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CHAPTER I INTRODUCTION

1.1 INTRODUCTION
Gold jewellery is often envisioned as a symbol of wealth and status. Interestingly, buying gold jewellery is also one of the best ways to invest hard earned money. Vibrant looks, exquisite design and the impeccable style, innate to well crafted gold jewellery, make it nothing short of a treasure. Gold jewellry is a striking piece of art and the aptly described as poetry in metal. India is the largest consumer of gold in the world. Countrys jewelry market is mostly dominated by the unorganized sector. About 3lakh traditional retail jewelers hold 96per cent of the market share, while large brands or organised retail form only 4 per cent of the overall market. Among the gold market, gems and jewellery segments shows highest potential of growth the growth of retail business in this area. The Indian gems and jewellery sector contributed to about 15 per cent of India's total merchandise exports during 2005-06. And in 2006-07, it accounted for 13.7 per cent of the country's total merchandise exports. The domestic demand for retail jewelry (both branded and unbranded) was estimated at Rs 490 billion in 2005, with diamond jewelry comprising Rs 80 billion. By 2010, according to a study by McKinsey, the branded jewelry market alone would touch Rs 100 billion mark. The sale of diamond jewelry in India has been increasing at a rapid pace of 25% every year over the last two years. The branded jewelry segment has shown an astonishing trend, increasing by 50% each year. In the recent years, jewelry market has witnessed tremendous change. Old, traditional ornaments are giving way for branded designs and gold is replaced by diamonds and precious stones. Buying pattern is also changing. People are more and more opting for branded jewelry than buying from a family jeweler. This change has created ample opportunity for the retailers. Multi-national jewellery brands such as Tiffany, Cartier, Zales and Harry Winston, all are showing interest in setting up their shops in India. Governments decision to allow 51per cent FDI in single brand retail store also helped many foreign retailers to enter into India. Damas Jewelry, one of the worlds leading jewelry retailer entered India in 2003 with a 5050 joint venture with Gitanjali Gems Ltd. Damas opened its first retail store in Bangalore in

2005 and it increased its presence by another seven showrooms in short span of 5 months. It intends to open another 30 showrooms by 2006-07. Generally, Indian consumer looks out for low-cost jewelry for daily wear and prefers to buy from trustworthy jewelers. Diamonds, precious stones which give elegant look not so expensive and changeable after few years of wearing are preferred by the working class women. Some of the prominent brands in the market are Adora, D'Damas, Oysterbay, De Beers and Carbon. There are about 30 major players marketing about 50 brands in India. Keeping Indian consumers preferences and tastes Arens Gold Souk International Limited has opened a special shopping mall for branded jewelry. The company is planning to open about 100 Gold Souks in India in near future. Jewelry retailers are exploring the vast India Gold and jewelry market, especially brand jewelry in their own way of branding, suiting to the needs and expectations of the consumer. Among Indian brands, for example, Nakshatra is product specific, Asmi is feeling specific, and Glitterati is star oriented. For thousands of years, Indian jewellery has remained unchanged with design dictated by regional and religious tradition. Over the last few years, however, it has begun to bubble with change. Economic reform and the impact of television have suddenly opened the doors and latest global trends have found favor. Fashion is now an important new sales driver and jewellery manufacturers are scrambling to adjust their product design to cater to this segment. A host of variables- the buying occasion, the wearing occasion, the economic strata of the target segment and the effect of regional and religious influences on all of them are now being juggled to find the winning mix. A recent study of youth in India, a segment consisting of those under 35-constituting a colossal 54 per cent of Indian population with high disposable income and a propensity to spend, showed that young Indians today, despite being a part of the global fraternity, would gladly choose to stay connected with their cultural roots. This study makes it abundantly clear that connecting tradition with trends is one of the keys to success in the Indian market. Fashion jewellery integrates many aspects from the tangibles to the intangibles and is evolved of an environment from purpose, material, technique, production, user, economics, to aesthetics, values, perception, and time. No matter where and when, a designer cannot

proceed without considering all the aspects involved in turning a concept to an actual product on the counter. Change is an integral part of society and traditions need to be reinterpreted and restated with subtle modifications to suit the changing times. Jewellery industry hasnt yet got around to really understanding the consumer. The concept of design is still new to India, and it is not quite sure if serious, systematic efforts are put in by Indian designers and companies to understand what the Indian jewellery market is about, who the Indian consumer is and what she really wants in a piece of jewellery. The jewellery institutes hold design workshops for companies and they are often a complete revelation to most of the older generation who attend them. One can understand trends and design, but you cannot simply put the two together. A design is created keeping in mind ones production base, corporate identity marketing and packaging efforts, branding and the like.

1.2 Change in Perception:


In the globalized era, jewellery in India, like many other traditional product segments, is undergoing an astounding change of perception. While it continues to enjoy the position of being an enhancer of beauty and means of security, the new-age consumer perceives jewellery as a personal accessory that manifests the wearers attitude, personality and lifestyle. It is imperative for jewellery manufacturers to recognize this shift and adopt new, innovative approaches in the creation of jewellery. This is what will enable them to establish an edge over their competitors. On the other hand, a glaring reality is that the traditional jewellery sector constitutes a significant chunk of the jewellery market. This jewellery in most instances is handcrafted and bought from the family jeweler. This segment has a strong socio-cultural bias, as the jewellery is bought for auspicious occasions like weddings, engagements, and rituals. The decision to buy a piece of jewellery is more often a family decision than an individual choice. Jewellery in this segment is also a means of investment and future security traditionally constituting the wealth that a bride takes with her to her new home. This offers the biggest opportunities to designers they need to understand that traditional jewellery emphasizes a deep zymology and meaning socio-cultural, religious and psychological- that places it way beyond its sole function of adornment. There is an 4

unimaginably vast opportunity for us to leverage this by packaging the context of tradition and culture in designs that are universal and contemporary in their aesthetic appeal. This blending results in a product that stand out in todays world where globalization has resulted in products being massively homogenized and consequently losing their individual, cultural and regional identity. A lot of companies are already experimenting with this blending concept, but it is important that the resulting jewellery, while keeping in mind traditional reverence and meaning, should not look very ethnic. Here branding and packaging play an important role in linking a new-look piece to its traditional inspiration. The successful Nakshatra brand that launched by De Beers. Floral designs have always existed in Indian culture with different communities interpreting them in a myriad different ways. But the traditional jewellery was heavy and worn only at weddings or for religious ceremonies. Most of the time it stayed in safety deposit lockers. Nakshatra successfully reintroduced it by modifying it into light, everyday-wear designs. Any sensitive designer today is trying hard to establish a balance between tradition and trend. The interplay of traditional technique and international design trend is apparent in todays Kundan (traditional 24-karat gem-set) jewellery. Some designers have already incorporated the linear earring design, which is a global trend today, into their kundan-studded earrings. A classic example of mangal sutra, the traditional beaded necklace worn by women to signify their married status, a social symbol that has remained unchanged in design for millennia. The basic concept of black and gold beads with a pendant the centre remains the same, but one can now have interplay of black, white and gold beads. As for the pendant, the beads were first replaced by diamonds but have now made a comeback. The variations in design are actually asked for today by young brides of traditional and modern tastes. There exists a traditional Indian woman within every modern woman and jewellery has to appeal to both. Apart from the subtle changes in the traditional jewellery market, most designers observe that more and more people today are interested in horoscopes, chanting mantras, yoga and alternative therapies.Todays consumers have a strong interest in birthstones and the beneficial properties of gems. Consequently, spiritual and auspicious motifs have seen a great comeback in fashion, including the jewellery segment. Thus the Rudraksha, Ganesha

and religious swastika motifs, the traditional nine-gem or Navratna combinations and many other auspicious concepts have become very popular in the Indian jewellery market over the last couple of years. Indian designers incorporate these motifs into current fashion so harmoniously that they are as current as the latest trends. The Indian USP Unlike many other fashion markets in the world, which are more homogeneous in character, the Indian market demonstrates a great element of duality, particularly in traditional product segments like jewellery. Indian consumers operate with two contradictory mindsets when deciding to buy a piece of jewellery. At heart, we remain quite rooted in culture and tradition and continue to revere and value jewellery as a timehonored possession. On the other hand, the same consumers exhibit contemporary urban traits and see trendy jewellery as an extension of their personality and lifestyles. They opt for brands, thereby emphasizing their perceived worth accorded to a piece of jewellery. The jewellery buying pattern in the Indian market is also changing. For instance, the Indian woman today is economically independent and does not seek approval from her father or husband to buy jewellery as was the case earlier. Indian fashion does not surrender to the burdens of fall-winter or spring- summer influences. In India people stick to their personal tastes and do not kowtow to the imposed opinion. It could also be because most of them cannot afford the routine makeover of the wardrobe another interesting feature is that the Indian consumer looks for the longevity in a product. Hence the product supersedes the season. Also, Indians might see tough competition from other luxury items like high-end mobile phones, travel, and the like, Indians have a rich culture and heritage, which continue to respect and follow despite changing modern attitudes. Jewellery is far too integrated into lifestyles to get affected in one generation. This could all change some two generations down. The good part is that they still have the luxury of time to work on it, unlike the west. It is felt during a recession; jewellery comes in last and goes out first. While buying, jewellery is last on the list. Although mobile phones are a luxury item, they have become a necessity. Nonetheless, the Indian market is getting stronger by the day; it will see a big change in the tastes of the Indian consumer within three or four years. And while many point to the growing use of diamonds in Indian jewellery, complete makeover is still a way off. Rural India still has a mindset for plain gold jewellery, as it is easily traded as compared to diamonds (meaning investment is still a big jewellery purchase driver). And

rural India accounts for a major chunk of jewellery consumption. There are several trends running parallel in the Indian market as far as the design life cycle goes. While in the traditional jewellery market, change is gradual, spread over years, in the urban segment, it is quick and ongoing. Moreover, in precious jewellery, the evolution is much slower and most often, jewellery in the high-end segment tends to have a long-term appeal. However in the fashion segment, it is very important to tie it to trends, as the price points for these are much more affordable, and this is where the consumer is able to experiment. The product life cycle in India is much longer because of the high value costs involved. Other lifestyle products undergo four fashion cycles a year, but jewellery cannot follow this pattern. Only between one and three per cent can afford to buy so frequently. Trends in jewellery change at much lower rate as compared to the rest of the luxury market due to the high costs involved.

1.3 Designing To Follow Fashion:


With so much change and so many variables to consider, most jewellery designers agree that it is vital to understand the holistic lifestyle practices of the customer, visit jewellery stores across the country, national and international fairs, fashion weeks and travel to observe what people wear in terms of their garments and accessories. All these provide valuable inputs to a designer. Its important to watch the fashion segment for the colors, styling and detailing on the garments. One need to study the necklines that are in vogue to decide the profiles of the neck- wear that you are going to design. A good example of fashion trends affecting jewellery design was the layered look. A few seasons back, all the big design houses were suddenly wrapping up their models in many layers of different materials. This concept took off in the jewellery industry like a rage with designs featuring many different beaded necklaces and bangles at the same time. A designer has to also keep in mind the wear ability of the piece while being conscious of trends. Indians have traditionally preferred emeralds and rubies for the color in their jewellery but that of late, a variety of colors and types are in vogue. Today Indians want topaz, tourmaline and even synthetics if they give them the look they want. But even after factoring all the variables, most designers will tell you that there is no 7

such thing as a single, homogenous Indian jewellery market. Geographic location and ethnic differences break it up into distinctly different markets with differing tastes. When one designs for the Indian market, one has to definitely keep these aspects in mind. But, the contemporary jewellery segment responds closely to the changes in the global market and the consumer base is not wholly segmented by geographic location or ethnic groupings. Internationally, companies and marketers are segmenting consumers in the context of their attitudes and values, tastes and preferences, lifestyles and living patterns. However, there is a specific, identifiable customer base in cities like Delhi, Mumbai, Hyderabad and Bangalore, that is more willing to experiment with new designs and concepts. Delhi definitely is very quick to catch on to trends which are bold and visible. Bombay is more style oriented where people are more aware of what works for them individually and whether it suits their personalities. The south tends to stay with a more classic approach. In Chennai, gems are a no-no. Though jewellery is forever evolving, the underlying essence of a particular region is always visible in it. Look at a bride from any particular region of India. Even the most modern north Indian bride will shun international brands on her big day and opt for culturally and traditionally rich embellishments like Kundan jewellery, while a south Indian bride would go for temple jewellery. Indians attach a considerable amount of emotional value to jewellery though this does not affect the design concepts of fashion jewellery. There is a very small segment emerging of highly fashion- conscious individuals who are ready to experiment with tradition. There is also another segment of people who are artistically inclined, and prefer handcrafted or artistically appealing jewellery. And then there are collectors who go for customized pieces that are unique in design, material, craftsmanship or technique. Fashion designers empathize with this drift and thus are exploring more and more possibilities in terms of integrating regional tastes with the fashion dictates of today. Hot, Evolving Market India is hot today, and tastes are moving from local to global. The market for designed goods is fast evolving. From the fashion weeks becoming popular in India, to Indian design stores and Indian designer labels becoming fashion icons globally, India on the path to becoming a design centre for the world.

Five or ten years ago, one could clearly distinguish between a western and an Indian design. But today, the distinction is blurring. Plus, the idea of fusion has brought the two worlds together. Indian designs are readily accepted in the west and vice versa. Designers and consumers both are more open to experimentation and there are a lot of new exciting materials being used today. Italian rubber, amalgamation of precious and nonprecious, leather, wood, suede, fabric, plastics and other unusual combinations are commonly seen. The characteristics of costume jewellery have penetrated the mainstream precious jewellery market and in the large cities, the jeweler does not now hesitate to display these as his unique sales proposition. Also, value addition is achieved with new stone settings and cuts, surface finishes and textures on metals and cross cultural forms. In about five to ten years, the Indian market will have an identity of its own especially because of globalization. The last two years have shown a shift from a preference for diamonds to colored stones, while white gold is being accepted by middle and higher-end consumers.

1.4 Electronic Influences:


A major influence on design and style in India today is television, which brings alien ideas, attitudes and styles right into all of Indians homes. TV has been a major driver of change. Television fashion trends get replicated particularly in middle class or small town homes. While TV as a medium may cut across consumer groups internationally-travelled, wellexposed, elite class is less likely to be driven by its impact, as this class is in-sync with international fashion trends and global signer brands. There has been a noticeable increase in demand for diamond mangalsutra pendants after the leading ladies of some of the most popular serials started wearing them. Magazines dictate fashion trends more than television magazine like Cosmopolitan, Femina, Womans Era, and youll find jewellery designs, advertisements even articles about them. About 10 years back, no fashion magazine featured jewellery, but that is not the case today. The internet too has contributed t the changes in Indian jewellery tastes. Information is just few clicks away and one wants to emulate the styles seen on the ramps of Paris. Minds and pockets have opened up and the consumer wants global and local to go hand-in-hand. So far Indians were intrigued by the advent of westernization in the east. 9

Now its the turn ofeasternization in the west! To sum it all up, todays jewellery designer for the Indian market needs to be aware of factors like the shift in the mind- set from investment to style statement the longing for a balance between tradition and trend, the need to understand the emotional connection, the need to exude confidence and to stand apart, the balance between economic criteria ant aesthetics as well as a constant hunger for innovation. The Indian jewellery market has meta- morphosed in the last decade. Consumer perception is evolving with so many brands and jewelers to choose from. It is an exciting period of transition for everybody in an industry that was somnolent for millennia.

1.5 SOME FACTS ABOUT GEMS AND JEWELLERY

When Britain's Prince Charles returned home after his recent trip to India, he carried with him a glittering Nakshatra pendant presented by the Diamond Trading Company (DTC). A gift fit for a prince, and fitting gift for him to receive in a country where the rock is fast becoming the ultimate style statement. From Sushmita Sen flashing an eleven-carat stone on her finger, to elegant dewdrops for boardroom belles and nine-to-five fashion for working women, Indian women have taken Mae West's wise words to heart: "No gold-digging for me, I take diamonds! We may be off the gold standard someday!" Diamonds are not restricted to the celeb set anymore, nor are they a once-in-a-lifetime indulgence. Whether dazzling white or sparkling champagne, they are the stone for all occasionsfrom office parties to page three dos. Competition is intensifying in the $70-billion global diamond jewellery market, as rising wealth in Asia buoys demand. And India will easily top that growth, because jewellery has always avowedly been a part of the country's tradition and lifestyle. This year, demand for diamond jewellery in India will have grown 40 per cent, on the back of a 30 per cent growth in 2005. Diamonds account for nearly 70 per cent of the Rs 60,000crore gem and jewellery industry, in value terms the highest share in any country. Over a million people are employed in this business across Gujarat and Maharashtra. Exports went up 15 per cent last year. 10

These are facts that allow DTC, the marketing arm of the De Beers group, which supplies half of the rough diamonds sold worldwide as well as half of all diamonds sold in India, to set its sights and hopes even higher. In volume terms, India is now DTC's third largest market, accounting for seven per cent of total business after the US (50 per cent) and Japan (13 per cent). But in terms of growth, India heads the DTC chart. So what's making diamonds overtake gold as the Indian woman's best friend? Compared to mass-produced gold jewellery, each stone can be unique, depending upon the cutting. What lends a special touch to the uniqueness is that every stone is between a billion and three billion years old. Bet you didn't know that! As a result, the industry is witnessing a surge in marketing and branding. Gitanjali Gems, for instance, which recently mopped up Rs 300 crore-odd through a public issue, has 85 per cent of sales revenues coming from diamonds, compared to 15 per cent from gold jewellery. That is getting increasingly visible in the profitline toomore than 55 per cent of its profits come from diamonds. Both style and quality are important when selecting a diamond. Contrary to perception, it's the young girls spending their parents' money who go for complete sets, while women buyers prefer individual pieces. The largest volume of purchase occurs in the Rs 1-3 lakh range. Gitanjali, one of DTC's sightholders (experts who select and purchase rough diamonds), owns reputed brands like Asmi, Gili, Sangini, and D'damas, apart from the new, very premium Victoria's Desire. DTC is also developing the Nakshatra brand, worth Rs 100 crore as the umbrella brand, along with Orra and Arisia. Cherie Tandon Saldanha, the company's marketing director for India, believes that with increasing disposable income, and a growing trend away from unbranded, heavy jewellery towards modern, light yet expensive stuff, sky is the limit for the industry. DTC spends about Rs 30 crore a year on brand promotion. The idea is to create a high aspirational image, where it has been largely successful. Says Mehul Choksi, chairman, Gitanjali group: "The runaway demand for diamonds is a result of three factors: strong communications, fashion appeal and confidence in their value. " And this has happened despite diamond prices rising by around 15 to 20 per cent every year. Affordability, rather than price, is a factor. And diamonds have become more

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affordable than before, thanks mainly to a revolution in designing, branding and marketing. With gold prices zooming for the past one year, diamond jewellery has become Value For Money! As in international markets, where 90 per cent of the jewellery is sold as a fashion accessory for everyday wear, and not as an investment, branded jewellery is now being positioned in India as a lifestyle and personality statement. Branding also attaches faith to the product. All branded jewellery comes with certification, which is useful if you're buying it as an investment or are interested in reselling or exchanging it at a later stage. The increasing market presence of diamond companies is mirrored in their stock prices as well as the commodity markets. The rising number of millionaires in India and the surge in consumption of luxury items will only make these rocks shine brighter than ever. India and diamonds are the best known combination throughout the diamond industry. Though India was known to have diamond mines many centuries ago - the fabulous Kohinoor is an Indian diamond - it has virtually no mines today. However, India has continued to maintain its tradition of diamond cutting and thousands of people are involved in this skilled occupation. Today, with its cut and polished diamonds, colored gemstones, gold jewellery, pearls, nongold jewellery and fashion jewellery, India accounts for almost 50% of the international market. The gems and jewellery sector contributes nearly 55% of the worlds net exports of cut and polished diamonds in value, 90% in terms of pieces and 80% in terms of carats. Every 11 of 12 diamonds sold around the globe are processed in India, irrespective of where these are mined. With the right policy and regulatory framework, India could establish itself as a brand in the international Gems & Jewellery market, increase employment and create new breed of entrepreneurship. Apart from being the worlds largest diamond processing (cutting and polishing) country with an 80 per cent share in world market Indias favorable trade policies have made India the hub for gems and jewellery. The burgeoning retail industry in India is instrumental in innovatively marketing and branding diamonds and traditional jewellery, making inroads in this sector and contributing to the nations economy.

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

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with multiple formats currently they are partnering with local jewellers and these jewellers retail their brands, commonly known as the shop in shop. These stores would carry a merchandise mix and are in the range from 600- to 1,000 square feet. Retailers are also looking at mobile store concepts and thinking of innovative ways to connect to the consumer. Brand building, and creating brand identity is the focus of every retailer in India at present. 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. 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. According to The World Gold Council (WGC) total gold supply in the second quarter this year stood (Q2FY08) at 840 tonnes, whereas the demand was 944 tonnes. A study by KPMG reveals the Indian jewellery market to be US$ 13.5 billion in fiscal 2006-07, accounting for 8.3 per cent of world jewellery sales. However the export of diamond-studded jewellery from India is merely 4 per cent of the total export of gems and jewellery worth US$ 18.06 billion. Since the demand of diamond-studded jewellery among Indian consumers has risen sharply, the industry should focus on the domestic market. Diamantaires, in Surat's US$ 11.29 billion diamond industry, are eyeing jewellery manufacturing in a major way, after DTC has decided to prune supply of rough diamonds to India. If India becomes a manufacturing hub for jewellery as well as a consumption market it will just prove Indias strength in both sectors. The government has offered some concession to the industry by lowering import duty on platinum from US$ 13.82 per 10 gms to US$ 5.03 exempting rough coloured precious gems stones from customs duty at the first stage itself, instead of claiming reimbursements later. Rough, semi-precious stones are already exempt, a move aimed at further promoting the exports of studded jewellery and platinum jewellery. Duty-free import of consumable metals other than gold and platinum up to 2 per cent of f.o.b. value of exports and duty-free import entitlement for rejected jewellery up to 2 per cent of f.o.b. value of exports. There is increased duty-free import of commercial samples of jewellery to US$ 2.50 and import of gold of 18 carat and above under the replenishment scheme.

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The Indian retail scene is set to flourish and there is no looking back for those who know how to sell jewellery to an Indian woman, since jewellery is a part of Indian tradition and customs.

1.6 Gold Information


Gold is a highly sought-after precious metal in the world. One of the oldest precious metal in the history of mankind, it had been used as money, as a store of value, in jewellery, in sculpture, in medicine, in electronics and for ornamentation. Gold does not tarnish, rust or corrode. Due to its wonderful qualities and its magnificent luster, gold is considered the most important metal in jewellery making. The purity of gold is measured in terms of karats. Pure gold is designated as 24 karat. A karat is the percent of pure gold in the alloy. One can determine the percentage of pure gold in any gold piece by dividing the karat by 24 (e.g., 18 karat gold: 18/24 = 0.750 = 75% pure gold). As pure gold is soft, it is frequently mixed or alloyed with other metals in order to make the gold harder to be used for jewellery. Also mixing of gold with other metals affects the colour. For example, gold must be alloyed with different metals such as silver, nickel, palladium, copper, bronze, aluminium in order to get different shades of gold i.e. yellow gold, white gold, green gold. The karat scale is used for measuring the proportion of gold in jewellery. Accordingly, Karat Percentage Pure Gold Fineness (European Marking) 24 100 999 22 91.67 917 18 75.00 750 14 58.30 583 10 41.67 417 9 37.50 375 24karat denotes pure gold. 18 karat gold is 75 % gold and 25 % alloy, and so forth. In India, 18 karat and 22 karat are the most popular forms of gold jewellery. The 18 karat is popular because of its rich colour and durability.

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Gold alloys can also affect the colour of gold. The following list includes the most common colours of gold alloys and the metals used for producing them: Color of Gold Yellow Gold White Gold Green Gold Rose Gold Additional Metals Used Copper, Silver Nickel, Zinc, Copper Silver, Zinc, Copper Copper, Silver

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CHAPTER II
REVIEW OF LITERATE

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REVIEW OF LITERATURE
Jamal Ahmad and Goode, Mark M.H. (2001) This paper reports findings from a research study which was conducted to determine the effect of self-image congruity on brand preference and satisfaction in the precious jewellery market in the UK. A questionnaire was sent to 500 consumers of precious jewellery in five major cities of the UK. Results indicate that self-image congruity was a very strong predictor of consumers brand preferences and a good predictor of consumer satisfaction. Respondents with higher levels of self-image congruity were more likely to prefer the brand and enjoy higher levels of satisfaction with the brand as compared to those with lower levels of self-image congruity. The paper discusses the implications for brand managers so that they can position their brands in an effective way.

Tariq Huma, and McKechnie Donelda S. (2007) Possessing gold is firmly embedded in Indian customs and traditions although little academic attention has been paid to its significance within the consumer culture. This paper relates the gold-buying (shopping) activities described by seven expatriate Indian women in semi-structured interviews. They describe when, why and how they undertake the activities surrounding gold shopping. The findings position gold as an artifact and characterize gold-buying activities as a ritual. This research is set in the City of Gold, Dubai, United Arab Emirates. Quantitative data collection followed this qualitative phase in part two of the study.

Dempster, Natalie (2006) This report examines how gold can help a central bank meet its foreign reserve management objectives. It also explains how the gold market works, both in terms of the fundamentals of demand and supply, and the trading and vaulting of gold. In the section on The Case for Gold as a Reserve Asset looks at gold in three contexts: strategic asset allocation and the maximisation of risk-adjusted returns in the investment portfolio; as a tactical overlay to hedge against current global macroeconomic risks; and as a high-quality liquid asset in periods of distress, the time when central banks most need their reserves. Portfolio optimiser models are used to show that the efficient frontier of a 18

typical developing or emerging market central bank can be enhanced by adding gold. How much gold depends on a central banks risk appetite: an allocation to gold of between 2.4 and 8.5% is optimal for a bank with around a 5% risk tolerance. At a risk tolerance of 8.3%, the allocation to gold increases to 29%. The results are not intended as a strategic asset allocation recommendation for any specific central bank, not least because central banks actual portfolios will differ from the one used in the illustration, as will their risk and return expectations, and constraints. The allocations of emerging and developing countries that already hold gold in their portfolios vary widely, in practice, because of these and other factors. The appropriate allocation to gold for a central bank will depend on its investment policy objectives and guidelines, its existing asset mix, its risk tolerance, its tactical view on market trends and its liquidity requirements. Reserve asset management policies also have to respond to political considerations and the cultural affinity to gold within a country.

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CHAPTER III
NEED, SCOPE AND OBJECTIVES OF THE STUDY

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3.1 Need of the Study Various researchers had done research on many aspects of Consumer Perception Towards Branded Gold Jewellary. But it did not cover all the aspects of topic. So there is further need of research about topic. Here we mentioned that area in which there is need of research about topic, which include following aspects like perception of the viewers, which show is preferred by the viewer? What impact does it have on public? 3.2 Scope of the Study Scope of study limited only Jalandhar city.

3.3 Objectives of the Study To study consumer perception regarding Branded Jewellery. To examine decision making behaviour of consumer. To find consumer scale who are wearing jewels from the various brands available in market.

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CHAPTER IV
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. Advanced learners dictionary of current English lays down the meaning of research as `` A careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is thus an original contribution to an existing stock of knowledge making for its advancement. It involves systematic collection, analysis and reporting of data and finding relevant solution to a specific situation or problem.

4.1 Research Design


Research design specifies the methods and procedure for conducting a particular study. It is a series of advance decisions that taken together comprise a master plan or model for the conduct of an investigation. So research design provides a framework of plan for study which guides the collection, measurement, analysis and interpretation of data. The researcher should select the research design which is appropriate in achieving the objective of the study. The Research design was descriptive in nature.

4.2 Sampling Design


Sample size of the study: For the current study sample size was 50 respondents. Sample unit: Various brands of Jewellery are taken for comparison in Jalandhar Sample procedure: The sample procedure used was conveniences sampling.

4.3 Data collection & analysis


The data collection was the process of forming an inventory of the required information and finally sorting the information, so that only desirable information is left with us. The sources of data may be either primary or secondary.

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Primary sources: The primary data was that which was collected a fresh and for the
first time for the problem at hand, Method of collecting primary data may include observation, survey by means of questionnaire, interviews etc Primary data in this project was collected by way of structured questionnaire containing both the open ended and close ended questions.

Secondary sources: The Secondary data which has been collected by someone else
and may be used by some other person. Secondary sources of data include use of Books, Journals, and internet services. The data was collected for this project through book and internet services.

Tools of Presentation and Analysis: For the analysis, the data which was collected
with the help of percentage, pie charts and tables.

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CHAPTER V
DATA ANALYSIS & INTERPRETATION

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DATA ANALYSIS AND ITS INTERPRETATION Q1. Do you wear Branded Jewellery Table 5.1: Branded Jewellery Response Yes No No. of Respondents 21 29 %age of Respondents 42% 58%

42%

58%

Yes

No

Figure 5.1: Branded Jewellery Interpretation:It was found out of 50 respondents 58% of the respondents do not wear branded jeweallery while 42% respondents wear.

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Q2.

Which brand of Jewellery do you prefer Table 5.2: Preference Branded Jewellery Various Brands Tanishq Gitanjali NakShatra Ddamas Total No. of Respondents 28 12 6 4 50 %age of respondents 56% 24% 12% 8% 100%

8% 12%

56% 24%

Tanishq

Gitanjali

NakShatra

Ddamas

Figure 5.2: Preference Branded Jewellery Interpretation :It was found out of 50 respondents 56 % of the respondents Prefer Tanishq Jewellery and 24 %, 12 % and 8 % of the respondents prefer Gitanjali, Nakshtra and Ddamas respectively.

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Q3.

How often You purchase jewellery ? Table 5.3: Purchasing Jewellery Purchase Time Festival Season Marriage Occasion Off Season Any Other Total No. of Respondents 44 3 2 1 50 %age of the respondents 88% 6% 4% 2% 100%

6%

4%

2%

88%

Festival Season

Marriage Occasion

Off Season

Any Other

Figure 5.3: Purchasing Jewellery Interpretation :It was found out of 50 respondents 88 % of respondents purchase jewellery during festive season and 6%, 4% and 2 % purchase during marriage, off and other season respectively.

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Q4.

Which factor attracts the most for the purchase of jewellery ? Table 5.4: Factors attracting the most for the purchase of jewellery Factors Quality Price Shininess Brand Name Design After Sale Service Warranty/ Guaranty Total No. of Respondents 18 13 4 10 3 1 1 50 %age of the respondents 36% 26% 8% 20% 6% 2% 2% 100%

6% 20%

2%

2% 36%

8% 26%

Quality

Price

Shininess

]Brand Name

Design

After Sale Service

Warranty/ Guaranty

Figure 5.4: Factors attracting the most for the purchase of jewellery Interpretation :It was found out of 50 respondents 36 % go for quality and 26%, 8%, 20%, 6%, 2%, 2%, go for Price, Shininess, Brand Name, Design, After Sale Service, Warranty/ Guaranty, any Other respectively.

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Q.5.

From which source you get the awareness of the brand? Table 5.5: Source of getting the awareness of the brand Response Newspaper Friends TV Relatives Dealer Total No. of Respondents 15 8 20 2 5 50 %age of respondents 30% 16% 40% 4% 10% 100%

4%

10% 30%

40%

16%

New spaper

Friends

TV

Relatives

Dealer

Figure 5.5: Source of getting the awareness of the brand Interpretation: From the above graph it is clear that most of the respondents have come to know about the brand from 40% TV, while 30% Newspaper, 16% Friends, 10% Dealers and only 4% from Relatives.

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Q.6.

What is the experience while shopping in Branded Jewellery Showroom? Table 5.6: Experience while shopping in Branded Jewellery Showroom Response Excellent Average Very Good Good Poor Total No. of Respondents 25 10 8 5 2 50 %age of respondents 50% 20% 16% 10% 4% 100%

10% 16%

4%

50%

20%

Excellent

Average

Very Good

Good

Poor

Figure 5.6: Experience while shopping in Branded Jewellery Showroom Interpretation: From the above graph it is clear that most of the respondents have excellent experience while shopping in branded showroom Excellent, while 20% average, 16% very good, 10% good and only 4% have ranked it poor.

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Q7.

Are you satisfied from Branded Jewellery ? Table 5.7: Satisfaction from Braned Jewellery Response Yes No Total No. of Respondents 38 12 50 %age of respondents 76% 24% 100%

24%

76%

Yes

No

Figure 5.7: Satisfaction from Branded Jewellery Interpretation :It was found out of 50 respondents 76% respondents are satisfied and 24% are not satisfied.

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CHAPTER VI
FINDINGS OF THE STUDY

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FINDINGS OF THE STUDY

It was found 58% of the respondents do not wear branded Jeweallery while 42% respondents wear. It was found 56 % of the respondents Prefer Tanishq Jewellery and 24 %, 12 % and 8 % of the respondents prefer Gitanjali, Nakshtra and Ddamas respectively. It was found 88 % of respondents purchase Jewellery during festive season and 6%, 4% and 2 % purchase during marriage, off and other season respectively. It was found out of 50 respondents 36 % go for quality and 26%, 8%, 20%, 6%, 2%, 2%, go for Price, Shininess, Brand Name, Design, After Sale Service, Warranty/ Guaranty, any Other respectively

It is clear that most of the respondents have come to know about the brand from 40% TV, while 30% Newspaper, 16% Friends, 10% Dealers and only 4% from Relatives.

It is clear that most of respondents have excellent experience while shopping in branded showroom Excellent, while 20% average, 16% very good, 10% good and only 4% have ranked it poor.

The above study depicts that 76% respondents are satisfied and 24% are not satisfied.

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CHAPTER VI

CONCLUSION & RECOMMENDATIONS

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6.1 Conclusion In India, brands are required as no one shop alone can do advertising due to lack of resources. Today, there are more than 50 brands in the Indian market. For brands the right approach is to have a continual revitalization of the brand and its position within the market. Branding commands a premium price but it has to be justified. The consumers buying behavior shows a shift from content to design in jewellery i.e. fashionable jewellery is the rage nowadays and acquires a status symbol in their minds. Branded jewellery players will continue to face lot of competition from local jewellers

6.2 Recommendations

In the current era all the branded companies are concentrating only on the

females but males are also trendy now so, the companies should also promote male gems and jewellery.

A new jewellery firm can gain more by producing the new age jewellery

with keep eyes on the current fashion trend.

A branded Jewellery can give more return to a new born jewellery seller. Gold is used most in metals so may make sense to invest in gold.

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REFERENCE

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REFERENCE
Jamal Ahmad and Goode, Mark M.H. (2001) "Consumers and brands: a study of the impact of self-image congruence on brand preference and satisfaction", Marketing Intelligence & Planning, Vol. 19 Iss: 7, pp.482 - 492 Tariq Huma, and McKechnie Donelda S. (2007) Shopping for gold! A Ritual Experience Available at www.abwic.org/Proceedings/2007/ABW07-203.doc

Dempster, Natalie (2006) The Role of Gold in India, World Gold Council, September, www.gold.org

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ANNEXURE

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QUESTIONNAIRE

We are Nisha, Geeta, Preeti students of MBA-II semester at Apeejay Institute of Management, Jalandhar are conducting a research on topic Consumer perception
Towards Branded Gold Jewellery. Kindly help us to gather the information by sparing

your 5-10 minutes for filling the questionnaire. We will very thankful. We assure you that the information will be kept confidential. Please tick () at the appropriate option: Name:
Your gender: (a) Your age: (a) (c) (e) 18-20 26-30 More than 35 (b) (d) 21-25 31-35 Male (b) Female

Educational Qualifications
a) Undergraduate

b) Graduate

c) Postgraduate

d) Others, ________________________

Q1.

Do you wear Branded Jewellery ? Yes No

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Q2.

Which brand of Jewellery do you prefer ? Tanishq Gitanjali NakShatra Ddamas

Q3.

How often You purchase jewellery ? Festival Season Off Season Marriage Occasion Any Other ___________

Q4.

Which factor attracts the most for the purchase of jewellery ? Quality Shininess Design Warranty/ Guaranty Price Brand Name After Sale Service Advertisement

Any Other ___________

Q5.

From Which source you get the awareness of the brand? Newspaper TV Dealer Friends Relatives

Q6.

What is your experience while shopping in Branded Jewellery Showroom ?

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Excellent Very Good Good

Avg. Poor

Q7.

Are you satisfied from Branded Jewellery ? Yes No

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