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alternative retail channels and competition from other luxury products. Alternatively. affordability and quality will be a key element in sustaining a brand. . Numerous cultures move wedding dowries in the form of jewellery or create jewellery as a means to store or display coins. While a predominant portion of gold jewellery manufactured in India is for domestic consumption. In addition. India's small. uncut diamonds processed in the form of either polished diamonds or finished diamond jewellery is exported. diminishing investment-driven purchases. jewellery has been used as a currency or trade good. While the success of a particular brand will depend on differentiation. branded players require focused advertising and astute salesmanship to compete with traditional jewelers. branded players will have to come up with designs that customers want and win the trust and confidence of consumers by hallmarking and demonstrating the purity of the gold used by them. To compete with traditional players. a predominant portion of rough. In order to gain market share. an example being the use of slave beads. With an estimated consumption of 722 tonnes during calendar year or CY2005 (including jewellery consumption of 587 tonnes). India is the largest consumer of gold in the world. Responding to the changing trends.INTRODUCTION The gems and jewellery industry has an important role in the Indian economy. branded players must also find some way to differentiate themselves. Most cultures have at some point had a practice of keeping large amounts of wealth stored in the form of jewellery. independent jewelers are starting to organize themselves into groups of four to five players to share a common brand identity and marketing strategy. Recent times have seen larger brands witnessing an upward swing mainly due to factors such as increasing consumer sophistication.
the other roles described above tended to take primacy. for instance. stones. or glyphs (such as stylised versions of the Throne Verse in Islamic art). originated as purely functional items. as in the case of chains of office. later. Likewise. . the display of body jewellery. sumptuary laws dictated who could wear what type of jewellery. For example. but evolved into decorative items as their functional requirement diminished. animals. More recently. which refers to ostentatious display of jewellery by men or women. only certain ranks could wear rings. such as brooches and buckles. such as piercings. Wearing of amulets and devotional medals to provide protection or ward off evil is common in some cultures. hip hop culture has popularized the slang term bling-bling. has become a mark of acceptance or seen as a badge of courage within some groups but is completely rejected in others. as in the case of the Christian crucifix or Jewish Star of David. Cultural dictates have also played a significant role. Although artistic display has clearly been a function of jewellery from the very beginning. body parts (such as the Khamsa). the wearing of earrings by Western men was considered effeminate in the 19th century and early 20th century. Jewellery can also be symbolic of group membership. or of status. these may take the form of symbols (such as the ankh). In ancient Rome. again based on rank. JEWELLERY & ITS IMPACT ON SOCIETY Jewellery has been used to denote status. or the Western practice of married people wearing a wedding ring.Many items of jewellery. plants.
By the mid 1940s. gold. in the writings of the apostles Paul and Peter. Perhaps because of the rising standard of living or the rise in wealth. up from 15% in the 1920s.S. and many religions have edicts against excessive display. considers the wearing of gold by men as a social taboo. the jewellery industry in the early 20th century launched a campaign to popularize wedding rings for men. In Christianity. but not everywhere is worried. It seems like there should be a slowdown in the global jewellery market. . 85% of weddings in the U. silver and platinum prices have been on the increase too due to the increased cost of mining these precious metals. which caught on. This mother's day in America for example. as well as engagement rings for men. people spent less on jewellery gifts. for instance. The high street market may be suffering. it seems that the rich still want their diamonds and rubies. having a golden cup in her hand. but the exclusive one is seeing growth. A recent poll in Ireland said that people would cut back on their fashion spending thanks to rising food and fuel bills.Conversely. "the great whore" or false religious system is depicted as being "decked with gold and precious stones and pearls. going so far as to create a false history and claim that the practice had medieval roots." SCENARIO OF GLOBAL JEWELLERY MARKET The shaky western economy is doing funny things to the world jewellery market. At the start of the supply chain. the New Testament gives injunctions against the wearing of gold. featured a double-ring ceremony. which did not. Some Arabic countries and India are seeing an increase in demand for high-cost jewellery. Religion has also played a role: Islam. In Revelation 17.
The outlook is more positive. Its operating margin only dropped slightly during the recession thanks in part to continuing strong sales of Cartier in Greater China where it now has almost 400 stores. the global jewelry and watch market leader. Benchmark your company's performance by accessing profiles of ten key jewelry retailers including key operating statistics and global market shares. compared with over 3% for the mass market. up from a fifth five years ago.6% as consumers scaled back discretionary purchases. now achieves a third of its sales from Asia Pacific excluding Japan. especially for the luxury segment which is set to increase in value by over 8% in 2010. In 2009 the global jewelry retailing market contracted by 0. Richemont. The importance of developing operations in fast growth markets is well recognized by leading companies and those that built presence in Asia-Pacific have performed far better that those that did not. Make informed product investment decisions by uncovering how the luxury and mass market segments will drive the total global jewelry retailing market. Maximize the effectiveness of marketing investments by uncovering the strategies being used by the most prominent players in global jewelry retailing.Features and benefits y y y y Make informed regional investment decisions with data on expenditure per region for 2005-2010e and forecasts to 2015 with accompanying analysis. . Asia-Pacific (excluding Japan) has overtaken the Americas as the leading region for jewelry and watch retailing.
2. Expand retail stores WEAKNESS 1.000-crore 2. most of the processing of diamonds takes place in Gujarat. (Luxury is needed). Purity (karat meter) 2. Global markets Low cost jewellery Customized jewellery designs Concentrate on Gen-X by having trendy jewellery 6. Gold not seen as a source of investment. Competition 2. The centre of trade in India's Gems and Jewellery industry is Mumbai. Competitive prices OPPORTUNITIES 1. 5. Escalated gold costs margins lower THREATS 1. Most imports of gold and rough diamond arrives in Mumbai. Distribution network and retailing store 3. the organized segment and retailing of branded jewellery is fast catching up in the currently fragmented market which is worth US$ 16 billion and shows huge potential for growth in the future. Lack of Skilled workers 3.SWOT ANALYSIS STRENGTH 1. but with the growing economy and increasing income levels. . Capture Rs 70. 3. However. INDIAN SCENARIO The gems and jewellery industry in India is greatly dominated by the unorganized players. Award winning designs 4. Diversity in jewellery gold/diamond/platinum 5. 4.
Italy.04 in April-October 2011. The industry body further stated that the Government is also working towards formulating an international compliance code for manufacturing costume jewellery. It is also estimated that about 600 tonnes of gold is used to make jewellery. Every 11 out of 12 diamonds sold around the world are processed in India regardless of the place they are mined. . representing an amazing 746 tonnes of gold in 2010. USA and UK.000 tonnes.Key Industry Components Diamonds: Currently India is the major polishing and cutting hub for diamonds. Turkey. thereby. as per the Export Promotion Council for Handicrafts. of which India only exports around US$ 53 million. The net exports of gem and jewellery grew from US$ 22. The surge of urbanization and rapidly growing middle class in India has led Indian consumerism to new heights. Exports India is the largest market for gold jewellery in the world. China. Costume jewellery: The Indian costume jewellery market is also witnessing growth in the international market. particularly in the diamond jewellery sector.160. India is also the third largest consumer of polished diamonds. The current global costume jewellery and accessories market is estimated at US$ 16. Gold: The country became a leader in the table of most gold consuming nations with the consumption amounting to about 16.3 billion. The other key markets include Japan.616. providing a huge opportunity area for the Indian costume manufacturers.35 in April-October 2010 to US$ 26.
Karva Chauth etc. Brands such as. There is a marked shift in the consumer s preferences and aspirations from gold jewellery to diamond jewellery which is fuelled by media hype and exposure to lifestyle and luxury products. . as per a statement given by Rapaport Group. Reliance Retail. India will soon overtake the US in the not so distant future. The availability of cheap labour and presence of well skilled people in various states of India is helping in the growth of diamond polishing and gold jewellery markets. All brands are targeting on the emotional bonds of human relationships and promoting the same accordingly. According to experts in the jewellery industry the growing demand for expensive jewellery in India is a result of the strengthening Indian economy. Mother s day. With more and more players being introduced in the branded jewellery segment there is an onslaught of schemes and promotions on diamond jewellery round the year. which gives retail a great push. Father s day. and Joy Alukkas are either opening or have already opened their new branches. Diamond jewellery now is not restricted to just occasions like marriage but extends to all modern day occasions like Valentines day. thus giving retailing jewellery in India a major boost.The enormous growth of the Indian gems and jewellery industry has seen the arrival of many new branded jewellery shops in various metros of this country. Damas Jewellery. With more women working in today s scenario the positioning of diamond jewellery as 9 to 5 wearable jewellery has increased emphasis on this segment. CONSUMER BEHAVIOR IN THIS SECTOR Key factors influencing the jewellery retail scenario in India. This is further fueled by the fact that with the number of double income households increasing this has resulted in more disposable incomes being available. the well known keeper of global diamond related data. Swarovski.
Men from metros are also donning jewellery. supermarkets and specialty stores. Risk in approaching the branded stores rather than old family jeweler s Jewelry market has recently become an organized sector. Typical behavior of jewellery consumers: 1. Western style malls have begun appearing in metros and smaller cities alike. and jewellery can be bought as much to express an emotion. The opening of a number of exclusive franchise outlets. and not only commands the same. Jewellery buying is no longer confined to seasonal cycles of marriages. and is exposed to the international shopping experience. The Indian consumer is well traveled. not only can provide the entire range of jewellery under one roof but create an ambience to give consumers a total shopping experience. introducing the Indian consumer to a shopping experience like never before. To further strengthen the retail segment. over and above the traditional wedding rings and chains. Besides the franchise route the counters in most malls is another route that most of the brands are getting into which helps create a better reach of the product. thereby increasing consumption. zero interest installments schemes which have made the diamond jewellery more affordable than its perceived traditional image of being expensive. life time return /buy back schemes. most brands are getting into departmental stores. hypermarkets. but receives it too in India. Many new brands have entered the market giving tough competition to the unorganized sectors and especially to old family jewelers.Each brand offers value added services like certification of gold and diamonds. Consumers are moving slowly away from contemporary jewelry to designer wear. They have also become very quality conscious. as to proclaim the financial status of the wearer. and Diwali and Christmas: anytime is a fine time. Through the responses .
3. The second strongest quarter from our analysis is found to be the first quarter of the year probably due to the Chinese New Year. Eid take place and consumers find it most favourable to give branded jewellery as a token of gift. The second and third quarters are usually seasonally low with a relative absence of major gold giving occasions. This may because during this period various festivals like Diwali. 2. The fourth quarter of the year is most powerful period during which maximum of jewellery is bought by the consumer s. Seasonality implications towards jewelry Demand of jewellery is highly influenced by the seasonal variations. Media influence on customer s preference towards branded jewelry Television plays the key role in creating awareness and educating customers on different brands available in the market.received we can conclude that the customer is aware about the new brands launched in the market. Valentine s Day. Influence of resale value: The decision to purchase jewellery is dependent on resale value. Status Symbol has a strong influence on people s decision to buy jewellery . to a lesser extent. Christmas. Another strong influence is the availability of the outlets which complies that people prefer to buy jewellery from the stores which are in their vicinity 5. This shows that most of the people in India still consider jewellery as an investment. 4. the Indian wedding season and. Thus we can conclude that television is the prime factor which helps customer s recall the brand while actually being in the market and thus their purchases at times are motivated by this clear winner of media advertisement.
o Indian diamond jewellery industry is the third largest consumer of polished diamonds after USA and Japan. accounting for nearly 8% of the total gems and jewellery market by 2009-10.2 billion by 2010. o Various factors like cheap labor cost. . o Diamond jewellery consumption in India is also estimated to jump by 78 per cent in 2010.FUTURE OF THE INDIAN JEWELLERY MARKET: o India s growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of US$ 21 billion by 2010 and US$ 37 billion by 2015. The sector is expected to grow at 40 per cent annually to touch US$ 2. o The organized gems and jewellery sector is anticipated to grow rapidly in near future. o Branded jewellery is likely to be the fastest-growing segment in domestic sales. are making the country an attractive destination for cutting and polishing of diamonds. better designs and manufacturing practices. Diamond jewellery consumption is likely to jump to nearly 80 per cent in 2010 and over 95 per cent between 2010 and 2015. o Various government incentives coupled with private sector initiatives are projected to drive the sales of Indian gems and jewellery sector at a CAGR of around 14% from 2007-08 to 2010-11.
there are more than 50 brands in the Indian market.CONCLUSION In India.Branded jewellery players will continue to face lot of competition from local jewellers. Competition now is for jewellery as an accessory rather than as a jewel. For those who want to venture into branding and retailing in India. The distribution by luxury brands is also very good. With companies like Bulgari and Gucci s bold communication. The consumers buying behavior shows a shift from content to design in jewellery i. fashionable jewellery is the rage nowadays and acquires a status symbol in their minds. Luxury brands have entered the jewellery market with clear strategies to reach the final consumer. For brands the right approach is to have a continual revitalization of the brand and its position within the market.e. Today. . the 7 E s of brand marketing strategy are recommended for the new jewellery retail environment. keen competition within the jewellery sector is increasing. Branding commands a premium price but it has to be justified. brands are required as no one shop alone can do advertising due to lack of resources.
com/news/Gems-and-jewellery-industry-keen-to-buildbrand-equity www.gold.indianetzone.com/10.BIBILOGHRAPHY http://www.indianetzone.gjepc.icfai/casestudies/ www.org / value / market intelligence / supply & demand / jewellery www. www.htm www.financialexpress.com/1/branded_jewellery.1108/02580540210793428 www.com/1/branded_jewellery.emeraldinsight.allbusiness.com/retail-trade/apparel .icmr.org/gjepc Jewellery.jewellery.
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