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Executive Summery
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Executive Summery
Society is a diversified in all aspects. We see this among consumers, marketers,
producers and even among consumer behavior from theoretical aspects.
The study of consumer behavior enables marketer to predict a consumer behavior in
the market; it also produces under standing of the role that consumption has in the
lives of individuals.
Consumer behavior is defined as a behavior that consumers display while searching
for purchase, using, evaluation and disposal of products, services and ideas that they
to satisfy their needs. The study o f consumer behavior is concerned not only with
what consumers buy, but also with what they buy it, when, from where and how they
buy it and how often they buy it. It is concerned with learning the specific meanings
that products hold for consumers. Consumer research takes place at every phase of the
consumption process; before the purchase, during the purchase and after purchases.
Consumer behavior is the study of how people buy, what they buy, when they buy
and why they buy. It attempts to understand the buyer decision processes/buyer
decision making process, both individually and in groups. It studies characteristics of
individual consumers such as demographics, psychographics, and behavioral variables
in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general.
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What we buy, how we buy, where and when we buy, in how much quantity we buy
depends on our perception, self concept, social and cultural background and our age
and family cycle, our attitudes, beliefs, values motivation, personality, social class and
many other factors that are both internal and external to us.
Consumer behavior is interdisciplinary; i.e. it is based on concepts and theories about
people that have been developed by scientist in such diverse disciplines as
psychology, sociology, social psychology, cultural anthropology and economics.
Consumer research is the methodology used to study consumer behavior.
The study of consumer behavior is the study of ho individuals make decision to spend
their available resources on consumption elated items. It includes the study of what,
why, when and form where they buy etc.
Consumer behavior is a relatively new field of study emerged in late 1960s with no
history or body of research of its own unlike branches of economics. Many early
theories concerning consumer behavior were based on economic theory on the notion
that individuals act to maximize their benefits in the purchase of goods and services.
There are number of reasons why the study of consumer behavior developed as a
separate marketing discipline. As sum as the marketing researchers began to study the
buying behavior of customers, they realized that, despite a something me too
approach to fashions, many consumer rebelled at using the identical products
everyone else used. The primary purpose or studying as part of a marketing
curriculum is to understand why and how consumers make their purchase decisions.
These insights enable marketer to design more effective marketing strategies.
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Introduction
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Introduction
Till the early 1990s, the average Indian bought jewellery for investment rather than for
adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor
investment.
Branded jewellery also gained acceptance forcing traditional jewelers to go in for
branding. Given the opportunities the branded jewellery market offered; the number of
gold retailers in the country increased sharply. Branded players such as Tanishq,
Oyzterbay, Kisna and Carbon opened outlets in various parts of the country. Traditional
jewelers also began to bring out lightweight jewellery, and some of them even launched
their in-house brands. However, the share of branded jewellery in the total jewellery
market was still small (about Rs. 10 billion of the Rs. 400 billion per annum jewellery
market in 2002), though growing at a pace of 20 to 30 percent annually. The branded
jewellery segment occupied only a small share of the total jewellery market because of
the mindset of the average Indian buyer who still regarded jewellery as an investment.
Moreover, consumers trusted only their family jewelers when buying jewellery.
Consequently, the branded jewellery players tried to change the mindset of the people
and woo customers with attractive designs at affordable prices.
However branded jewellery players will continue to face lot of competition from local
jewelers. In order to gain market share, they will have to come up with designs that
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customers want and win the trust and confidence of consumers by hallmarking and
demonstrating the purity of the gold used by them.
To compete with traditional players, branded players must also find some way to
differentiate themselves. While the success of a particular brand will depend on
differentiation, affordability and quality will be a key element in sustaining a brand.
In addition, branded players require focused advertising and astute salesmanship to
compete with traditional jewelers. Besides the major brands- Tanishq, Carbon, Oyzterbay,
Kisna and Trendsmith - several regional players have opened branches to leverage the
trust and reputation that they have built up over the years.
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Objective of study
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Objective of study
The objective to study the A comparative study on the consumers preference
towards branded jewellery over non branded jewellery in Sitapur. is to find out
1) The consumers buying preferences
2) The reach of branded jewelers
3) Brand awareness of various brands in the jewelers market
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Significance of the study
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Significance of the study
The gems and jewellery industry occupies an important position in the Indian economy
and is one of the fastest growing industries in the country.
Hence the research conducted would help me
1) Understand the consumers preference while purchasing jewellery
2) How much impact does a brand have on their purchase decision
3) Does price play an important role in guiding their purchase decision
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Justification of the study
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Justification of the study
The previous research done on branded and non branded jewellery markets are
1) Indian Gems and Jewellery Market - Future Prospects to 2011
2) The impact of recession on the jewellery industry
3) The growth of the Branded jewellery market in India
No study has been done to find out the preference of consumers between branded and
non branded jewelers. The study would also help to find out the consumer preference
and their buying behavior towards branded and non branded jewelers, this would
help both the retailers to know what are the consumer preference and what strategies
should they adapt to grab the market.
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Company Profile
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Tanishq
arent Company Tata Group
ategory Jeweler and Diamonds
ector Lifestyle and Retail
agline/ Slogan Pure Jewellery Pure Joy; Pure India Pure Tanishq
USP One of the largest jewelry brands in India
TP
egment Women who love jewelry
arget Group Urban women premium and upper class
ositioning
Tanishq diamonds embark the aspiration of emerging India
women who uses tradition rather than being used by it
WOT Analysis
trength 1. One of the most trusted jewelry brands in India
2. Strong backing of the Titan Industries of the Tata Group
3. Excellent branding and advertising through TVCs and pr
ad campaigns
4. Association with celebrities as brand ambassadors to
reach out to the customers
5. Apart from Indian jewelry in wedding and diamond
collections, also offers simplistic and low-priced jewelry for
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daily wear
6. Has its presence in over 100 Indian cities
Weakness
1. Limited global presence as compared to a few otherinternational brands
2. Tough competition from other jewelry brands means
limited scope of growth
Opportunity
1. Global penetration in other countries
2. Acquisition of smaller businesses to increase brand
position and reach
3. Tie-ups with corporate and business partners
hreats
1. Economic fluctuations mean people decrease their
spending
2. Govt policies, taxes etc also affect the premium jeweller
segment
3. Trends change quickly, hence innovations and R&D are
investments
ompetition
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S.P JEWELLERS
Founded as a single company cutting and polishing Gold ornaments for the jewellery
trade at Sitapur, in 1995, the S.P.Jewellersbecame, many times over, a pioneer among
major Gold ornaments and jewellery houses.
First major Gold ornaments and jewellery house to be launched and run by modern
entrepreneurs rather than dynastic jewellers. An authorised DTC Sightholder and loyal
customer and a modern multinational business run on innovative insights.
At the forefront of the global breakthrough in Gold ornaments jewellery design and
production brought about by Indias ability to cut Gold ornamentss considered
unworkable for jewellery till then. Has the distinction of producing the worlds smallest
heart shaped Gold ornaments (0.03 carat), and developing some 25 patented facet
patterns.
Besides changing the face of manufacture, broke the mould of traditional jewellery
marketing: it abandoned jewellery trade convention by launching multiple brands for
multiple markets and price segments.
Business model now integrates all operations, from rough Gold ornaments sourcing,
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cutting, polishing and distribution, and jewellery manufacture, to jewellery branding and
retail, as well as global lifestyle brands, in India and abroad.
Offers jewellery in diverse styles: traditional, international classic, and casual. For
consumers of all age groups, tastes and budgets. With a growing hamper of brands, some
already global, and each targeted to specific consumer and market segments.
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The emergence of branded gold jewellery
In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions
of jewellery. Instead of being regarded as only an investment option, jewellery was being
prized for its aesthetic appeal. In other words, the focus seemed to have shifted from
content to design. Trendy, affordable and lightweight jewellery soon gained familiarity.
Branded jewellery also gained acceptance forcing traditional jewelers to go in for
branding.
Given the opportunities the branded jewellery market offered; the number of gold
retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay,
Kisna and Carbon opened outlets in various parts of the country. Traditional jewelers also
began to bring out lightweight jewellery, and some of them even launched their in-house
brands.
However, the share of branded jewellery in the total jewellery market was still small
(about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though
growing at a pace of 20 to 30 percent annually
The branded jewellery segment occupied only a small share of the total jewellery market
because of the mindset of the average Indian buyer who still regarded jewellery as an
investment. Moreover, consumers trusted only their family jewelers when buying
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jewellery. Consequently, the branded jewellery players tried to change the mindset of the
people and woo customers with attractive designs at affordable prices.
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Gold Jewellery Market in India
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to
import gold. The abolition of the Gold Control Act in 1992, allowed large export houses
to import gold freely
Exporters in export processing zones were allowed to sell 10 percent of their produce in
the domestic market. In 1993, gold and Gold ornaments mining were opened up for
private investors and 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. These measures led to the entry of foreign players like DeBeers, Tiffany and
Cartiers into the Indian market.
In the 1990s, the number of retail jewellery outlets in India increased greatly due to the
abolition of the Gold Control Act. This led to a highly fragmented and unorganized
jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers,
mostly family-owned, single shop operations. In 2001, India had the highest demand for
gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery.
The bulk of the jewellery purchased in India was designed in the traditional Indian style.
Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not
very common in India, under-carat age was prevalent. According to a survey done by the
Bureau of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat was
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of a lesser quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats
to 18 carats as 22-carat gold jewellery.
The late 1990s saw a number of branded jewellery players entering the Indian market.
Titan sold gold jewellery under the brand name Tanishq, while S.P.Jewellers Jewels, a
Sitapur-based jewellery exporter, sold 18-carat gold jewellery under the brand name
Kisna. S.P.Jewellers Jewels also started selling 24-carat gold jewellery in association
with a Thai company, Pranda. Su-Raj (India) Ltd. launched its collection of Gold
ornaments and 22 -carat gold jewellery in 1997.
The Sitapur-based group, Beautiful, which marketed the Tiffany range of products in
India, launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered
India in 1997 in a franchise agreement with Ravissant. Other players who entered the
Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold
Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).
Kisna: In 1994, Kisna Jewellery was established as a distinct brand by S.P.Jewellers
Jewels, soon after the abolition of the Gold Control Act by the Indian government. Kisna
offered a wide range of 18-carat plain gold and Gold ornaments-studded jewellery,
designed for the contemporary Indian woman. The designs combined both the Indian and
western styles and motifs. With sales of Rs.0.14 billion for the year 2000-01, Kisna 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.
Tanishq: In 1984, Questar Investments Limited (a Tata group company) and the Tamil
Nadu Industrial Development Corporation Limited (TIDCO) jointly promoted Titan
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Watches Limited (Titan). Initially involved in the watches and clocks business, Titan
later ventured into the jewellery businesses. In 1995, Titan changed its name from 'Titan
Watches Ltd.' to 'Titan Industries Ltd.' in order to change its image from that of a watch
manufacturer to that of a fashion accessories manufacturer. In the same year, it also
started its jewellery division under the Tanishq brand.
Among the branded jewellery players in the Indian market, Tanishq is considered to be a
trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewellery.
Realizing that such jewellery did not sell well in the domestic market, the 18-carat
jewellery range was expanded to include 22 and 24-carat ornaments as well. When
Tanishq was launched, it sold most of its products through multibrand stores. In 1998,
Tanishq decided to set up its own chain of retail showrooms to create a distinctive brand
image.
By 2002, Tanishq retailed its jewellery through 53 exclusive stores across 41 cities. To
meet increasing demand, Tanishq planned to open 70 stores by the end of 2003 and offer
a range of 'wearable' products with prices starting at Rs. 400. With sales of Rs. 2.66
billion in 2000-01, Tanishq had a 0.66 percent share of the total jewellery market and a
27 percent share of the branded jewellery market.
Carbon: In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was
incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the
Indian consumer's relationship with gold jewellery would grow beyond an investment
need towards a lifestyle and personality statement. In 1996, within the Peakok fold a new
brand of 18-carat gold-based jewellery called Carbon was launched.
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In 2000-01, 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. The company
expected Carbon sales to touch Rs. 1.5 billion by 2005-06 and exports to start by 2008.
The brand was available at 40 outlets in 16 cities in 2002 and would be made available in
23 cities by 2005.
Oyzterbay: Oyzterbay was founded by Vasant Nangia and his team in July 2000. It began
operations in March 2001. By November 2002, the company had 41 outlets across the
country. Oyzterbay seeks to build a national brand in the jewellery industry in India and
aspires to be the largest branded jewellery company in the country with a chain of 100
stores and several hundred-distribution points by 2004. With sales of Rs. 0.17 billion in
2000-01, 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
Trendsmith: Sitapur-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the
jewellery business since 1864, saw tremendous scope in the branded segment and opened
its new concept store 'Trendsmith' in Sitapur in December 2001. Encouraged by the
response towards its first store, the Zaveris planned to take Trendsmith (India) Pvt. Ltd.
all over the nation by opening as many as 50 stores by 2006. Trendsmith offered eight
lines of exclusive designer jewellery from well-known export jewellery manufacturers
and designers from Sitapur and Delhi.
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BRANDED GOLD JEWELLERY MARKET (MAJOR PLAYERS)
Brand Market share (2001-11) in %)
Tanishq 27.0
Oyzterbay 1.7
Kisna 1.4
Carbon 1.4
Source: ICFAI Centre for Management Research.
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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-karat gold was not favored as it was considered a poor
investment. Confidence in the local jeweler was the hallmark of the gold jewellery trade
in India. A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer
had implicit faith in his jeweler. Additionally, the local jeweler catered to the local taste
for traditional jewellery.
However, since the late 1990s, there was a shift in consumer tastes: women were
increasingly opting for fashionable and lightweight jewellery instead of traditional
chunky jewellery. There was a rise in demand for lightweight jewellery, especially from
consumers in the 16 to 25 age group, who regarded jewellery as an accessory and not an
investment. The new millennium witnessed a definite change in consumer preferences.
According to Samrat Zaveri, CEO of Trendsmith, "Research shows that the Indian
jewellery sector is in the transition phase with consumers' desire for possession of
jewellery for its aesthetic appeal and not as a form of investment."
In October 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:
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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.
The late 1990s and early 2000s, with the increase in the number of designers from design
schools such as the National Institute of Fashion Technology (NIFT), a wide range of
new designs.
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Strategies for Wooing Customers
Tanishq
In the late 1990s, players in the branded gold jewellery market formulated strategies for
wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer of
Tanishq, the challenges were many. As the jewellery market was highly fragmented,
lacked branding, and allowed many unethical practices to flourish, 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. Said Kurian, "We are changing the attitudes of customers from blind
trust to informed trust."
To increase its market share, Tanishq formulated a strategy for luring people away from
traditional neighborhood jewelers. Tanishq's strategy was to create differentiation and
build trust.
According to Kurian, the first part of the strategy was "to provide a point of
differentiation in a highly commoditized category - 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 Kurian, "If differentiation plays the role of primary attraction,
trust takes care of lifelong loyalty.
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One way to create differentiation was through design. The emphasis had to be on design
because local jewelers could offer to design any pattern according to the customer's
specifications. For a national brand a generic design concept with regional variations had
to be evolved.
For this, Tanishq set up a seven member in-house design team and also outsourced
designs from freelance designers. The designers travelled 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.
Source:http://www.icmrindia.org/free%20resources/casestudies/branded-gold-
jewellery1.htm
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Brand appeal
Branded jewellery has found a niche for itself in the tough Indian market, and its
increasing growth rates show that before long it will corner a significant share of the
jewellery market. WITH the retail industry in India burgeoning, several companies have
made inroads into the traditional jewellery industry, selling the product that was never
really "marketed" in "brand" new ways. So much so that branded jewellery is the new
mantra in the market, having rapidly acquired a niche over the past few years.
Some of the companies have even cleverly played on Indian customs and tradition to
advertise and establish their brands. Jewellery is now marketed for every occasion; even
Valentine's Day calls for "a special something [Gold ornaments] for a special someone".
In spite of pessimism about the marketability of branded jewellery in a country rooted in
buying ornaments from the traditional goldsmith, 30 brands were launched in 2004.
However, this does not take away from the fact that India is a tough market. According to
Mehul Choksi of the D'Damas and S.P.Jewellers Group, branded jewellery has witnessed
more than 50 per cent growth in the last three years. The Gold ornaments branded
jewellery, he says, is especially impressive with the segment witnessing a 20 per cent rise
annually as against 10 per cent a decade ago.
Although branded jewellery accounts for less than 10 per cent of the Rs.40,000-crore
jewellery market, a study has concluded that it is growing in popularity at a tremendous
pace of 20-30 per cent annually. Such is the potential of this industry that the consulting
firm McKinsey estimates the branded jewellery market in India to grow at the rate of 40
per cent per annum to touch Rs.10,000 crores by 2010.
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Big drivers of this kind of jewellery are the numerous malls opening across the country
with the emergence of an affluent class following the successful growth of the new
economy companies.
In the past decade, the country has seen a section of the population gaining exposure to
designer wear, fashion accessories and globally branded products. "Why not have
accesses to them?" asks Rima Khan, a brand executive. "Of course jewellery is harder to
brand but it has done well given the tough competition," she says.
One of the reasons branded jewellery is doing well is that now anyone can walk into a
mall, window shop and decides at their own what they would like to buy. The entire
culture of shopping has changed with attentive and helpful attendants and well-displayed
products. "You no longer have the sales staff who look at you and decide whether you are
worth serving or not. Everyone is a potential customer in the new market," says Rima
Khan. Yet the most important part of branded jewellery is that you can get a piece of
jewellery with a Gold ornaments for as little as Rs.1,500. And as branded is equated with
quality, you are assured of a good product. "Suddenly jewellery has become accessible
and affordable for all income brackets."
The shift was visible in 2004 when more than 30 players entered the market. Today there
are more than 50 brands, endorsed by models, film actors, sports celebrities and other
well-known faces. Some designs of these brands are so popular that local jewelers have
begun to copy them. "While it is a compliment to the industry that people like the
product, it could also affect the company because the cost may be lower," says Rima
Khan.
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The biggest challenge perhaps is in educating the consumer. Consumers need to
understand the four Cs - Cut, Carat, Color and Clarity. Companies that brand their
products place a lot of emphasis on educating and therefore helping the customer make
his purchase. "Buying jewellery is a very personal thing and we need to understand what
we are buying," says Seema Thakur, an attendant in a jewellery store at a mall in Sitapur.
"We have an average of 50 people on a week day and at least 100 on a weekend who
walk in and look around the shop. If you make the product look special, for instance,
appeal to a young gentleman to buy it for a loved one, he is often interested." And the big
selling point is: "If you can spend Rs.1,000 on two music CDs, why not spend for that
special person in your life."
The branded jewellery industry is still in its infancy, but increasing growth rates show
that in a short time it will corner a significant chunk of the market. Perhaps the best
compliment to the branded segment is that old jewellery showrooms have also begun to
design jewellery lines under a brand name.
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Indian Customers Showing Interest in Branded Jewellery
As per our recently published research report Indian Gems and Jewellery Market
Future Prospects to 2011, gems and jewellery market in India posses tremendous
potential for future growth since it has an added advantage of low production cost and
highly skilled labor that separate it from its competitors. It is projected that the overall
gems and jewellery market will grow at a CAGR of around 14% during 2009-2012.
India possesses worlds most competitive gems and jewellery market due to its low cost
of production and availability of skilled labor. As per our new research report Indian
Gems and Jewellery Market - Future Prospects to 2011, highly skilled and low cost
manpower, along with strong government support in the form of incentives and
establishment of SEZs, has been the major driver for the Indian gems and jewellery
market. The market also plays a vital role in the Indian economy as it is a leading foreign
exchange earner and accounts for more than 12% of Indias total exports. Currently the
Indian market remains highly fragmented, but is rapidly transforming into an organized
sector.
Currently, the industry is facing a slowdown due to global economic turmoil. But due to
various government efforts and incentives coupled with private sector initiatives, the
Indian gems and jewellery sector is expected to grow at a CAGR of around 14% from
2009 to 2012. At present, the Indian gems and jewellery market is dominated by the
unorganized sector; however, the trend is set to change in near future with the branded
jewellery market growing at an expected CAGR of more than 41% in the coming four
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years. As per our research report, with its consumption pegged at nearly 20%, India
remains worlds largest gold consumer and this share is expected to grow further.
Given the fact that majority of market share is occupied by family-owned jewelers, the
domination of unorganized segment still continues on the Indian gems and jewellery
market. However, this scenario is gradually changing with the entrance of organized
players who primarily focus on customer satisfaction by giving better and finer quality
products. Thus, consumers are now moving towards branded jewellery which is more
reliable in terms of quality and design.
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Traditional v/s Branded jewelers
Gems and Jewellery sales and marketing received a facelift with the advent of the
supermarket culture. As organized retail in India progresses to the next lap, Sadanand
Subramanian checks for Gold ornaments World with some precious Industry players
about their preparedness and strategy to achieve maximum mileage.
As India reacts to a retail revolution, the hitherto sober gems and jewellery industry
seems to have jumped on the bandwagon with a clear plan of action. The industry has
already made a mark by capturing 3 per cent of the organized retail space thanks to the
leadership shown by a handful of companies prepared to dazzle the world. While
organized retail under this segment impressively grows at over 50 per cent annually,
deliberations are on to arrive at what the industry in general must do to keep the customer
perennially delighted. The gems and jewellery market in India is estimated to be about
Rs.80,000 crores and the topmost agenda is to adopt the right strategy to accelerate its
growth keeping in mind current global dynamics. For now the industry faces keen
competition from other luxury goods such as electronic innovations and other personal
accessories. How far is it necessary for the gems and jewellery sector to seriously
consider it?
There is no doubt that things are a lot more organized in stores inside malls. They also
showcase and present products very attractively. But in my opinion, real sales take place
through traditional jewellery stores as jewellery is mainly sold on trust. Ghanshyam
Dholakia
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The urgency in the industry indicates rapid changes in the way goods are produced and
marketed. The evolution of new formats for sale and the massive technology and to some
extent, sizeable infrastructural developments taking place all foretell a prospect of growth
way beyond the current overall 10 per cent.
The Indian gems and jewellery industry boasts a strength of over 3 lakh jewellery
retailers across the length and breadth of this country. The huge number indicates
strength in itself but it also indicates a difficult diversity to grapple with when exploring
common grounds to formulate united approaches to tackle common concerns.
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Organized V/s Traditional Retail
Comparisons have always been drawn between organized retail and traditional retail.
Attempts have always been made to define them. Rooting for organized retail, Navneet
Goenka, Vice- Chairman of Goenka Gold ornaments and Jewels says, Right now
organized retail seems to have wrested an edge over traditional retail. Goenka argues
that the indications to this effect are seen in the manner large proportions of the society
are becoming lifestyle oriented, especially the younger generation. When considering
Indias statistic of having the highest percentage of youth in the world, this observation
cannot be taken lightly. Goenka says that the gems and jewellery sector is one of the
fastest growing segments. He adds, The young generation today has more disposable
income and they are willing to spend it on luxuries of choice.
Ghanshyam Dholakia, partner, Harikrisha Exports holds a different view with regard to
the tussle for supremacy over the two formats. There is no doubt that things are a lot
more organized in stores inside malls, he concedes. They also showcase and present
products very attractively. But in my opinion, real sales take place through traditional
jewellery stores as jewellery is mainly sold on trust. While explaining his point of view,
he adds, To the credit of traditional jewellery stores they also have upgraded themselves
in various ways including the overall ambience in the last five to ten years. They are also
changing themselves in the matters of presentation and the customer approach. Dholakia
says that in promotions and awareness creation, traditional retailers have realized its
importance thereof and have started allocating sizeable budgets for them. Consequently
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this section has already started reaping the benefits of quality promotions by creating
awareness about their products and services. Dholakia is some what emphatic with regard
to modern day organized retail citadels, In my personal opinion malls mainly serve the
purpose of promotion and show of products. I dont think a lot of gems and jewellery sale
takes place in malls.
Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to
jewellery sales at modern shopping malls. He opines, The sales that take place in a mall
are of a very different kind. You can call it window shopping if you like. Shah
elucidates his point, The young generation often resorts to some impulse buying. He
stresses that serious buyers who are looking for high value purchases for occasions such
as weddings prefer to plan their jewellery shopping and eventually purchase from known
reputed jewelers.
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Changes in Gems & Jewellery Retail
Whilst organized retailers are ahead when it comes to taking care of the different aspects
in the marketing and sales value chain, those in traditional retail are also changing or
adapting to the needs of the modern customer in the areas of service and customer care.
They too are improving their style of presenting and dealing with customers. In the past,
jewelers didnt have much modern education. Today, there are a number of MBAs in
these families and amongst key personnel employed by them, points out Ghanshyam
Dholakia.
Retailing the Organized Way
While complementing the planned approach by organized retail, Mahesh Gandani-Head
Retail, Hari Krishna Exports says, We can see that times have changed and somewhere
along the way, the whole approach to marketing has also undergone transformation.
Gandani says that for branded Gold ornaments jewellery there is much planning
involved. He says meticulous strategy is charted out, and there is systematic presentation
of the product. All this goes on even as a product portfolio is made and promotions are
carried out. Gandani says creating brand awareness in the minds of the consumers is all
about adopting a few strategic steps. One might say the difference between traditional
and organized is just doing and doing by planning.
Recent developments have been both a boon as well as a bane. Actually, this has spurred
us on to become innovative with our offerings to suit the market. We have actually
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managed to reduce cost by adopting the strategy of reducing the volume of gold in some
of our products to make it affordable. Ashwin Shah
Speaking about organized retail, V. Muraleedharan, gems and jewellery professional and
visiting faculty at well known management institutes in Sitapur says, The number of
foreign brands coming into India is simply amazing. Brands that were only heard of a few
years ago are today very much within anyones reach here. Muraleedharan goes on to
explain, So far people who had only seen traditional offerings have started making
intelligent international comparisons with Indian products and this has brought about real
room for retail to grow a number of times.
Well known brands have always insisted that when they talk about a particular grade,
they are certified. Moreover the quality standard is confirmed and authorized and remains
the same in any laboratory in the world. Muraleedharan says, In my opinion the quality
a brand expresses, and the certification make it easy for a customer to confidently buy the
product.
The Value Proposition:
Today everyone is looking for value for money, a new design, a new concept, something
very creative and that is the concept of retail today. It is not like yesterday where the
shopkeeper or the manufacturer used to dominate. Today, the customer is going for
customized designs; the whole concept is changing, says Muralidharan. The consumer
is looking for value for money, when they buy Gold ornamentss. They like to buy from
reputed players like example Tanishq, S.P.Jewellers, Goenka, Nakshatra, Kiah and
Nirvana. All of whom have achieved very organized presence in the market today. Each
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one of them has a standard quality certification internationally and that is what is going in
the minds of the customer when they talk about buying from the organized sector.
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Research Methodology
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Research Methodology
Research is initiated by examining the secondary data to gain insight into the problem.
The primary data is evaluated on the basis of the analysis of the secondary data.
DEVELOPING THE RESEARCH PLAN
The data for this research project would be collected through questionnaire. A structured
questionnaire would be framed as it is less time consuming, generates specific and to the
point information, easier to tabulate and interpret. Moreover respondents prefer to give
direct answers. Both type of questions i.e. Open ended and closed ended, would be used.
COLLECTION OF DATA
a) Secondary Data:It was collected from internal sources. The secondary data was
collected from the articles, news papers, management books, and the internet.
b) Primary data: They were the main source of Primary data. The method of
collection of primary data would be direct personal interview through a structured
questionnaire.
SAMPLING PLAN
Since it is not possible to study whole population, it is necessary to obtain representative
samples from the population to understand its characteristics.
1) Sampling Units: would comprise of men and women.
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2) Research Instrument : Structured Questionnaire
SAMPLE SIZE
100 respondent
The primary data would be collected from
1) The population of SITAPUR city
The secondary data would be collected from:
1) Books
2) Magazines/ Project report
3) Internet
4) Articles
The questionnaires response format for the population would be close ended questions.
With a mix of question types varying from ranking, multiple choice to checklist
questions. The attitude of the respondents would be measured by itemized category
scales, pictorial scale.
Situation Analysis
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Contemporary Ti Design is a start-up company operating out of the owner's home.
Marketing will be key to raise visibility and awareness of Contemporary Ti Design and
their products. The basic market need is for unusual pieces of art jewelry crafted out of
titanium. Titanium is used because of its hypoallergenic qualities (ideal for necklaces
and earrings that touch the skin), its incredible strength, and light weight.
Market Summary
Contemporary Ti Design has a lot of information regarding the market and attributes
concerning their target customers. This information will be leveraged to continually
determine who the customer is, their specific needs, and how Contemporary Ti Design
can best communicate with them.
Market Needs
Contemporary Ti Design is providing its customers with innovative, creative, handmade
jewelry. It will provide the following benefits to their customers:
Selection: A wide range of jewelry styles, creations, and anodizing schemes.
Accessibility: Ti design sells direct to the consumer, through a network of
art/jewelry galleries, and at art fairs and shows.
Customer service: The patron will be impressed with the level of attention and
service that they receive. This level of service occurs during all transactions with
Ti designs from answering questions, to order taking, to warranty repairs.
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Competitive pricing: The pricing structure provides the consumer with a good
value for handmade jewelry and the craftsmen with a fair profit.
Market Trends
The market trend within the jewelry industry is a movement toward custom, unique
pieces as well as limited production items. This trend is in response to the climate of the
industry in the mid-nineties where the jewelry market was flooded with thousands of
identical pieces of jewelry. Within a few years, people were running into others who had
the same piece of jewelry. This element of commonality or "run of the mill-ness" fueled
demand for artistic jewelry that was in low production and unique, not something that
you would see very often.
Customers are using similar pieces of jewelry as a way of creating distinction from the
common population, a way to stand out. This desire is part of a broader desire to be
different. Contemporary Ti Design has leveraged this trend by creating unique pieces
that are distinct.
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Market Growth
The artistic jewelry segment of the larger jewelry industry is growing at a healthy 9%.
This growth can be attributed to the value that people place on having distinctive, unique
pieces of jewelry.
Another factor that is supporting the growth is the blending of art and jewelry.
Traditionally jewelry was ornate pieces made out of precious metals. The nice pieces
were a symbol of wealth or status. As long as the piece was made out of a precious
metal, there was value attributed to the piece just by virtue of what it was made out of,
regardless of the creativity of the actual piece. The younger population that recognizes
the aesthetic value of art work is now demanding jewelry to have artistic elements. In
essence it is art that you wear. These trends are helping the industry grow.
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SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing Contemporary Ti Design.
Strengths
Unique designs and construction methods.
Strong relationships with suppliers as well as galleries.
The flexibility to provide custom pieces.
A comprehensive distribution network from a robust website and a network of
galleries.
Weaknesses
A large portion of the target market that is unaware of Contemporary Ti Design's
products.
Limited time and budget to market the company to the segmented target
population.
The struggle to constantly create new designs.
The possible inability to meet demand due to the small size of the company.
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Opportunities
A growing market that, to a large degree, is unaware of Contemporary Ti Design.
The possibility to grow the size of the company so Steve is spending his time
creating and allowing others to deal with the administrative details.
The injection of fresh, creative designs in a somewhat stagnant industry.
Threats
A decrease of availability of raw materials due to demand from other industries.
Artistic copycats that enter the market and mimic Steve's designs.
A slowdown of the economy that will have a reduction on individual's
discretionary income.
Competition and Buying Patterns
As previously stated the jewelry industry is composed of thousand upon thousands of
people. Some work and distribute locally, others have national distribution systems set
up. Some artists will design products for larger companies to manufacture, others will
design and make the pieces themselves. This plan will have an abridged competition
section. This is because of the very large and distributed nature of artisan jewelry design,
the market is entirely too dispersed to have a complete catalog of the competition.
Competition takes the following forms:
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Artists creating designs that are manufactured on a large scale and distributed
nationally. The artists might be famous enough to have their own one-name studio
that creates designs and the product is made and sold under the larger companies
name. If the artist is not famous enough to have national name recognition, the
designers might belong to a firm that is hired to develop designs for a company
who will manufacture and sell the product.
A company that has their own designers in-house. In this case everything is done
internally, design, marketing and wholesaling. Another variation would be in-
house designers, marketers and wholesalers with the manufacturing contracted
out.
Artists such as Steve who design and make all of the pieces themselves, and then
do the wholesaling or retailing themselves. In essence, one-man shows.
The buying patterns of consumers fall typically into two types. Gifts and impulse
purchases. A gift purchase occurs when the buyer is looking for a gift for someone, sees
the art piece, and then purchases it. In this case the plan is to make a purchase, it is just
not known what or where that purchase will be made. The other buying pattern is an
impulse purchase. Someone will be shopping, they are not in need of anything, will see
the item and have to have it, buying it on the spot. One last pattern, that occurs less
frequently is if someone was looking for an "accessory" that would match an outfit and
happens to come across the piece of jewelry and buys it.
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Product Offering
Contemporary Ti Design manufactures titanium jewelry. The jewelry takes the form of
pendants, earrings, and pins. All of the jewelry is made out of titanium. All of the
products are designed and made by Steve.
Steve has chosen titanium because of its unique characteristics. It is stronger than steel,
yet similar in weight to aluminum. It is inert and hypoallergenic.
Most of the jewelry is left unfinished. The gray of the titanium by itself looks quite nice.
Some of the pieces are anodized. Anodizing adds a broad range colors to the titanium.
Anodizing occurs by immersing the titanium in electrically charged water or hooking up
the titanium to a electrical power source. When charged with electricity, a light film or
oxide will form on the surface of the titanium and this produces color.
Contemporary Ti Design's pieces are constructed out of titanium sheets. The material is
cut using a saw blade. The interior of the pieces are cut by piercing a small hole through
the interior and inserting a saw blade. All pieces are made form several pieces of
titanium. The pieces are held together by rivets. Small holes are drilled through the
different pieces and a small wire (rivet) is inserted through. The head and end of the rivet
is tapped with a hammer and that enlarges the end holding the pieces together. In addition
to the utility of the rivet, it is aesthetically pleasing in terms of the overall look of the
piece.
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Keys to Success
Customer service.
Unique designs.
Creativeness.
Professionalism.
Critical Issues
Contemporary Ti Design is still in the speculative stage as a start-up venture. Its critical
issues include continuing to take a modest fiscal approach, expanding at a reasonable
rate, not for the sake of expansion in itself, but because it is economically wise to.
Contemporary Ti Design will continue to build brand awareness to assure growth in the
customer and gallery base.
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Data Analysis
And
Interceptions
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Data Analysis and Interceptions
The objectives of the study was to understand the consumers buying preferences, the
reach of branded jewelers, brand awareness of various brands in the jewelers market.
Hence the first question was to find out the factors that guide a customer while
purchasing jewellery which dealt with nine attributes. The respondents where just asked
to tick on the attribute that guided that purchase decision. The result is as follows
1) Factors that guide you while purchasing jewellery?
Design Price Purity Image Variety Display
Promotion
and Offers
Service
Family
and
Friends
85 92 87 65 67 5 10 2 12
From the above results an observation can be drawn that out of the 100 respondents 92 of
them feel that price is a major factor that guides their purchase decision. Apart from price
purity also is considered important by 87 respondents, followed by design with 85
respondents feel it is an important factor. Variety and image are the other important
attributes that are considered while making a purchase decision. Attributes like family
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and friends, promotions and offers are still not very popular among the respondents
selected for this research. The attributes like service and display have been selected only
by 2 and 5 respondents respectively showing that these are the least important thing that
guide an individual to purchase jewellery.
The diagram below shows the guiding factor of the respondents while purchasing
jewellery in an ascending manner.
Question two dealt with the awareness of various brands of jewellery available in the
market. This question would help find out the percentage of the respondents who are
aware about branded jewellery.
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2) Are you aware of the various jewellery brands available in the market?
Yes No
95 5
From the above result it can be observed that there is 95% awareness about branded
jewellery. Out of the 95 respondents there is not a single respondent who is not aware
about branded jewellery.
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3) Tick against the brands that you are aware about in the jewellery market
The third question was to find out the popularity of 5 brands. The respondents were asked to tick
against the brands that they are aware about. The 5 brands considered here are Kisna, Tanishq,
Ddamas, Oyzterbay, and Trendsmith. These are the prominent brands for gold jewellery there are
many other players but the research is limited to gold jewellery.
Brands Kisna Tanishq
Zaveri
bazar
Bafna
No of
Respondents
70 80 100 100
From the above table and figure inference can be drawn that brands like Kisna, Tanishq are
known but the traditional SITAPUR outlets of Zaveri bazar and Bafna our preferred
The fourth question was to find out the reason why the respondent purchases jewellery that is the
reason for purchasing. Is it purchased as an investment option or on occasions, festivals or as a
fashion statement?
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4) You buy jewellery for
Investment Fashion Occasions Festivals
No of
Respondents
34 39 11 16
34 respondents buy jewellery for investment purpose, 39 respondents look out for fashion
or the latest trends while purchasing jewellery. 11 respondents buy jewellery during
occasions like weddings, anniversary, birthdays etc. and 16 respondents buy jewellery
during festivals.
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5) Which jewellery do you prefer?
Preference
Branded
Jewellery
Family
Jeweler
No of
Respondents
69 31
From the above table it can be observed that 69 respondents prefer branded jewellery and
31 respondents prefer family jewelers. This makes branded jewellery more popular
among the respondents.
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6) Have you bought any branded jewellery?
Out of the 100 respondents 78 have bought branded jewellery and 22 have not bought
branded jewellery. However even if these 22 respondents have not bought branded
jewellery they are aware of branded jewellery being sold and also know the brands by
their names. Since the sample consist of females and males the next set of question deals
with whether jewellery is bought for gifting purpose
60
Branded Jewellery Bought Not boughtNo of Respondents 78 22
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7) Do you buy jewellery for gifting purpose?
Buy jewellery
for gifting
Yes No
No of
Respondents
30 70
30 respondents of the 100 buy jewellery for gifting purpose among these 30 12 are men.
70% of the respondents do not buy jewellery for gifting purpose.
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8) Where do you prefer to buy the jewellery from (for gifting)?
Branded Family jeweler
No of Respondents 14 16
14 respondents out of 30 buy branded jewellery for gifting and 16 out of 30 buy jewellery
from their family jeweler for gifting. Percentage wise 46% buy branded jewellery for
gifts and 54% buy jewellery for gifting from their family jeweler.
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9) Given below are few characteristics of traditional family jewelers (or local
jewellery retail stores). Please give each characteristic some points based on your
assessment, such that the points range from 1 to 10. (1 being the lowest and 10 being
the highest).
Characteristicsof
Family Jewelers
Convenient Trustworthy GoodInvestment Price
Traditional
design
Number of
points 660 895 775 870 745
The respondents were asked to give points on a scale of 1 to 10 where 10 was the highest hence
the total figures are arrived by adding the points given by all the 100 respondents. Hence if the
convenience characteristic was to be taken then it scored 660 out of the grand total of 1000.
The respondents have rated trust aspect of family jewelers high hence it has scored 895. The
respondents also feel that the price charged by the family jewelers is reasonable and hence have
given it decent points i.e. 870. While purchasing jewellery from family jewelers the respondents
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consider it to be a good investment. Family jewelers are popular for traditional designs and the
respondents have given it points that add up to 745.
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10)If you purchase branded jewellery then given below are a few characteristics. Please
give each characteristic some points based on your assessment, such that the points range
from 1 to 10. (1 being the lowest and 10 being the highest).
Characteristics of
branded jewellery
Wide range
of products
under one
roof
Shopping
experience
Trendy and
fashionable
jewellery
Price
Number of points 663 590 727 673
Respondents rate trendy and fashionable jewellery highest when it comes to branded jewellery. It
scores 727 out of 780. Price also according to the respondents is justified hence it scores 673.
Shopping experience wise branded showroom scores least among the other characteristics. This
could also be because when a customer goes to buy jewellery he may not be looking for the
experience but wanting good trendy jewellery which is priced appropriately.
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Findings
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Findings
Variety and image are the other important attributes that are considered while making a
purchase decision. Attributes like family and friends, promotions and offers are still not
very popular among the respondents selected for this research.
Most of the respondents there is not a single respondent who is not aware about branded
jewellery.
These are the prominent brands for gold jewellery there are many other players but the
research is limited to gold jewellery.
It can be observed that 69 respondents prefer branded jewellery and 31 respondents
prefer family jewelers. This makes branded jewellery more popular among the
respondents.
Out of the 100 respondents 78 have bought branded jewellery and 22 have not bought
branded jewellery. However even if these 22 respondents have not bought branded
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jewellery they are aware of branded jewellery being sold and also know the brands by
their names.
The respondents have rated trust aspect of family jewelers high hence it has scored 895.
The respondents also feel that the price charged by the family jewelers is reasonable and
hence have given it decent points i.e. 870. While purchasing jewellery from family
jewelers the respondents consider it to be a good investment. Family jewelers are popular
for traditional designs and the respondents have given it points that add up to 745.
Shopping experience wise branded showroom scores least among the other
characteristics. This could also be because when a customer goes to buy jewellery he may
not be looking for the experience but wanting good trendy jewellery which is priced
appropriately.
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Conclusion
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Conclusion
The conclusions that can be drawn from the study are:
1. The guiding factor behind purchasing jewellery is price, purity and design which
score the maximum. Other factors are variety, the brand image, influence of
family and friends. The least guiding factor for purchasing jewellery is the service
and display. Hence when a customer goes to buy jewellery they do keep the price
in mind followed by the purity and the design. Factors like service given the shop
or by the jeweler and the display do not have a very big impact on the customers.
2. Branded jewellery is extremely popular since it has 100% awareness. This may be
due to the wide spread publicity taken up by the various brands. Brands like Kisna,
Ddamas, and Tanishq are again the most popular brands. Trendsmith is a brand by
Tribhovandas Bhimji Zaveri (TBZ) which is not very popular.
3. As stated in the literature review that there was a shift in consumer tastes: women
were increasingly opting for fashionable and lightweight jewellery instead of
traditional chunky jewellery. Is proved to be correct by this research as
respondents have selected fashion over investment while purchasing jewellery.
Now jewellery is regarded as more of an accessory and less of an investment.
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4. Branded jewellery is bought by more than 3/4 th of the population. Hence it can be
said that the population is aware and has also tried these brands.
5. When jewellery is bought for gifting purpose the population still wants to buy it
from their family jewelers.
6. When it comes to family jewelers the level of satisfaction that the population has
on a scale of 1 to 10 is a little more than 7. These jewelers are also popular
because of the trust that they have with their customers and also because they
charge reasonable prices. These family jewelers are also popular for traditional
designs hence when a customer is specifically looking out for traditional jewellery
they approach these jewelers. The jewellery bought from these jewelers is
considered to be pure and a good investment.
7. The level of satisfaction that the population has towards branded jewellery is a
little higher than 8. These branded jewelers have become popular for latest and
trendy jewellery. Also the prices that the branded jewelers charge is justified and
they provide a wide range of products under one roof.
8. The level of satisfaction that the population has for branded jewellery is higher
then that for non branded jewellery making branded jewellery more popular.
9. The consumers prefer buying branded jewellery over non branded jewellery. This
has also been proved by using the sign test.
Hence to conclude branded jewellery is preferred over non branded jewellery.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1) http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm
2) http://www.flonnet.com/fl2223/stories/20051118003809800.htm
3) Source: http://www.rncos.com/Report/IM148.htm
4) http://www.pressabout.com/indian-customers-showing-internet-in-branded-jewellery-
24860/
5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison
6) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians-
23837-3-1.html
7) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902
8) http://www.Gold ornamentsworld.net/contentview.aspx?item=2465
9) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html
10) http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR041.htm
Newspapers:
1) The Times of India
2) The Economic Times
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Annexure
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QUESTIONNAIRE
Name:
Telephone number: Age:
1. Factors that guide you while purchasing jewellery?
a. Design Price Purity Brand Image
b. Variety Display Promotions and offers
c. Service Family and friends influence
2. Are you aware of the various jewellery brands available in the market?
a. Yes No
3. Tick against the brands that you are aware about in the jewellery market
a. Kisna Tanishq Zaveri bazar Bafna
4. You buy jewellery for
a. Investment Fashion Occasions Festivals
5. Which jewellery do you prefer?
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a. Branded Family Jeweler
6. Have you bought any branded jewellery?
a. Yes No
7. Do you buy jewellery for gifting purpose?
a. Yes No
8. Where do you prefer to buy the jewellery from (for gifting)?
a. Branded Family Jeweler
10)even below are few characteristics of traditional family jewelers (or local jeweler
retail stores). Please give each characteristic some points based on your
assessment, such that the points range from 1 to 10. (1 being the lowest and 10
being the highest).
Characteristics of Family Jewelers Number of points
Convenient
Trustworthy
Good Investment
Price
Traditional design
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11)If you purchase branded jewellery then given below are a few characteristics.
Please give each characteristic some points based on your assessment, such that
the points range from 1 to 10. (1 being the lowest and 10 being the highest).
Characteristics of Branded Jewelers Number of points
Wide range of products under one roof
Shopping experience
Trendy and fashionable jewellery
Price