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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,
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NO1DA
AMITY UNIVERSITY UTTAR
PRADESH
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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...........................
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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
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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
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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.
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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.
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· 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
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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
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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-
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building exercises are making people buy jewellery off the counter. Focused advertising,
display and astute salesmanship are being combined to take on traditional jewellers.
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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
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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
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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%.
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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.
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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.
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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
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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 "
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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,
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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
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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,
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( i tan j ali jewels opened a jewellery salon, G i anti, to provide customized jewellery to
clients in India.
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RECOMMENDATIONS
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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
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billion by 2015. Diamond jewellery consumption in India is also estimated to jump by
7 per cent in 2010.
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I L I P H
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Journal of Gcm I n d u s t '
Web soures: -
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