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A project report on consumer’s preference among the branded and non branded jewellery

A project report on consumer’s preference among the branded and non branded jewellery

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A project report on consumer’s preference among the branded and non branded jewellery Document Transcript

  • 1. Marketing Management Project Jewellery buying PreferenceSubmitted to: Submitted by: 1
  • 2. CERTIFICATE OF COMPLETION This is to certify that the research project entitled "Consumer’s preferenceamong the branded and non branded jewellery “has been submitted by Group number, MBA- HR (2010 – 2012)This report is the result of their own work and to the best of their knowledge, nopart of it has earlier comprised any other report, monograph, dissertation or book. This project was carried out under our overall guidance. Signature of Faculty Guide Date Place 2
  • 3. CONTENTS aCKNOWLEDGEMENT......................................................................................................................................4 OBJECTIVE OF STUDY.......................................................................................................................................5 DESCRIPTION PROBLEM.................................................................................................................................6 significance of the study...................................................................................................................................7 introduction..........................................................................................................................................................8 research methodology....................................................................................................................................21 Data analysis......................................................................................................................................................21 Conclusion...........................................................................................................................................................34 RECOMMENDATION.......................................................................................................................................35 literary review...................................................................................................................................................36 bibliography.......................................................................................................................................................40 QUESTIONNAIRE..............................................................................................................................................41 3
  • 4. ACKNOWLEDGEMENTA study such as this cannot be the work of a single group of six people. I hereby express deep gratitude to all those who have helped us directly or indirectly incompleting this work and who have encouraged and inspired us all through the project.Words are inadequate to express our deep sentiments and gratitude towards my project mentor and guide, …………………., for her zeal and scholarly guidance during this pursuit in spite of her multifarious responsibilities. The word of acknowledgement is an expression of heart-felt thankfulness for her inspiration. Finally, we would like to thank the people who have taken time off from their busy schedule to help by providing us with their valuable inputs. 4
  • 5. OBJECTIVE OF STUDYThe objective to study the “A comparative study on the consumer’s preference amongBranded and non branded jewellery” is to find out:1) To compare between the consumer preference among the branded and non brandedjewellery.2) To know consumer perception towards jewellery.3) Brand awareness of various brands in the jewelery market.4) To have an idea about the parameters the consumers consider while buyingjewellery. 5
  • 6. DESCRIPTION PROBLEMThe scope of study is limited due to the following reasons:1) Time constraint - since the time span for the study was only one month, an in depthstudy and analysis will become a little difficult2) Sample size - the sample size of the study is only 100 which would not give acomprehensive result. Many important samples may not be considered at all. Theconclusion of the study may not result to an accurate outcome due to the sample sizebeing small.4) Awareness - the sample taken and the conclusion drawn can be led to only one side ifthere is lack of awareness about branded jewellery. 6
  • 7. SIGNIFICANCE OF THE STUDYThe gems and jewellery industry occupies an important position in theIndian economy and is one of the fastest growing industries in the country.Hence the research conducted would help us to:1) Understand the consumers preference while purchasing jewellery.2) How much impact does a brand/ retailer has on their purchase decision.3) Does price play an important role in guiding their purchase decision.4) Are the various promotional strategies adopted to combat competition. 7
  • 8. INTRODUCTIONIndia has a historic relationship with Jewellery.Many kings, emperors and dynasties featuring countless wars, conquests and politicalupheavals have ruled the Indian sub-continent. Different dynasties ruled different partsof India with different monetary systems. Jewellery acted as a common medium ofexchange or store of value across the monetary systems of different kingdoms acrossthe sub-continent especially gold. Hence wealth could still be preserved in spite of warsand political turbulence. Gold also helped preserve wealth through natural calamitiesand disasters and for centuries was the only means of saving in rural India, land beingthe other main asset of economic value. This has largely helped formulate, or evolve,the Indian sentiment and fanatical passion for gold, which holds true even today. India isestimated to hold more than 11,000 tonnes of gold.Apart from its historical religious significance, Jewellery is valued as an importantsavings and investment vehicle in India. Even in present times, Jewellery remains theIndian bride’s `Streedhan’, the wealth she takes with her when she marries and whichremains hers. Gold jewellery is the preferred jewellery worn by women in Indiairrespective of their religious beliefs. In marriages, gold jewellery is the gift preferred bythe near relatives of the bride and the groom. Jewellery is very popular amongfarmers, with an upsurge in gold sales after a good agricultural season. Buying of gold isan important part of every stage of an Indian citizen’s life— at birth, marriage, 8
  • 9. construction of home, festivals, religious ceremonies, setting up of new business, anddeath.As India makes rapid progress in the retail arena, the Indian Jewellery market isundergoing a gradual metamorphosis from unorganised to organised formats. Thejewellery business in India is estimated to be at Rs 50,000 crore. According to theindependent estimation studies conducted by World Gold Council and McKinsey, out ofthe overall market share, the share of organised jewellery market is less than Rs 1,000crore. This accounts to about 2-3 per cent of the total market share. But given that thisis a relatively new segment of the market, it is poised to grow. Jewellery retailing ismoving from a ‘storehouse of value’ to a precious fashion accessory. Plain gold isgradually easing its stranglehold on the Indian consumer psyche to give way todiamonds, platinum and coloured gemstones. The way jewellery was worn before isundergoing a tremendous change.The young Indian woman who is the prime market for the organised retailers differrfrom the traditional jewellery customer in many ways as enumerated below.•She is well educated and more in tune with international trends•Increase in working women with high disposable incomes•Greater mobility•Less constrained by traditions.All these reasons and more ensure that the modern Indian woman is looking forjewellery from a perspective different from the past. In addition, organised retailingoffers quality products, follows standardised practices and uniform pricing strategy.Organised retail formats work on transparent policies that are not necessarily availableat the traditional jewellery shops. Today, goods and services offered by any retailer arestrongly driven by their identified Target Group . There are several examples of retailerswho are drawing in consumers either across a wide swathe or a segment of socio-economic classification, clearly defined by them. This has been the first step towards 9
  • 10. organized jewellery retailing in India. In a short span of time, organised retailers havesuccessfully implemented a change in the buying pattern of the Indian consumer.In addition, branded players require focused advertising and astute salesmanship tocompete with traditional jewelers. Besides the major brands- Tanishq, Carbon,Oyzterbay, Gili and Trendsmith - several regional players have opened branches toleverage the trust and reputation that they have built up over the years.STRUCTURE OF JEWELLERY IN INDIA•Plain gold Jewellery•Studded Jewellery•Silver Jewellery•CostumeJ ewelleryIndia is the largest consumer of Gold in the world with annual demand close to 800tons. It is believed that 90% of this demand is directed towards manufacturing ofjewellery. The bulk of the Indian jewellery buying is still rooted in tradition and jewelleryis sold in traditional designs. Jewellery designs vary in different regions of India, makingthe style unique to each region. In South India the designs are inspired by nature -paisley motif of the mango, rice grains, melon and cucumber seeds, etc. In Western andNorthern India, the Mughal influence can be seen in the meenakari (enamelling) andkundan work. Jewellery is crafted not just for humans but also for the deities,ceremonial elephants, and horses. Hence the variety of gold jewellery in India is trulymind-boggling and bears testimony to the excellent skills of Indian jewellers of today.Ornaments are made practically for every part of the body - nose rings, bangles,necklaces and special jewellery for the head, ankles, waistbands, and so on. 10
  • 11. Plain gold jewellery is fabricated mainly in 22-karat gold and even 18-karat is notfavoured, as the mindset does not accept low purity gold jewellery. The logic is that thejewellery is primarily bought as an investment in gold, and investing in a low purityproduct does not appeal to the Indian consumers. However for the studded goldjewellery, 18 karat has become acceptable.CONSUMER BUYING BEHAVIOUR WHILE BUYING JEWELLERYWhile buying a product, consumer displays different kinds of behaviours towardsdifferent kinds of products from a tube of toothpaste to a new car. More complexdecisions usually involve more buying participants and more buyer deliberation.While buying an expensive product for jewellery, which satisfies a consumer’s selfesteem needs( according to the Maslow’s heirarchy of needs) a consumer displayscomplex buying behaviour. Consumers undertake complex buying behaviour when theyare highly involved in a purchase and perceive significant differences among brands.Consumers may be highly involved when the product is expensive, risky, purchasedinfrequently, and highly self expressive.This buyer will pass through a learning process, first developing belief about theproduct, then attitudes, and then making a thoughtful purchase choice. Marketers ofhigh involvement products must understand the information gathering and evaluationbehaviour pf high involvement consumer, they need to hellp buyers learn about theproduct- class attributes and their relative importance.GOLD JEWELLERY MARKET IN INDIA 11
  • 12. Before the liberalization of the Indian economy in 1991, only the Minerals and MetalsTrading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed toimport gold. The abolition of the Gold Control Act in 1992, allowed large export housesto import gold freelyExporters in export processing zones were allowed to sell 10 percent of their produce inthe domestic market. In 1993, gold and diamond mining were opened up for privateinvestors 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 intoIndia. These measures led to the entry of foreign players like DeBeers, Tiffany andCartiers into the Indian market.In the 1990s, the number of retail jewellery outlets in India increased greatly due to theabolition of the Gold Control Act. This led to a highly fragmented and unorganizedjewellery market with an estimated 100,000 workshops supplying over 350,000retailers, mostly family-owned, single shop operations. In 2001, India had the highestdemand for gold in the world; 855 tons were consumed a year, 95% of which was usedfor jewellery. The bulk of the jewellery purchased in India was designed in thetraditional Indian style.Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not verycommon in India, under-carat age was prevalent. According to a survey done by theBureau of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat wasof a lesser quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 caratsto 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 Gitanjali Jewels, aMumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand nameGili. Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thaicompany, Pranda. Su- Raj (India) Ltd. launched its collection of diamond and 22 -caratgold jewellery in 1997.The Mumbai-based group, Beautiful, which marketed the Tiffany range of products inIndia, launched its own range of studded 18-carat jewellery, Dagina. Cartiers enteredIndia in 1997 in a franchise agreement with Ravissant. Other players who entered theIndian branded gold jewellery market during the 1990s and 2000-01 included IntergoldGem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ). 12
  • 13. BRANDED DEALERS TANISHQ In 1984, Questar Investments Limited (a Tata group company) and the Tamil NaduIndustrial Development Corporation Limited (TIDCO) jointly promoted Titan WatchesLimited (Titan). Initially involved in the watches and clocks business, Titan later venturedinto 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 manufacturerto that of a fashion accessories manufacturer. In the same year, it also started itsjewellery division under the Tanishq brand.Among the branded jewellery players in the Indian market, Tanishq is considered to be atrendsetter. 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-caratjewellery range was expanded to include 22 and 24-carat ornaments as well. WhenTanishq 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 distinctivebrand image. 13
  • 14. By 2002, Tanishq retailed its jewellery through 53 exclusive stores across 41 cities. Tomeet increasing demand, Tanishq planned to open 70 stores by the end of 2003 andoffer a range of wearable products with prices starting at Rs. 400. With sales of Rs. 2.66billion in 2000-01, Tanishq had a 0.66 percent share of the total jewellery market and a27 percent share of the branded jewellery market. The market of tanishq jewellery isgrowing since long time. 14
  • 15. Figure 1 growth in sales from 2000 to 2008 in Million Rupees 15
  • 16. GILLIGili launched a collection of traditional Indian ornaments made of 18-carat gold. In1999, the Gili Gold range was introduced. This range included rings, pendants, earrings,necklaces and bangles made of 24-carat gold. All Gili products came with a guarantee ofdiamond and gold qualityGili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle anddepartment stores across the country to increase accessibility among its target segment,the 15 to 30 age group. Gili distributed its jewellery priced between Rs. 500 and Rs.40,000 through lifestyle and department stores across the country to increaseaccessibility among its target segment, the 15 to 30 age group. The collection waspromoted at college campuses with banners, pamphlets and a few advertisementstargeted at teens. Gili soon realized that just pushing its product was not enough; it alsohad to customize its products for special occasions. Following this, it launched aDiamond Heart Collection specially designed for Valentines Day. This collectionconsisting of tiny, heart-shaped diamond jewellery was well received by teens. Specialpackaging, catchy advertising and extensive press coverage contributed to the successof the collection. Gili also made special promotional offers during festive seasons likeChristmas and Diwali. Having captured the low price point market of Rs.2000 to Rs.10,000, the company is focused on penetrating the premium market of customizedjewellery. For this Gitanjali jewels opened a jewellery salon, Gianti, to providecustomized jewellery to clients in India. 16
  • 17. NAKSHATRAA diamond is a symbol of power and beauty –a creation that captures the essence ofnature’s magical process through millions of years. The Indian jewellery market hasbeen transformed in much the same way by Nakshatra. In less than a decade afterlaunch, the brand has appropriated the physical values of the diamond – its quality,brilliance and clarity – and made a deep impact on the Indian psyche. So stunning hasthis impact been that within one year of its debut Nakshatra had registered a 93% top-of mind recall – surpassing every other diamond jewellery brand by a long margin(Source: Global Tracking Study conducted by Research International, January 2003).This recall has also been reflected in the volumes Nakshatra had achieved. Between2005and 2007 the brand grew eleven times. It has impacted the jewellery trade in otherways, too. More than 70% of jewellery retail outlets have reported that Nakshatra hasnot only played a key role in generating overall diamond jewellery sales it has alsohelped them increase their own sales of floral jewellery to people who had come askingfor Nakshatra. The effort to promote Nakshatra has gained recognition from more thanjust the retail trade.In 2003, the Nakshatra Utsav won the Best Trade Promotions award at the McDowell’sSignature All India Promo Awards. In 2007 the brand was given the Retail JewellerAward for the Best TV Campaign of the Year. The in-house design team at Nakshatrawith its wide repertoire of innovative designs, fresh ideas and novel concepts also wonmultiple honours including the CK– New Delhi Gold Souk Design Award in 2006, the IIGJAward in 2007 and the Tahitian Pearl Awards in 2005 and 2007. 17
  • 18. LOCAL DEALERS TALWAR JEWELLERSA name that evokes history, quality and commitment. A name that evokes exquisitefires that gold and diamond inspire the heart.The TALWAR JEWELLERS have been providing with gold and diamond jewels for morethan 5 decades. The Late Shri Tasrem Lal Talwar established a presence in Chandigarhfrom the year the city was founded in 1954. The showroom was first and the oldest.Their fame for quality and being on the leading edge of fashion in 22 carat gold anddiamonds from all over India have been built on dedication to their clients expectations.Their commitment and dedication towards their customers have made them one of theleading jewelers in northern region. 18
  • 19. KHANNA JEWELLERSThe Khanna Group of companies was founded in 1953 by Late Shri Wazir Chand Khannaand his three sons. Their first showroom opened its doors to customers at Karol Bagh,New Delhi. Now the Khanna group of companies has, over the years, diversified intoseveral new areas. Khanna jewelers India has been adding the magical sparkle ofdiamond, gold and platinum jewellery to the lives of the jewellery connoisseur for over50 years. OTHERSThere are many other local dealers for jewellery such as Champalal jewelers, Mahaveerjewelers, Chawla jewelers etc. who are earning a good name in jewellery market.Although they sell their own produced jewellery yet they have many consumers whoprefer buying jewellery only from them. These dealers are preferred by consumersbecause of their good quality products and strong personal relations with consumers. 19
  • 20. SECTOR PROFILEBRANDED VS. NON BRANDED JEWELLERYBRANDED JEWELLERY NON BRANDED JEWELLERYName and reputation give a confidence to Customers can tailor make jewellerythe consumer. according to their preferences.It comes with a written lifetime gurantee, No written lifetime guarantee, trust is purely based on the consumer.considering the emotional quotient of theconsumer.Excellent quality, good selling policies andd Minimum efforts in packaging, finishing,backup services for jewellery. sales and low advertising.Has a more contemporary, stylish and Is usually bulky and traditional.classicoutlook, which easily segments itselfamongthe traditional onesAvailable in multiple outlets Available only in traditional jewellery outlets. 20
  • 21. RESEARCH METHODOLOGYResearch 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.TYPE OF RESEARCH: Exploratory researchDEVELOPING THE RESEARCH PLANThe data for this research project would be collected through questionnaire. Astructured questionnaire would be framed as it is less time consuming, generatesspecific and to the point information, easier to tabulate and interpret. Moreoverrespondents prefer to give direct answers.COLLECTION OF DATAa) Secondary Data: It was collected from internal sources. The secondary data wascollected from the articles, newspapers, journals and internet.b) Primary data: They were the main source of Primary data. The method of collectionof primary data would be direct personal interview through a structured questionnaire.SAMPLING PLANSince it is not possible to study whole population, it is necessary to obtainrepresentative samples from the population to understand its characteristics. 1) Sampling Units would comprise of men and women. 2) Research instruments- questionnaires.SAMPLE SIZE 100 respondents DATA ANALYSIS 21
  • 22. Question 1 Yes NoDo you wear jewellery? 99 1By studying the 100 questionnaire we have come to the conclusion that 99% of the totalpopulation wears jewellery whereas just 1% doesn’t wear the jewellery. 22
  • 23. Whenever anyQuestion 2 Once in a long Once in a occasion comes up time yearHow frequently do youmake jewellery purchases? 20 45 3545% of the total population buys jewellery in a year and 35% of the population buyswhenever any occasion comes up whereas remaining 20% buys in a long time. 23
  • 24. Question 3 Local Dealers Brands (Tanishq, D’damas , etc..)From where do you prefer purchasing 45 55jewellery?From the analysis we came to know that 45% of the people prefer purchasing jewelleryfrom local dealers and 55% of total poplution prefer buying brands. 24
  • 25. Question 4 I can choose The The stores They The from a wide quality of are easily provide jewellery variety of the accessible good is certified designs product is as they exchange excellent have their offers outlets at many placesIf brands, what are 32 47 20 16 35the factorsresponsible for thischoice (one ormore)?From the above pie chart we have concluded that why the people purchase brand is thequality of the product and its certification. 25
  • 26. Question 5 I can buy The store is The price The products The retailer is the located near are are very reliable products my house, negotiable, comparativel as I have been on credit and so is I do not y priced low dealing with easily have to him since a approachabl buy at the long time e M.R.PIf localretailers, what 11 16 23 21 37factors affectthis decision(one ormore)?The reason why 45% of the total population goes to the local retailers is there relaibilityand low prices. 26
  • 27. Question 6 Schemes launched Recommendations Pamphlets by the stores from Friends/ distributed RelativesFrom where did you 24 62 21get the knowledge ofthis store/ brand?Recommendation from friends and reletaives contribute much more in spreading theknowledge about the store/ brand rather then distributing pamphlets or launchingschemes. 27
  • 28. Question 7 I recently started From past 5 to Since a very long visiting this 10 years time, almost store/ Brand alwaysHow long have you been making 22 39 39your purchases of jewellery fromthis store/ brand?Most of the population says 70% are buying jewellery from the same store/ brand frompast 5 to 10 years or a long time respectively. 28
  • 29. Question 8 Very Satisfied Neither Dissatisfied Very satisfied satisfied dissatisfied nor dissatisfiedHow satisfied 45 48 7 - -are you withthe jewelleryyou buy?Almost everyone is satisfied with the jewellery they buy. 29
  • 30. Question 9 Extremely Very Somewhat Not very Not at all important important important important importantHow important is 9 23 28 34 3the advertisementcampaign followedby the store tomake you opt for it?35% of the population is not affected by the advertisement campaign but on thecontrary advertisement is somewhat important for the 29% of the population. 30
  • 31. Question 10 Very Significantly Partially Neutral Not at all significantly significantDoes the 14 39 24 20 1ambience and theservices providedin the store affectyour purchase?The above pie chart represents that 40% of the population is significantly affected bythe ambience and the services provided in the store. 31
  • 32. Question 11 Always Often Sometimes Rarely NeverBefore making any 12 14 30 28 16jewellery purchases, doyou compare the designsand prices of the samebetween the brandedshowroom and the localdealers?People generally don’t compare the prices between the branded showroom and thelocal dealers. 32
  • 33. Question 12 Yes No MaybeDo you plan to shift or 9 48 43change the source ofpurchasing jewellery?From the about the data we have concluded that almost half of the population issatisfied with their retaliers and doesn’t want to change. 33
  • 34. CONCLUSIONWe have concluded from the above study that the individuals are moving towardsbrands rather than local retailers. Most of the population buys jewellery frequently andthe reason why people people going for more of branded jewellery is the certification ofthe jewellery.It is not that people are ignoring local retailers large number of total population stilldemands local jewelers and the reason is the reliability of the retailers. People generallydon’t compare the prices between the branded showroom and the local dealers. Fromthe about the data we have concluded that almost half of the population is satisfiedwith their retaliers and doesn’t want to change. 34
  • 35. RECOMMENDATIONFrom the above analysis we have come to the conclusion that the local retailers shouldadopt the certification for the jewellery they are offering to the consumers. They shouldalso provide wide range of the product they are offering so that they can capture largershare in the market.Branded retailers should focus on reducing the cost and try to develop the trust factorwith the consumers so that it will help them to increase there sales. 35
  • 36. LITERARY REVIEWGEMS AND JEWELLERYThe gems and jewellery industry is one of the fastest growing industries in India, Thegrowth in the purchasing parity of the middle class and surging income levels haveresulted in consumtion growth of gems and jewellery by about 11 percent in the fiveyears preceeding 2006-2007. it also contributes over 15 percent of India’s total exportsand provides employment to 1.3 million people directly and indirectly.The two major segments of the sector in India are gold jewellery and diamonds. Goldjewellery forms around 80 per cent of the Indian jewellery market, with the balancecomprising fabricated studded jewellery that includes diamonds as well as gemstonestudded jewellery.India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the worldgold consumption, of which nearly 600 tonnes goes into making jewellery. The Indianjewellery market, estimated to be US$ 13.5 billion in fiscal 2006-07, accounts for 8.3 percent of world jewellery sales, according to a study by KPMG.The industry is well supported by Government policies and the banking sector --around50 banks provide nearly US$ 3 billion credit to the Indian diamond industry. Inaddition,India is expected to have a diamond bourse soon.India AdvantageIndia is the world’s largest diamond processing (cutting and polishing) country with anestimated 1 million processors handling over 57 per cent of the world’s rough diamondsby value. According to industry estimates, 11 out of 12 stones (diamonds) set injewelleryare cut and polished in India. Processing is done on rough diamonds in full range of sizesand qualities, including stones larger than 10 carats. 36
  • 37. In terms of carat, Indias share in this sector is about 80 per cent of the world market.Employing over 90 per cent of the global diamond industry workforce, India alsoaccounts for 90 per cent of the volume of diamonds processed in the world.ExportsAfter making its mark in the world diamond processing industry, India is well on its wayto becoming the leading global gems and jewellery hub. India’s gems and jewelleryindustry is now on a high growth trajectory.Exports from the industry fetched US$ 17.1 billion in 2006-07 against US$ 16.64 billionin2005-06, showing a growth of 26 per cent. While diamonds accounted for 64 percent ofthe total exports, gold jewellery accounted for 30.47 per cent, colored gem stonesandothers accounted for 1.44 per cent and 1.04 per cent respectively last year.Cut and polished diamond segment exports were US$ 10.90 billion, while gold jewelleryexports fetched US$ 5.21 billion last year. Coloured gemstone exports yielded US$246.48 million last fiscal, against US$ 232.35 million in 2005-06.The growth momentum has continued into the current fiscal. The gems and jewelleryexport industry grew by a robust 27 per cent export during the first half of the currentfiscal at US$ 9.4 billion, as compared to US$ 7.4 billion in the corresponding period of2006, according to the Gems and Jewellery Export Promotion Council (GJEPC).The growth in diamond exports was 28 per cent, in jewellery it was 21 per cent and incoloured gemstones, it was 22 per cent. The major destinations for exports have beentheUS, UAE, Hong Kong, Belgium and Israel. In fact, the US, UAE and Hong Kongtogether accounted for over 70 per cent of the total exports in the previous fiscal year.ConsumptionThe increasing levels of disposable household income have resulted in recordconsumption levels in the domestic market. Indian jewellery demand rose by 70 per 37
  • 38. cent during the first half of 2007 compared with the same period last year. Jewellerydemand increased to 387 tonnes from 227 tonnes during the period.Also, gold consumption during the first six months of 2007 grew by 70 per cent to 528tonnes compared to 307 tonnes in the same period last year. India’s total goldconsumption in 2006 was slightly over 700 tonnes. While jewellery accounted foraround73 per cent of gold demand, investments in the forms of coins and bars accounted forthe rest.According to the World Gold Council (WGC), India’s gold consumption this year could infact cross the 1,000-tonne mark for the first time. The booming domestic market alongwith export advantage of the industry and the Governments decision to allow foreigndirect investment of up to 51 per cent in single brand retail stores has attracted a largenumber of players to the sector.• Swarovski, the global crystal goods manufacturer and marketer, is on anexpansion spree in India and hopes to achieve 5 to 10 per cent of its globalturnover from the country in the next 10 years. The company plans to set up 30stores by 2009, from the current 13.•D’Damas India, part of one of the largest jewellery retail outlets in the world, isadding 16 new stores to its present dozen stores in India.• Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectivelypurchased a 7 per cent stake in Gitanjali Gems for around US$ 27.8 million.• Goldman Sachs and UBS Securities have acquired 6.28 per cent in Shrenuj & Coat around US$ 2.07 million and US$ 2 million, respectively.• Gemology Headquarters International (GHI), a US-based gemological gradingand research laboratory, has opened its first Indian branch at Opera House,Mumbai. 38
  • 39. • Reliance Retail is planning an aggressive entry into the jewellery retail market throughits 400 to 500 jewellery retail outlets in the country.Looking AheadThe booming economy along with the rapid increase in income levels is estimated tofurther accelerate the growth of this industry. According to a KPMG study, India’sgrowing importance in the global jewellery market is only expected to increase in thefuture with total estimated jewellery sales of US$ 21 billion by 2010 and US$ 37 billionby 2015. Diamond jewellery consumption in India is also estimated to jump by 78 percent in 2010. 39
  • 40. BIBLIOGRAPHYThe magazines and journals referred:Solitaire InternationalWeb sources:www.google.comwww.indiandata.comwww.valuenotes.com 40
  • 41. QUESTIONNAIRE Jewellery buying preference : Local retailers or Brands1. Do you wear jewellery?□ Yes□ No2. How frequently do you make jewellery purchases?□ Once in a long time□ Once in a year□ Whenever any occasion comes up3. From where do you prefer purchasing jewellery?□ Local Dealers□ Brands (Tanishq, D’damas, etc.)4. If brands, what are the factors responsible for this choice (one or more)?□ I can choose from a wide variety of designs□ The quality of the products is excellent□ The stores are easily accessible as they have their outlets at many places.□ They provide good exchange offers.□ The jewellery is certified. 41
  • 42. 5. If local retailers, what factors affect this decision (one or more)?□ I can buy the products on credit .□ The store is located near my house, and so is easily approachable.□ The prices are negotiable, I do not have to buy at the M.R.P.□ The products are comparatively priced low .□ The retailer is very reliable as I have been dealing with him since a long time.6. From where did you get the knowledge of this store/ brand?□ Schemes launched by the store.□ Recommendations from Friends / Relatives.□ Pamphlets distributed.7. How long have you been making your purchases of jewellery from this store/ brand?□ I recently started visiting this store / brand.□ From past 5 to 10 years□ Since a very long time, almost always.8. How satisfied are you with the jewellery you buy?□ Very satisfied□ Satisfied□ neither satisfied nor dissatisfied 42
  • 43. □ Dissatisfied□ Very dissatisfied9. How important is the advertisement campaign followed by the store to make you opt for it?□ Extremely important□ Very important□ Somewhat important□ Not very important□ Non at all important10. Does the ambience and the services provided in the store affect your purchase?□ Very Significantly□ Significantly□ Partially□ Neutral□ Not At All Significant11. Before making any jewellery purchases, do you compare the designs and prices of the same between the branded showrooms and the local dealers?□ Always□ Often□ Sometimes□ Rarely 43
  • 44. □ Never 12. Do you plan to shift or change the source of purchasing jewellery? □ Yes □ No □ MaybeNAME: ________________________ ADDRESS:_____________________________________________PROFESSION: __________________ MONTHLY INCOME: - □ 3 FIGURES □ 4FIGURES □ 5 FIGURES 44