Consumer buying behaviour   gold jewellery
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Consumer buying behaviour gold jewellery

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Consumer buying behaviour   gold jewellery Consumer buying behaviour gold jewellery Presentation Transcript

  • 1 Research FindingsConsumer Buying Behavior: Gold Jewellery October 2012 Prepared By:
  • Research Background 2• According to World Gold Council, India is the largest market for gold jewellery in the world, representing a staggering 746 tones of gold in 2010• Indian consumers are actively engaged in considering their next piece; 75% of women say they are constantly searching for new designs. Indian market is plush with varied designs and offerings• As Gold prices are rising sharply, brands are targeting consumers with a limited budget. This is apparent in their offerings, collection and marketing campaigns.
  • Research ObjectivesThe key research objective was to find out the impact of high price on the purchase of GoldTo meet the stated objective MX approached the category customers to ask few key questions:• Popular and most admired brands by the consumers• Source of awareness• Perception of gold jewellery• Purchase behavior - Occasions of purchase - Most preferred merchandise - Purchase point - Purity they look for in gold jewellery - Purchase considerations• Impact of price rise on the purchase, what it entails for this festive seasonConsumer feedback is presented in forthcoming slides
  • Research Methodology 4 Quantitative Research technique was followed. 600 consumers were interviewed at their homes and market places. Research Technique • Face to face interviews Research Tool • Structured Questionnaire • Consumers who bought Jewellery in the preceding year and likely Target Segment to buy soon • Delhi (NCR). Mumbai, Kolkata, Hyderabad, Bangalore, Cochin, Research Center Jaipur and Pune Sample Size • 600 respondents
  • 5Demographics
  • Demographic Profiling Education n=600 Gender All respondents belong to SEC A Graduate/Post graduate-Prof 38% Male Graduate / Post graduate- 60% 35% General SEC Female 1% Some college but not graduate 65% A2 33% 1% C School- SSC/ HSC W Age A1 E 67% Officer/Executive-Middle/Senior 39% More than Self employed professional 3% 45 yrs 18-30 yrs 21% 32% 7% Businessman with 10+ employees Young consumers 31-45 yrs are also into buying Businessman with 1-9 employees 19% 47% gold jewellery  an emerging trend Businessman with no employees 9% Shop owner 12% Occupation• Respondent profile was a mix of different age groups so the inputs contained a good representation of people• Gender split was natural outcome of interactions. No specific age or gender related quota was followed
  • Brand Salience – Awareness 7 n=600 Tanishq 41% 36% 23% 60% 18% 6% P C Jewellers Sanchi 3% 32% 42% 22% 2% Shubh and Labh 1% Malabar Gold 6% 37% 38% 1% MMTC Episode 4% 14% 1% Cartier 2% Gili 5% 30% 15% 2% Forever Jewellery TOM Mehrasons 8% 20% 56% 59% 14% 8% Nakshatra Ddamas 8% 5% 31% 2% 33% 4% Vivaha SPONT TBZ 5% 11% 35% 24% Maya Oyzterbay 13% 2% AIDED 8% 1% Giantti Carbon 1% 21% 7% Jos Alukkas Belirams 1%12% 2% 30% 25% 8% Gitanjali Karma 15% Meta Jewel Krafts 1%11% 1% ORRAD P Zaveri & Sons 2% 23% 1% 4% ASMI Momentz 5% 11% 26% Others *Other brands include unfamiliar names and brands with small base• More than 40% of the respondents mentioned Tanishq as their Top of the Mind recall• Cent percent of the respondents are aware of Tanishq followed by Mehrason (84%), PC Jewellers (84%), Nakshatra (81%), Sanchi (77%) & Gitanjali (63%).
  • Brand Salience – Most Admired 8 n=600 45% 20% 12% 11% 4% 3% 2% 2% 1% Tanishq Gitanjali Nakshatra Regional Asmi Gili Sangini TBZ MMTC Branded Store• Tanishq (45%) emerged out to be the most admired brand among majority of the respondents whereas 3/10th of the respondents also admire Gitanjali and Nakshatra.
  • Sources of Awareness 9 n=600 Newspaper 58% Television 51% Friends/Colleagues 46% Family/Relatives 33% Magazines 28% Websites 22% Banners/Posters 13% POS in shops 10% Online Social Media 9% Cinema/Theaters 8% Radio 7%• Newspaper pop out to be the most important source of awareness for getting info about various Jewellery brand. Television and WOM also plays a significant SOA.
  • 10Understanding the Consumer Psyche
  • Perception of Jewellery – As an adornment / investment 11 n=600 14% 50% 36% As an adornment As an investment Both• Majority of the Indians seek dual benefit of buying gold, an investment coupled with a functional adornment. The youngsters though go for low priced, light items to be used as regular jewelry items
  • Type of purchase – Planned Vs. Impulsive 12 n=600 79% 73% 75% 68% 67% 65% 64% 61% 52% 48% 39% 37% 35% 36% 32% 27% 25% 21% Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Jaipur Pune Cochin Impulsive Purchase Planned Purchase• Across cities Gold purchases are pre- planned however, there are frequent incidents of impulsive purchase also
  • Purpose of Purchase 13 n=100 For own use in household 80% For marriage in the family 61% Gifts to close friends and relatives 41% To safegaurd family as Gold/silver is highly liquid 32% For traditional values 29% For investment purpose 28% Considered as status symbol 15% Got religious significance 8% For kids 1%• Gold has different connotations attached to it. It is an ornament, habit, companion of difficult times, way to prosperity and carrier of values• Customers have a unique reason every time they buy gold
  • Purchase Occasions 14 n=600 Wedding 95% Akshaya Tritiya 89% Diwali 82% Bonus/sudden financial gain 79% Baby birth 35% Birthdays 24% Aniversary 23% House warming 5% New year 2% No specific reason 15%• There is no single time and occasion to buy jewellery since it is an exclusive as well as a common affair• Though buying jewellery is integral to weddings and festivals (Where customers opt for heavier items and the purchase is infrequent), new reasons have emerged where small and frequent purchases are made ( financial gains, birthdays, anniversaries etc.)
  • Reasons for Buying Branded Jewellery 15 n=600100% 70% 62%90% 60%80%70% 50%60% 40%50% 88% 30%40%30% 64% 61% 57% 20% 52% 52% 51%20% 10% 42% 40% 8% 36% 34% 25% 19% 4% 5% 4% 4% 30% 10%10% 1% 1% 0 0 0 0 0 0% 0% Purity of gold It is certified Name and Written lifetime Good selling Designs Finishing Provide good Promotional Wide product Has a more Unique offerings Ambience Better sales staff reputation gives guarantee policies exchange offers discounts range contemporary confidence available on look/original look special occasions Reasons Most Important Reason• Jewellery being a very expensive acquisition requires assurance of quality and trouble free ownership .• To the modern customers brands inspire confidence of purity and exchange. That is why, safety elements have received a higher score than aesthetics and service
  • Reasons for Not Buying Branded Jewellery 16 n=600100% 60%90% 50%80% 72%70% 66% 35% 40%60% 57%50% 46% 44% 30% 40%40% 16% 15% 20%30% 25% 10% 11% 20% 18%20% 7% 5% 10%10% 0 0 1% 1% 0% 0% Lack of awareness Lack of awareness Hesitation to switch Added taxes Perceived high Better payment Non-availability of Non-replacement/ Non-availability of People do not have about existing about the benefits of from age-old making/polishing terms of local preferred designs non-feasible preferred sizes white money brands among branded jewellery jewellers charges of branded jeweller -Credit replacement terms buyers jewellery period etc. of branded outlets Reasons for not buying Most important reason for not buying• Customers lack enough information about jewellery brands• There is a perception that brands charge higher making charges• Additional cost that customers have to bear in terms of taxes is a big obstruction to growth of brands. Many local jewellers adjust taxes by different ways
  • Description of Purchases 17 n=600 54% 36% 32% 17% 12% 11% 8% 5% 3% Rings Ear Rings Chains Necklace Pendants Gold Bangles Bracelets Gold Set Mangalsutra• Across the cities the key selling items for the brand so far have been rings, ear rings and chains, increasing prices have led to low weight gold item purchase
  • Jewellery Type – City wise preference 18 n=600 Fig. in % Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Jaipur Pune Fashion Jewellery 2 1 - - - - 4 3 Gold Jewellery Studded with Color 6 34 - 2 6 - 13 2 Gemstones Gold Jewellery Studded with Diamonds 3 25 2 9 9 - 64 15 Plain Gold Jewellery 89 36 96 89 72 97 11 73 Pearl Gold Jewellery - - - - - 3 3 1 Platinum Jewellery 2 2 2 - 5 - 5 2 Platinum Studded Jewellery - 2 - - 5 - - 2 Silver Jewellery - - - - 2 - - 2 Synthetic Diamond Jewellery - - - - - - - -• Consumers prefer to buy plain gold jewelry due to its high resale value• Gold studded jewellery with color gemstones and diamonds is increasingly becoming popular
  • Purchase Point 19 n=600 Online purchase  An emerging Trend Frequent destination Preferred destination 93% 81% 43% 38% 14% 7% 4% 6% 4% 1% Branded Outlets Unbranded outlets Franchisee brand Exhibitions Online purchase Showrooms• Branded outlets are the most visited as well as the preferred shopping format followed by franchisee brand showrooms. Few young consumers also prefer online purchase as it gives them the option of EMI
  • Purity Looked For 20 n=600 Gold Jewellery 54% Shift to 14 Carats  An emerging Trend 32% 13% 1% 24 Carat (100% pure 23 Carat (91.66% pure 22 Carat (83.33% pure 18 Carat (75% pure gold) 14 Carat (53.84% pure gold) gold) gold) gold)• More than half of the respondents looked for 22 carat purity which shows customers are quite clear on what to expect from purity point of view.• 32% of the respondents also look for 18 carat purity which indicates that there is a market for 18 carat gold jewellery too• Few consumers also cited to be opting 14 carat gold due to the rising gold prices
  • Factors Considered while Selecting a Brand 21 n=600 Unaided Aided Rank Score* Price of product 39% 41% 0.93 Long Life 32% 38% 0.82 Purity of product 31% 31% 0.76 Resale value 35% 39% 0.59 Available in wide range i.e. designs 28% 39% 0.46 Quality of product 35% 36% 0.33 Brand advertising 20% 37% 0.33 Warranty period 26% 33% 0.27* Rank score has beencalculated by multiplying 3 Overall good brand name 25% 45% 0.26with % of rank 1, 2 with % After sales service 12% 28%of rank 2 and 1 with % of 0.23rank 3 and then summing Trustworthiness of the brand 23% 42%it up 0.19 Offer / discount available 20% 35% 0.19 Past experience 11% 43% 0.16 Is recommended by friends/ relatives/ dealers 13% 31% 0.12 Is the market leader 5% 34% 0.09 Trendy look offered by the brand 9% 30% 0.05 Knowledgable staff at outlet 2% 17% 0.03• Price, durability, purity, resale value, availability of wide range of designs are top five factors while selecting a brand
  • Resale / Exchange of Old Jewellery 22 n=600 In % 89% 6% 4% 1% None Once in 6 months Once in 3 months Once in 2 months• Consumers avoid selling/exchanging their old jewellery for buying new one• In most cases resale is considered only when in financial crises
  • Effect of price rise on purchase 23 n=600 Yes No Cant Say 7% 50% 43%• One in two consumers cite that they are affected by price rise and hence defer purchase on the said account, however 43% still go for the desired possession!
  • Effect of high price on gold purchase this Diwali 24 n=600 Yes No Cant Say 10% 14% 76%• The consumers term the festivities especially Diwali/ Durga Puja (in its various manifestations) as the most auspicious time to shop hence deny the purchase to be impacted by rising prices. Though many voice that a pre determined budget guides their actions!
  • In the nutshell 25• Tanishq register Cent percent awareness followed by Mehrason, PC Jewellers, Nakshatra, Sanchi & Gitanjali.• Further, Tanishq is the most admired brand among majority across centers. Gitanjali, Nakshatra and regional branded stores are also popular among the consumers• The rising prices and the younger generation entering the category Consumer class looks for small products. Rings, earrings, pendants, necklaces, bracelets, chains and bangles as preferences.• Few young consumers also prefer online purchase as it facilitates them with EMI option• Consumers prefer to buy plain gold jewellery for its high resale value.• Branded outlets are the most preferred point of purchase for buying gold jewellery• Price, durability, purity, resale value, availability of wide range of designs are top five factors while selecting a brand among consumers• Majority looked for 22 carat gold purity whereas a significant 32% also emphasize for 18 carat purity which indicates that there is a market for 18 carat gold jewellery too• Few consumers also cited to be opting 14 carat gold due to the rising gold price and limited budget• Resale or exchange of gold jewellery rarely happens• Consumers are affected by rising prices and defer purchases however the festivities prove exception to the rule
  • Key Emerging Trends 26• Consumers of Gold jewellery are getting younger  need for aesthetically rich design to attract this young consumers• Apart from bridal category consumers are increasingly purchasing gold jewellery on personal occasions such as birthdays and anniversaries  Need for daily wearable products• Increasing popularity of online options  Websites and online offering should be focused
  • 27THANK YOU