branded vs non branded jewellery by yeatesh
TRANSCRIPT
Yeatesh 13PBA021
Overview
The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely.
In 1993, gold and diamond mining were opened up for private investors
foreign investors were allowed to own half the equity in mining ventures
In 1997, overseas banks and bullion suppliers were also allowed to import gold into India
This allowed the entry of foreign players like DeBeers,Tiffany and Cartiers into the Indian market.
MAJOR PLAYERS IN THE MARKET
GILI:
In 1994, Gili Jewellery was established as a distinct brand by Gitanjali Jewels
Offered a wide range of 18-carat plain gold and diamond-studded jewellery
With sales of Rs.0.14 billion for the year 2007-08, Gili had a 0.03 percent share of the 400 billion jewellery market in India and a 1.4 percent share of the branded jewellery market.
Opened a jewellery salon, Gianti, to provide customised jewellery to clients.
MAJOR PLAYERS IN THE MARKET
TANISHQ: In 1995, Titan changed its name from 'Titan Watches
Ltd.' to 'Titan Industries Ltd.‘In the same year, it also started its jewellery division
under the Tanishq brand.Tanishq is considered to be a trendsetter. Tanishq began with 18-carat jewellery.It expanded to include 22 and 24-carat ornaments as well1998, Tanishq decided to set up its own chain of retail
showroomsBy 2002, Tanishq retailed its jewellery through 53
exclusive stores across 41 citiesTanishq had a 0.66 percent share of the total jewellery
market in 2007-08 and a 27 percent share of the branded jewellery market
MAJOR PLAYERS IN THE MARKET
CARBON:
In 1996, within the fold a new brand of 18-carat gold-based jewellery called Carbon was launched.
In 2002-03, with sales of Rs. 0.14 billion, carbon had a 0.03 percent share of the jewellery market and a 1.4 percent share of the branded jewellery market.
It started exporting in the year 2008.
The brand is available in 23 cities countrywide.
MAJOR PLAYERS IN THE MARKET
OYZTERBAY:
Founded by Vasant Nangia and his team in July 2000
Oyzterbay seeks to build a national brand in the jewellery industry in India
With sales of Rs. 0.17 billion in 2003-0, Oyzterbay had a 0.04 percent share of the Rs.400 billion jewellery market and a 1.7 percent share of the branded jewellery market.
WHAT LED TO PROLIFERATION OF BRANDED JEWELLERY PLAYERS??
The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design.
The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy, traditional gold jewellery.
The consumer wanted a wider selection at a single convenient location and expected an international shopping experience.
The Indian consumer was willing to experiment with new designs.
STRATEGIES FOR WOOING CUSTOMERS
TANISHQ Tanishq worked hard on a two-pronged brand-building strategy:
▪ cultivate trust by educating customers about the unethical practices in the business and
▪ change the perception of jewellery as a high-priced purchase
One way to create differentiation was through design
Tanishq decided to focus on quality control:
it introduced caratmeters which showed the purity of gold
In November 2002, Tanishq introduced a new collection of jewellery called 'Lightweights.
It also focused on small town markets.
STRATEGIES FOR WOOING CUSTOMERS
CARBON:
Always focused on moving jewellery from the vault to the dressing table
It sold its products as gift items over the internet
Like Tanishq it also laid emphasis on design
In 2002, Carbon launched its 'Sun Sign' collection, based on the symbols of the Zodiac
STRATEGIES FOR WOOING CUSTOMERS
OYZTERBAY: Jewel lery for the Living:
The initial focus - to give a lifestyle value to jewellery instead of the traditional investment value
Emphasized on marketing and advertising strategies to give the necessary thrust for growth
Oyzterbay launched media campaignsThe new campaign focused on positioning
Oyzterbay as jewellery for office wear, evening wear or even a fitness session
They offered exclusive products to clients by refurbishing its collection every few months, keeping in mind international trends
STRATEGIES FOR WOOING CUSTOMERS
GILI:The company's products were made available
through a mail-order catalogueAll Gili products came with a guarantee of diamond
and gold quality.In 2000, Gili launched its 'diamond heart collection'
targeted at teenagers and priced between Rs 500 and Rs.2500
The collection was promoted at college campuses Special packaging, catchy advertising and extensive
press coverage contributed to the success of the collection
CONCLUSIONS
Branded jewellery players will continue to face lot of competition from local jewellers.
Besides the major brands several regional players have opened branches to leverage the trust and reputation that they have built up over the years
Most of the branded jewellery players in India focused on yellow gold
Few of them experimented with the pink and white forms of gold.
Some of the players also used diamonds and platinum, which appear to have a good future in the Indian jewellery market.
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