



Simon Mudaliar under my guidance. The thesis has been completed to my satisfaction and I wish him all the best in his future endeavours.CERTIFICATE OF ORIGINALITY 4 CERTIFICATE FROM GUIDE This is to certify that this thesis report titled " A STUDY ON FACTORS INFLUENCING CONSUMER TO SELECT ORGANIZED AND UNORGANIZED JEWELLERY RETAILERS” was prepared and completed successfully by MS. AMITHAB SHAH UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .5 PREFACE As a part of the course curriculum. The topic of my project was “A STUDY ON FACTORS INFLUENCING CONSUMER TO SELECT ORGANIZED AND UNORGANIZED JEWELLERY RETAILERS”. The objective behind the preparation of this report is to relate the Managerial concepts and theories taught in the classroom to the practical application. to develop the presentation skills and to learn how to make effective reports. This report is entirely prepared for the academic purpose and in spite of my best efforts there may be errors for which I take the responsibility. Here I studied the exposure of different socio economic classes to various media. the MBA students are required to prepare a grand project in their final semester.

To study about consumers purchasing behaviors.: 9820046254 Email: 6 2. Details of the students: Name: Simon Mudaliar Batch: PGP 09 – 11 FW Section: F1 Roll no. Literature: • • To identify the buying motivation and concerned factors while consumers to select jewellery retailers.: 60 Specialisation: Finance & Marketing Phone No. The two major segments of the sector in India are gold jewellery and diamonds 3 • UGP/FW/08-11 11/MUM/MKT/056 IIPM/FW/09- . Hypothesis: What makes consumer buy the jewellery from organised sector if there is unorganised sector and vice versa 5.SYNOPSIS 1. 2. Area of research: Marketing (Gold Jewellery Industry) 3. It is a leading foreign exchange earner and also one of the fastest growing industries in the country. Title of thesis: A study on factors influencing consumer to select organized and unorganized jewellery retailers 4. Scope of thesis: • The gems and jewellery industry occupies an important position in the Indian economy.

Justification for choosing a particular research proposal: One of the most powerful industry for the Indian Economy and mostly worked in unorganised manner 5.7 • This study about find out the most influencing factors while consumers to select jewellery retailers and create suitable plan based on results obtained from research.: 9820371712 UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .PVT. 3.LTD Contact No. Details of external guide: Name: AMITHAB SHAH Designation: BUSINESS HEAD Company: ALEX JEWELLERY. Research methodology: • • • Primary data: The data has been collected from the respondents through the personal interview Region: Mumbai City and Mumbai Suburbs Secondary Data: 4.

Bibliography & UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- ... Conclusion………………………………………………………………………………. Indian Jewellery Retail…………………………………………………………………. Scope of the study…………………………………………………………………….………………………………………………………………………13 3. Investing India…………………………………………………………………………..16 7. Analysis Interpretation………………………………………………………………. Limitation………………………………………………………………………………...39 11... Review Of Literature…………………………………………………………………....32 10.15 6..9 2. Appendix 15... Suggestion………………………………………………………………………………....22 8.29 9.... Research and methodology …..13 4..50 12.51 13. Findings………………………………………………………………………….54 14. Introduction ……………………………………………………………………………....…………………………………………………………14 5. Objectives………..8 CONTENT 1. Organized Retailer………………………………………………………………………...

9 16. of which nearly 600 tonnes go into making jewellery. a nodal agency representing 300. fell for the land and its cultural heritage which eventually led them to settle and establish their empire in India . The country is also the largest consumer of gold in the world. It was this abundance in availability of such precious metals that lured foreign invaders from all parts of the globe as well as from time to time to come to India and plunder as much of it as was possible for them to do. Response Sheet Introduction The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 per cent. However there were a significant number of such intruders who. It consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption. The industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs.000 jewellers across the country.1 billion and the All India Gems and Jewellery Trade Federation. The domestic market is estimated to be around US$ 16. India was never in dearth of Gold Reserves. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . after entering the country. India is also emerging as the world's largest trading centre for gold targeting US$ 16 billion by 2010.2 billion in two to three years. Let us at first take a look at the evolution of the Indian Gold Market. History had been a witness of the fact that India was always self sufficient in all its natural resources and more so in case of gold. expects it to grow to US$ 25.

India is viewed as the largest consumer of gold in recent times. India is the fourth largest economy in terms of Purchase Power Parity and the tenth most industrialized country in the world. By the time India gained independence.2 % of the total world demand. As a result a major proportion of India's Gold Reserves was 'vanishing' without even entering into the economy. After reaching a new height in the form of 8 % growth in Gross Domestic Product (GDP) for the year 2005-06.2 tonnes which comprised 26.10 As a inevitable consequence of the lavish livelihood exhibited by the Indian rulers. both domestic and foreign. India is being recognized as one of the fastest emerging economies of the world. India's growing prospects can also be noticed in the gold market as well. The colonial status given to India by the British crippled the economy which once boasted of its wealth in gold. a huge vacuum had already been created as far as Gold Reserves in India was concerned. India's total demand for gold in the year 2001 was 243. Slowly. after several decades have gone by India has finally started to fill up the vacuum in a big way. Huge quantities of the precious metal was carried to England right after their extraction. the Gold reserves in India gradually diminished. simplification UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . The arrival of the British in the hierarchy in the middle of the eighteenth century announced the decline of India's Gold Reserves even further. the largest democracy in the world. India. According to the figures presented by the estimates of the World Gold Council (WGC). Major initiatives such as industrial decontrol. with its consistent growth/performance and abundant skilled manpower provides enormous opportunities for investment.

financial sector reforms. and investor friendly investment climate. technology collaborations with existing joint ventures. enactment of competition law. Because customers love Internet retailing for so many reasons. The manual. India is having highest growing population of youth segment in the world and the users of Internet tremendously increased. which provide a liberal. Customers have created an attitude of getting anything on the table. saving time. procedural simplification for approval of proposals for new joint ventures. built-up infrastructure and construction development projects. Important policy initiatives taken in the recent past include raising FDI equity limit in domestic airlines sector to 49 per cent and placing it under the automatic route. full commitment to safeguarding intellectual property rights. is aimed at providing investors upto-date information on the policies and procedures relating to FDI. Internet retailing is the one of the critical issues of Retiling sector in India. Today. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . liberalization of exchange regulations etc. The growing rate of internet users in India Provides a developing market prospects to the retailers to concentrate on Internet retailing. have been taken. technology transfer/trade marks agreement in India and transfer of shares from existing Indian companies. housing. attractive. 'India: FDI Policy and Procedures'. allowing FDI up to 100 per cent under the automatic route for the development of townships. eases of purchase. comparison shopping. liberalization of trade policy. So they are interested in online retailing.11 of investment procedures.. The Government of India reviews the foreign direct investment (FDI) policy on an ongoing basis.

UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . factors influencing consumers while purchase jewelry on internet and Online retailer’s perceptions about consumer’s expectations. evaluations and management perceptions about consumer’s expectations and develop right strategy to enhance online jewellery retailing. As in the final result of this study would help to get a clear idea about consumer’s expectations.12 For Indian people jewellery is one of the major sources of investment. At present online jewellery retailing have grown so strong in India but it’s having highest compounded growth rate because of growing population and increasing individual level of income and technology growth of the country. consumer’s expectations. The next stage of this retailing is to be an online retailing. But now organized retailers wants to break the concept of trust based purchasing in jewellery. Normally Indian people are not much aware of internet retailing especially in jewelry retailing because Indian people strongly believe in human touch and Trust among the retailers. So in this study we are focusing on online purchasing behavior of customers. The attitudes of Indian consumers Jewellery purchasing are interconnected with culture.

• To study about consumers purchasing behaviors. Research methodology: UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .13 Research Design Objective of the Study: • To identify the buying motivation and concerned factors while consumers to select jewellery retailers. It is a leading foreign exchange earner and also one of the fastest growing industries in the country. • • The two major segments of the sector in India are gold jewellery and diamonds This study about find out the most influencing factors while consumers to select jewellery retailers and create suitable plan based on results obtained from research. Scope of the Study: • The gems and jewellery industry occupies an important position in the Indian economy.

So the research was taken as descriptive method. Sampling unit: The consumers of internet retailing offered by major jewellery brands in mumbai and Service provider. Sources of data collection: Secondary data: The secondary data for this study has been collected from the internet.14 Research Design: The research is carried out by the method of description of various problem. Sampling Technique UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . And Personal interviews with the jewelry consumer purchasers. The data collected includes identification of online services offered by major jewellery brands in India Primary data The data has been collected from the respondents through the personal interview Method of data collection Personal interviews with the retailer service providers of respective jewellery brands.

Investing India UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Sampling size The number of qualified respondents of this study is 100. The no of respondents were 100 The respondents are only jewellery consumers.15 Here the Judgmental sampling method has been adopted under the non-probability sampling technique. Limitations of this Study: • • • It can’t be assured that this study is applicable for other cities.

It remains to be seen how this change in behavior would continue after the end of this crisis (in 3-5 years). I am moving to a neutral territory now. While Indian Jewelry is still the world’s biggest consumer. But. and long term investors might want to book profits now at around $950-1000. In short. it is good for the gold industry as it gives a far wider/diverse base and removes the quirkiness associated with Indian marriage seasons and domestic economy. Once the crisis is over and when people start getting out of gold to stocks and homes. but if there are new surprises from financial markets. If it is a permanent change. This is most likely due to the fact that the world recession has not come to India so far. However. it is still a good investment for short to medium investors. My personal opinion is that $1000 is a good price for gold in the current scenario. then we should cross $1200. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Indian consumption is the only bright aspect in the Jewelry scene. The Gold ETF (GLD) has become the biggest market mover and there has been heavy demand for coins and bars. the market seems more diverse now. as Jewelry consumption of rest of the world has gone down the toilet. Jewelry consumption could significantly tank once the reality sinks in and Indian market goes faces economic winds. If this fundamental change in consumer/investor choices continues.16 The gold market is undergoing radical change with investments in Europe and US taking a lead over the traditional market – Jewelry in India. and even a $1200/ounce is likely. And go up it has. when gold was below 700. In October 2008. gold could fall to the sub-700 range. Gold could see a significant upward movement in price in the short to medium term. I claimed that the metal will significantly go up.

17 1. One of the biggest Individual gainer is the Gold ETF – GLD. It has more than 1000

tonnes of gold in its management and has become a great market mover of the underlying (it is now the tail wagging the dog).

Since the start of Jan 2008, GLD has had a more substantial lead in gold holdings than similar ETFs.

Gold Investment in Europe has skyrocketed (by over 10 times) in the 2008. Europe is now the biggest net retail investor in gold, while Vietnam and US were leading this space till 2006.

In the US, gold investments declined in 2007 from 2006 and then strongly rebounded in 2008. Now, over 75 tons are consumed for investment purposes in the US

More people are buying gold for investment purposes than for other consumption.

Bar and coin sales have grown more than twofold since last year, while sales of Jewelry (biggest consumer) went down 6%

• While Gold prices were choppy in 2008, measured in Dollars, gold prices were more stable and smooth than measured in Euros. 1. India is still the world’s biggest consumer at 147 tons in Q4, followed by China, Europe and the US (Figure 6). It had briefly ceded its lead to the US last year and now got it back with a bang. It consumes 21% of world gold.

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18 •

Indian Jewelry consumption more than doubled in Q4 2008 compared to Q4 2007, while for Turkey it went down by 57%.

• •

The US exports far more gold than it imports. While Gold prices were choppy in 2008, measured in Dollars, gold prices were more stable and smooth than measured in Euros (Figure 0).

1. India is still the world’s biggest consumer at 147 tons in Q4, followed by China, Europe and the US. It had briefly ceded its lead to the US last year and now got it back with a bang. It consumes 21% of world gold.

The US exports far more gold than it imports.

The central banks have dramatically reduced their sales (-27%) and bar and coin sales have grown by 247%. Mine production is almost unchanged at ~630 tons/year, while there is a

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significant bump in old gold scrap. It is pretty likely that people are bringing up junk and cashing in on the bullish markets.

World Gold Supply and Demand Statistics:

Demand Characteristic:
It is interesting to note that electronics and industrial usage has come down. Either they have made significant technological progress to reduce the need for gold in their manufacturing processes, or it is an indicator for a fundamental demand collapse in world markets for those products. It is bad for the global economy, but for gold it is not that much of a problem given that they consume a small portion of annual consumption. World mints are running out of coin supply as consumers and investors are pounding them to get a hand at the most secure thing in the world. Jewelry sales have come down a bit, and are more of an indicator that consumers are tightening their belts in US, and there are some fundamental alterations in consumer trends in

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etc. for most practical investors this is the way to go. It has not impacted gold sales in India that much. GLD’s asset increase has coincided exactly with the increase in gold price and thus it is reasonable to UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . but is of concern over the long term. assume that it buys gold for its warehouses and sells shares on its store) has been seeing a huge increase in their assets. security. Gold Holdings in the ETF-GLD The world’s biggest Gold ETF fund (to keep it simple. GLD is the most heavily traded ETF and it has been buying gold in gobbles and now hold more than a 1000 tonnes of gold (worth about 30 billion USD). Holding gold as an ETF is the most cost effective thing. It might make some sense to have gold in bars and coin for emergency situations. as trading costs are very minimal and you don’t need to worry about assaying and value estimation. where many girls prefer platinum these days. While the “end of the world” pessimists might be reluctant to use an ETF for their most secure investment.20 India.

UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .21 assume that Gold is mainly moved by this .

it has virtually no mines today.22 Indian Jewellery Retail: India and diamonds are the best known combination throughout the diamond industry. India has continued to maintain its tradition of diamond cutting and thousands of people are involved in this skilled occupation.the fabulous Kohinoor is an Indian diamond . However. Though India was known to have diamond mines many centuries ago . UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

gold jewellery. making inroads in this sector and contributing to the nation’s economy. 90% in terms of pieces and 80% in terms of carats. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . The booming domestic market along with export advantage of the industry and the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores has attracted a large number of players to the sector. proof being the international brands flocking in to set up franchises in India. India accounts for almost 50% of the international market. Apart form being the world’s largest diamond processing (cutting and polishing) country with an 80 per cent share in world market India’s favorable trade policies have made India the hub for gems and jewellery. Economic boom coupled with retail sales explosion has made a smooth pathway for all those who understand the art of retail in India.23 Today. The gems and jewellery sector contributes nearly 55% of the world’s net exports of cut and polished diamonds in value. Due to the Economic boom in the country. India is emerging as a very big Consumer Market for jewellery and other luxury products and offering a very lucrative opportunity for major brands to establish presence in the Indian market. colored gemstones. India could establish itself as a brand in the international Gems & Jewellery market. with its cut and polished diamonds. The Indian consumer has lately become the focus of every retailer's eye. The burgeoning retail industry in India is instrumental in innovatively marketing and branding diamonds and traditional jewellery. With the right policy and regulatory framework. increase employment and create new breed of entrepreneurship. Every 11 of 12 diamonds sold around the globe are processed in India. irrespective of where these are mined. pearls. non-gold jewellery and fashion jewellery.

pantaloons. This income is spread in the rural areas also. India has seen a significant growth in disposable incomes as a result of the economic growth that it has been enjoying. Global behemoth WalMart has also officially entered India with a strategic tie-up with the Bharti group. which is defined as towns with a population of less than a million. Focused marketing creating awareness and demand for the products. Wal-Mart. Increasing purchasing power and disposable incomes of India’s middle class has resulted in consumption growth of this industry by about 11 per cent in the five-year period preceding 2006-07. etc have already set up shops in India. retailers work with multiple UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Depending on the size of the market. The Reliance group plans to spend $5 billion in new retail formats including malls and combined service and retail formats along the evolving Indian highway system. The surprising thing about retail investment is that about 20 per cent of retail effort – in a planned manner – is targeted at rural areas. having rapidly acquired a niche over the past few years.24 Players like Reliance. innovative product range creating excitement and expanding the category as well as transparency and adherence to best practices will help build consumer confidence. convenience stores that dot the countryside all across India. around 60 per cent of the rural income is from north and east. and the demand will skyrocket to US$ 20 billion by 2010 and US$ 30 billion in 2015. Add to that the insatiable Indian craving for gems and jewellery. Branded jewellery is the new mantra in the market. According to the Tata Statistical Outline of India – 2005-06. according to industry experts.reaching out directly to the consumer. Wal-Mart will provide the back-end services such as sourcing and supply-chain management for the Bharti group’s planned retail formats across the country as well as an initiative to supply the countless small.

82 per 10 gms to US$ 5. and creating brand identity is the focus of every retailer in India at present. A study by KPMG reveals the Indian jewellery market to be US$ 13.29 billion diamond industry. Diamantaires. Retailers are also looking at mobile store concepts and thinking of innovative ways to connect to the consumer. are eyeing jewellery manufacturing in a major way. in Surat's US$ 11. accounting for 8.3 per cent of world jewellery sales. after DTC has decided to prune supply of rough diamonds to India.06 billion. whereas the demand was 944 tonnes. However the export of diamond-studded jewellery from India is merely 4 per cent of the total export of gems and jewellery worth US$ 18. These stores would carry a merchandise mix and are in the range from 600. India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the world gold consumption. Out of which nearly 600 tonnes goes into making jewellery. the industry should focus on the domestic market. The government has offered some concession to the industry by lowering import duty on platinum from US$ 13. Brand building. Since the demand of diamondstudded jewellery among Indian consumers has risen sharply.25 formats – currently they are partnering with local jewellers and these jewellers retail their brands. Indian retailers see a huge jewellery consumer market in India but there is a slight speculation that they might soon face stiff competition from within as well as from international brands who are rapidly setting up chain stores. If India becomes a manufacturing hub for jewellery as well as a consumption market it will just prove India’s strength in both 1.03 – exempting rough colored precious gems UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .000 square feet. According to The World Gold Council (WGC) total gold supply in the second quarter this year stood (Q2FY08) at 840 tonnes.5 billion in fiscal 2006-07. commonly known as the ‘shop in shop’.

semi-precious stones are already exempt. a move aimed at further promoting the exports of studded jewellery and platinum jewellery. since jewellery is a part of Indian tradition and customs. and small grocery stores. Duty-free import of consumables for metals other than gold and platinum up to 2 per cent of f. Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010.b. Traditionally the retail industry in India was largely unorganized.o. Rough.b. This change has come in the consumer due to increased income. There is increased duty-free import of commercial samples of jewellery to US$ 2.000 billion accounting for about 10% to the country's GDP. The growth in the Indian organized retail market is mainly due to the change in the consumers behavior.o. value of exports and duty-free import entitlement for rejected jewellery up to 2 per cent of f. instead of claiming reimbursements later. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.26 stones from customs duty at the first stage itself. The Indian retail scene is set to flourish and there is no looking back for those who know how to sell jewellery to a Indian women. In 2005. changing lifestyles.50 and import of gold of 18 carat and above under the replenishment scheme. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities. medium. comprising of drug stores. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . the retail industry in India amounted to Rs 10. value of exports. Indian organized retail market is growing at a fast pace due to the boom in the India retail industry.5% of the total revenues.

and shopping all under one roof. Gems & Jewellery Gems and Jewellery sales and marketing received a facelift with theadvent of the supermarket culture. entertainment.27 and patterns of demography which are favorable. Sad anand Subramanian checks for Diamond World with some precious Industry players about their preparedness and strategy to achieve maximum mileage. Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets. and Metro AG are also planning to set up shop in India. 325 departmental stores. Now the consumer wants to shop at a place where he can get food. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. As organized retail in India progresses to the next lap. Carrefour. Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. and 300 new malls are being built. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Indian organized retail market will definitely grow as a result of all this investments. One such company is the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets. Many Indian companies are entering the Indian retail market which is giving Indian organized retail market a boost. A number of global retail giants such as Wal-Mart.

000 crore and the topmost agenda is to adopt the right strategy to accelerate its growth keeping in mind current global dynamics. It consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption.28 As India reacts to a retail revolution.000 jewellers across the country. While organized retail under this segment impressively grows at over 50 per cent annually.1 billion and the All India Gems and Jewellery Trade Federation. For now the industry faces keen competition from other luxury goods such as electronic innovations and other personal accessories The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 per cent.80. The industry has already made a mark by capturing 3 per cent of the organized retail space thanks to the leadership shown by a handful of companies prepared to dazzle the world. The gems and jewellery market in India is estimated to be about Rs. a nodal agency representing 300.2 billion in two to three years. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . The industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs. of which nearly 600 tonnes go into making jewellery. The country is also the largest consumer of gold in the world. The domestic market is estimated to be around US$ 16. deliberations are on to arrive at what the industry in general must do to keep the customer perennially delighted. India is also emerging as the world's largest trading centre for gold targeting US$ 16 billion by 2010. the hitherto sober gems and jewellery industry seems to have jumped on the bandwagon with a clear plan of action. expects it to grow to US$ 25.

Riding the Indian economic wave is a class of ‘Nouveau Riche’ Indians. which is the USP of branded jewellery. the ‘Nouveau Riche’ UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Indian consumers gravitate towards 22K gold and have little tolerance to gold below 22K. Branded jewelers have had to coax consumers out of buying jewellery from their family jewelers to trusting a product bought off the shelves.18 billion in 2007-08. which is an international standard. Finally. Furthermore.29 Diamonds India is the largest diamond cutting and polishing centre in the world—the industry enjoys 60 per cent value share. Indians purchase jewellery as an investment option and hence are not overly concerned by designs. India exported cut and polished diamonds worth US$ 14. Organized Retailers Branded Jewellery:The journey of branded jewellery in India has been full of trials and tribulations. In other words. nearly 9 out of 10 diamonds sold worldwide are cut and polished in India. Rio Tinto has launched pink diamond for the first time in India on the occasion of its 20th anniversary in the country. 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces. Almost all branded jewellery is made from 18k gold. Due to the Indian consumers’ attraction for diamond for its high aspirational store value. Apart from possessing greater purchasing power.

Gitanjali Gems Ltd is one of India's leading fully integrated jewellery groups. The retail boom has spawned a large number of brands in the jewellery segment over the past year with many more to come. Growth prospects for the Indian economy are extremely bright which would translate to greater sales of branded jewellery. Suddenly demand for branded jewellery in India is picking up pace. A number of individual players in the branded jewellery sector are recording close to 80 percent growth rate. Understandably. India is the second most populous nation in the world. the AT Kearney Global Retail Development Index 2008 (GRDI) placed India on top of its emerging retail destination chart. The GRDI analyzes various parameters that are conducive to organized retail and ranks new markets to help retailers make strategic investments. These players have been aggressively and extensively focusing on developing strong brands and large retail operations. Both these factors work in favor of retail. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .30 Indians are more adventurous and willing to try newer and trendier products. Organized Jewellery Retail in India: India along with China is one of the fastest growing economies of the world. In addition to high GDP growth. driven predominantly by the ‘Nouveau Riche’ Indians The branded jewellery industry in India is poised for a period of sustained growth. Gitanjali itself boasts of around 25 jewellery brands.

which until recently had a very limited presence in India. 96% of Indian Jewellery Market is unorganized.31 About. Jewellery retailers have taken notice of this opportunity and more retailers are taking the organized retail approach. They represent the future of jewellery retail in India Reliance is set to compete with Tata’s jewellery arm Tanishq. Malls and Online Shopping: Organized retail. Tiffany. Cartier and Harry Winston have a presence in India. Dolce Vita. are eagerly seizing the opportunity to sell exclusive jewellery to rich Indians. introducing brands and creating a channel for online shopping.000 traditional retailers or “Family jewelers” who are present only in one town. Luxury goods companies. Chopard. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . branded jewellery and online shopping are going to be the biggest growth areas for jewellery retail. Tanishq and other Luxury goods companies are exceptions to an otherwise unorganized sector. The organized sector accounts to only 4 percent. However. Bvlgari. Tanishq with 100 stores in over 53 cities is currently India’s first and largest jewellery retail store. According to analysts at Technopak Advisors Indian jewellery market is poised to grow at 15 percent annually. while branded jewellery is pegged to grow at 30 percent. Other international players such as Thailand-based Pranda Jewelry and Christian Dior are said to be foraying into the Indian jewellery retail sector soon. The unorganized sector represents 300. Reliance.

000 crore.12. The classic consumer purchasing decision-making theory can be characterized as a continuum extending from routine problem-solving behaviors. the current size of the retail jewellery trade in India is worth Rs 1. The current trend also reveals a shift in the buying pattern where the family jeweler is being replaced by branded jewellery makers This literature on consumer online purchasing decisions has mainly concentrated on identifying the factors which affect the willingness of consumers purchase jewellery on internet this study “A study on internet retailing of major jewellery brands in India” is focus on online jewellery retailing and consumers perceptions & Experience about online jewellery retailing.32 According to ASSOCHAM. platinum and colored gemstones. The jewellery market has been undergoing a gradual metamorphosis and plain gold is giving way to diamonds. through to limited problemsolving behaviors and then towards extensive problem-solving behaviors UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

Key NPD success factors are then profiled. activity blocks. The development and comparison of purchasing evaluation criteria result in the actual decision to buy. the new product development literature will be reviewed— specifically that relating to the actual process of NPD. fuzzy-gate. Power 1993). continuous learning.2. In traditionally consumer select the jewellery retailer based on the trust before services offered by the online service providers. the consumer progresses firstly from a state of felt deprivation (problem recognition). as it eventually affects consumers’ perception of satisfaction/dissatisfaction with the product/service. The section concludes with a summary and evaluation of the NPD models. NO. return maps. 6. the benefits & opportunities and the costs & risks of NPD for organizations are presented.33 [Journal of Electronic Commerce Research. The section then discusses what constitutes a new product and the role extensions play. QFD. In this part of the paper. The traditional framework for analysis of the buyer decision process is a five-step model. post-purchase behavior is critical in the marketing perspective. VOL. The information gathered provides the basis for the evaluation of alternatives. Given the model. to the search for information on problem solutions. chaos approach) that appear in the literature. The section begins by exploring the nature of innovation and what innovation is considered to be. 2005]. Next. multiple convergent processing. New product development (NPD) and planning has assumed a heightened level of importance in the modern world as organizations recognize the need to improve the NPD process and its outcomes (Allen 1993. This classic five stage model comprises the essence of consumer behavior under most contexts. rugby. including a table indicating the usefulness of each model UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Finally. This is followed by a review of the evolution of generations of NPD models —the generic (sequential) and various extension NPD models (stage-gate.

Lusk. only those applications of retail meat price data as they apply to the process of academic research and policy analysis were considered. Schroeder. Over the last 30 years. Table 2. and accuracy of retail meat price data. efficiency. problems within the beef industry have necessitated changing the focus of research efforts. 1999. As the research focus has changed. 1990. These research efforts served to focus attention on the effect of retail demand changes on the farm-to-retail price spread for beef and the derived demand for beef cattle at the farm level. therefore. Past and present research efforts will. Mintert and Koohmaraie. 1991. emphasis was placed on understanding the dramatic changes and shifts in the demand for beef. During the 1980’s and into the early 1990’s.34 for NRCD. Wohlgenant and Mullen (1987) and Bessler and Akleman (1998) focused on issues of price spreads in an attempt to quantify the effects of various shifts in the demand and supply on. Many of these research efforts examined demand shifts in terms of price changes. the retail-to-farm price 3 UGP/FW/08-11 IIPM/FW/09- 11/MUM/MKT/056 . Detecting the shortcomings in the current retail price data and making suggestions for improvements begins with an examination of some of the applications of retail meat price data. the quantification of the shortcomings in the collection and reporting of the historical retail meat price data becomes an all- encompassing task. To limit the scope of this study. 1998). (Brester and Wohlgenant. Capps and Nayga. Purcell. Fox. demand elasticities. and other measures of price. As a myriad of uses and applications of retail meat price data exist. provide the basis for a critical evaluation of the usability. Much of the literature focused on modeling demand and developing econometric models of demand shifts to better identify and explain all the factors that effect demand.1 is a summary of the main policy issues that have received attention over the last three decades within the beef industry as well as the data needs associated with these issues. so have the data needed to conduct the research.

In all aspects of the research topics and policy issues receiving prominence in the beef industry over the last couple of decades. derived demand elasticities. The price data requirements may vary. particularly in the beef sector. particularly as the latter emerged as a driver of the U. higher beef carcass dressed weights. or retail level. meat price data are an important input in the research process (Table 2. understanding both these aspects is critical. Another prominent issue that came to light in the 1990’s is price asymmetry (Goodwin and Holt. Paul. wholesale prices for boxed beef cutouts.1). An overall concern in this area is whether pricing patterns in food markets are cost or demand driven. 1998). researchers tried to account for apparent shifts in demand due to structural changes in supply. Assam. Researchers also started examining the issues of simultaneity and structural change. 1993). wholesale. the farmers share of retail food expenditures. An example of such changes in supply that shifted the supply curves for meat steadily outward are increased pork and broiler feed efficiency. demand for meat (Eales and Unnevehr. retail beef prices – are typically favored.S. but often the data needs include the price of beef at the farm. With this research. 1999 .35 ratio. That farm level prices have not kept up with changing prices at the retail level led to research into this area as observers questioned the extent to which retail-level shocks are realized at the farm level. or the price of substitute meats at the retail level. Weekly beef prices – producer prices. Such factors would have contributed to a false appearance of demand growth. and the beef herd liquidation following feed price escalations in the early 1970’s. and ultimately. 1999. when the converse was true in some meat industries. Since both prices and costs are involved. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

forward looking entrepreneurs. liberalized government policies and an extensive international marketing network has helped India establish itself as one of the leading jewellery centers in the world. India has the world’s largest cutting and polishing industry. that caters to the desires of every market The Indian jewellery industry is having competitive advantage in the world market due to its low cost of production and availability of skilled labor. its high consumption of gold. manufacturing excellence. employing around 8. A near dominance in diamonds and colored stones.36 Competitive advantage of Indian jewellery industry: The factors leading to the Indian jewellery industry’s growth are many.00. in plain metal and studded. steady inflow of silver and growing interest in platinum enable India to develop the entire range of jewellery. Moreover. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .around 50 banks provide nearly US$ 3 billion credit to Indian diamond industry.000 people (constituting 94 per cent of global workers) with more than 500 hi-tech laser machines. The Indian diamond industry has acquired leadership position in cutting and polishing of rough diamonds. The industry is well supported by government policies and the banking sector .

Nearly 95 per cent of gold is used to manufacture gold jewellery in the domestic markets and the remaining 5 percent is exported.37 Precious Metals are used in Indian jewellery market: Gold The current consumption of gold in India is estimated at over 900 tones. Gold consumption in India is primarily aimed at investment. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . used mostly in 20 / 22 carat jewellery.

com) UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . The Indian market size at US$ 13 billion is second only to the US market of US$ 40 billion and is followed by China at US$ 11 billion. it continues to be is less than one per cent in the global platinum jewellery market. account for the bulk of the sales. targeted at the premium jewellery segment. is gaining preference of designers and consumers globally. ibef.26 billion.000 tones of silver.22 – 0.38 Silver India annually consumes around 4. Silver jewellery and other articles for personal use. While India’s share in the global platinum jewellery market is growing by 19 per cent annually. Jewellery The Indian jewellery market is one of the largest in the world. after the US and Japan. this represents an area for potential growth in India. Given the global growth and the maturing of the Indian market to international trends. (Source: Indian brand Equity foundation. especially in the rural areas. India is also the third largest industrial user of silver in the world. with an estimated turnover at US$ 0. Gemstones India’s gemstone industry has been growing due to the popularity Of gemstone-studded jewellery across the globe. Platinum Platinum or white gold.

Store officers and Franchisee owners. 3 UGP/FW/08-11 11/MUM/MKT/056 IIPM/FW/09- . As each store’s response is important. The Responses were varied from store to store as some were managed by the franchisee themselves. etc are also analyzed. and others are being headed by the store managers. Results were ranked based on maximum marks obtained.0 software has been used to draw up analysis. a Questionnaire has been drafted with close ended Questions and given to the respondents to fill up.39 Analysis and Interpretation Confirmable Analysis An analysis is made for a sample based on the processes followed for indenting at World of Titan. The sample is collected for 12 respondents (12 WOT Stores in Hyderabad) and the analysis is drawn for the questions. • • Certain marks provided for each preferences and choices. the factors involved. few are flagship stores of TITAN. The Survey was conducted for Store managers. the area in which the store is located. and to understand the positioning of these stores in terms of the indenting processes. MS Excel has also been used for summing up the solution for each question and draw up a chart. The indenting followed by each store is varied based on experience. To avoid biased answers. SPSS Statistics 17.

Of.40 Usual Purchase Place: SL Particulars Traditional Jewellery Purchaser Retail Store purchaser Total No.Respode nt 57 43 1 2 100 100 Interpertation: The most of the people buying the product Traditional Gold smith and 43% people are buying retail show room… UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

Respod ent 17 9 9 14 6 14 8 8 9 6 Interpertation: Consumer are given to mostly imporatant factors for buying. family and friends… UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .Brand image.41 Important Factors: SL 1 2 3 4 5 6 7 8 9 1 0 Particulars Design Price Purity Brand Image Ambience Promotional activities variety Display Service family and friends influence Total 100 100 100 100 100 100 100 100 100 100 No. in this analysis find out the result Design.Of.

42 What is that you purchase the most? S L 1 2 3 4 5 6 7 Particul ars 22K gold hall mark gold Platinum Silver Diamond Pearl Others Tot al 100 100 100 100 100 100 100 No.Respod ent 33 27 4 14 9 10 3 Interpretation: The people mostly buying the product 22k Gold and Hall mark gold What are the most frequently purchased product? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .Of.

earring…. What are your design preferences? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .Of.Respod ent 23 17 16 4 Necklace/Pendent 5 Bracelet 6 Matching sets 7 others 100 19 100 10 100 8 100 7 Interpretation: Mostly and regularly buying ring and chain.43 S L 1 2 3 Particulars Ring Earring chain Tot al 100 100 100 No.

44 S L 1 2 3 4 Particul ars Basic Classical Modern Ultra Modern Tot al 100 100 100 100 No.Respod ent 26 22 28 24 Interpretation: All Jewellery consumer now a days prefer model and ultra model….Of. What are the main occasions you buy? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

45 S L Particulars 1 Birthday 2 Festival/New Year 3 Self-gratification 4 Wedding/engagement 5 Others Tot No. How many times you purchase in a year? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .Of.Respod al ent 100 27 100 100 100 100 20 17 33 3 Interpretation: People are buying gold now a days for only wedding and birthday occasions….

Respod ent 0 6 8 12 21 25 28 Interpretation: They are buying gold more than five times in one year and middle class people buying four times… What is the range you are mostly concerned when purchasing? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .Of.46 S L 1 2 3 4 5 6 7 Particul ars Zero once Twice Three Four Five more than five times a year Tot al 100 100 100 100 100 100 100 No.

47 SL 1 2 3 4 5 6 Particulars High price & high quality High price & low quality Medium price & high quality Medium price & low quality Low price & high quality Low price & low quality Total 100 100 100 100 100 100 No.Respod ent 23 0 42 13 16 6 Interpretation: People wanted in medium price high quality mostly prefer and like them also our self… What promotional activities influence your purchase? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .Of.

Respod ent 20 14 17 28 3 15 3 Interpretation: In jewellery retailers for increase our sales some promotional activity.Of.48 S L 1 2 3 4 5 6 7 Particula rs Magazines Newspaper Radio TV Internet Word of mouth others Tot al 100 100 100 100 100 100 100 No. According to people mostly heard TV. Newspaper… What range of products do you like to purchase? UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Radio.

25.25.10.Respod ent 31 23 29 17 Interpretation: People are buying Rs. 000 to Rs.000 Rs. 000 in this rate… Findings UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .000Rs.49 S L 1 2 3 4 Particula rs <Rs.5000Rs.10.000 Tot al 100 100 100 100 No.10.5000 Rs.Of.25.000 >Rs.

end consumers are purchasing jewellery in jewellery specialty and organized retailers.  The most important promotional tool for jewellery retailers are T.V media & newspapers.50  Most of the consumers to select jewellery shop based on the quality assurance of product given by retailers.  Word of mouth concept followed by traditional families and some of the youngsters influenced by their friends.  The main motivating factor of Madurai consumers are purchase jewellery for wedding/engagement.  Most of the middle class and upper middle class people purchase jewellery from family retailers.  The most people choose traditional gold smith because the retail show room now only entire the market so people are would like traditional gold smith.  Most frequently purchased product is ring. Suggestion and Conclusion UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .  Only higher.

Place: Mainly at the Exhibition Hall that provides an interesting environment for visitors and customers. Madurai Natives: UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Madurai natives. and to encourage repeat purchases. Business class people. Product: Make available products and services according to customer needs. Female office workers and teenage girls. Some jewellery should be designed with Madurai traditional manner.51 Based on our research we divided consumers in to Floating people of Madurai. Promotion: Distribute cash coupons to stimulate customer visits and spending. Price: Make available products of all price ranges. The customers should be served with free food and drinks to encourage them to stay longer and purchase more merchandise. Designed different 4p’s of different consumers.

V channels and radio. Product: Make available products of all designs and varieties.52 Place: retail shop should be in specialty areas and bazaar areas. Business class people: Place: Retail shops should be close to hotels or exhibition venues. other promotional activities. advertisement in ladies’ magazines with coupons. Create positive impression and believes about the shop among Madurai people by utilize word of mouth concept. Female office workers and teenage girls: Place: Organized and jewellery specialty stores should have a simple decoration that gives customers a sense of freedom to shop. Price: Range from hundreds to thousands rupees . Product: Emphasize on innovative and fashionable designs. partnership with other merchants such as cosmetics retail shops and fitnesscentres. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Diamond and gemstones merchandise should be as trendy as possible. Promotion: Advertise in all local T. Promotion: Distribute membership cards to enhance brand loyalty and stimulate repeat purchases. Price: Make available products of all price ranges.

leaflets and intranets of hotels.53 Price: High starting from thousands of rupees. Conclusion UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- . Product: Top ten sales products. small size and easy to carry Promotion: Partnership with hotels or service departments. advertising on the magazines.

investment into fashion and trends  Because most of female office workers and teenage girls taking decisions independently.  So retailers should focuses on the new fashions and used advanced technology while manufacturing products.  Retailer should focuses on quality assurance of their product. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .  Because easily converted in to money.  Consumers attitude towards jewellery slightly deviate.54  Jewellery is one of the investments.

 Overview of the industry. TV news and magazines. PROGRESS OF THE THESIS:  Collection of data from newspapers.55 RESPONSE SHEETS RESPONSE SHEET NO: 1 NAME: Simon Mudaliar ID NO: IIPM/FW/09-11/MUM/MKT/056 WORK DONE: Collecting Primary Data DATE WHEN THE GUIDE WAS CONSULTED: 4th June OUTCOME OF THE DISCUSSION: Collection of primary data and understanding the performance at large.  Understanding the Indian Share Industry UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

56 UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .  Overall Sector study of the Companies  Historical Perspective Of the industry.RESPONSE SHEETS RESPONSE SHEET NO: 2 NAME: Simon Mudaliar ID NO: IIPM/FW/09-11/MUM/MKT/056 WORK DONE: Collecting Secondary Data DATE WHEN THE GUIDE WAS CONSULTED: 25th June OUTCOME OF THE DISCUSSION: Collection of secondary data and understanding the performance at large. PROGRESS OF THE THESIS:  Collection of data from internet  Referred various sites and articles.

57 RESPONSE SHEET NO: 3 NAME: Simon Mudaliar ID NO: IIPM/FW/09-11/MUM/MKT/056 WORK DONE: Literature Overview DATE WHEN THE GUIDE WAS CONSULTED: 9th July OUTCOME OF THE DISCUSSION:  Consulting the Project guide for various information to be prepared PROGRESS:  Understanding the company  Consulting the employees about the working & performance UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

PROGRESS OF THE THESIS:  Understanding the method of research  Overall research study of the Companies 58 UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .RESPONSE SHEETS RESPONSE SHEET NO: 4 NAME: Simon Mudaliar ID NO: IIPM/FW/09-11/MUM/MKT/056 WORK DONE: Research methodology DATE WHEN THE GUIDE WAS CONSULTED: 23th July OUTCOME OF THE DISCUSSION: Collection of secondary data and understanding the performance at large.

 Data on the company’s employees information on selling process UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .59 RESPONSE SHEET NO: 5 NAME: Simon Mudaliar ID NO: IIPM/FW/09-11/MUM/MKT/056 WORK DONE: Data Analysis DATE WHEN THE GUIDE WAS CONSULTED: 6th August OUTCOME OF THE DISCUSSION: Consulting the employees about the working & performance PROGRESS:  Taking points relating to the market value of the company.

60 RESPONSE SHEET NO: 6 NAME: Simon Mudaliar ID NO: IIPM/FW/09-11/MUM/MKT/056 WORK DONE: Preparing Questionnaire DATE WHEN THE GUIDE WAS CONSULTED: 20th August OUTCOME OF THE DISCUSSION:  Consulting the Project guide for various questions to be prepared  Drafting the questionnaire. PROGRESS:  Drafting the final questionnaire  Taking points relating to the customer response of the company. UGP/FW/08-11 11/MUM/MKT/056 3 IIPM/FW/09- .

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