branded jewallery

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A study on the consumer’s preference towards branded jewellery

Introduction

Till the early 1990s, the average Indian bought jewellery for investment rather than

for adornment. Jewellery made of 18!arat gold was not favored as it was

"onsidered a #oor investment.

$onfiden"e in the lo"al jeweler was the hallmar! of the gold jewellery trade in India.

% jeweler or goldsmith in a lo"al area had a fi&ed and loyal "lientele. The buyer had

im#li"it faith in his jeweler. %dditionally, the lo"al jeweler "atered to the lo"al taste for

traditional jewellery.

'owever, sin"e the late 1990s, there was a shift in "onsumer tastes( women were

in"reasingly o#ting for fashionable and lightweight jewellery instead of traditional"hun!y jewellery. There was a rise in demand for lightweight jewellery, es#e"ially

from "onsumers in the 1) to 2* age grou#, who regarded jewellery as an a""essory

and not an investment. The new millennium witnessed a definite "hange in

"onsumer #referen"es.

+randed jewellery also gained a""e#tan"e for"ing traditional jewelers to go in for

branding. iven the o##ortunities the branded jewellery mar!et offered- the number

of gold retailers in the "ountry in"reased shar#ly. +randed #layers su"h as Tanish,

/yterbay, ili and $arbon o#ened outlets in various #arts of the "ountry. Traditional



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jewelers also began to bring out lightweight jewellery, and some of them even

laun"hed their inhouse brands. 'owever, the share of branded jewellery in the total

jewellery mar!et was still small about s. 10 billion of the s. 300 billion #er annum

jewellery mar!et in 20024, though growing at a #a"e of 20 to 50 #er"ent annually.

The branded jewellery segment o""u#ied only a small share of the total jewellery

mar!et be"ause of the mindset of the average Indian buyer who still regarded

jewellery as an investment. 6oreover, "onsumers trusted only their family jewelers

when buying jewellery. $onseuently, the branded jewellery #layers tried to "hange

the mindset of the #eo#le and woo "ustomers with attra"tive designs at affordable

#ri"es.

'owever branded jewellery #layers will "ontinue to fa"e lot of "om#etition from lo"al

jewelers. In order to gain mar!et share, they will have to "ome u# with designs that

"ustomers want and win the trust and "onfiden"e of "onsumers by hallmar!ing and

demonstrating the #urity of the gold used by them.

To "om#ete with traditional #layers, branded #layers must also find some way to

differentiate themselves. 7hile the su""ess of a #arti"ular brand will de#end on

differentiation, affordability and uality will be a !ey element in sustaining a brand.

In addition, branded #layers reuire fo"used advertising and astute salesmanshi# to

"om#ete with traditional jewelers. +esides the major brands Tanish, $arbon,

/yterbay, ili and Trendsmith several regional #layers have o#ened bran"hes to

leverage the trust and re#utation that they have built u# over the years.



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/bje"tive of study

14 The "onsumers buying #referen"es towards +randed jewelers

ignifi"an"e of the study

The gems and jewellery industry o""u#ies an im#ortant #osition in the Indian

e"onomy and is one of the fastest growing industries in the "ountry.

'en"e the resear"h "ondu"ted would hel# me

14 :nderstand the "onsumers #referen"e while #ur"hasing jewellery

24 'ow mu"h im#a"t does a brand have on their #ur"hase de"ision

54 ;oes #ri"e #lay an im#ortant role in guiding their #ur"hase de"ision



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Justifi"ation of the study

The #revious resear"h done on branded and non branded jewellery mar!ets are

14 Indian ems and Jewellery 6ar!et <uture =ros#e"ts to 2011

24 The im#a"t of re"ession on the jewellery industry

54 The growth of the +randed jewellery mar!et in India

>o study has been done to find out the #referen"e of "onsumers between

branded and non branded jewelers. The study would also hel# to find out the

"onsumer #referen"e and their buying behavior towards branded and non

branded jewelers, this would hel# both the retailers to !now what are the

"onsumer #referen"e and what strategies should they ada#t to grab the mar!et.



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Literature Review

The emergence of branded gold jewellery (

In the late 1990s, the Indian jewellery mar!et witnessed a shift in "onsumer

#er"e#tions of jewellery. Instead of being regarded as only an investment o#tion,

jewellery was being #ried for its aestheti" a##eal. In other words, the fo"us seemed

to have shifted from "ontent to design. Trendy, affordable and lightweight jewellery

soon gained familiarity. +randed jewellery also gained a""e#tan"e for"ing traditional

jewelers to go in for branding.

iven the o##ortunities the branded jewellery mar!et offered- the number of gold

retailers in the "ountry in"reased shar#ly. +randed #layers su"h as Tanish,

/yterbay, ili and $arbon o#ened outlets in various #arts of the "ountry. Traditional

jewelers also began to bring out lightweight jewellery, and some of them even

laun"hed their inhouse brands.

'owever, the share of branded jewellery in the total jewellery mar!et was still small

about s. 10 billion of the s. 300 billion #er annum jewellery mar!et in 20024,though growing at a #a"e of 20 to 50 #er"ent annually

The branded jewellery segment o""u#ied only a small share of the total jewellery

mar!et be"ause of the mindset of the average Indian buyer who still regarded

jewellery as an investment. 6oreover, "onsumers trusted only their family jewelers

when buying jewellery. $onseuently, the branded jewellery #layers tried to "hange

the mindset of the #eo#le and woo "ustomers with attra"tive designs at affordable

#ri"es.



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Gold Jewellery Market in India

+efore the liberaliation of the Indian e"onomy in 1991, only the 6inerals and 6etals

Trading $or#oration of India 66T$4 and the tate +an! of India +I4 were allowed

to im#ort gold. The abolition of the old $ontrol %"t in 1992, allowed large e&#ort

houses to im#ort gold freely

?&#orters in e&#ort #ro"essing ones were allowed to sell 10 #er"ent of their

#rodu"e in the domesti" mar!et. In 1995, gold and diamond mining were o#ened u#

for #rivate investors and foreign investors were allowed to own half the euity in

mining ventures. In 199@, overseas ban!s and bullion su##liers were also allowed to

im#ort gold into India. These measures led to the entry of foreign #layers li!e

;e+eers, Tiffany and $artiers into the Indian mar!et.

In the 1990s, the number of retail jewellery outlets in India in"reased greatly due to

the abolition of the old $ontrol %"t. This led to a highly fragmented and

unorganied jewellery mar!et with an estimated 100,000 wor!sho#s su##lying over

5*0,000 retailers, mostly familyowned, single sho# o#erations. In 2001, India had

the highest demand for gold in the world- 8** tons were "onsumed a year, 9*A of

whi"h was used for jewellery. The bul! of the jewellery #ur"hased in India wasdesigned in the traditional Indian style.

Jewellery was fabri"ated mainly in 18, 22 and 23"arat gold. %s 'allmar!ing was not

very "ommon in India, under"arat age was #revalent. %""ording to a survey done by

the +ureau of Indian tandards +I4, most gold jewellery advertised in India as 22

"arat was of a lesser uality. /ver 80A of the jewelers sold gold jewellery ranging

from 15.* "arats to 18 "arats as 22"arat gold jewellery.

The late 1990s saw a number of branded jewellery #layers entering the Indian

mar!et. Titan sold gold jewellery under the brand name Tanish, while itanjali

Jewels, a 6umbaibased jewellery e&#orter, sold 18"arat gold jewellery under the

brand name ili. itanjali Jewels also started selling 23"arat gold jewellery in

asso"iation with a Thai "om#any, =randa. uaj India4 Btd. laun"hed its "olle"tion

of diamond and 22 "arat gold jewellery in 199@.

The 6umbaibased grou#, +eautiful, whi"h mar!eted the Tiffany range of #rodu"ts inIndia, laun"hed its own range of studded 18"arat jewellery, ;agina. $artiers



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entered India in 199@ in a fran"hise agreement with avissant. /ther #layers who

entered the Indian branded gold jewellery mar!et during the 1990s and 200001

in"luded Intergold em Btd., /yterbay, $arbon and Tribhovandas +himji Caveri

T+C4.

ili( In 1993, ili Jewellery was established as a distin"t brand by itanjali Jewels,

soon after the abolition of the old $ontrol %"t by the Indian government. ili offered

a wide range of 18"arat #lain gold and diamondstudded jewellery, designed for the

"ontem#orary Indian woman. The designs "ombined both the Indian and western

styles and motifs. 7ith sales of s.0.13 billion for the year 200001, ili had a 0.05

#er"ent share of the 300 billion jewellery mar!et in India and a 1.3 #er"ent share of

the branded jewellery mar!et.

Tanish( In 1983, Duestar Investments Bimited a Tata grou# "om#any4 and the

Tamil >adu Industrial ;evelo#ment $or#oration Bimited TI;$/4 jointly #romoted

Titan 7at"hes Bimited Titan4. Initially involved in the wat"hes and "lo"!s business,

Titan later ventured into the jewellery businesses. In 199*, Titan "hanged its name

from ETitan 7at"hes Btd.E to ETitan Industries Btd.E in order to "hange its image from

that of a wat"h manufa"turer to that of a fashion a""essories manufa"turer. In the

same year, it also started its jewellery division under the Tanish brand.

%mong the branded jewellery #layers in the Indian mar!et, Tanish is "onsidered to

be a trendsetter. 7hen it was laun"hed in 199*, Tanish began with 18"arat

jewellery. ealiing that su"h jewellery did not sell well in the domesti" mar!et, the

18"arat jewellery range was e&#anded to in"lude 22 and 23"arat ornaments as

well. 7hen Tanish was laun"hed, it sold most of its #rodu"ts through multibrand

stores. In 1998, Tanish de"ided to set u# its own "hain of retail showrooms to

"reate a distin"tive brand image.

+y 2002, Tanish retailed its jewellery through *5 e&"lusive stores a"ross 31 "ities.

To meet in"reasing demand, Tanish #lanned to o#en @0 stores by the end of 2005

and offer a range of EwearableE #rodu"ts with #ri"es starting at s. 300. 7ith sales of

s. 2.)) billion in 200001, Tanish had a 0.)) #er"ent share of the total jewellery

mar!et and a 2@ #er"ent share of the branded jewellery mar!et.



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$arbon( In early 1991, the +angalore based =ea!o! Jewellery =vt. Btd., =ea!o!4

was in"or#orated and 6ahesh ao ao4 was a##ointed dire"tor. =ea!o! realied

that the Indian "onsumerEs relationshi# with gold jewellery would grow beyond an

investment need towards a lifestyle and #ersonality statement. In 199), within the

=ea!o! fold a new brand of 18"arat goldbased jewellery "alled $arbon was

laun"hed.

In 200001, with sales of s. 0.13 billion, "arbon had a 0.05 #er"ent share of the

jewellery mar!et and a 1.3 #er"ent share of the branded jewellery mar!et. The

"om#any e&#e"ted $arbon sales to tou"h s. 1.* billion by 200*0) and e&#orts to

start by 2008. The brand was available at 30 outlets in 1) "ities in 2002 and would

be made available in 25 "ities by 200*.

/yterbay( /yterbay was founded by Fasant >angia and his team in July 2000. It

began o#erations in 6ar"h 2001. +y >ovember 2002, the "om#any had 31 outlets

a"ross the "ountry. /yterbay see!s to build a national brand in the jewellery

industry in India and as#ires to be the largest branded jewellery "om#any in the

"ountry with a "hain of 100 stores and several hundreddistribution #oints by 2003.

7ith sales of s. 0.1@ billion in 200001, /yterbay had a 0.03 #er"ent share of the

s.300 billion jewellery mar!et and a 1.@ #er"ent share of the branded jewellery

mar!et

Trendsmith( 6umbaibased Tribhovandas +himji Caveri T+C4, whi"h had been in

the jewellery business sin"e 18)3, saw tremendous s"o#e in the branded segment

and o#ened its new "on"e#t store ETrendsmithE in 6umbai in ;e"ember 2001.

?n"ouraged by the res#onse towards its first store, the Caveris #lanned to ta!e

Trendsmith India4 =vt. Btd. all over the nation by o#ening as many as *0 stores by

200). Trendsmith offered eight lines of e&"lusive designer jewellery from well!nown

e&#ort jewellery manufa"turers and designers from 6umbai and ;elhi.

+%>;?; /B; J?7?BB?G 6%H?T 6%J/ =B%G?4

+rand 6ar!et share 2000014 in A4

Tanish [email protected]



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/yterbay 1.@

ili 1.3

$arbon 1.3

our"e( I$<%I $entre for 6anagement esear"h.



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Gold Jewellery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewellery for investment rather than

for adornment. Jewellery made of 18!arat gold was not favored as it was

"onsidered a #oor investment. $onfiden"e in the lo"al jeweler was the hallmar! of

the gold jewellery trade in India. % jeweler or goldsmith in a lo"al area had a fi&ed

and loyal "lientele. The buyer had im#li"it faith in his jeweler. %dditionally, the lo"al

jeweler "atered to the lo"al taste for traditional jewellery.

'owever, sin"e the late 1990s, there was a shift in "onsumer tastes( women were

in"reasingly o#ting for fashionable and lightweight jewellery instead of traditional

"hun!y jewellery. There was a rise in demand for lightweight jewellery, es#e"ially

from "onsumers in the 1) to 2* age grou#, who regarded jewellery as an a""essory

and not an investment. The new millennium witnessed a definite "hange in

"onsumer #referen"es. %""ording to amrat Caveri, $?/ of Trendsmith, esear"h

shows that the Indian jewellery se"tor is in the transition #hase with "onsumersE

desire for #ossession of jewellery for its aestheti" a##eal and not as a form of

investment.

In /"tober 2002, Trendsmith conducted a survey to understand the shifting needs,motivations and aspirations of consumers in the jewellery market, and to identify

new trends and opportunities. The research study arrived at the following

conclusions:

The Indian mar!et was witnessing an a""elerated shift from viewing jewellery as an

investment to regarding it as aestheti"ally a##ealing ornaments. The fo"us had

shifted from "ontent to design.

The younger generation was loo!ing at trendy, "ontem#orary jewellery and "learly

avoiding heavy, traditional gold jewellery.

The "onsumer wanted a wider sele"tion at a single "onvenient lo"ation and

e&#e"ted an international sho##ing e&#erien"e.

The Indian "onsumer was willing to e&#eriment with new designs.

The late 1990s and early 2000s, with the in"rease in the number of designers from

design s"hools su"h as the >ational Institute of <ashion Te"hnology >I<T4, a wide



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range of new designs be"ame available. In addition, the growing number of

manufa"turers needed a retailing #latform with global and national rea"h. %ll these

led to the #roliferation of branded jewellery #layers.

Strategies for Wooing !stomers

Tanish

In the late 1990s, #layers in the branded gold jewellery mar!et formulated strategies

for wooing "ustomers. %""ording to Ja"ob Hurian Hurian4, $hief /#erating /ffi"er of

Tanish, the "hallenges were many. %s the jewellery mar!et was highly fragmented,

la"!ed branding, and allowed many unethi"al #ra"ti"es to flourish, Tanish wor!ed

hard on a two#ronged brandbuilding strategy( "ultivate trust by edu"ating

"ustomers about the unethi"al #ra"ti"es in the business and "hange the #er"e#tion

of jewellery as a high#ri"ed #ur"hase. aid Hurian, 7e are "hanging the attitudes

of "ustomers from blind trust to informed trust.

To in"rease its mar!et share, Tanish formulated a strategy for luring #eo#le away

from traditional neighborhood jewelers. TanishEs strategy was to "reatedifferentiation and build trust.

%""ording to Hurian, the first #art of the strategy was to #rovide a #oint of

differentiation in a highly "ommoditied "ategory whi"h is the whole #oint of

branding. The se"ond #art of the strategy was to #roje"t Tanish as an

unim#ea"hable mar! of trust. %""ording to Hurian, If differentiation #lays the role of

#rimary attra"tion, trust ta!es "are of lifelong loyalty.K

/ne way to "reate differentiation was through design. The em#hasis had to be on

design be"ause lo"al jewelers "ould offer to design any #attern a""ording to the

"ustomerEs s#e"ifi"ations. <or a national brand a generi" design "on"e#t with

regional variations had to be evolved.

<or this, Tanish set u# a seven member inhouse design team and also outsour"ed

designs from freelan"e designers. The designers travelled the length and breadth of

the "ountry to get feedba"! on TanishEs designs and learn about "ustomer



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#referen"es. /n the basis of this feedba"!, ea"h showroom "ould sele"t the designs

it would "arry.

our"e(htt#(LLwww.i"mrindia.orgLfreeA20resour"esL"asestudiesLbrandedgold

jewellery1.htm



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Brand a""eal

+randed jewellery has found a ni"he for itself in the tough Indian mar!et, and its

in"reasing growth rates show that before long it will "orner a signifi"ant share of the

jewellery mar!et. 7IT' the retail industry in India burgeoning, several "om#anies

have made inroads into the traditional jewellery industry, selling the #rodu"t that was

never really mar!eted in brand new ways. o mu"h so that branded jewellery is

the new mantra in the mar!et, having ra#idly a"uired a ni"he over the #ast few

years.

ome of the "om#anies have even "leverly #layed on Indian "ustoms and tradition to

advertise and establish their brands. Jewellery is now mar!eted for every o""asion-

even FalentineEs ;ay "alls for a s#e"ial something MdiamondN for a s#e"ial

someone.

In s#ite of #essimism about the mar!etability of branded jewellery in a "ountry rooted

in buying ornaments from the traditional goldsmith, 50 brands were laun"hed in

2003. 'owever, this does not ta!e away from the fa"t that India is a tough mar!et.

%""ording to 6ehul $ho!si of the ;E;amas and itanjali rou#, branded jewellery

has witnessed more than *0 #er "ent growth in the last three years. The diamondbranded jewellery, he says, is es#e"ially im#ressive with the segment witnessing a

20 #er "ent rise annually as against 10 #er "ent a de"ade ago.

%lthough branded jewellery a""ounts for less than 10 #er "ent of the s.30,000"rore

jewellery mar!et, a study has "on"luded that it is growing in #o#ularity at a

tremendous #a"e of 2050 #er "ent annually. u"h is the #otential of this industry

that the "onsulting firm 6"Hinsey estimates the branded jewellery mar!et in India to

grow at the rate of 30 #er "ent #er annum to tou"h s.10,000 "rores by 2010.

+ig drivers of this !ind of jewellery are the numerous malls o#ening a"ross the

"ountry with the emergen"e of an affluent "lass following the su""essful growth of

the new e"onomy "om#anies.

In the #ast de"ade, the "ountry has seen a se"tion of the #o#ulation gaining

e&#osure to designer wear, fashion a""essories and globally branded #rodu"ts.

7hy not have a""esses to themO as!s ima Hhan, a brand e&e"utive. /f "ourse



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jewellery is harder to brand but it has done well given the tough "om#etition, she

says.

/ne of the reasons branded jewellery is doing well is that now anyone "an wal! into

a mall, window sho# and de"ides at their own what they would li!e to buy. The entire

"ulture of sho##ing has "hanged with attentive and hel#ful attendants and well

dis#layed #rodu"ts. Gou no longer have the sales staff who loo! at you and de"ide

whether you are worth serving or not. ?veryone is a #otential "ustomer in the new

mar!et, says ima Hhan. Get the most im#ortant #art of branded jewellery is that

you "an get a #ie"e of jewellery with a diamond for as little as s.1,*00. %nd as

branded is euated with uality, you are assured of a good #rodu"t. uddenly

jewellery has be"ome a""essible and affordable for all in"ome bra"!ets.

The shift was visible in 2003 when more than 50 #layers entered the mar!et. Today

there are more than *0 brands, endorsed by models, film a"tors, s#orts "elebrities

and other well!nown fa"es. ome designs of these brands are so #o#ular that lo"al

jewelers have begun to "o#y them. 7hile it is a "om#liment to the industry that

#eo#le li!e the #rodu"t, it "ould also affe"t the "om#any be"ause the "ost may be

lower, says ima Hhan.

The biggest "hallenge #erha#s is in edu"ating the "onsumer. $onsumers need to

understand the four $s $ut, $arat, $olor and $larity. $om#anies that brand their

#rodu"ts #la"e a lot of em#hasis on edu"ating and therefore hel#ing the "ustomer

ma!e his #ur"hase. +uying jewellery is a very #ersonal thing and we need to

understand what we are buying, says eema Tha!ur, an attendant in a jewellery

store at a mall in 6umbai. 7e have an average of *0 #eo#le on a wee! day and at

least 100 on a wee!end who wal! in and loo! around the sho#. If you ma!e the

#rodu"t loo! s#e"ial, for instan"e, a##eal to a young gentleman to buy it for a loved

one, he is often interested. %nd the big selling #oint is( If you "an s#end s.1,000

on two musi" $;s, why not s#end for that s#e"ial #erson in your life.

The branded jewellery industry is still in its infan"y, but in"reasing growth rates show

that in a short time it will "orner a signifi"ant "hun! of the mar!et. =erha#s the best

"om#liment to the branded segment is that old jewellery showrooms have also

begun to design jewellery lines under a brand name.



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our"e( htt#(LLwww.flonnet."omLfl2225LstoriesL200*1118005809800.htm



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Indian !stomers Showing Interest in Branded Jewellery

=osted by >$/ on /"tober 2@ 2009

%s #er our re"ently #ublished resear"h re#ort PIndian ems and Jewellery 6ar!et Q

<uture =ros#e"ts to 2011K, gems and jewellery mar!et in India #osses tremendous

#otential for future growth sin"e it has an added advantage of low #rodu"tion "ost

and highly s!illed labor that se#arate it from its "om#etitors. It is #roje"ted that the

overall gems and jewellery mar!et will grow at a $% of around 13A during 2009

2012.

India #ossesses worlds most "om#etitive gems and jewellery mar!et due to its low

"ost of #rodu"tion and availability of s!illed labor. %s #er our new resear"h re#ortPIndian ems and Jewellery 6ar!et <uture =ros#e"ts to 2011K, highly s!illed and

low "ost man#ower, along with strong government su##ort in the form of in"entives

and establishment of ?Cs, has been the major driver for the Indian gems and

jewellery mar!et. The mar!et also #lays a vital role in the Indian e"onomy as it is a

leading foreign e&"hange earner and a""ounts for more than 12A of Indias total

e&#orts. $urrently the Indian mar!et remains highly fragmented, but is ra#idly

transforming into an organied se"tor.

$urrently, the industry is fa"ing a slowdown due to global e"onomi" turmoil. +ut due

to various government efforts and in"entives "ou#led with #rivate se"tor initiatives,

the Indian gems and jewellery se"tor is e&#e"ted to grow at a $% of around 13A

from 2009 to 2012. %t #resent, the Indian gems and jewellery mar!et is dominated

by the unorganied se"tor- however, the trend is set to "hange in near future with the

branded jewellery mar!et growing at an e&#e"ted $% of more than 31A in the

"oming four years. %s #er our resear"h re#ort, with its "onsum#tion #egged at nearly

20A, India remains worlds largest gold "onsumer and this share is e&#e"ted to grow

further.

iven the fa"t that majority of mar!et share is o""u#ied by familyowned jewelers,

the domination of unorganied segment still "ontinues on the Indian gems and

jewellery mar!et. 'owever, this s"enario is gradually "hanging with the entran"e of

organied #layers who #rimarily fo"us on "ustomer satisfa"tion by giving better and



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finer uality #rodu"ts. Thus, "onsumers are now moving towards branded jewellery

whi"h is more reliable in terms of uality and design.

P7ith "hanging "ustomers attitude towards branded jewellery and entran"e of

organied #layers in the mar!et, this segment will grow at mu"h faster #a"e annual

growth of more than 30A4 than the overall jewellery mar!et in "oming years,K said a

esear"h %nalyst at >$/.

The future outloo! given in the re#ort is based on #ast growth trends, "urrent

industry and regulatory develo#ments besides base drivers, o##ortunities and

"hallenges fa"ed by the gems and jewellery industry in India.

our"e( htt#(LLwww.rn"os."omLe#ortLI6138.htm



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Traditional #$s Branded jewelers

Introduction

ems and Jewellery sales and mar!eting re"eived a fa"elift with the advent of the

su#ermar!et "ulture. %s organied retail in India #rogresses to the ne&t la#,

adanand ubramanian "he"!s for ;iamond 7orld with some #re"ious Industry

#layers about their #re#aredness and strategy to a"hieve ma&imum mileage.

%s India rea"ts to a retail revolution, the hitherto sober gems and jewellery industry

seems to have jum#ed on the bandwagon with a "lear #lan of a"tion. The industry

has already made a mar! by "a#turing 5 #er "ent of the organied retail s#a"e

than!s to the leadershi# shown by a handful of "om#anies #re#ared to dale the world. 7hile organied retail under this segment im#ressively grows at over *0 #er

"ent annually, deliberations are on to arrive at what the industry in general must do

to !ee# the "ustomer #erennially delighted. The gems and jewellery mar!et in India

is estimated to be about s.80,000 "rores and the to#most agenda is to ado#t the

right strategy to a""elerate its growth !ee#ing in mind "urrent global dynami"s. <or

now the industry fa"es !een "om#etition from other lu&ury goods su"h as ele"troni"

innovations and other #ersonal a""essories. 'ow far is it ne"essary for the gemsand jewellery se"tor to seriously "onsider itO

There is no doubt that things are a lot more organied in stores inside malls. They

also show"ase and #resent #rodu"ts very attra"tively. +ut in my o#inion, real sales

ta!e #la"e through traditional jewellery stores as jewellery is mainly sold on trust.

hanshyam ;hola!ia

The urgen"y in the industry indi"ates ra#id "hanges in the way goods are #rodu"ed

and mar!eted. The evolution of new formats for sale and the massive te"hnology

and to some e&tent, sieable infrastru"tural develo#ments ta!ing #la"e all foretell a

#ros#e"t of growth way beyond the "urrent overall 10 #er "ent.

The Indian gems and jewellery industry boasts a strength of over 5 la!h jewellery

retailers a"ross the length and breadth of this "ountry. The huge number indi"ates

strength in itself but it also indi"ates a diffi"ult diversity to gra##le with when

e&#loring "ommon grounds to formulate united a##roa"hes to ta"!le "ommon"on"erns.



2

Organized Vs Traditional !etail:

$om#arisons have always been drawn between organied retail and traditional

retail. %ttem#ts have always been made to define them. ooting for organied retail,

>avneet oen!a, Fi"e $hairman of oen!a ;iamond and Jewels says, Pight now

organied retail seems to have wrested an edge over traditional retail.K oen!a

argues that the indi"ations to this effe"t are seen in the manner large #ro#ortions of

the so"iety are be"oming lifestyle oriented, es#e"ially the younger generation. 7hen

"onsidering Indias statisti" of having the highest #er"entage of youth in the world,

this observation "annot be ta!en lightly. oen!a says that the gems and jewellery

se"tor is one of the fastest growing segments. 'e adds, PThe young generation

today has more dis#osable in"ome and they are willing to s#end it on lu&uries of"hoi"e.K

hanshyam ;hola!ia, #artner, 'ari!risha ?&#orts holds a different view with regard

to the tussle for su#rema"y over the two formats. PThere is no doubt that things are a

lot more organied in stores inside malls,K he "on"edes. PThey also show"ase and

#resent #rodu"ts very attra"tively. +ut in my o#inion, real sales ta!e #la"e through

traditional jewellery stores as jewellery is mainly sold on trust.K 7hile e&#laining his

#oint of view, he adds, PTo the "redit of traditional jewellery stores they also have

u#graded themselves in various ways in"luding the overall ambien"e in the last five

to ten years. They are also "hanging themselves in the matters of #resentation and

the "ustomer a##roa"h.K ;hola!ia says that in #romotions and awareness "reation,

traditional retailers have realied its im#ortan"e thereof and have started allo"ating

sieable budgets for them. $onseuently this se"tion has already started rea#ing the

benefits of uality #romotions by "reating awareness about their #rodu"ts and

servi"es. ;hola!ia is some what em#hati" with regard to modern day organied retail

"itadels, PIn my #ersonal o#inion malls mainly serve the #ur#ose of #romotion and

show of #rodu"ts. I dont thin! a lot of gems and jewellery sale ta!es #la"e in malls.K

%shwin hah, 'ead of etail at $. 6ahendra ?&#orts holds a similar view with

regard to jewellery sales at modern sho##ing malls. 'e o#ines, PThe sales that ta!e

#la"e in a mall are of a very different !ind. Gou "an "all it window sho##ing if you

li!e.K hah elu"idates his #oint, PThe young generation often resorts to some im#ulse

buying.K 'e stresses that serious buyers who are loo!ing for high value #ur"hases



2

for o""asions su"h as weddings #refer to #lan their jewellery sho##ing and

eventually #ur"hase from !nown re#uted jewelers.



2

"hanges in #ems $ %ewellery !etail:

7hilst organied retailers are ahead when it "omes to ta!ing "are of the different

as#e"ts in the mar!eting and sales value "hain, those in traditional retail are also

"hanging or ada#ting to the needs of the modern "ustomer in the areas of servi"e

and "ustomer "are. They too are im#roving their style of #resenting and dealing with

"ustomers. PIn the #ast, jewelers didnt have mu"h modern edu"ation. Today, there

are a number of 6+%s in these families and amongst !ey #ersonnel em#loyed by

them,K #oints out hanshyam ;hola!ia.

!etailing the Organized &ay:

7hile "om#lementing the #lanned a##roa"h by organied retail, 6ahesh andani

'ead etail, 'ari Hrishna ?&#orts says, P7e "an see that times have "hanged and

somewhere along the way, the whole a##roa"h to mar!eting has also undergone

transformation.K andani says that for branded diamond jewellery there is mu"h

#lanning involved. 'e says meti"ulous strategy is "harted out, and there is

systemati" #resentation of the #rodu"t. %ll this goes on even as a #rodu"t #ortfolio is

made and #romotions are "arried out. andani says "reating brand awareness in the

minds of the "onsumers is all about ado#ting a few strategi" ste#s. P/ne might say

the differen"e between traditional and organied is just doing and doing by #lanning.K

e"ent develo#ments have been both a boon as well as a bane. %"tually, this has

s#urred us on to be"ome innovative with our offerings to suit the mar!et. 7e have

a"tually managed to redu"e "ost by ado#ting the strategy of redu"ing the volume of

gold in some of our #rodu"ts to ma!e it affordable. %shwin hah

#ea!ing about organied retail, F. 6uraleedharan, gems and jewellery #rofessional

and visiting fa"ulty at well !nown management institutes in 6umbai says, PThe

number of foreign brands "oming into India is sim#ly amaing. +rands that were only

heard of a few years ago are today very mu"h within anyones rea"h here.

6uraleedharan goes on to e&#lain, Po far #eo#le who had only seen traditional

offerings have started ma!ing intelligent international "om#arisons with Indian

#rodu"ts and this has brought about real room for retail to grow a number of times.K



2

7ell !nown brands have always insisted that when they tal! about a #arti"ular

grade, they are "ertified. 6oreover the uality standard is "onfirmed and authoried

and remains the same in any laboratory in the world. 6uraleedharan says, PIn my

o#inion the uality a brand e&#resses, and the "ertifi"ation ma!e it easy for a

"ustomer to "onfidently buy the #rodu"t.K

The Value 'roposition:

PToday everyone is loo!ing for value for money, a new design, a new "on"e#t,

something very "reative and that is the "on"e#t of retail today. It is not li!e yesterday

where the sho#!ee#er or the manufa"turer used to dominate. Today, the "ustomer is

going for "ustomied designs- the whole "on"e#t is "hanging,K says 6uralidharan.

PThe "onsumer is loo!ing for value for money, when they buy diamonds. They li!e to

buy from re#uted #layers li!e e&am#le Tanish, itanjali, oen!a, >a!shatra, Hiah

and >irvana. %ll of whom have a"hieved very organied #resen"e in the mar!et

today. ?a"h one of them has a standard uality "ertifi"ation internationally and that is

what is going in the minds of the "ustomer when they tal! about buying from the

organied se"tor.K

our"e( htt#(LLwww.#ressabout."omLindian"ustomersshowinginternetinbranded jewellery238)0L



2

A ST%&' () T*+ J+W+,,+-' I)&%ST-'

I(T!O)*"TIO( TO I()I+( %&--! I()*/T!

India is a leading #layer in the global gems and jewellery mar!et. The gems and

jewellery industry o""u#ies an im#ortant #osition in the Indian e"onomy. It is a

leading foreign e&"hange earner, as well as one of the fastest growing industries in

the "ountry.

The two major segments of the se"tor in India are gold jewellery and diamonds. old

jewellery forms around 80 #er "ent of the Indian jewellery mar!et, with the balan"e

"om#rising fabri"ated studded jewellery that in"ludes diamond studded as well as

gemstone studded jewellery.

The Indian gems and jewellery industry is "om#etitive in the world mar!et due to its

low "ost of #rodu"tion and the availability of s!illed labor. In addition, the industry

has set u# a worldwide distribution networ!, of more than 5,000 offi"es for the

#romotion and mar!eting of Indian diamonds.

YESTERAY T!AY

:nbranded +randed

ilver R old jewellery old R ;iamond jewellery

Investment Investment S <ashion

Traditional design <ashionable R innovative design

6arriage R festival is #ea!

season

7ear ability and gifts



2

"ichael #orter’s $ive $orce "odel for %ewellery Industry

Inter&$irm Rivalry &'I('

• Two ty#es of rivalry. 14 Inside India R 24 /utside India.

• Barge #resen"e of unorganied se"tor. 0.2 6illion old jewelers and over

8,000 ;iamond jewelers

• International rivals u"h as, $hina

• Threat from #rodu"ing nation li!e .%. R ussia.

)ar*ainin* #ower of Suppliers & "edium

• In jewellery industry the su##liers are .%., :%?, %ustralia, :, $ongo,

+otswana, ussia, ;T$.

• <ew %lternatives of "utting R #olishing.

• !illed labor

• +argaining #ower of India is enhan"ed be"ause India is largest "onsumer of

gold jewellery.

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2

)ar*ainin* #ower of )uyers & Low

• ;ivided in two ty#es 1. ;omesti" buyers R

2. <oreign buyers

• %s investment ;emand in"rease4

• +argaining #ower of Indian e&#orter is high be"ause 6ajority of the worldEs

rough diamond #rodu"tion is "ut and #olished in India.

Threat of Substitutes+ Low

• ubstitutes are eal assets, to"! mar!et, R +an! de#osits R mutual fund

investment and /ther ty#es of jewellery li!e imitation jewellery, bagasra

jewellery, stone jewellery et".

• e"ond #referred investment behind ban! de#osits

• tatus and standard of living in"rease so demand is in"reasing at high rate.

)arriers to entry Low to "edium

• Bow "a#ital reuirement

• overnment subsidy

• ?I6 #oli"y R governments rulesregulations are high

• !illed man#ower is essential

• %dvan"ed te"hnology reuired



2



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our"e( htt#(LLwww.s"ribd."omLdo"L1990108*LJewellery$om#anies$om#arison



2

TRE.S I. %E1ELLERY

RE#!RT

ubmitted +y

H%6%B%HH%>>%> H%T'IH% ;?=%T6?>T /< 6%>%?6?>T T:;I?

$'//B /< 6%>%?6?>T =/>;I$'?G :>IF?ITG4

%ewellery Industry

I.,STRY !2ER2IE1

Indian Jewellery mar!et in 200@ was valued at @0,000 "r. I> +usiness tandard4.

Indias Jewellery mar!et sie is :U 15 billion

old Jewellery mar!et $% 10 1*A

;iamond Jewellery mar!et growth 2@A

India remains in worlds largest "onsumer of gold.

?&#orts about U 1@ 6illion in 200)

Share of India=s (em and %ewellery Sector

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2

%bout, 9)A of Indian Jewellery 6ar!et is unorganied. The unorganied se"tor

re#resents 500,000 traditional retailers or P<amily jewelersK who are #resent only in

one town. The organied se"tor a""ounts to only 3 #er"ent

T!AY

The industry of jewellery has flourished in the #ast few years due to the in"reased

demand of fashionable jewellery. The e&#ort and im#ort of jewellery has also

am#lified. =eo#le nowadays have a #assion for jewellery whi"h a""ounts for the

growth of this industry all over the world. Jewellery is used for fashion as well as

de"oration. In the #ast jewellery was used to adorn bible monuments and other

de"orations were made using different #ie"es of valuable jewels. % wide variety of

jewellery is available- "ostume jewellery, fashion jewellery, body jewellery, antiue

jewellery, traditional jewellery, modern jewellery and many more.

LATEST TRE.S

a4 e"ent flu"tuations in the sto"! mar!et, redu"ed Interest rates made investment

attra"tive on jewellery.

b4 The gems and jewellery industry o""u#ies an im#ortant #osition in the Indiane"onomy.

"4 It is a leading foreign e&"hange earner, as well as one of the fastest growing

industries in the "ountry.

d4 The Indian gems and jewellery industry is "om#etitive in the world mar!et due to

its low "ost of #rodu"tion and the availability of s!illed labor.

e4 The industry has set u# a worldwide distribution networ!, of more than 5,000offi"es for the #romotion and mar!eting of Indian diamonds.

f4 India is the diamond #olishing "a#ital of the world s#e"ially the states of ujarat

and 6aharashtra.

g4 100A <;I is #ermitted in gems and jewellery se"tor.

h4 The growth of +randed Jewellery is eminent in the "oming days.



2

Till now, Indian households in villages used to buy gold from their nearby jeweler

who used to be an a"uaintan"e also in most "ir"umstan"es be"ause the sho#

owners used to !now almost everybody in the village. +ut, things are "hanging fast

in India with the onset of reforms. >ow, Indians, the biggest buyers of yellow metal in

the world, are in"reasingly aware of the uality of gold and they now started loo!ing

for the branded jewellery.

This "hange in trend in Indias urban and rural areas has lured several big names in

global jewellery trade li!e $artier to India. +randed gold, diamond and silver

jewellery showrooms are o#ening u# a"ross Indian "ities and village towns.

Till now, Indians used to buy gold from the traditional jewellery sho# owner whomthey trust.

+ut, with en>e&t Indians having enough dis#osable in"ome want a "hange from

that and they are o#ting for brightly lit showrooms with marble floors, glass dis#lay

"ases and #rofessional sales#eo#le, #referably at a "om#any whose brand name

im#lies so"ial status and wealth.

Tatas Tanish o#ened their first outlet in 1993 and now has 11@ showrooms a"ross

the "ountry. %venue 6ontaigne, Indias largest branded jewellery retail outlet,

suggests the shift towards brands refle"ts so"ial "hanges, but also new ways of

viewing gold. In India, the #re"ious metal is traditionally given to brides at the time of

marriage as a store of wealth #roviding finan"ial se"urity.

ome of the most famous "om#anies in 7estern jewellery su"h as ;e+eers, Tiffany

and $artier have also moved into India sin"e 199@ when overseas ban!s and bullion

su##liers were allowed to im#ort gold. They are drawn by the enormous sie of the

mar!et, rising in"omes and the fra"turing relationshi# between buyers and traditional

family jewelers. %bout 1*,000 tones of gold are #rivately held in India. ;emand

remains strong des#ite new re"ords being set for the #ri"e of the metal on an almost

daily basis.



2

=remium international brand $artier laun"hed their #lush showroom in >ew ;elhi in

2008 and also o#erates through a strong dealer networ! to sell their jewellery and

wat"hes in India.

hare of branded jewellery in Indias total mar!et was growing at a #a"e of 2050 #er

"ent annually.

The number of gold retailers in the "ountry has in"reased by 30 #er "ent sin"e the

year 2000, with 1*0 domesti" and over )* international established brands. elian"e

has o#ened 13 jewellery stores in 15 Indian "ities sin"e 200@ and has announ"ed

that it will laun"h showrooms in various other "ities and towns a"ross the "ountry.

our"e( htt#(LLwww."ommodityonline."omLnewsL+randedgoldjewellerysho#[email protected]



2

Indians optin* for branded *old jewellery

=osted on V unday, ;e"ember 20, 2009

>?7 ;?B'I( Indians, the worldEs biggest buyers of gold, are in"reasingly o#ting for

branded jewellery, attra"ting fran"hisers and foreign grou#s li!e $artier at the

e&#ense of traditional retailers.

Traditionally, most Indians would go to their small family jewelers and sit down on

"otton mattresses with the jeweler and #i"! out some items.

The #ro"ess wor!ed on trust built u# in some "ases over generations between buyer

and jeweler, who would mostly offer #rodu"ts from artisanal designers and #rodu"ers

from his area.

>owadays, young Indians are o#ting for brightly lit showrooms with marble floors,

glass dis#lay "ases and #rofessional sales#eo#le #referably at a "om#any whose

brand name im#lies so"ial status and wealth.

There is a te"toni" shift in the business now. If you want your gold jewellery

business to survive brand it and advertise, said andee# Hulhali, vi"e#resident of

Tanish, one of IndiaEs oldest branded retail jewellery "hains, owned by the Tata

"onglomerate.

Tanish o#ened first outlet in 1993 and now has 11@ showrooms a"ross the "ountry.

?arlier it was diffi"ult to "onvin"e "onsumers to buy branded gold, said Hulhali.

These days they "ome to us e&#e"ting better servi"es, #remium uality, e&"hange

#oli"y and attra"tive offers li!e buying jewellery on a monthly installment basis, he

added.

%mit +umb, dire"tor of %venue 6ontaigne, IndiaEs largest branded jewellery retail

outlet, suggests the shift towards brands refle"ts so"ial "hanges, but also new ways

of viewing gold.

The #re"ious metal is traditionally given to brides at the time of marriage as a store

of wealth #roviding finan"ial se"urity.



2

There is a shift in "onsumer tastes( wor!ing women in the 20 to 52 age grou#

regard jewellery as an a""essory and not just as an investment, +umb said. It is in

this mar!et that the brand names wor!.

ome of the most famous "om#anies in 7estern jewellery su"h as ;e+eers, Tiffany

and $artier have also moved into India sin"e 199@ when overseas ban!s and bullion

su##liers were allowed to im#ort gold.

They are drawn by the enormous sie of the mar!et, rising in"omes and the

fra"turing relationshi# between buyers and traditional family jewelers.

%""ording to the International 6onetary <und, about 1*,000 tones of gold are

#rivately held in India. ;emand remains strong des#ite new re"ords being set for the#ri"e of the metal on an almost daily basis.

=remium international brand $artier laun"hed its #lush showroom in >ew ;elhi last

year and also o#erates through a strong dealer networ! to sell jewellery and wat"hes

in India.

7e are ha##y with the res#onse from buyers in India, said a saleswoman at the

$artier store in ;elhi, who said "ustomers were drawn to the fa"t the highend brandstood out from its Indian "om#etitors.

% study released by the +ullion %sso"iation of India in 6ar"h said that the share of

branded jewellery in the total mar!et was growing at a #a"e of 2050 #er "ent

annually. The number of gold retailers in the "ountry has in"reased by 30#" sin"e

2000, with 1*0 domesti" and over )* international established brands, the study

said.

<a"ed with the "hanging dynami"s, traditional jewelers are loo!ing to jum# on the

brand wagon by investing in advertising and trying to build a #resen"e in the minds

of "onsumers.

Traditional jewelers li!e >otandas R ons in 6umbai and = $ Jewelers in >ew ;elhi

have signed u# +ollywood heroines as brand ambassadors and also lend their

#rodu"ts to "ontestants in beauty #ageants.

our"e( htt#(LLwww.gulfdailynews."omL>ews;etails.as#&OstoryidW2))902



2

Analysis of Literature Review

To draw a "on"lusion from the above literature review one "an observe that there is

immense s"o#e for the growth of branded jewellery.

In s#ite of the e"onomi" slowdown e&#erts believe that it will grow at a $%

of 2*A. There are also statements li!e the industry does not "over the entire

#o#ulation ma!ing a s"o#e for further growth.

The review also brings light to the fa"t that the Indian "onsumers are #ri"e

sensitive and hen"e the branded jewelers "annot "harge e&uberant #ri"es for

the same.

The jewelers have to offer designs that are more Indian in their "ulture rather

than a#ing the west this "an be #roved by the e.g. of Tanish and should also

be affordable.

in"e the thesis fo"uses on a "om#arative study of the #o#ularity of branded

vLs non branded jewellery the review hel#s understand the growth of the retail

industry whi"h have leased branded jewellery stores and also the #o#ularity of

traditional goldsmith

The number of foreign entrants also #ose a "hallenge to the traditional

jewelers and hen"e we "an see that these jewelers also "ome u# with

strategies to retain their "ustomers these #ra"ti"es were not #revalent in the

mar!et #reviously.

The branded jewelers on the other hand have to ada#t strategies to win the

trust of their "ustomers and attra"t new "ustomers.

% few resear"h re#orts also hel# us gauge the "hanging trends in the

jewellery mar!et and the #o#ularity of diamonds.



2

Analysis and $indin*s

The obje"tives of the study was to understand the "onsumers buying #referen"es,

the rea"h of branded jewelers, brand awareness of various brands in the jewelers

mar!et.

'en"e the first uestion was to find out the fa"tors that guide a "ustomer while

#ur"hasing jewellery whi"h dealt with nine attributes. The res#ondents where just

as!ed to ti"! on the attribute that guided that #ur"hase de"ision. The result is as

follows

;esign =ri"e =urity Image Fariety ;is#lay

=romotionand /ffers

ervi"e

<amily

and<riend

s

8* 92 8@ )* )@ * 10 2 12

Table 1

<rom the above results an observation "an be drawn that out of the 100 res#ondents

92 of them feel that #ri"e is a major fa"tor that guides their #ur"hase de"ision. %#art

from #ri"e #urity also is "onsidered im#ortant by 8@ res#ondents, followed by design with 8* res#ondents feel it is an im#ortant fa"tor. Fariety and image are the other

im#ortant attributes that are "onsidered while ma!ing a #ur"hase de"ision. %ttributes

li!e family and friends, #romotions and offers are still not very #o#ular among the

res#ondents sele"ted for this resear"h. The attributes li!e servi"e and dis#lay have

been sele"ted only by 2 and * res#ondents res#e"tively showing that these are the

least im#ortant thing that guide an individual to #ur"hase jewellery.

The diagram below shows the guiding fa"tor of the res#ondents while #ur"hasing

jewellery in an as"ending manner.



2

$i*ure >

Duestion two dealt with the awareness of various brands of jewellery available in the

mar!et. This uestion would hel# find out the #er"entage of the res#ondents who are

aware about branded jewellery.

Ges >o100 0

Table 2

<rom the above result it "an be observed that there is 100A awareness about

branded jewellery. /ut of the 100 res#ondents there is not a single res#ondent who

is not aware about branded jewellery.



2

The third uestion was to find out the #o#ularity of * brands. The res#ondents were

as!ed to ti"! against the brands that they are aware about. The * brands "onsidered

here are ili, Tanish, ;damas, /yterbay, and Trendsmith. These are the

#rominent brands for gold jewellery there are many other #layers but the resear"h is

limited to gold jewellery.

)rands iliTanish

Ta!le +afna

.o of

Responden

ts’

@0 80 100 100

Table 5

7

67

87

?7

97

>77

>67

>st /tr 6nd /tr :rd /tr 8th /tr

East

$i*ure 6

<rom the above table and figure inferen"e "an be drawn that brands li!e ili,

Tanish are !nown but the traditional >asi! outlets of Ta!le and +afna our #referred



2

The fourth uestion was to find out the reason why the res#ondent #ur"hases

jewellery that is the reason for #ur"hasing. Is it #ur"hased as an investment o#tion or

on o""asions, festivals or as a fashion statementO

Investme

nt

<ashio

n

/""asio

ns

<estival

s>o of

es#onden

ts

53 59 11 1)

Table 3

53 res#ondents buy jewellery for investment #ur#ose, 59 res#ondents loo! out for

fashion or the latest trends while #ur"hasing jewellery. 11 res#ondents buy jewellery

during o""asions li!e weddings, anniversary, birthdays et". and 1) res#ondents buy

jewellery during festivals.

$i*ure :



2

The fifth uestion is a dire"t uestion whi"h inuires the res#ondent #referen"e for

jewellery that is it branded or family jeweler.

=referen"e

+randed

Jeweller

y

<amily

Jewele

r>o of

es#onden

ts

)9 51

Table *

<rom the above table it "an be observed that )9 res#ondents #refer branded

jewellery and 51 res#ondents #refer family jewelers. This ma!es branded jewellery

more #o#ular among the res#ondents.

$i*ure 8



2

The si&th uestion further #robes into finding out how many among the res#ondents

have bought branded jewellery.

+randed

Jewellery+ought

>ot

bought>o of

es#ondent

s

@8 22

Table )

$i*ure ;

/ut of the 100 res#ondents @8 have bought branded jewellery and 22 have not

bought branded jewellery. 'owever even if these 22 res#ondents have not bought

branded jewellery they are aware of branded jewellery being sold and also !now the

brands by their names.



2

in"e the sam#le "onsist of females and males the ne&t set of uestion deals with

whether jewellery is bought for gifting #ur#ose

If the res#ondents do buy jewellery for gifting #ur#ose then where is it bought from

family jeweler or branded sho#s.

+uy jewellery

for giftingGes >o

>o of

es#ondents50 @0

Table @

50 res#ondents of the 100 buy jewellery for gifting #ur#ose among these 50 12 are

men. @0A of the res#ondents do not buy jewellery for gifting #ur#ose.

The ne&t uestion was the jewellery #ur"hased for gifting is branded or non branded

and the result found are as under

+rande

d

<amily

jeweler>o of

es#onden

ts

13 1)

Table 8

13 res#ondents out of 50 buy branded jewellery for gifting and 1) out of 50 buy

jewellery from their family jeweler for gifting. =er"entage wise 3)A buy branded jewellery for gifts and *3A buy jewellery for gifting from their family jeweler.



2

$i*ure ?



2

The ninth uestion was

iven below are few "hara"teristi"s of traditional family jewelers or lo"al

jewellery retail stores4. =lease give ea"h "hara"teristi" some #oints based on

your assessment, su"h that the #oints range from 1 to 10. 1 being the lowest

and 10 being the highest4.

-haracteristics of $amily %eweler’s .umber of points

$onvenientTrustworthy

ood Investment=ri"e

Traditional design

This uestion will hel# gain an insight as to whi"h #arameter of a family jeweler

attra"ts res#ondent towards them.

in"e the #oints are given out of 10 and there are 100 res#ondents ea"h #arameter

will be out of 1000.

-haracteristicsof $amily

%eweler’s

$onvenient Trustworthyood

Investment=ri"e

Traditional

design

.umber of

points))0 89* @@* 8@0 @3*

Table 9

The res#ondents were as!ed to give #oints on a s"ale of 1 to 10 where 10 was the

highest hen"e the total figures are arrived by adding the #oints given by all the 100

res#ondents. 'en"e if the X"onvenien"e "hara"teristi" was to be ta!en then it s"ored

))0 out of the grand total of 1000.

The res#ondents have rated trust as#e"t of family jewelers high hen"e it has s"ored

89*. The res#ondents also feel that the #ri"e "harged by the family jewelers is

reasonable and hen"e have given it de"ent #oints i.e. 8@0. 7hile #ur"hasing

jewellery from family jewelers the res#ondents "onsider it to be a good investment.

<amily jewelers are #o#ular for traditional designs and the res#ondents have given it#oints that add u# to @3*.



2

The 10th uestion was

If you #ur"hase branded jewellery then given below are a few "hara"teristi"s.

=lease give ea"h "hara"teristi" some #oints based on your assessment, su"h

that the #oints range from 1 to 10. 1 being the lowest and 10 being the

highest4.

-haracteristics of branded jewellery .umber of points

7ide range of #rodu"ts under one roof

ho##ing e&#erien"eTrendy and fashionable jewellery

=ri"e

in"e the #oints are out of 10 and the no of res#ondents who have bought branded

jewellery are @8. 'en"e the assessment of this uestion is based on the #oints given

only by these @8 res#ondents. 'en"e the total would be @80 and not 1000 here.

-haracteristics of

branded jewellery

7ide range

of #rodu"ts

under one

roof

ho##ing

e&#erien"e

Trendy and

fashionable

jewellery

=ri"e

.umber of points ))5 *90 @2@ )@5

Table 10

es#ondents rate trendy and fashionable jewellery highest when it "omes to

branded jewellery. It s"ores @2@ out of @80. =ri"e also a""ording to the res#ondents

is justified hen"e it s"ores )@5. ho##ing e&#erien"e wise branded showroom

s"ores least among the other "hara"teristi"s. This "ould also be be"ause when a

"ustomer goes to buy jewellery he may not be loo!ing for the e&#erien"e but wanting

good trendy jewellery whi"h is #ri"ed a##ro#riately.



2

The eleventh uestion was to find the level of satisfa"tion on a s"ale of 1 to 10 for

family jewelers. in"e the #oints are given out of 10 and there are 100 res#ondents

the level of satisfa"tion will be out of 1000.

<amily jewelerBevel of

satisfa"tion>o of

res#ondents@)*

Table 11

The level of satisfa"tion that the res#ondents have is @)*. 'en"e if the average were

to be removed it would be between @ and 8.

The last uestion was to find the level of satisfa"tion for branded jewellery on a s"ale

of 1 to 10. 'ere again the rating is out of @80 be"ause only those res#ondents who

have bought branded jewellery are being "onsidered.

+randed

jewellery

Bevel of

satisfa"tion

>o of

res#ondents)95

Table 12

The level of satisfa"tion on the whole for branded jewellery is )95 and if the mean

were to be removed then it would be between 8 and 9 hen"e the level of satisfa"tion

that the res#ondents have towards branded jewellery is higher then that towards

family jewelers.



2

'ypothesis

/ign test

/ut of the total 100 res#ondents )9 #refer branded jewellery over non branded

jewellery and 5 #refer non branded jewellery over branded jewellery. 6a!ing it )9A

who #refer branded and 51A who #refer non branded or family jewelers.

/tep 0

/etting up the hypothesis

.ull hypothesis+ 'o+ # @ !; 3;7 B prefer branded jewellery4

Alternate hypothesis+ '>+ # C7; 3"ore than ;7 B prefer branded jewellery4

7here, = res#ondents who #refer branded jewellery

>o. of S4 sign W )9

%nd D is res#ondents who do not #refer branded jewellery

>o. of 4 sign W 51

/tep 1

14 $al"ulation of = S4 R 4(

>o. of res#ondents who #refer branded jewellery W= S4 W )9L100 W 0.)9

>o. res#ondents who do not #refer branded jewellery W 4 W 51L100 W 0.51

/tep 2

14 tandard deviationW Y# W Z #Ln W Z 0.* [ 0.*L100 W Z 0.002* W 0.0*

W # Q 0.*L Y# W 0.)9 0.*L0.0* W 5.8



2

Si*nificance level 3D4 @ ;B

<rom the above diagram, it is seen that the null hy#othesis is reje"ted be"ause

The value 5.84 lays outside the a""e#tan"e region i.e. S1.)3, hen"e the null

hy#othesis that states that *0A of res#ondents #refer branded jewellery is reje"ted

and the alternate hy#othesis whi"h states that more than *0A res#ondents #refer

branded jewellery is a""e#ted.



2

-onclusion

The "on"lusions that "an be drawn from the study are(

1. The guiding fa"tor behind #ur"hasing jewellery is #ri"e, #urity and design

whi"h s"ore the ma&imum. /ther fa"tors are variety, the brand image,

influen"e of family and friends. The least guiding fa"tor for #ur"hasing

jewellery is the servi"e and dis#lay. 'en"e when a "ustomer goes to buy

jewellery they do !ee# the #ri"e in mind followed by the #urity and the design.

<a"tors li!e servi"e given the sho# or by the jeweler and the dis#lay do not

have a very big im#a"t on the "ustomers.

2. +randed jewellery is e&tremely #o#ular sin"e it has 100A awareness. This

may be due to the wide s#read #ubli"ity ta!en u# by the various brands.

+rands li!e ili, ;damas, and Tanish are again the most #o#ular brands.

Trendsmith is a brand by Tribhovandas +himji Caveri T+C4 whi"h is not very

#o#ular.

3.

%s stated in the literature review that Xthere was a shift in "onsumer tastes( women were in"reasingly o#ting for fashionable and lightweight jewellery

instead of traditional "hun!y jewellery. Is #roved to be "orre"t by this

resear"h as res#ondents have sele"ted fashion over investment while

#ur"hasing jewellery. >ow jewellery is regarded as more of an a""essory and

less of an investment.

4. +randed jewellery is bought by more than 5L3 th of the #o#ulation. 'en"e it "an

be said that the #o#ulation is aware and has also tried these brands.

5. 7hen jewellery is bought for gifting #ur#ose the #o#ulation still wants to buy it

from their family jewelers.

6. 7hen it "omes to family jewelers the level of satisfa"tion that the #o#ulation

has on a s"ale of 1 to 10 is a little more than @. These jewelers are also

#o#ular be"ause of the trust that they have with their "ustomers and also

be"ause they "harge reasonable #ri"es. These family jewelers are also#o#ular for traditional designs hen"e when a "ustomer is s#e"ifi"ally loo!ing



2

out for traditional jewellery they a##roa"h these jewelers. The jewellery

bought from these jewelers is "onsidered to be #ure and a good investment.

7. The level of satisfa"tion that the #o#ulation has towards branded jewellery is a

little higher than 8. These branded jewelers have be"ome #o#ular for latest

and trendy jewellery. %lso the #ri"es that the branded jewelers "harge is

justified and they #rovide a wide range of #rodu"ts under one roof.

8. The level of satisfa"tion that the #o#ulation has for branded jewellery is higher

then that for non branded jewellery ma!ing branded jewellery more #o#ular.

9. The "onsumers #refer buying branded jewellery over non branded jewellery.

This has also been #roved by using the sign test.

'ence to conclude branded jewellery is preferred over non branded

jewellery



2

Limitations

The limitations fa"ed during the resear"h and after the data "olle"tion were

14 Time "onstraint sin"e the time s#an for the thesis was only three months an

in de#th study and analysis be"ame a little diffi"ult.

24 am#le sie the sam#le sie of the study is only 100 whi"h do not give a

"om#rehensive result. The "on"lusion of the study may not have resulted to

an a""urate out"ome due to the sam#le sie being small.

54 +ound to only >asi! "ity the other limitation of the study is it is limited to only

the main "ity area of >asi! and ignores the sam#les from the smaller #arts of

the distri"t. The buying behavior of an individual varies from #la"e to #la"e.

34 Duestions left blan! "ertain uestion have been left blan! whi"h does not

allow an a""urate analysis.

*4 +iasness among the 100 res#ondents few of them were brand loyal and few

of them were the ones who had still stu"! to their traditional jewelers hen"e to

an e&tent there was biasness involved in the study.



References

e"ondary data "olle"ted from the internet. The web sites are(

14 htt#(LLwww.i"mrindia.orgLfreeA20resour"esL"asestudiesLbrandedgold

jewellery1.htm

24 htt#(LLwww.flonnet."omLfl2225LstoriesL200*1118005809800.htm

54 our"e( htt#(LLwww.rn"os."omLe#ortLI6138.htm

34 htt#(LLwww.#ressabout."omLindian"ustomersshowinginternetinbranded

jewellery238)0L

*4 htt#(LLwww.s"ribd."omLdo"L1990108*LJewellery$om#anies$om#arison

)4 htt#(LLwww."ommodityonline."omLnewsL+randedgoldjewellerysho#slure

[email protected]

@4 htt#(LLwww.gulfdailynews."omL>ews;etails.as#&OstoryidW2))902

84 htt#(LLwww.diamondworld.netL"ontentview.as#&OitemW23)*

94 htt#(LLtravelersindia."omLar"hiveLv*n2Lv*n2indian\jewelry.html

104htt#(LLwww.i"mrindia.orgL"asestudiesL"atalogueL+usiness

A20trategy1L+T031.htm

114htt#(LLwww.rn"os."omL6ar!et%nalysise#ortsLIndianemsandJewellery

6ar!et<uture=ros#e"tsto2011I6138.htm

124htt#(LLwww.allheadlinenews."omLarti"lesL@01@2@2*51

>ews#a#ers(

14 The Times of India

24 The ?"onomi" Times

54

branded jewallery

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