MARKET OF BRANDED JEWELLERY IN INDIA

Presented by:Nikita Arora GURU JAMHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY, HISSAR

Introduction
  In the late 1990s, the focus seemed to have shifted from content to design in the indian jewellery market Branded players entered into the market:  Tanishq  Gili  Oyzterbay  Carbon Traditional jewellers also began to bring out lightweight jewellery But the share of the branded jewellery in the total jewellery was still small in 2002, about Rs 10 billion of the Rs 400 billion per annum of the total jewellery market

 

Gold Jewellery Market in India



  

The abolition of Gold Control Act in 1992, allowed large export houses to import gold freely In 1993, gold and diamond mining were opened up for private investors In 1997, overseas bank and bullion suppliers were allowed to import gold into India This allowed the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market

Majors Players in the Market

GILI
 In 1994, GILI jewellery was established as a distinct brand by Gitanjali jewels  Offered a wide range of 18-carat plain gold and diamond-studded jewellery  With sales of Rs 0.14 billion for the year 2007-08, GILI had a 0.03 percent share of the 400 billion jewellery market in India and a 1.4 percent share in the branded jewellery market

Majors Players in the Market

Tanishq
     In 1995, Titan changed its name from Titan Watches Ltd. to Titan Industries Ltd. In the same year, it also started its jewellery division under the TANISHQ brand TANISHQ began with 18-carat jewellery but later on expanded to include 22 and 24-carat jewellery ornaments as well In 1998, TANISHQ decided to set up its own chain of retail showrooms and by 2002, TANISHQ retailed its jewellery through 53 exclusive stores across 41 cities TANISHQ had a 0.66 percent share of the total jewellery market in 2007-08 and a 27 percent share of the branded jewellery market

Majors Players in the Market

CARBON  In 1996, within the Peakok fold a new brand of 18-carat gold-based jewellery called CARBON was launched  In 2002-03 with sales of Rs 0.14 billion, CARBON had a 0.03 percent share of the jewellery market and 1.4 percent share of the branded jewellery market  The brand is available in 23 cities countrywide  It started exporting in the year 2008

Majors Players in the Market

OYZTERBAY  It was founded bt Vasant Nangia and his team in july 2000 and began operation in march 2001  By nov 2002, company had 41 outlets across the country  With the sales of Rs 0.17 billion 2000-01, OYZTERBAY had a 0.04 percent share of the Rs 400 billion jewellery market and 1.7 percent share of the branded jewellery market

Majors Players in the Market

TRENDSMITH  Mumbai based Tribhovandas Bhimji Zaveri opened its new concept store TRENDSMITH in Mumbai in dec 2001  TRENDSMITH offered eight lines of exclusive designer jewellery

Market Share at a Glance

BRAND TANISHQ OYZTERBAY GILI CARBON MARKET SHARE (2004-05) in % 27 1.7 1.4 1.4

What led to the proliferation of the Branded Jewellery Players??

 The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design  The younger generation was looking at trendy, contemporary jewellery and avoiding heavy traditional jewellery  The Indian consumer was willing to experiment with new designs

Strategy for Attracting Customers

TANISHQ  To increase its market share, TANISHQ formulated a strategy for luring people:
  provide a point of differentiation Project TANISHQ as a unimpeachable mark of trust

   

TANISHQ set up a seven member-in house design team and also outsourced designs from freelance designers TANISHQ decided to focus on quality control:
 it introduced caratmeters which showed the purity of gold

It focused on small town markets In nov 2002, TANISHQ introduced a new collection of jewellery called Lightweights

Strategy for Attracting Customers

CARBON  Always focused on moving jewellery from vault to dressing table  Besides selling from stores, it sold its products as gifts items over the internet  Like TANISHQ, it also laid emphasis on design  In 2002, CARBON launched its Sun Sign collection based on the symbols of zodiac

Strategy for Attracting Customers

    OYZTERBAY: Jewellery For The Living The initial focus- to give a lifestyle value to jewellery instead of the traditional investment value Emphasized on marketing and advertising strategies to give the necessary thrust for growth OYZTERBAY launched media campaigns The new campaign focused on positioning OYZTERBAY as jewellery for office wear and evening wear They offered exclusive products to its clients by refurbishing its collection every few months, keeping in mind international trends

Strategy for Attracting Customers

   

GILI The companys products were made available through a mail-order catalogue All GILI products came with a guarantee of diamond and gold quality In 2000, GILI launched its Diamond Heart Collection targeted at teenagers and priced between Rs 500 and Rs 2500 Special packaging, catchy advertising and extensive press coverage contributed to the success of the collection

Government Support
 In 2004-05, the government lowered import duty on platinum from US $ 13.82 per 10 gm to US$ 5.03 and exempted rough coloured precious gems stones from customs duty  Rough, semi-precious stones are already exempt, a move aimed at further promoting the exports of studded jewellery and platinum jewellery  Import of gold of 8 carat and less allowed  In May 2007, the government abolished import duty on polished diamonds

Drivers and Challenges



 

DRIVERS Mass appeal and growing income of households Low cost and abundance of skilled labour Growing use of highend technology Changing consumers perceptions and preferences

 

CHALLENGES Rising gold prices Competition from unorganised players Dependence on raw material import Emerging threat from other countries

 

Market Trends
      The Indian jewellery market is the second largest in the world, with a market size of $13 billion Indias share in the diamond sector is about 80% of the world market Jewellery industry is the 3rd largest export oriented industry in the country It provides employment to 1.3 million people directly or indirectly India is the 3rd largest consumer of diamonds after USA and Japan Branded jewellery sector is fastest growing sector at 40% annually

Market Characteristics
MARKET:
   Nascent market There are very few players in the market who are mainly large corporates Many international brands marketing their products in partnership with Indian companies

Product
   Need to keep up with changing fashions and trends in the industry Wide product range is essential to cater to the needs of different customer segment Indians inclined towards 22 carat jewellery

Market Characteristics
 

 

REACH Extensive reach required. Sales direct as well as through large retail outlets Need to ensure presence in major gold consuming centres PRICES Branded jewellery associated with high prices Right pricing is essential to attract and retain customers

THANK YOU