Market Research Report: Gems and Jewellery Market in 2010

Gems & Jewellery Market – India

May 2010

2GEMS & JEWELLERY MARKET IN INDIA 2010.PPT

SAMPLE

Executive Summary

Market

Competition

Drivers and

Challenges

Government

Policies and

Initiatives

�Gems and Jewellery (G&J) market in India was valued at USD X bn in 20-- and is expected to grow

at P% CAGR

�G&J market includes – Gemstones like diamonds, colored stones and pearls; Precious metals and

Jewellery like gold & gold jewellery, silver jewellery and gemstones studded jewellery

�Government has adopted various policies for the manufacturers in terms of Industrial Policy, FDI

Policy, Kimberley Certification Process and Hallmarking

� Initiatives of the Government include tax benefits, import duty relaxations, provisions for exports

and other initiatives

�The market is largely dominated by the unorganized players making it very fragmented

�Branded and designer jewellery is showing tremendous growth potential

�Players are utilizing the high skilled labour available in India and are making considerable

improvements in their collections and services

�Growing organized retail space

�Aggressive marketing and advertising

� Large scale shows and exhibitions

�Domestic players acquiring foreign companies

� Investments from PE firms

�Corporate houses enter the market

�Drivers: Mass appeal and growing income among households, low cost and abundance of skilled

labour, growing use of high-end technology, advantages of SEZs, changing consumer perceptions

and preferences, growing training institutes

�Challenges: Rising gold prices, competition from unorganized players, dependence on raw

material import, emerging threat from other countries

Trends


•Introduction

•Value chain

•Market Overview

•Drivers & Challenges

•Trends

•Government Bodies, Policies and Initiatives

•Competition

•Key Developments


SAMPLE

Gold and diamond form the two major segments of Indian

gems and jewellery (G&J) market

• The industry can be classified into various sub segments like diamonds, coloured stones, gold and silver jewellery,

pearls, etc. However, the two major segments in India are gold and diamonds

• The industry is characterized by highly unorganized trade, labour intensive operations, working capital and raw

material intensiveness, price volatility of gold and export orientation

Source:

GemstonesPrecious Metals

and Jewellery

DiamondsColored

Stones Pearls

Gold and

Gold

Jewellery

Silver and

Silver

Jewellery

Gemstones

Studded

Jewellery

Gems & Jewellery


SAMPLE

G&J market shows great potential for higher penetration

and increased revenues for players

• Globally, India’s jewellery market stands at X position

• Presence of highly skilled, low-cost labor enables

India to design and make high volumes of exquisite

jewellery at relatively low costs

• Emergence of branded jewellery is a new trend that

is shaping the Indian jewellery market

• Traditional handcrafted jewellery is slowly giving way

to machine-made jewellery

• Indian diamond jewellery market stands at USD A bn

in 20-- and is expected to grow to USD B bn by 20--

owing to the rising prices of gold

• Low penetration of diamond jewellery provides

opportunities to the players

• Prices of gemstones like diamonds are generally fixed

and as such high-end consumers are showing greater

interest in this category

• City X has emerged as the biggest diamond

processing hub with country B consuming most of

the Indian gems

Overview Total G&J Market – Size and Growth

Source:

0

5

10

15

20

25

30

2006

q

2015e

b%

r

s

2010e

p

2008

USD bn

Segmentation of Jewellery Market

A%

Segment 3

B%

Segment 1 C%

Segment 2


Drivers & Challenges

Changing consumer perceptions &

preferences

Advantages of SEZs

Growing training institutes

Growing use of high-end technology

Low cost and abundance of skilled

labour

Mass appeal and growing income

among households

Drivers

Dependence on raw material import

Emerging threat from other countries

Competition from unorganized players

Rising gold prices

Challenges


Key Trends

`

Growing organized retail space

Investments from PE firms

Domestic players acquiring foreign companies

Large scale shows and exhibitions

Trends

Corporate houses enter the market

Aggressive marketing and advertising


Government Bodies, Policies and Initiatives – Summary

Government

Support

Major Government Bodies

Government Initiatives Government Policies


SAMPLE

Strong competition exists among players in the branded

gems and jewellery market

• The Indian G&J sector is dominated by unorganized

players and is fragmented in nature

• It has a large number of domestic private sector

companies which are operating from a long time as

family oriented business

• ~A players in gold processing industry, with only B

having revenues over USD P mn

• India is a home to a large number of jewellers,

goldsmiths and processors

� ~X goldsmiths and Y gold jewellers

� ~Z diamond processing players and S diamond jewellers

• However with constant improvement in product

varieties and service rationale, the organized players

are expected to grow potentially to occupy ~Z% of

the total G&J market by end of 20--

• The branded jewellery players are constantly

opening exclusive retail outlets in malls and in high

footfall locations

Overview Market Structure

Source:

Segment 2

B%

A%

Segment 1


SAMPLE Major Players (1/16)

• It is one of the world’s leading diamond manufacturers and a Company X sight holder

• Has its marketing offices spread across X continents – Country A, Country B and Country C

• Exports its diamonds to Country 1, Country 2 and Country 3

• Operates retail brand “X”

Expansion Plans:

• Plans to expand its jewellery retail business, with the launch of about X-Y stores during the next B-C years at an

investment of up to INR P mn and the stores are expected to be opened in the South and western regions of the

country

Source:

ListedType

Headquarters City 1

Founded 19--

Area of Expertise Diamond & jewellery manufacturing

Key PeopleMr. X – Chairman

Mr. Y – MD & CEO

Company Snapshot: Company 1

Business Highlights

Corporate Information Financial Performance

0

5,000

10,000

15,000

0

100

200

300

400

500

2006-07

r

2007-08

p

2005-06

q

Revenue

INR mn

Profit

INR mn

2008-09

s

Profit / Loss

Revenue


Thank you for the attention

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Gaurav Kumar

Phone: +91 33 4064 6214

E-Mail: [email protected]

Gagan Uppal

Phone: +91 22 4098 7530

E-Mail: [email protected]

Market Research Report: Gems and Jewellery Market in 2010

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Transcript of Market Research Report: Gems and Jewellery Market in 2010