JEWELLERY INDUSTRY

Market Size and Growth rate

•Consumption of gold and jeweler products in India has grown at a rate of 10-15 per cent per annum.

• the domestic Indian market is estimated to be over US$ 30 billion.

• India and China are now emerging as one of the leaders in the global jewellery industry in terms of consumption

Unorganized Sectorindustry has around 15,000 players,4,50,000 goldsmiths, over 100,000 gold jewelers 6,000 diamond-processing players 8,000 diamond jewelers.

CHALLENGES

Impact of Recession

September 2009-10 due to economic slowdown, the demand for gems and jeweler shrank, which resulted in export slowdown for India.

CHALLENGES

Rise in Prices

From Rs 17,847 per kg in December 2008, the silver price increased to Rs 29,720 per kg in September 2013.

CHALLENGES

Branding of JewelerContinuous Skill DevelopmentTechnology Up gradationIncrease in Exploration ActivitiesEnhancing Visibility through Continuous

Participation in International Exhibitions.

STRATEGIES

Tanishq NakshatraNirvanaDdamasIraGiliAsmi

Top Brands

Indian gems and jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 16.26 per cent during the period 2011-12 to 2016-17 on account of increasing government efforts and incentives coupled with private sector initiatives, according to a report of the working group on 'Boosting India's Manufacturing Exports', by Ministry of Commerce & Industry.

Shipment of gems and jewellery makes up about 14 percent of India's total exports, and the sector employs about 3.4 million workers, with the Middle East taking most of the market.

Industry structure

Name Last Price Market Cap. (Rs. cr.) Sales

Turnover Net Profit Total Assets Rajesh Exports 106.85 3,154.85 31,879.62 453.125,245.28

PC Jeweller 90.10 1,613.69 4,018.42 290.66- Shrenuj and Co 102.85 992.03 2,239.30 30.50 2,109.54 Tribhovandas 145.90 973.21 1,658.34 85.00 363.15 C Mahendra Expo 162.10 972.60 2,111.45 31.17 1,543.70

Gitanjali Gems 76.20 701.5410,380.67 265.165,089.12 Vaibhav Global 203.30 651.87 257.5026.38 507.58

Goenka Diamond 15.70 497.69729.33 21.21 399.47 Shree Ganesh 69.75 492.629,222.38 253.812,081.59

Thangamayil 172.95 237.28 1,524.79 29.63 400.67 Tara Jewels 87.85 215.91 1,383.60 66.24 736.37 Renaissance Jew 50.00 95.40 719.01 13.37 489.66

Winsome Diamond 5.75 61.30 7,141.98 -177.27 1,769.86 Goldiam Inter 19.25 48.02 97.46 8.49 219.55 Zodiac JRD-MKJ 16.50 8.54 16.64 0.81 55.91

Classic Diamond 1.55 6.08 21.51 -251.26 511.18 How big is the branded precious jewellery market in India? What is the share of Tanishq in it?

This industry is very fragmented. According to a recent study by KPMG, the Indian jewellery market is worth Rs.21 billion and a major pie of it is dominated by traditional retailers. There are only three brands with a pan-India

presence – Reliance Jewels, Tanishq and Gitanjali Jewels. But we definitely dominate the branded precious jewellery market.

Competition

Robert Shipley develop and design identification equipment for the gem trade. In 1930s, he is seen using one of the first refract meters. It was one of the first dark-field illuminated microscopes.The technique for synthesizing ruby was discovered in the latter part of the 1800s. the synthetic ruby was considered a masterpiece of advancing technology. Another significant technical innovation, the cultured pearl, also made its appearance early in the century. Mikimoto introduced the first spherical cultured pearls in 1905 in Japan.

The diamond cutting was advancing, too.

Technological changes

The other innovation was the Internet, which enabled even small jewelers to present information and sell merchandise not only in their own markets but also around the world.Lightweight Jewelry

Electroforming, one of the most important developments, enabled craftsmen to create light but strong metal designs. The technique produces a hollow skin of gold or silver, allowing production of large, lightweight pieces, and is most often used for earrings.Invisible Settings

Designers also sought new ways to anchor gemstones to metal.Color Treatment of Gold

To achieve a white look, gold must be alloyed with a white metal and then bleached. Silver, one of the more common alloys used with gold.

Volatile gold prices and changing customers tastes are forcing traditional gold jewellery retailers to sell fashion and imitation jewellery to protect falling business margins and sales.

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.

Imitation jewellery is easy to carry and comes in various patterns and colours which are giving edge over traditional yellow metal. 

GOLD INDUSTRY

every woman wants to look beautiful, not everyone can afford diamonds and gold. Thats why the concept of imitation jewellery is a popular option for many women

For many women, shopping for and collecting different types of accessories qualifies as a passion. Buying expensive jewellery is not the most practical option

It also affords most fashionable women many more options, and is safe for travel.

While attending an important event far from home, and worried about whether or not you should bring your fine jewellery? In such situations, imitation jewellery provides the best and sometimes safest bet for a fashionable look

The trend of heavy and trendy imitation jewellery has gained popularity due to TV serials and historical films

 Earlier only middle-class aspirants used to come to shop such jewellery but now women from across the class opt for such kind trendy jewellery

Imitation jewellery is available at a price ranging from Rs 5 to 15,000 depending on design and material. 

Now one-gram gold jewellery micro and antic patterns are in great demand

SCOPES-Branded Imitation jewelry

Imitation jewellery is too cheap to worry in the case of lost or steal.

 Women now wanted to wear jewellery according to their clothes. This is not possible with real gold jewellery

Best Option to Accessorize on Budget No matter your age

Special events for valentines day , teachers day, doctors day collections

The consumer wanted a wider selection at a single convenient location and expected an international shopping experience.

The following steps will help you define your marketing mix

* Identify your target market.

* Determine what the target consumer desires.

* Assess whether you have any advantages over your competition in delivering the desired service.

* Choose the position that is most valued by the consumer.

Product: Features , Services , Product quality, Staff quality, Style, Brand name, packing

Place(Distributions): Location, Frequencies of services, Transportation, Distributions, Inventory.

Promotios: Publicity, Sales promotions, Personal selling , Advertising , Mailing list

Price(Cost): List Price, Discount, Credit terms

MARKETING -4Ps

Shop in shop-The "shop in shop" retail concept is where a brand owner or retailer takes space in another retailer's store and fits it out to provide selling space dedicated to that secondary company's products.

Pop up retailing - pop-up stores are a new phenomenon taking retail by storm. A pop-up shop, that is — a temporary retail space or experience which involves “popping-up” one day, and disappearing the next few days , Pop-up retail outlets give a more of a touch and feel experience for customer and build awareness.

Think the possibilities of create a travelling jewellery show. Seek out places, events and venues like women's association events , luxury or economic hotel lobbies or even mall kiosks that lend themselves to selling jewelry on the fly. 

Channels( Distributions networks)

Association with corporate gifting coupon companies and allow their customers to redeem coupon in our out lets/channel partners.

Make association with third party loyalty pregame partners, like SBI, ICICI, loyalty cards .

Add new retailers for increase sales volumes in targeted market. Use some technique for developing franchises/ sales partners.  Each new store has the opportunity to further promote future franchisees,

Direct approch- approch leading retilers or whole sales and sell the concept , make a business deal in win win basis

Networking-There are many different types of networking, ranging from email, to in person, to online on LinkedIn and other social networking sites. Knowing the right people can cause an increase in your franchise sales.

Media

The media provides another option to increase your franchise sales. Although different strategies apply, you can use both the local and national media to expand your business. The local media is an important tool for lead generation and allows you to target geographic areas where you would like to grow

Trade Shows

Tradeshows are another way to meet prospective franchisees. The event will provide an insight for potential franchise owners, while promoting brand awareness and product visibility. Tradeshows also provide an opportunity to promote new and current products and drive sales

Use all retail marketing Tools for increase brand building among targeted customer segmentThink the possibilities of create a travelling jewellery show. Seek out places, events and venues like women's association events , luxury or economic hotel lobbies or even mall kiosks that lend themselves to selling jewellery on the fly. Sponsorship or Active participation in cities fashion events , film based events, school college events ( By focusing Target segment) Use the powers of retail coupons ( one day or few days valid ) by print medias like News papers, women based magazines.Motivate retail partners for increase sales by offering exclusive special events or sales schemes.Create Data base- for repeat sales , loyal customers and make assure constant touch with emails or other way of communications

PROMOTIONS & BRAND BUILDING

There is a huge untapped market for branded Imitation jewellery in India. The critical success factors in the business is quality, fashionable design, and good after-sales service ,

The changing lifestyles demanded lighter and trendier jewellery with less price .

For setting up good gold jewellery shop one needs inventory at least worth of Rs 30 to 50 lakh. While, in the case of imitation jewellery one can start business with stock of meagre Rs 15, 000

Imitation jewellery are known as celebrity-inspired jewellery-segment

The Indian consumer was willing to experiment with new designs.

cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase.

SWOT

Thank you..