Consumer preference over branded jewellery and non branded jwellery

Project f o r ba. bt og o t. corn

SYNOPSIS FOR DISSERTATION SUBMITTED TOWARDS THEPARTIAL FULFILLMENT OF POST GRADUATE E DEGREE IN

INTERNATIONAL BUSINESS

CONSUMER PREFERENCE

OVER

BRANDED JEWELLERY AND N

ON -

BRANDED JWELLERY

SUBMITTED BY:

AMITY INTERNATIONAL BUSINESS

SCHOOL,

1Project L FfI b a. blo s j. rat. co m

NO1DA

AMITY UNIVERSITY UTTAR

PRADESH


Prof ect for ba. bt og o t. corn

TABLE OF CONTENTS

Chapter No. Subject Page No.

Introduction._ ............

Research Methodology

Primary Objective(s)....................

Hypothesis ..................................

Research Des ign__ .................

Sample i n................................

Data ...........................................

Critical Review of...........................


INTRODUCTION

India has a historic relationship with Jeweller-y.

Many kings, emperors and dynasties featuring countless wars.

conquests and political

upheavals have ruled the Indian sub-continent. Different dynasties

ruled different parts of

India with different monetary systems. Jewellery acted as a common medium of

exchange or store of value across the monetary systems of different kingdoms across the

sub-continent especially gold. Hence wealth could still be preserved

in spite of wars and

political turbulence. Gold also helped preserve wealth through

natural calamities and

disasters and for centuries was the only means of saving in rural India, land being the

other main asset of economic value. This has largely helped

formulate, or evolve, the

Indian sentiment and fanatical passion for gold, which holds true even

today. India is

estimated to hold more than 11,000 tonnes of gold.

Apart from its historical religious significance, Jewelle r is valued as

an important

savings and investment vehicle in India. Even in present times. Jewellery remains the

Indian bride's ' trecdhan ', the wealth she takes with her when she marries and which

remains hers. Gold j ewell cry is the preferred jewellery wore by

women in India

irrespective of their religious beliefs. In marriages, gold jewellery is

the gift preferred by

Project L Fflr b a . b/o s j . ( )Leon' 4

Prof ect f o r ba. bt og o t. corn

the near relatives of the bride and the groom. Gold jewellery is very

popular among

farmers, with an upsurge in gold sales after a good agricultural

season. Buying of gold is

an important part of every stage of an Indian citizen's at birth.

marriae,

construction of home, festivals, religious ceremonies, setting up of

new business, and

death.

As India makes rapid progress in the retail arena, the Indian

Jewellery market is

undergoing a gradual metamorphosis from unorganised to organised

formats. The

jcwcller v business in India is estimated to be at Rs 50.000 crorc. According to the

independent estimation studies conducted by World Gold Council and

McKinsey, out of

the overall market share, the share of organised jewellery market is

less than Rs 1,000


Project L FfI b a. b/o s j. (0. con 5

crorc. This accounts to about 2-3 per cent of the total market share. But given that this is

a relatively new segment of the market, it is poised to grow. Jewellery retailing is moving

from a 'storehouse of value' to a precious fashion accessory. Plain

gold is gradually

casing its stranglehold on the Indian consumer psyche to give way to

diamonds, platinum

and coloured gemstones. The wa~4F jewellery was worn before is

undergoing a tremendous

change. Traditional designs arc yielding to modem jewellery. heavy gold is giving way to

light and simple designs. Consumers are more quality conscious than

ever before. The

jeweller' market is one of the largest consumer sectors in the country

- larger than

telecom, automobiles, apparel, and perhaps second only to the foods

sector. Interestingly,

organised retailers have attempted to understand the market,

anticipate social changes and

stratcgisc appropriately. They have ceaselessly endeavored to derive

the formulae of

'what the consumer wants?'

The young Indian woman who is the prime market for the organised

retailers differs

from the traditional jeweller customer in many w a s as enumerated

below.

· She is well educated and more in tune with international trends

* Increase in working women with high disposable incomes

· Greater mobility

· Less constrained by traditions.



All l these reasons and more ensure that the modern Indian woman is

looking for jewellery

from a perspective different from the past. I n addition, organised

retailing offers quality

products, follows standardised practices and uniform pricing strategy,

Organised retail

formats work on transparent policies that are not necessarily

available at the traditional

jewellery shops. Today, goods and services offered by any retailer are

strongly driven by

their identified Target Group (TG). There arc several examples of retailers who arc

drawing in consumers either across a wide swathe or a segment of socio-economic

classification, clearly defined by them. This has been the first step

towards organised

jeweller' retailing in India. I n a short span of time, organised

retailers have successfully

implemented a change in the buying pattern of the Indian consumer. This is evident from



the shift from the traditional jeweller to the jeweller with an identity.

This shift clearly

indicates a change in viewpoint of jewellery as a commodity to brand

identification.

L SEARCH METHODOLOGY

Statement of objectives

1. To compare between Branded and Non-Branded Jewellery.

To know Consumer perception towards Jewellery.

To know the Major Players of i ewell erv industry.

To have an idea about parameters consumer consider while

buying Jewellery,

5. To have knowledge about demographic segments.

6. To know the Marketing strategies used by various

jewellery brands. RESEARCH AND SAMPLE DESIGN:

This research will accomplish chiefly through qualitative approach

that is based on the

secondary information as well as quantitative studies like surve Fs etc. are also considered

and taken into account.

Qualitative research includes the reviewing and analysis of the articles, research papers.

interviews and other published information in order to gain a deeper understanding of the

prevailing scenario. These methods will help to understand the

Project L FfI ire a. ire/o s j. rat. coin 8


opinion and views of

eminent and learned academicians and leading businessmen and

provide an idea of future

developments in Jewellery sector.

Also, quantitative information, in which survey reports etc done on

the basis of

questionnaires was beneficial in the way that it provides a

comparative insight into the


Project L FfI b a. b/o s j . r a t . c o n 9

consumer perception for branded jewellery and non-branded

jewellery and their

preferences over i t . I t is good for examining consumer behaviour in

the current trends of

je\yell erg' sector.

TYPE OF RESEARCH:

E P L C T C } I

QUALITATIVE

SAMPLING FRAME:

I OI MA

DELHI REGIONS SUCH AS LAJPAT NAGALSOUTH EXTENSION,NEW

FRIENDS COLOI i I ET ETC

Data Collection

The research study will be accomplished through in-depth

review and analysis of

secondary information available in the published fomL which

includes data from

textbook, journals, management reports seminar papers etc.

The electronic data and results of surve F s conducted by

organizations were also important data

sources for the report.

To gather all the information that my report need, I will find

related information

by accessing reference books business magazines and

Project L FfI b a. b/o s j . r a t . c o n 1 0


journals web sources. Primar F data was basicall F collected

by conducting survey through a

questionnaire (Sample siie=5O-1 OU) and area of conducting survey was New

Delhi AND NCR. The research design was exploratory and

descriptive.



CRITICAL REVIEW OF LITER%TURE

Gems and Jereller-'

The Gems Jeweller' Industry is one of the fastest growing industries in the country.

The growth in purchasing parity of the middle class and surging

income levels have

resulted in consumption growth of gems and jewellery by ab out 1 1

percent in the five-

year period preceding 2006-07. It also contributes over 1.5 per cent of

India's total

exports and provides employment to 1.3 million people directly and

indirectly.

The two major segments of the sector in India are gold jewellery and

diamonds. Gold

jeweller ' forms around 80 per cent of the Indian jewellery . market, \

with the balance

comprising fabricated studded jewellery that includes diamonds as

well as gemstone

studded jewellery.

India consumes nearly 00 tonnes of gold accounting for about 20 per

cent of the world

gold consumption, of which nearly 600 tonnes goes into making

jewellery. The Indian jeweller market, estimated to be L F 13.5 billion in

fiscal 2 0 0 6 - 0 7 , accounts for 8 . 3 per

cent of world jewellery sales, according to a study by KPMG.

The industry is well supported by Government policies and the

banking sector -- around

50 banks provide nearly LASS 3 billion credit to the Indian diamond

industry. In addition,Project L FfI b a. b/o s j . r a t . c o n 1 2


India is expected to have a diamond bourse soon.

India A than ta e

India is the worlds largest diamond processing (cutting and polishing)

country with an

estimated 1 million processors handling over 57 per cent of the

world's rough diamonds

by value. According to industry estimates, 1 1 out of 12 stones

(diamonds) set in jewellery

arc cut and polished in India. Processing is done on rough diamonds in

full range of sizes

and qualities, including stones larger than 10 carats.



In terms of carat, India's share in this sector is about 80 per cent of the

world market.

Employing over 90 per cent of the global diamond industry' workforce,

India also

accounts for 90 per cent of the volume of diamonds processed in the

world.

E j . Torts

After making its mark in the world diamond processing industry, India

is well on its way

to becoming the leading global gems and jewellery hub. India's gems

and jewellery

industry is now on a high growth trajectory.

Exports from the industry fetched USS l 7.1 billion in 2006-07 against

USS 16.64 billion

in 2005-06, showing a growth of 26 per cent. While diamonds accounted for 64 per cent

of the total exports, gold jewellery accounted for 30.47 per cent, coloured gem stones and

others accounted for 1.44 per cent and 1,04 per cent respectively last year.

Cut and polished diamond segment exports were USS 10.90 billion,

while gold jeweller y

exports fetched USS 5.21 billion last year. Coloured gemstone exports yielded USS

246.48 million last fiscal, against U 23235 million in 2005-06.

The growth momentum has continued into the current fiscal. The gems

and jewellery

export industry grew by a robust 27 per cent export during the first half

of the current


fiscal at USS 9.4 billion, as compared to USS L4 billion in the corresponding period of

2006, according to the Gems and Jewellery Export Promotion Council (GJ EP C) ,

The growth in diamond exports was 28 per cent, in j swell ery it was 21

per cent and in

coloured gemstones, it was 22 per cent. The major destinations for exports have been the

US, UAE. Hong Kon . Belgium and Israel. In fact, the US, UAE and Hong

Kong

together accounted for over 70 per cent of the total exports in the previous fiscal year.

Cons um j (ion

Projec(L rnI b a. b/o s j. (0. co m 8


The increasing levels of disposable household income have resulted in

record

consumption levels in the domestic market. Indian jewellery demand

rose by 70 per cent

during the first half of 2007 compared with the same period last year.

Jeweller demand

increased to 387 tonnes from 227 tonnes during the period.

Also, gold consumption during the first six months of 2007 grew by 70

per cent to 528

tonnes compared to 307 tonnes in the same period last year. India's

total gold

consumption in 2006 was slightly over 700 tonnes. While jewellery

accounted for around

73 per cent of gold demand_ investments in the forms of coins and bars accounted for the

rest.

According to the World Gold Council (W(;[')_ India's gold consumption

this year could

in fact cross the 1_000-tonne mark for the first time.

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.

warovski, the global crystal goods manufacturer and marketer_ is on

an

expansion spree in India and hopes to achieve 5 to 10 per cent of its

global

turnover from the country in the next 10 years. The company

Project L FfI b a. b/o s j. rat. con l 16


plans to set up 30

stores by 2009, from the current l 3 .

· Damas India, part of one of the largest jeweller F retail outlets in the world, is

adding 16 new stores to its present dozen stores in India.

· Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively

purchased a 7 per cent stake in Gitanjali Gems for around USS 27.8 million.

· Goldman Sachs and UBS Securities have acquired 6.28 per cent in Shrenuj Co

at around U 2.07 million and USS 2 million, respectively.

· Gemology Headquarters International (GHI ), a US-based gemological grading

and research laboratory, has opened its first Indian branch at Opera

House,

umbai.



· Reliance Retail is planning an aggressive entry into the jewellery retail market

through its about 400 to 500 je •

weller ' retail outlets across the country.

Looking Ahead

The booming economy along with the rapid increase in income levels is estimated to

further accelerate the growth of this industry. According to a KPMG study, India's

growing importance in the global jewellery market is only expected to increase in the

future with total estimated jewellery sales of U 21 billion by 2010 and U 37 billion

by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per

cent in 2010.

STRUCTU OF JEWELRY IN INDIA

· Plain gold Jewellery

Studded J c cll ery

· Silver J ewel lery

· Costume Jewellery

As was stated earlier, India is the lamest consumer of Gold in the world with annual

demand close to 800 tons. It is believed that 90% of this deman is directed towards

manufacturing of jewellery, The bulk of the Indian jewelle r y buying is still rooted in

tradition and jewellery is sold in traditional designs. Jewellery designs vary in

different regions of India, making the style unique to each region. In South India the

designs arc inspired by nature - paisley motif of the mango, rice grains, melon and

cucumber seeds, etc. In Western and Northern India, the Mughal influence can be

seen in the meenakari (enamelling) and kundan work. Jewellery is crafted not just for

humans but also for the deities, ceremonial elephants, and horses. Hence the variety

of gold jewellery in India is truly mind-boggling and bears testimony to the excellent

skills of Indian jewellers of today. Ornaments are made practically for every part of

the body - nose rings, bangles, necklaces and special jewellery for the head, ankles,

waistbands, and so on. Plain gold jewellery is fabricated mainly in 22-karat gold and

even 1-kara t is not favoured, as the mindset does not accept low purity gold



jeweller. v, The logic is that the jewellery is primarily bought as an investment in gold,

and investing in a low purity product does not appeal to the

Indian consumers.

However for the studded gold jewellery, 1 karat has become

acceptable.

SECTOR PROFILE

BRANDED JEWELLERY V/S NON-BRANDED JEWELLERY

: ' : , f :,

TRADITIONAL JEWELLERY/ NO N-

BH BRANDED JEWELLERY

Name and reputation attached to any item gives

a degree of confidence to the consumer,

Traditional J e yell er y will also be around where

by consumers tailor-make their jewelry

Branded Jewellery comes .with a Nvritten

lifetime guarantee, keeping in mind the

There is no'vritten lifetime guarantee. Trust is

purely based on individual's trust in his

Excellent quality, quality of finish_ packaging.

sales force and selling policies and backup

Minimum efforts in packaging_ finishing_ sales

and low advertising,

Gives value for money, good quality good

service, and variety of products and has a good

i m a m ' buying is largely done on 'trust'. A lot

of people who have been buying from their



Manufactured in modern factories with

different departments, ca h devoted to one

aspect of the manufacturing process. Branded

A one-off item painstakingly crafted by a single

person. Traditional jewellery can be

handcrafted in several styles,

C an be bought at any ti rm~e of the year. could

also be impulsive buying.

I s bought fo r specific occasions like marriage_

festivals etc.

I tanufacturcd by the lost Nvax casting process

which is more machine based.

I tanufacturcd by the "Babus" or the cottaLc

industr y kind of manufacturers.

Run by experienced and new breed Run by traditional je wellers,

manufactures that have prior marketing

background from their business in the export

markets.

Has a more conterm porary, stylish and classic

outlook_ which easily segments itself among

the traditional ones_

I s usually traditional_ bulky and ornate.

Most branded jewellery is diamond-studded

jewellery,

Traditional jewellery is primarily gold.

Most diamond jewelry is certified for gold and

diamond content and is sold at an MRP without

a break up of the gold and diamond content.

Need not necessarily be certified and comes

with a complete break up of the gold and

diamond content_ including making and

wastage charges.

A mark up for the department store /jeweller

and a basic markup to cover brand building

costs.

Is devoid of all these costs.

Available in multiple outlets. Available only in the traditional jewellers

outlets.

A large section of gold buyers though_ still favor small jeweller families. But huge brand-



building exercises are making people buy jewellery off the counter. Focused advertising,

display and astute salesmanship are being combined to take on traditional jewellers.



Pricing for jewellery is based on the designs, quality of material

(metal and diamonds)

and category. By and large branded jewellery does carry a premium

over traditional

jewell erv but then it offers a quality and assurance of purity that is

reliable and

guaranteed. However, all said and done, if all l quality of diamonds,

purity of the metal

and quality of manufacturing is taken into account and we compare an

apple for an apple,

then the premium on banded jewellery would be in the range of - 10%.

Brands offers the consumer distinctive values. This is true in ever T

product category,

including jewellery. These values could range from trust, distinctive

design, specific

product benefits or superb shopping experience. Over a course of

time, brands build

strong, long-term affiliations with their consumers because these

distinctive values come

to possess timeless appeal. Consumers trust

brands, and remain loyal to their favorite

brands.

FAMOUS INDIAN ,l EWEL ER

BRANDS

Giving glitter a name

Read made and branded jewellery arc

becoming increasingly popular, especially

among the young. But there are also some

who continue to trust only the good

goldsmith. Buying jewellery is about trusting

people with: dreams and hard-earned money.Project L FfI b a. b/o s j. rat. con l 22


So, the choice of the jewellery is not a non-

issue.

But there has been a marked change in the

tradition of jewellery-making and buying

trends in the last two decades, with

read made jewellery becoming increasingly

popular. The past few years have also seen

the arrival of branded pure gold, diamond



and platinum jewellery at the market. while the recently introduced brands project their

quality and designer value, the older jewellers `all back on their experience and trust built

up over the years.

Many manufacturers have launched jewellery brands in the past 4-5 years but are all of

them clearly identified and focused? This could generally speaking go well for the

industry as this kind of a thrust on branding gives a momentum to the product segment

and the promotions and advertising that goes with it invariably expands the market.

Though in the long run there could be a shake out and a few of the brands may fold over,

the i n c t expansion may stop or even shrink a little but is always far more than the

market size before the branding thrust.

It's the DTC brand strategies for site holders to start new brands and also regional players

that are increasingly looking at launching their own brands, expanding into n m markets,

adopting new retail formats and hiring jewellery designers to improve their product

range. However, one of the reasons behind indi genous brand launches could be the desire

to g et ready for the foreign bands that could flood the market.

To woo the consumer further, the local players are now setting aside promotional budgets

to entice the brand and quality conscious consumers looking for products backed by

hallmark and guarantee certifications. Freebies and loyalty clubs arc the order of the day.

These could range from chauffeur-driven car service to free airline tickets in lieu of

certain spend. Local brands are also tying up with fashion houses to appeal to a wider,

discerning audience. Just like darzis disappeared once the ready-to-wear garments market

matured, smaller jeweller' players will close shop and what can we say, _may may the fittest

sur vivel The demand for branded jewellery is growing in India following the

international trends.

Nakshatra - Puwer'ul Floral Designs

Nakshatra was among the first diamond jewellery brands to be launched in India by DTC

and has today become an iconic brand. The brand has a halo effect on the \vhole category,

The growth of Nakshatra diamond jewellery over the years has been in line with the

annual growth in the diamond jewellery market i.e. about 15%.



Nakshatra has become a benchmark and a point of reference for all other brands entering

the market today and has been instrumental in the growth of branded diamond jeweller y

in India. The floral design is a very powerful design concept and has worked well to give

the brand a distinct identity. The consumers can identify e brand very easily and this

makes them more confident of their purchase. Besides this Nakshatra offers a unique

brand experience to the consumer at the point of purchase.

Asmi- For the Modern Indian Woman

D T ' s other brand Asmi on the other hand is an offerin g for the modem

Indian Woman. Launched in the year 200 2i the Asmi woman is between

the age group of 25 to 40. Asmi is a collection of diamond designs, inspired

by the fusion of the East and the west, and is characterized by an ele gant

curve studded with tiny diamonds hi ghlighting a single diamond as its core.

Sangini - For Special Milestones

I T C ' s brand San2ini is an offering for the married segment of the market. I t has been

positioned as the ultimate gift on special milestones and occasions like anniversaries,

birthdays etc. The brand derives its design from the concept of being the special one to

the spouse. The centre stone of every piece of San6ni Diamond Jewelle r is of slightly

larger size than the other diamonds within the piece. This centre stone is also set

differently its unique Bezel. Setting clearly makes it stand out from the other stones set

within the same piece.

Arisia - Diamond Solitaires

Arisia, the niche brand of Diamond Solitaires was launched in 2001. This brand tar gets

the huge segment of the super elites in India, which incidentally, is also the

segment with

the highest rate of diamond acquisition. Arisia comprises diamond

solitaires, from I carat and above in round, princess and emerald cut with

I a i certification.



Tanishq Purity Personified

Tanishq is market leader in India's nascent but rapidly growing

market for branded

jewellery, Within eight wears of its launch in l 9W Tanishq has built a

nationwide

network of 67 exclusive jeweller - boutiques in 52 cities and towns

across India. Over the

past four years, Tanishq has also grown rapidly, and is today India's

largest retailer of

jeweller' in the organised branded sector. Tanishq awarded the

coveted I F -Images

"Most admire brand" award for m o years consecutively. Last world chose to thaturc

three Indian brandsi transformed the branded space for a woman in

Iru was one of these

three chosen brands. = m e t e r stores offer consumers the most reliable n~ori-destructive

way of determining the purity of gold.

Dili y Superbrand

tai tare ali Group is one of the earliest diamond houses in India and

today is one of the

largest diamond exporting, companies in India. Along with this they

also have facet-shops

based on shop concepts. Their collection is doing extremely well with

over 1000 outlets

all over India. Thee believe in creating brands for everyone, through all the ranges.

Recently was awarded the status of a " uperbrand' for its long-

standing tradition of

customer service and constant focus on quality and innovation in

design. Each brand has

been introduced keeping in mind the target clientele that it caters to.



One of their LI Ps is

their commitment level with respect to consumers.

Intergold ORRA

Intergold is part of the l osyblue Group- the world's largest diamond

manufacturing

company with a presence across fifteen countries headquartered in

New York. It is the

largest sight holder of DTI,. The Group has been the largest j ewell cr y

exporter for twelve

years consecutively. Intergold is the only jeweller v company in India

which has tie ups with the three leading jewellery organizations

namely, DT C PGI fir'(;[,.

Currently

Intergold has 24 stand-alone stores across 15 cities. Intergold

showrooms are spread

across the co untrv from I umbai. Delhi, Chandigarh, Hyderabad, Chennai, C oimbatore,

a t i . w

I aj ot, Baroda, Surat, Ahmedabad, Mumbal, Goa, Pondicherr ', Pune,

Bangalore, and

Kolkata. Recently I nterGol d ran campaigns of changing its brand

name to Orra after



which they realized that this was a wrong step on their part so they planned to keep the

m o as separate brand identities.

D"lamas -Adding a Hint of Glamour

D.damas is one of the major brands from the a itanjal i group. On the lines of international

trends, where brand ambassadors are roped in to help design the product itself. jewell cry

firm. D'damas, roped in Hollywood stars to help design jewellery under the name 'UFA

dal itterati collection,' with the different lines bein g named after the stars themselves.

Their designers spent ample time with the stars in order to design the jewellery in line

with their personality. The signatures of the stars is laser inscribed in each piece of

jewellery , which has used both \white and yellow gold. and the entry-level pricing is Rs

15.000. The company is a joint venture between G empl us Jewellery and Damas. which

claims to be the largest retailing jewellery brand chain in the Vest Asia.

Adora -Affordable Diamonds

Adora was born on July 3 2003 with a big event in Mumbai. Within a month of the

launch. Adora created 3 world records, which was duly endorsed by Limca Books of

Records namely. The 3 records were Biggest Rakhi. Expensive Rakhi Adora

Interactive Kiosk Nvith an onboard computer Nvith touch screen and Internet to deliver

multiple marketing, sales and promotional functions. The brand was launched in phase

manners. Phase I was Mumbai launch. Phase II was National launch in 9 cities. Phase III

which is currently going on is launch in semi metros and towns of India Phase IV

would be International launch. The LJP of Adorn is easy availability, choice

affordability,

Isiah - From a Beautiful Place

A sight holder \with DTI', Sheetal Manufactunng Co ( M C ) has the status of being the

world's largest volume manufacturer of polished diamonds with an annual turnover of 1.5

million carats. The company has recently bagged the outstanding export performance

award in the DTI' category and has also become a Star Trading House, a recognition

awarded to them by the Government of India. The first retail brand will be "MAW an

Australian aboriginal term. Nvhich means from a beautiful place "



Oyzterbay - Jewellery for the Living

yzterba is in retailing apart from running signature stores that showcase precious

metals, gemstones and crafted jewellery designs. It is a young brand at the forefront of

change in the jewellery industry. It was the first to launch a brand catering to the young

new woman of today, with contemporary wearable designs. yzterbay's byline,

"Jewellery for the Living", epitomizes the ethos of the brand. With 29 stylish and

exclusive stores across the country, and another 20 outlets in department stores, it is the

fastest growing jewellery brand in the country. To date, Oyzterbay, in just over three

years has sold close to 300,000 pieces of jewellery, indicating tremendous acceptability

of the product and the brand.

Carbon - Stylish Designs

Carbon has been an important factor in initiating and bringing about

excitement into this personal domain. Established in 1996, Carbon

launched its first fashion accessory collection `Venus ' at the first Carbonoutlet in Shoppers Stop, Bangalore and recently opened its exclusive

boutique in Bangalore. Exploring with accessories that nudged jewellery

out of the vault

and into the wardrobe, collections examined the world of fashion, emotion, lifestyle and

helped consumers elevate their personal sense of style.

Design is the sole factor that led to the birth of Carbon, the brand. The Carbon desi gn

studio regards material and technology as a tool or means of expressing the intangible

fashion and lifestyle needs of consumers.

A ;ni - Anmol... Alp hi lei taraha

Agni is a brainchild of the House of boors, nationally renowned jewellers, originally

from Jalandhar, Punjab and presently based in Mumbai. Over a decade and a half of

excellence in creating a range of exclusive gold jewellery gave them a clear insight into

the heart and mind of the Indian customer.

Project L FfI b a . b/o s j. ()Leon' 1


As pioneers of the branded gold jeweller' segment with Agni, the Shoors intend to drive

their head start across the country to make a beginning towards creating a product that

focuses solely on the customer's benefit and interest.

For the first time in India Agni makes gold jewellery available with MR P regulation.

Platinum Cuild International - Promoting Brand Platinum

Platinum is the most precious metal used for branded jeweller v, Platinum is pure, an

expression of integrity, a reflection of inner truth. Platinum's purity endows it with a

brilliant white luster. This helps to reflect the true radiance of diamonds. It is rare, the

coveted treasure of discerning in ividuals. There is very little platinum on this earth and

it is found in very few places around the world Its densi t and weight make it more

durable, than other jewellery metals. In addition to its strength and density, platinum has

another remarkable quality -pli abil i t . The Platinum Guild International worldwide under

the Pt logo promotes platinum jewel] er y.

Cygnus - Diamonds for an

Cygnus is a brand of 18K gold and diamond jewellery in the domestic market. Priced in

the range of 1 s . 1 , 0 0 0 - 3 0 . 0 0 0 , Cygnus is being retailed at lifestyle stores, traditional

jewellers and exclusive franchise outlets. The brand is promoted by f ps, l , 000 crore

Laxmi Diamond Group. The group was set up in 1972, and is the second largest exporter

of polished diamonds in the country.

Ishis - Fusion Diamond Jeweller T

Ishi's (which means the Goddess of Wealth) includes a range of diamond

jewellerv for the Indian and West Asian markets, with an accent on fusion

design, incorporating traditional designs with modem designs. I t is part of

the Suashish Group, which is one of the largest manufacturing site holders

of De Beers. Ishi's is currently available throu gh its signature outlets in

Mumbai, and Dubai, besides shop-in-shops stores. It plans to have 70 outlets

by the end

of the year, and be present in over 500 outlets across the world in the next 10 Nears,

Bulaire - Champagne Diamond Jewellery

P r o j e c t s f i w m b a . b / o s j . ( 0 . c o n 30


Bulaire Champagne diamond jewellery is rare, precious-set in

alluring designs to embody

your inner desires_ ambitions and aspirations and includes pendants,

rings, earrings and

bracelets. The shop-in-shops are located in prominent shopping malls

and traditional

j e e l l ert stores. The company hopes it will make sales of 1.1 million

within a year from

the jewellery,

Siunitv -Trendsetters in Cubic Zirconia

Signity is a world-leading brand of Swarovski and Golay specializing

in precision-cutgenuine and created gemstones, Si2nitv believes that the finest diamond look-alike ever

developed has to be cut to standards equivalent to those applied for

the finest cut genuine

diamonds. So_ they asked their most experienced cutters and

engineers to determine

precise ideal proportions for their cubic zirconia. To test the validity

of their findings,

they send their cubic zirconia stones to a respected independent

gemologi cal l aborator-y

specializing in the machine measurement of diamond brilliance.

Nirvana - Invisible Set Diamonds

Nirvana is targeted at contemporary independent- thinking women.

This exquisite but

mid-priced range of pendants, rings and earrings, bracelets is

available from i s . 3 i 000

onwards. Nirvana uses `Invisible-setting ' Fax-based setting, which

helps set diamond

together without any gaps or joints. The `pressure-setting' technology

Project L FfI b a. b/o s j. rat. con 31


helps set round

diamonds in amazing designs without any clasps. The absence of

visible support gives a

larger' bigger look and adds luster and fire to the diamond. As proof of

its commitment to

quality, Nirvana also offers consumers a lifetime warrants' exchange

proposition,

Trendsmith - Bold and Unconventional

Trendsmith, a TB -promoted chain of jewellery

retail stores holds

the distinction of hosting the lamest number of

branded and

designer jewellery under a single roof. Trendsmith

broke new

ground by transforming jewellery buying from

Projects rm b a. b/o s j. rat. con 32


jeweller' business. The Trendsmi th style of jewellery is renowned for being bold and

unconventional.

Sveni -Creating Ripples

Brand Svcni from the company Shrenuj created ripples in the market and is doing very

well The brand comprises solitaire rings, carringsi pendants and bangles in gold and

platinum. Svcni Solitaire jewellery comes in the range of 0.50 to 0.89 carat with laser

inscription and IGI certification. Bhavya brand from the same company was also

launched. Bhavya has solitaire rin s, earrings and pendants in gold and platinum. Their

solitaire jewellery comes in the range of 0,20 to 0,50 carat with laser inscription and IGI

certification.

I ntagent - Jewellery beyond Imagination

The jewellery manufactured by Imagcm is a'work of art. It is vibrant and made as per

International Standards. Imagcm is all about expressions and dreams. Imagcm is

jewellery beyond imagination' with tic right mix of classic, contemporary and modern

designs. Imagcm creations are suited to all preferences from classic to contemporary,

causal to bridal wear. I t is the change in the buying patterns of consumers today, who are

willing to posses not just jewellery, that stagnates in the bank lockers but jeweller s that

can be adorned and appreciated on a regular basis and yet also be passed down

generations. All collections are backed with a theme that relates to expressions and

dreams.

Sogni Q "oro - Rising Star on the Indian Horizon

So2oi'D'Om is the brand name of Italindi. It is Italian jewellery on the

name Italindi that is being imported from Italy-the hub of jewels and

fashion So2ni D'Oro or in other words " golden dreams" is exactly what the

brand name suL2ests - that one Nvould want to own for its sheer beauty and

technicality. The jewellery collections arc extremely innovative bold and

unconventional. All pieces of jewellery at Sogni DDro arc either handcrafted or machine

Projects rm b a. b/o s j. rat. con 33


made that are legally imported from Italy to India. It is manufactured

and procured from

all major jewellers who arc from famous jewellery towns of Italy

namely Vicenza and

Arezzo.

Hammer Plus - Branding Spirituality

Hammer Plus Jwcllery as a brand believes in creatinL market focused

flint jewellery brands as per the market requirements for

the retailers.

Hammer Plus believes in the ideology of "We make it

happen for you"

by not just creating jeweller-' but also adding band value

to its products.

Each brand of Hammer Plus has its individual characteristics, a

distinct

identity and an image of its own targeted at an audience_ based on the

market requirements congruent with merchandising at specific price

points. The brands with adequate support of the various elements of

marketing, consumer

research and visual merchandising give each brand a character of its own. Hammer Plus

has a production capacity of nearly 10,000 pieces per month a total

manpower of 200

people in the production department manufacturing brands like

Divya Vinayak_ Karma,

Ekkarii, Tamorri allaya,

Swarovski -The Fashion Brand

Although the company is more than 100 years old, the jewellery

range was launched only

in 1977. It specializes in imported crystal components and extensive

Project L F f I b a. b/o s j. rat. co n


palette of Swarovski

crystal products to enjoy_ toweari to give and to receive. Today the creations are both

fashion/trend inspired as \veil as a classic range with jewellery

designs of the highest

quality, Swarovski in India is on an expansion mode. The product

range keeps changing

with time and trends that are forecasted for the forthcoming seasons.

C ientnte - Jewel-in-the-crown

Ciemme

is synonymous with exquisitely designed diamond studded jewellery.

This international

flagship brand of diamond jewellery is itself a jewel-in-the-crown of

the C. Mahendra

Diamond Product Group, catering to the medium to high price market

segments. With its

state-of-the art infrastructure and hi- tech manufacturing facilities, Ciemme consistently

meets stringently high quality requirements and delivers never-

ending customer



satisfaction. The C iemmc collection includes , unique designs .. generated along concept

lines, featuring rings, pendants, caningsbracclcts, and many more,

Vanshi - One for Every one

Vanshi Diamond Jewellery is catering to all range of customers. It is positioned as

"One

for everyone." Vanshi Diamond Jcwcllcr v is recognized as "Value for Money " apart

from that Vanshi Diamond Jeweller T is well known for its unique designs. It is different

from all other brands in terms of designs, crafsmanship, purity etc.

T TE IES FOR WOOING CUSTOMER'

T.4 NI

In the late I ))t)Ls, p/aye's in the branded go / / e 'eler y market )rmu fated

L 't)• t e g i s or

wooing customers. According to Jacob urian (K1.? ian). .'hi ' j ratio

(Vice,' of

Tanishq, the challenges were many, As the jewellery market

was highly.fragmented,

lacked branding, and allowed many unethical practice p to _ to

urish, Tanishq v r k e hha'

on a two-pronged brand-building L't)ak- ' ..• cultivate trust by

educating customers about

the unethical practices in the business and change the j. rrej. tion

o .je •i .•'L'ller ` as a high-

priced purchase. Said Kurian, "We are changing the attitudes of

customers from blind

trust to i)?/e')rmed trust."

To increase its market share, Tanishq formulated a strategy for luring people away from

traditional neighborhood jewellers. Tanishq's strategy was to create differentiation and



build trust. According to Iu r i an, the ti rst part of the strategy was "to provide a point of

differentiation in a highly commoditizcd catcgor r - which is the whole point of

branding." The second part of the strategy was to project Tanishq as an unimpeachable

mark of trust. According to Iu r i ani "If differentiation plays the role of primary attraction,

trust takes care of lifelon g loyalty,"

One wa F to create dif±rentiation \vas through design. The emphasis had to be on design

because local jewellers could over to design any pattern according to the customers



specifications. For a national brand a generic design concept with

regional variations had

to be evolved. (Refer Exhibit I for Tanishq's design). For this, Tanishq

set up a seven

member in-house design team and also outsourced designs from freelance designers.

The designers traveled the length and breadth of the country to get

feedback on Tanishq's

designs and learn about customer preferences. On the basis of this

feedback, each

showroom could select the designs it would carry. To stay ahead of

competition from

local jewellers, Tanishq decided to focus on quality control. In 1999, it

introduced

caratmetcrs, which showed the purity of gold. I n fact, Tanishq's USP

was the purity of its

gold. Accordingly, the company's ad campaigns emphasized the purity

aspect of all

Tanishq ornaments. (Refer Exhibit II for Tanishq's Ad Campaign)

In November 2002, Tanishq introduced a new collection of jewellery

called

lightweights.' The collection featured neckwear, earrings, bangles,

rings and chains in

22 karat gold with prices starting at Rs 1,100. It also launched

Lightweight Diamonds,

with prices starting at Rs 3,000. Tanishq focused not only on urban

markets, but small

town markets as well. Real estate was less expensive in the small

towns than in l a r e

urban centers. Besides, competition from stores in small towns was

less stiff thanProject L F f I b a. b/o s j. rat. co n


competition from the large jewellery stores in the metropolitan cities.

According to

I uri an, the best returns on investment came from small towns.

CARBON

Carbon's focus had always been to move jewellery from the vault to

the dressing table

and bring the selling of jeweller out of heavily guarded jewellcr y

stores. This was

achieved by persuading a few l ifestl e stores to add branded

jewellery to their vast array

of products. Besides selling from lifestyle stores, Carbon also sold its

products as gift

items over the Internet,

Like Tanishq. Carbon laid emphasis on design. Students at the

National Institute of

Fashion Technology (NWT) through the diploma programme, which

the company

sponsored, contributed most of its designs. In addition, Feakak's team

of six designers,

(headed by Rajeswari Iyer, an alumnus of a German design school who

had worked in the



U , I „ Germany and India) turned out around 180 to 200 styles in a

year, with 75 designs

per style. At any. point in time, there were around 600 designs of

Carbon on sale, and on

an average. 300 to 400 pieces per design were sold. In 2001 Carbon

launched its 'Sun

Sign' collection, which was based on the symbols of the Zodiac. This

collection was a set

of 12 pendants designed in a blend of 18 carat white and yellow gold (Refer Exhibit 111) .

While 18 carat gold was commonly used in Carbon products. some of

the designs also

used white gold, titanium and steel. Diamond was the preferred

precious stone, but other

colored stones were also used. Comprising items of everyday use,

(rings chains,

bracelets, ear studs, tie-pins and cufflinks) Farb on items were an

impulse purchases.

(Refer Exhibit IV) The brand had no off take cycles in the year, like

the marriage season,

unlike traditional jewellery. The creati one manufacture and

marketing of Carbon were

different from the making and selling of traditional jewellery. Carbon

was attempting to

eliminate the low productivity, quality inconsistencies and high

precious metal loss

associated with traditional jewellery making. It has instituted modern

manufacturing

practices such as self- contained small groups in the assembly area,

self-inspection by the

operators, the Japanese I ai=en approach to improvements in

operational practices and the

like. The brand has brought down their manufacturing loss of gold to Project L F f I b a. b/o s j. rat. co n


6.8

per cent. The

average in the traditional Indian jewellery shop is as high as 22 per

cent, while the world

average is only 2 per cent.

As the profile of the average customer likely to purchase a Carbon

item was a well-paid

urban professional, 24 to 3 years old, having a credit card, it was

decided that Carbon

should not be placed in the usual jewellery shops but made available

at 'shop-in-shop'

outlets in large lifestyle stores (such as Shoppers Stop, Ebony,

Globus, The Bombay

Store, Lifestyle and Taj I hazana and some premium boutiques (such

as the Helvetica in

Chennai). Said Rao, "We are looking at cross-promoting Carbon

jewellery with other

branded lifestyle products such as perfumes, clothing and cosmeti

cs." Carbon products

were priced bemeen Rs. 1750 and Rs. 20 000 per piece. While the

cost of traditional

jewellery was negotiable, the cost of Carbon items was fixed and

nationally uniform.

OY BAY



yzterba F , with its tag line "Jewellery for the Living", had become synonymous with the

entire gamut of occasions 'where modern young women would like to wear stylish and

affordable j e el ler-y, Oyzterbay's collection comprised over 1200

designs in 1 8 , 2 2 and

24 carat gold and sterling silver, with natural colored gemstones. The

price of the

jewellery ranged between Rs. 500 and R s.30000.

The initial focus of yzterba F was to give a lifestyle value to jewellery instead of the

traditional investment value. I n the second year of its launch, Ovzterb

ay emphasised on

marketing and advertising strategies to give the necessary thrust for

growth,. I n order to

transform itself from a youth brand to a brand for all occasions,

Ovzterbav launched

media campaigns in August 2 0 0 2 highlighting the new look. The new

communication

strategy focused on addressing the 1 8 to 34 age group instead of the

earlier 18 to 24 age

group. The new campaign focused on positioning Oyzterbay as

jewellery for office wear,

evening wear or even a fitness session. (Rekr Exhibit V) The

broadening of focus to

include an older segment was the result of market research which showed that the brand

appealed to middle-aged working women and affluent housewives. The

investment in the

new campaign was Rs 50 million.

Where ()yztcrbay scored over others \vas its simple and refreshing

designs and

affordability, making it distinct from the usual gold jewellery stocked



in

standard

jewell ert showrooms and contemporary jewellery offered by

traditional j evell cry houses

trying to cater to the trend. Priyadarshi I\4ohapatra, Marketing

Manager, (}yzterbav, said

" ' e began by selecting a completely different reach - everyday jewellery for the working

woman and jewellery for the youth. We felt that jewellery should be

brought out of the

locker, So we positioned (it) to accessorize the dress of the young,

college-going crowd,

which otherwise sported junk jewellery. The second segment was the

working woman for

whore we sought to build a Nwardrobe of jewellery by making it

affordable, so that she

could pick up pieces regularly." yzterbay later extended the same

band values to

diamonds too, the idea being to target a niche market.

(Jyzterbay refurbished its collection every few months, keeping in

mind international

trends. By so doing, they were able to offer exclusive products to

clients. As part of the

yzterbay Summer 2002 collection, it offered pendants, earrings,

finger rings, bracelets,



neckwear, and chains with natural gemstones set in white gold. as white gold was

evolving as a fashion statement across thevorld,

Although Ozyterbay was known for its jewellery in gold and sterling

silver embellishedwith natural gemstones_ it decided to launch 'Your First Diamond', a

complete range of

diamond jewellery set in white, pink, and yellow gold. The price of the

collection started

from Rs. 500 with the most expensive piece not exceeding Rs. 11000,

[L[

ili distributed its je wellcry priced between Rs. 500 and Rs.. 40,000

through lifest 'le and

department stores across the country to increase accessibility among

its target segment,

the 15 to 30 age group. The company's products were also made

available through a mail-

order catalogue. In 1 9 9 7 1 G i l l launched a collection of traditional Indian ornaments made

of 18-carat gold. I n 1 9 9 9 . the Gili Gold range was introduced. This range included rims,

pendants; earrings, necklaces and bangles made of 24-carat gold. All

Gili products came

with a guarantee of diamond and gold quality.

When research conducted in February 2000 showed that there was a

big gap between the

Rs. 1000 and Rs. 10000 price segment and keeping in view the

teenage population, and

the kind of pocket money they had, Gili brought out a collection

targeting teens. In 2000,

launched its 'diamond heart collection' targeted at teenagers and

priced between Rs



500

and R s.2500. The collection was promoted at college campuses with

banners,

pamphlets and a few advertisements targeted at teens. Gili soon

realized that just pushing

its product was not enough; it also had to customize its products for

special occasions.

Following this, it launched a Diamond Heart Collection specially

designed for

Valentine's Day. This collection consisting of tiny, heart-shaped

diamond jewellery was

well received by teens (Refer Exhibit VI). Special packaging_ catchy

advertising and

extensive press coverage contributed to the success of the collection.

Gili also made

special promotional offers during festive seasons like Christmas and

Diwali.

Having captured the low price point market of Ids, 2000 to f s.10,000,

in 2000, the

company focused on penetrating the premium market of customized

jewellery. For this,



( i tan j ali jewels opened a jewellery salon, G i anti, to provide customized jewellery to

clients in India.



RECOMMENDATIONS



CONCLUSIONS

The dissertation will help to study the consumer preference over branded and non -

branded jewellery. The main objectives of the study were to compare bet ween

Branded and Non-Branded J ewell er , to know Consumer perception towards

Jewel ler, to know the Major Players of Jewell erv industry, to have an idea about

parameters consumer consider while buying Jewellery, to have knowledge about

demographic segments, to know the Marketing strategies used by various jeweller F

brands. India is growin2 at a very fast pace and j ewell erv sector is one which is

registered to achieve 65 `f• M international market by 2010. The j ewel lerv sector is

largely unorganized in India but is changing into organized business because of many

major and influential players entering into the market and have started organizing the

market and focusing all segments of customers such as Tanishq by TATA and Gill by

Gitanjli jewellers etc.

The branded jewellery sectors is only 2-3' of the total jewellery market in India but

most of the brands have been able to make a mark on consumers with their hi ghly

s a t i f i n marketing strategies. The local jewellers or the unbranded jewellers do not

provide any guarantee of the purity and quality but brands such as Tanishq introduced

k o m e t e r in their outlets which help the consumer to test the purity of the jewellery_

As jewellery sector is changing, consumer is also changing today they are more

aware, have greater disposable income and want to be more secure. That is why when

given a preference between branded and non- branded jewellery most respondents

choose branded jewellery.

The booming economy along with the rapid increase in income levels is estimated to

further accelerate the growth of this industry. According to a KPMG study } India's

growing importance in the global jewellery market is only expected to increase in the

future with total estimated jewellery sales of USS 21 billion by 2010 and USS 37



billion by 2015. Diamond jewellery consumption in India is also estimated to jump by

7 per cent in 2010.



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Consumer preference over branded jewellery and non branded jwellery

Business

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