Consumer preference over branded jewellery and non branded jwellery


Published on


  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Consumer preference over branded jewellery and non branded jwellery

  1. 1. 1 Project L FfI b a. blo s j. rat. co m
  4. 4. Prof ect f o r ba. bt og o t. corn TABLE OF CONTENTS Chapter No. Subject Page No. Introduction._ .................. Research Methodology Primary Objective(s)......................................... Hypothesis ........................................................ Research D e s i g n _ _ .................................... Sample i n................................................. Data .................................................................. Critical Review of................................................. Literature. ...hector Profile ................................. ~ n lusi n.............................................................. 4 Project L FfI b a. blo s j. rat. co m
  5. 5. Prof ect f o r ba. bt og o t. corn INTRODUCTION India has a historic relationship with Jeweller-y. Many kings, emperors and dynasties featuring countless wars. conquests and political upheavals have ruled the Indian sub-continent. Different dynasties ruled different parts of India with different monetary systems. Jewellery acted as a common medium of exchange or store of value across the monetary systems of different kingdoms across the sub-continent especially gold. Hence wealth could still be preserved in spite of wars and political turbulence. Gold also helped preserve wealth through natural calamities and disasters and for centuries was the only means of saving in rural India, land being the 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 is estimated to hold more than 11,000 tonnes of g old. Apart from its historical religious significance, Jeweller is valued as an important savings and investment vehicle in India. Even in present times. Jewellery remains the Indian bride's ' trecdhan ', the wealth she takes with her when she marries and which remains hers. Gold j ewell cry is the preferred jewellery wore by women in India irrespective of their religious beliefs. In marriages, gold jewellery is the gift preferred by the near relatives of the bride and the groom. Gold jewellery is very popular among farmers, with an upsurge in gold sales after a good agricultural season. Buying of gold is an important part of every stage of an Indian citizen's at birth. marriae, construction of home, festivals, religious ceremonies, setting up of new business, and death. As India makes rapid progress in the retail arena, the Indian Jewellery market is undergoing a gradual metamorphosis from unorganised to organised formats. The jcwcller v business in India is estimated to be at Rs 50.000 crorc. According to the independent estimation studies conducted by World Gold Council and McKinsey, out of the overall market share, the share of organised jewellery market is less than Rs 1,000 Project L Fflr b a . b/o s j. ()Leon' 5
  6. 6. Prof ect f o r ba. bt og o t. corn crorc. This accounts to about 2-3 per cent of the total market share. But given that this is a relatively new segment of the market, it is poised to grow. Jewellery retailing is moving from a 'storehouse of value' to a precious fashion accessory. Plain gold is gradually casing its stranglehold on the Indian consumer psyche to give way to diamonds, platinum and coloured gemstones. The wa~4F jewellery was worn before is undergoing a tremendous change. Traditional designs arc yielding to modem jewellery. heavy gold is giving way to light and simple designs. Consumers are more quality conscious than ever before. The jeweller' market is one of the largest consumer sectors in the country - larger than telecom, automobiles, apparel, and perhaps second only to the foods sector. Interestingly, organised retailers have attempted to understand the market, anticipate social changes and stratcgisc appropriately. They have ceaselessly endeavored to derive the formulae of 'what the consumer wants?' The young Indian woman who is the prime market for the organised retailers differs from the traditional jeweller customer in many w a s 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 l these reasons and more ensure that the modern Indian woman is looking for jewellery from a perspective different from the past. I n addition, organised retailing offers quality products, follows standardised practices and uniform pricing strategy, Organised retail formats work on transparent policies that are not necessarily available at the traditional jewellery shops. Today, goods and services offered by any retailer are strongly driven by their identified Target Group (TG). There arc several examples of retailers who arc drawing in consumers either across a wide swathe or a seg ment of socio-economic classification, clearly defined by them. This has been the first step towards organised jeweller' retailing in India. I n a short span of time, organised retailers have successfully implemented a change in the buying pattern of the Indian consumer. This is evident from Project L FfI b a. b/o s j. (0. con 6
  7. 7. Prof ect f o r ba. bt og o t. corn the shift from the traditional jeweller to the jeweller with an identity. This shift clearly indicates a change in viewpoint of jewellery as a commodity to brand identification. L SEARCH METHODOLOGY Statement of objectives 1. To compare between Branded and Non-Branded Jewellery. To know Consumer perception towards Jewellery . To know the Major Players of i ewell erv industry. To have an idea about p arameters consumer consider while buying Jewellery, 5. To have knowledge about demographic segments. 6. To know the Marketing strategies used by various jewellery brands. RESEARCH AND SAMPLE DESIGN: This research will accomplish chiefly through qualitative approach that is based on the secondary information as well as quantitative studies like surve Fs etc. are also considered and taken into account. Qualitative research includes the reviewing and analysis of the articles, research papers. interviews and other published information in order to gain a deeper understanding of the prevailing scenario. These methods will help to understand the opinion and views of eminent and learned academicians and leading businessmen and provide an idea of future developments in Jewellery sector. Also, quantitative information, in which survey reports etc done on the basis of questionnaires was beneficial in the way that it provides a comparative insight into the Project L FfI ire a. ir e/o s j. rat. coin 7
  8. 8. Prof ect f o r ba. bt og o t. corn consumer perception for branded jewellery and non-branded jewellery and their preferences over i t . I t is good for examining consumer behaviour in the current trends of jeyell erg ' sector. TYPE OF RESEARCH: E P L C T C } I QUALITATIVE SAMPLING FRAME: I OI MA DELHI REGIONS SUCH AS LAJPAT NAGALSOUTH EXTENSION,NEW FRIENDS COLOI i I ET ETC Data Collection The research study will be accomplished through in-depth review and analysis of secondary information available in the published fomL which includes data from textbook, journals, management reports seminar papers etc. The electronic data and results of surve F s conducted by organizations were also important data sources for the report. To gather all the information that my report need, I will find related information by accessing reference books business magazines and journals web sources. Primar F data was basicall F collected by conducting survey through a questionnaire (Sample siie=5O-1 OU) and area of conducting survey was New Delhi AND NCR. The research design was exploratory and descriptive. Project L FfI b a. b/o s j . r a t . c o n 8
  9. 9. Prof ect f o r ba. bt og o t. corn CRITICAL REVIEW OF LITER%TURE Gems and Jer eller-' The Gems Jeweller' Industry is one of the fastest g rowing industries in the country. The growth in purchasing parity of the middle class and surging income levels have resulted in consumption growth of gems and jewellery by ab out 1 1 percent in the five- year period preceding 2006-07. It also contributes over 1.5 per cent of India's total exports and provides employment to 1.3 million people directly and indirectly. The two major segments of the sector in India are gold jewellery and diamonds. Gold jeweller ' forms around 80 per cent of the Indian jewellery. market, with the balance comprising fabricated studded jewellery that includes diamonds as well as gemstone studded jewellery. India consumes nearly 00 tonnes of gold accounting for about 20 per cent of the world gold consumption, of which nearly 600 tonnes goes into making jewellery. The Indian jeweller market, estimated to be L F 13.5 billion in fiscal 2 0 0 6 - 0 7 , accounts for 8. 3 per cent of world jewellery sales, according to a study by KPMG. The industry is well supported by Government policies and the banking sector -- around 50 banks provide nearly LASS 3 billion credit to the Indian diamond industry. In addition, India is expected to have a diamond bourse soon. India A than ta e India is the worlds largest diamond processing (cutting and polishing) country with an estimated 1 million processors handling over 57 per cent of the world's rough diamonds by value. According to industry estimates, 1 1 out of 12 stones (diamonds) set in jewellery arc cut and polished in India. Processing is done on rough diamonds in full range of sizes and qualities, including stones larger than 10 carats. Project L FfI b a. b/o s j . r a t . c o n 9
  10. 10. Prof ect for ba. bt og o t. corn In terms of carat, India's 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 also accounts for 90 per cent of the volume of diamonds processed in the world. E j . Torts After making its mark in the world diamond processing industry, India is well on its way to becoming the leading global gems and jewellery hub. India's gems and jewellery industry is now on a high growth trajectory. Exports from the industry fetched USS l 7.1 billion in 2006-07 against USS 16.64 billion in 2005-06, showing a growth of 26 per cent. While diamonds accounted for 64 per cent of the total exports, gold jewellery accounted for 30.47 per cent, coloured gem stones and others accounted for 1.44 per cent and 1,04 per cent respectively last year. Cut and polished diamond segment exports were USS 10.90 billion, while gold jeweller y exports fetched USS 5.21 billion last year. Coloured gemstone exports yielded USS 246.48 million last fiscal, against U 23235 million in 2005-06. The growth momentum has continued into the current fiscal. The gems and jewellery export industry grew by a robust 27 per cent export during the first half of the current fiscal at USS 9.4 billion, as compared to USS L4 billion in the corresponding period of 2006, according to the Gems and Jewellery Export Promotion Council (GJ EP C) , The growth in diamond exports was 28 per cent, in j sw ell ery it was 21 per cent and in coloured gemstones, it was 22 per cent. The major destinations for exports have been the US, UAE. Hong Kon . Belg ium and Israel. In fact, the US, UAE and Hong Kong together accounted for over 70 per cent of the total exports in the previous fiscal year. Cons um j (ion Projec(L rnI b a. b/o s j. (0. co m 8
  11. 11. Prof ect for ba. bt og o t. corn The increasing levels of disposable household income have resulted in record consumption levels in the domestic market. Indian jewellery demand rose by 70 per cent during the first half of 2007 compared with the same period last year. Jeweller demand 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 528 tonnes compared to 307 tonnes in the same period last year. India's total gold consumption in 2006 was slightly over 700 tonnes. While jewellery accounted for around 73 per cent of gold demand_ investments in the forms of coins and bars accounted for the rest. According to the World Gold Council (W(;[')_ India's gold consumption this year could in fact cross the 1_000-tonne mark for the first time. The booming domestic market along with export advantage of the industry and the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores has attracted a large number of players to the sector. warovski, the global crystal goods manufacturer and marketer_ is on an expansion spree in India and hopes to achieve 5 to 10 per cent of its global turnover from the country in the next 10 years. The company plans to set up 30 stores by 2009, from the current l 3 . · Damas India, part of one of the largest jeweller F retail outlets in the world, is adding 16 new stores to its present dozen stores in India. · Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively purchased a 7 per cent stake in Gitanjali Gems for around USS 27.8 million. · Goldman Sachs and UBS Securities have acquired 6.28 per cent in Shrenuj Co at around U 2.07 million and USS 2 million, respectively. · Gemology Headquarters International (GHI ), a US-based gemological grading and research laboratory, has opened its first Indian branch at Opera House, umbai. Project L FfI b a. b/o s j. rat. con l 11
  12. 12. Prof ect for ba. bt og o t. corn · Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 je • w eller ' retail outlets across the country. Looking Ahead The booming economy along with the rapid increase in income levels is estimated to further accelerate the g rowth of this industry. According to a KPMG study, India's growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of U 21 billion by 2010 and U 37 billion by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per cent in 2010. STRUCTU OF JEWELRY IN INDIA · Plain gold Jewellery Studded J c cll ery · Silver J ewel lery · Costume Jewellery As was stated earlier, India is the lamest consumer of Gold in the world with annual demand close to 800 tons. It is believed that 90% of this deman is directed towards manufacturing of jewellery, The bulk of the Indian jeweller y buying is still rooted in tradition and jewellery is sold in traditional designs. Jewellery designs vary in different regions of India, making the style unique to each region. In South India the designs arc inspired by nature - paisley motif of the mango, rice grains, melon and cucumber seeds, etc. In Western and Northern India, the Mughal influence can be seen in the meenakari (enamelling) and kundan 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 truly mind-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. Plain gold jewellery is fabricated mainly in 22-karat gold and Project L FfI b a. b/o s j. rat. con l 12
  13. 13. Prof ect for ba. bt og o t. corn even 1-karat is not favoured, as the mindset does not accept low purity gold Project L FfI b a. b/o s j. rat. con l 13
  14. 14. Prof ect for ba. bt og o t. corn jeweller . v, The logic is that the jewellery is primarily bought as an investment in gold, and investing in a low purity product does not appeal to the Indian consumers. However for the studded gold jewellery, 1 karat has become acceptable. SECTOR PROFILE BRANDED JEWELLERY V/S NON-BRANDED JEWELLERY : ' :, f :, TRADITIONAL JEWELLERY/ NO N- BH BRANDED JEWELLERY Name and reputation attached to any item gives a degree of confidence to the consumer, Traditional J e yell er y will also be around where by consumers tailor-make their jewelry according to their preferences. Branded Jewellery comes . with a Nvritten lifetime guarantee, keeping in mind the emotional quotient of the consumer. There is no'vritten lifetime guarantee. Trust is purely based on individual's trust in his jeweller. Excellent quality, quality of finish_ packaging. sales force and selling policies and backup , service for their je eller . Minimum efforts in packaging_ finishing_ sales and low advertising, Gives value for money, good quality good service, and variety of products and has a good advertising continue to do so. i m a m ' buying is largely done on 'trust'. A lot of people who have been buying from their family jeweler for years marketing campaign. Project L FfI b a. b/o s j. rat. con l 14
  15. 15. Prof ect for ba. bt og o t. corn Manufactured in modern factories with different departments, ca h devoted to one aspect of the manufacturing process. Branded , jewellery generally comes only in safe styles. A one-off item painstakingly crafted by a single person. Traditional jewellery can be handcrafted in several styles, Project L FfI b a. b/o s j. rat. con l 15
  16. 16. Prof ect for ba. bt og o t. corn C an be bought at any ti rm~e of the year. could also be impulsive buying. I s bought fo r specific occasions like marriage_ festivals etc. I tanufacturcd by the lost Nvax casting process which is more machine based. I tanufacturcd by the "Babus" or the cottaLc industr y kind of manufacturers. Run by experienced and new breed Run by traditional je w ellers, manufactures that have prior marketing background from their business in the export markets. Has a more conterm porary, stylish and classic outlook_ which easily segments itself among the traditional ones_ I s usually traditional_ bulky and ornate. Most branded jewellery is diamond-studded jewellery, Traditional jewellery is primarily gold. Most diamond jewelry is certified for gold and diamond content and is sold at an MRP without a break up of the gold and diamond content. Need not necessarily be certified and comes with a complete break up of the gold and diamond content_ including making and wastage charges. A mark up for the department store /jeweller and a basic markup to cover brand building costs. Is devoid of all these costs. Available in multiple outlets. Available only in the traditional jewellers outlets. A large section of gold buyers though_ still favor small jeweller families. But huge brand- building exercises are making people buy jewellery off the counter. Focused advertising, display and astute salesmanship are being combined to take on traditional jewellers. Project L FfI b a. b/o s j. rat. con l 16
  17. 17. Prof ect for ba. bt og o t. corn Pricing for jewellery is based on the designs, quality of material (metal and diamonds) and category. By and large branded jewellery does carry a premium over traditional jewell erv but then it offers a quality and assurance of purity that is reliable and guaranteed. However, all said and done, if all l quality of diamonds, purity of the metal and quality of manufacturing is taken into account and we compare an apple for an apple, then the premium on banded jewellery would be in the range of - 10%. Brands offers the consumer distinctive values. This is true in ever T product category, including jewellery. These values could range from trust, distinctive design, specific product benefits or superb shopping experience. Over a course of time, brands build strong , long-term affiliations with their consumers because these distinctive values come to possess timeless appeal. Consumers trust brands, and remain loyal to their favorite brands. Project L FfI b a. b/o s j. rat. con l 17
  18. 18. Prof ect for ba. bt og o t. corn FAMOUS INDIAN ,l EWEL ER BRANDS Giving glitter a name Read made and branded jewellery arc becoming increasingly popular, especially among the young . But there are also some who continue to trust only the g ood Project L FfI b a. b/o s j. rat. con l 18
  19. 19. Prof ect for ba. bt og o t. corn goldsmith. Buying jewellery is about trusting people with: dreams and hard-earned money. So, the choice of the jewellery is not a non- issue. But there has been a marked chang e in the tradition of jewellery-making and buying trends in the last two decades, with read made jewellery becoming increasingly popular. The past few years have also seen the arrival of branded pure gold, diamond Project L FfI b a. b/o s j. rat. con l 19
  20. 20. Prof ect for ba. bt og o t. corn and platinum jewellery at the market. while the recently introduced brands project their quality and designer value, the older jewellers `all back on their experience and trust built up over the years. Many manufacturers have launched jewellery brands in the past 4-5 years but are all of them clearly identified and focused? This could generally speaking go well for the industry as this kind of a thrust on branding gives a momentum to the product segment and the promotions and advertising that goes with it invariably expands the market. Though in the long run there could be a shake out and a few of the brands may fold over, the i n c t expansion may stop or even shrink a little but is always far more than the market size before the branding thrust. It's the DTC brand strategies for site holders to start new brands and also regional players that are increasingly looking at launching their own brands, expanding into n m markets, adopting new retail formats and hiring jewellery designers to improve their product rang e. However, one of the reasons behind indig enous brand launches could be the desire to g et ready for the foreign bands that could flood the market. To woo the consumer further, the local players are now setting aside promotional budgets to entice the brand and quality conscious consumers looking for products backed by hallmark and guarantee certifications. Freebies and loyalty clubs arc the order of the day. These could rang e from chauffeur-driven car service to free airline tickets in lieu of certain spend. Local brands are also tying up with fashion houses to appeal to a wider, discerning audience. Just like darzis disappeared once the ready-to-wear garments market matured, smaller jeweller' players will close shop and what can we say, _may may the fittest sur v ivel The demand for branded jewellery is growing in India following the international trends. Nakshatra - Puwer'ul Floral Designs Nakshatra was among the first diamond jewellery brands to be launched in India by DTC and has today become an iconic brand. The brand has a halo effect on the vhole category, The growth of Nakshatra diamond jewellery over the years has been in line with the annual growth in the diamond jewellery market i.e. about 15%. Project L FfI b a. b/o s j. rat. con l 20
  21. 21. Prof ect for ba. bt og o t. corn Nakshatra has become a benchmark and a point of reference for all other brands entering the market today and has been instrumental in the growth of branded diamond jeweller y in India. The floral design is a very powerful design concept and has worked well to give the brand a distinct identity. The consumers can identify e brand very easily and this makes them more confident of their purchase. Besides this Nakshatra offers a unique brand experience to the consumer at the point of purchase. Asmi- For the Modern Indian Woman D T ' s other brand Asmi on the other hand is an offering for the modem Indian Woman. Launched in the year 200 2i the Asmi woman is between the age group of 25 to 40. Asmi is a collection of diamond designs, inspired by the fusion of the East and the west, and is characterized by an eleg ant curve studded with tiny diamonds hig hlig hting a sing le diamond as its core. Sangini - For Special Milestones ITC's brand San2ini is an offering for the married seg ment of the market. I t has been positioned as the ultimate gift on special milestones and occasions like anniversaries, birthdays etc. The brand derives its design from the concept of being the special one to the spouse. The centre stone of every piece of San6ni Diamond Jeweller is of slightly larger size than the other diamonds within the piece. This centre stone is also set differently its unique Bezel. Setting clearly makes it stand out from the other stones set within the same piece. Arisia - Diamond Solitaires Arisia, the niche brand of Diamond Solitaires was launched in 2001. This brand targ ets the huge segment of the super elites in India, which incidentally, is also the segment with the highest rate of diamond acquisition. Arisia comprises diamond solitaires, from I carat and above in round, princess and emerald cut with Iai certification. Project L FfI b a. b/o s j. rat. con l 21
  22. 22. Prof ect for ba. bt og o t. corn Tanishq Purity Personified Tanishq is market leader in India's nascent but rapidly growing market for branded jewellery, Within eight wears of its launch in l 9W Tanishq has built a nationwide network of 67 exclusive jeweller - boutiques in 52 cities and towns across India. Over the past four years, Tanishq has also grown rapidly, and is today India's largest retailer of jeweller' in the organised branded sector. Tanishq awarded the coveted I F -Images "Most admire brand" award for m o years consecutively. Last world chose to thaturc three Indian brandsi transformed the branded space for a woman in Iru was one of these three chosen brands. = m e t e r stores offer consumers the most reliable n~ori-destructive way of determining the purity of gold. Dili y Superbrand tai tare ali Group is one of the earliest diamond houses in India and today is one of the largest diamond exporting, companies in India. Along with this they also have facet-shops based on shop concepts. Their collection is doing extremely well with over 1000 outlets all over India. Thee believe in creating brands for everyone, throug h all the rang es. Recently was awarded the status of a " uperbrand' for its long-standing tradition of customer service and constant focus on quality and innovation in design. Each brand has been introduced keeping in mind the target clientele that it caters to. One of their LI Ps is their commitment level with respect to consumers. Intergold ORRA Intergold is part of the l osyblue Group- the world's largest diamond manufacturing company with a presence across fifteen countries headquartered in New York. It is the largest sight holder of DTI, . The Group has been the largest j ewell cr y exporter for twelve years consecutively. Intergold is the only jeweller v company in India which has tie ups with the three leading jewellery organizations namely, DT C PGI fir'(;[, . Currently Intergold has 24 stand-alone stores across 15 cities. Intergold showrooms are spread across the co untrv from I umbai. Delhi, Chandigarh, Hyderabad, Chennai, C oimbatore,a t i . w I aj ot, Baroda, Surat, Ahmedabad, Mumbal, Goa, Pondicherr ', Pune, Bangalore, and Kolkata. Recently I nterGol d ran campaigns of changing its brand name to Orra after Project L FfI b a. b/o s j. rat. con l 22
  23. 23. Prof ect for ba. bt og o t. corn which they realized that this was a wrong step on their part so they planned to keep the m o as separate brand identities. D"lamas -Adding a Hint of Glamour D.damas is one of the major brands from the a itanjal i group. On the lines of international trends, where brand ambassadors are roped in to help design the product itself. jewell cry firm. D'damas, roped in Hollywood stars to help design jewellery under the name 'UFA dal itterati collection,' with the different lines being named after the stars themselves. Their designers spent ample time with the stars in order to design the jewellery in line with their personality. The signatures of the stars is laser inscribed in each piece of jewellery , which has used both white and yellow gold. and the entry-level pricing is Rs 15.000. The company is a joint venture between G empl us Jewellery and Damas. which claims to be the largest retailing jewellery brand chain in the Vest Asia. Adora -Affordable Diamonds Adora was born on July 3 2003 with a big event in Mumbai. Within a month of the launch. Adora created 3 world records, which was duly endorsed by Limca Books of Records namely. The 3 records were Biggest Rakhi. Expensive Rakhi Adora Interactive Kiosk Nvith an onboard computer Nvith touch screen and Internet to deliver multiple marketing, sales and promotional functions. The brand was launched in phase manners. Phase I was Mumbai launch. Phase II was National launch in 9 cities. Phase III which is currently g oing on is launch in semi metros and towns of India Phase IV would be International launch. The LJP of Adorn is easy availability, choice affordability, Isiah - From a Beautiful Place A sight holder with DTI', Sheetal Manufactunng Co ( M C ) has the status of being the w orld's largest volume manufacturer of polished diamonds with an annual turnover of 1.5 million carats. The company has recently bagged the outstanding export performance award in the DTI' categ ory and has also become a Star Trading House, a recog nition awarded to them by the Government of India. The first retail brand will be "MAW an Australian aboriginal term. Nvhich means from a beautiful place " Project L FfI b a. b/o s j. rat. con l 23
  24. 24. Prof ect for ba. bt og o t. corn Oyzterbay - Jewellery for the Living yzterba is in retailing apart from running signature stores that showcase precious metals, gemstones and crafted jewellery designs. It is a young brand at the forefront of change in the jewellery industry. It was the first to launch a brand catering to the young new woman of today, with contemporary wearable designs. yzterbay's byline, "Jewellery for the Living", epitomizes the ethos of the brand. With 29 stylish and exclusive stores across the country, and another 20 outlets in department stores, it is the fastest growing jewellery brand in the country. To date, Oyzterbay, in just over three years has sold close to 300,000 pieces of jewellery, indicating tremendous acceptability of the product and the brand. Carbon - Stylish Designs Carbon has been an important factor in initiating and bringing about excitement into this personal domain. Established in 1996, Carbon launched its first fashion accessory collection `Venus' at the first Carbon outlet in Shoppers Stop, Bangalore and recently opened its exclusive boutique in Bangalore. Exploring with accessories that nudged jewellery out of the vault and into the wardrobe, collections examined the world of fashion, emotion, lifestyle and helped consumers elevate their personal sense of style. Desig n is the sole factor that led to the birth of Carbon, the brand. The Carbon desig n studio regards material and technology as a tool or means of expressing the intangible fashion and lifestyle needs of consumers. A ;ni - Anmol... Alp hi lei taraha Agni is a brainchild of the House of boors, nationally renowned jewellers, originally from Jalandhar, Punjab and presently based in Mumbai. Over a decade and a half of excellence in creating a range of exclusive gold jewellery gave them a clear insight into the heart and mind of the Indian customer. Project L FfI b a . b/o s j. ()Leon' 1
  25. 25. Prof ect for ba. bt og o t. corn As pioneers of the branded gold jeweller' segment with Agni, the Shoors intend to drive their head start across the country to make a beginning towards creating a product that focuses solely on the customer's benefit and interest. For the first time in India Agni makes gold jewellery available with MR P regulation. Platinum Cuild International - Promoting Brand Platinum Platinum is the most precious metal used for branded jewellerv , Platinum is pure, an expression of integrity, a reflection of inner truth. Platinum's purity endows it with a brilliant white luster. This helps to reflect the true radiance of diamonds. It is rare, the coveted treasure of discerning in ividuals. There is very little platinum on this earth and it is found in very few places around the world Its densi t and weight make it more durable, than other jewellery metals. In addition to its strength and density, platinum has another remarkable quality -pli abil i t . The Platinum Guild International worldwide under the Pt logo promotes platinum jewel] er y. Cygnus - Diamonds for an Cyg nus is a brand of 18K gold and diamond jewellery in the domestic market. Priced in the rang e of 1 s . 1 , 0 0 0 - 3 0 . 0 0 0 , Cyg nus is being retailed at lifestyle stores, traditional jewellers and exclusive franchise outlets. The brand is promoted by fp s, l , 000 crore Laxmi Diamond Group. The group was set up in 1972, and is the second largest exporter of polished diamonds in the country. Ishis - Fusion Diamond Jeweller T Ishi's (which means the Goddess of Wealth) includes a range of diamond jewellerv for the Indian and West Asian markets, with an accent on fusion design, incorporating traditional designs with modem designs. I t is part of the Suashish Group, which is one of the largest manufacturing site holders of De Beers. Ishi's is currently available throug h its sig nature outlets in Mumbai, and Dubai, besides shop-in-shops stores. It plans to have 70 outlets by the end of the year, and be present in over 500 outlets across the world in the next 10 Nears, P r o j e c t s f i w m b a . b / o s j . ( 0 . c o n 25
  26. 26. Prof ect for ba. bt og o t. corn Bulaire - Champagne Diamond Jewellery P r o j e c t s f i w m b a . b / o s j . ( 0 . c o n 26
  27. 27. Prof ect for ba. bt og o t. corn Bulaire Champagne diamond jewellery is rare, precious-set in alluring designs to embody your inner desires_ ambitions and aspirations and includes pendants, rings, earrings and bracelets. The shop-in-shops are located in prominent shopping malls and traditional j e e l l ert stores. The company hopes it will make sales of 1.1 million within a year from the jewellery, Siu nitv -Trendsetters in Cubic Zirconia Signity is a world-leading brand of Swarovski and Golay specializing in precision-cut g enuine and created g emstones, Si2nitv believes that the finest diamond look-alike ever developed has to be cut to standards equivalent to those applied for the finest cut genuine diamonds. So_ they asked their most experienced cutters and engineers to determine precise ideal proportions for their cubic zirconia. To test the validity of their findings, they send their cubic zirconia stones to a respected independent gemologi cal l aborator-y specializing in the machine measurement of diamond brilliance. Nirvana - Invisible Set Diamonds Nirvana is targeted at contemporary independent- thinking women. This exquisite but mid-priced range of pendants, rings and earrings, bracelets is available from i s . 3 i 000 onwards. Nirvana uses `Invisible-setting' Fax-based setting, which helps set diamond together without any gaps or joints. The `pressure-setting' technology helps set round diamonds in amazing designs without any clasps. The absence of visible support gives a larger' bigger look and adds luster and fire to the diamond. As proof of its commitment to quality, Nirvana also offers consumers a lifetime warrants' exchange proposition, Trendsmith - Bold and Unconventional Trendsmith, a TB -promoted chain of jewellery retail stores holds the distinction of hosting the lamest number of branded and designer jewellery under a single roof. Trendsmith broke new ground by transforming jewellery buying from being a traditional investment into a fashion statement. Trendsmith is an exciting , innovative endeavor from the House of T B -I irmal Zaveri, a. Project L FfI b a. b/o s j. rat. con 27
  28. 28. Prof ect for ba. bt og o t. corn jeweller' business. The Trendsmi th style of jewellery is renowned for being bold and unconventional. Sveni -Creating Ripples Brand Svcni from the company Shrenuj created ripples in the market and is doing very well The brand comprises solitaire rings, carringsi pendants and bangles in gold and platinum. Svcni Solitaire jewellery comes in the range of 0.50 to 0.89 carat with laser inscription and IGI certification. Bhavya brand from the same company was also launched. Bhavya has solitaire rin s, earrings and pendants in gold and platinum. Their solitaire jewellery comes in the range of 0,20 to 0,50 carat with laser inscription and IGI certification. I ntagent - Jewellery beyond Imagination The jewellery manufactured by Imagcm is a'work of art. It is vibrant and made as per International Standards. Imagcm is all about expressions and dreams. Imagcm is jewellery beyond imagination' with tic right mix of classic, contemporary and modern designs. Imagcm creations are suited to all preferences from classic to contemporary, causal to bridal wear. I t is the change in the buying patterns of consumers today, who are willing to posses not just jewellery, that stagnates in the bank lockers but jewellers that can be adorned and appreciated on a regular basis and yet also be passed down generations. All collections are backed with a theme that relates to expressions and dreams. Sogni Q "oro - Rising Star on the Indian Horizon Projects rm b a. b/o s j. rat. con 28
  29. 29. Prof ect for ba. bt og o t. corn So2oi'D'Om is the brand name of Italindi. It is Italian jewellery on the name Italindi that is being imported from Italy-the hub of jewels and fashion So2ni D'Oro or in other words "g olden dreams" is exactly what the brand name suL2ests - that one Nvould want to own for its sheer beauty and technicality. The jewellery collections arc extremely innovative bold and Project L FfI b a. b/o s j. rat. con 29
  30. 30. Prof ect for ba. bt og o t. corn unconventional. All pieces of jewellery at Sogni DDro arc either handcrafted or machine Project L FfI b a. b/o s j. rat. con 30
  31. 31. Prof ect for ba. bt og o t. corn made that are legally imported from Italy to India. It is manufactured and procured from all major jewellers who arc from famous jewellery towns of Italy namely Vicenza and Arezzo. Project L F f I b a. b/o s j. rat. co n
  32. 32. Prof ect for ba. bt og o t. corn Hammer Plus - Branding Spirituality Hammer Plus Jw cllery as a brand believes in creatinL market focused flint jewellery brands as per the market requirements for the retailers. Hammer Plus believes in the ideology of "We make it happen for you" by not just creating jeweller-' but also adding band value to its products. Each brand of Hammer Plus has its individual characteristics, a distinct identity and an image of its own targ eted at an audience_ based on the market requirements congruent with merchandising at specific price Project L F f I b a. b/o s j. rat. co n
  33. 33. Prof ect for ba. bt og o t. corn points. The brands with adequate support of the various elements of marketing, consumer research and visual merchandising g ive each brand a character of its own. Hammer Plus has a production capacity of nearly 10,000 pieces per month a total manpower of 200 people in the production department manufacturing brands like Divya Vinayak_ Karma, Ekkarii, Tamorri allaya, Swarovski -The Fashion Brand Although the company is more than 100 years old, the jewellery range was launched only in 1977. It specializes in imported crystal components and extensive palette of Swarovski crystal products to enjoy_ toweari to give and to receive. Today the creations are both fashion/trend inspired as veil as a classic range with jewellery designs of the highest Project L F f I b a. b/o s j. rat. co n
  34. 34. Prof ect for ba. bt og o t. corn quality, Swarovski in India is on an expansion mode. The product range keeps changing with time and trends that are forecasted for the forthcoming seasons. C ientnte - Jewel-in-the-crown Ciemme is synonymous with exquisitely designed diamond studded jewellery. This international flagship brand of diamond jewellery is itself a jewel-in-the-crown of the C. Mahendra Diamond Product Group, catering to the medium to high price market segments. With its state-of-the art infrastructure and hi- tech manufacturing facilities, Ciemme consistently meets stringently high quality requirements and delivers never-ending customer Project L F f I b a. b/o s j. rat. co n
  35. 35. Prof ect for ba. bt og o t. corn satisfaction. The C iemmc collection includes , unique designs .. generated along concept lines, featuring rings, pendants, caningsbracclcts, and many more, Vanshi - One for Every one Vanshi Diamond Jewellery is catering to all range of customers. It is positioned as "One for everyone." Vanshi Diamond Jcwcllcr v is recognized as "Value for Money" apart from that Vanshi Diamond Jeweller T is well known for its unique designs. It is different from all other brands in terms of designs, crafsmanship, purity etc. T TE IES FOR WOOING CUSTOMER' T.4 NI In the late I ))t)Ls, p/aye's in the branded go / / e 'eler y market )rmu fated L 't)• tegi s or wooing customers. According to Jacob urian (K1.? ian). .'hi ' j ratio (Vice,' of Tanishq, the challenges were many, As the jewellery market was highly.fragmented, lacked branding, and allowed many unethical practicep to _ to urish, Tanishq v r k e hha' on a two-pronged brand-building L't)ak- ' ..• cultivate trust by educating customers about the unethical practices in the business and change the j. rrej. tion o .je •i. •'L'ller ` as a high- priced purchase. Said Kurian, "We are changing the attitudes of customers from blind trust to i)?/e')rmed trust." To increase its market share, Tanishq formulated a strategy for luring people away from traditional neighborhood jewellers. Tanishq's strategy was to create differentiation and build trust. According to Iuri an, the ti rst part of the strategy was "to provide a point of differentiation in a highly commoditizcd catcgor r - 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 Iuri ani "If differentiation plays the role of primary attraction, trust takes care of lifelong loyalty," One wa F to create dif±rentiation v as through design. The emphasis had to be on design Project L F f I b a. b/o s j. rat. co n
  36. 36. Prof ect for ba. bt og o t. corn because local jewellers could over to design any pattern according to the customers Project L F f I b a. b/o s j. rat. co n
  37. 37. Prof ect for ba. bt og o t. corn specifications. For a national brand a generic design concept with regional variations had to be evolved. (Refer Exhibit I for Tanishq's design). For this, Tanishq set up a seven member in-house desig n team and also outsourced desig ns from freelance desig ners. The designers traveled 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. To stay ahead of competition from local jewellers, Tanishq decided to focus on quality control. In 1999, it introduced caratmetcrs, which showed the purity of gold. I n fact, Tanishq' s USP was the purity of its gold. Accordingly, the company's ad campaigns emphasized the purity aspect of all Tanishq ornaments. (Refer Exhibit II for Tanishq's Ad Campaign) In November 2002, Tanishq introduced a new collection of jewellery called lightweights.' The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices starting at Rs 1,100. It also launched Lightweight Diamonds, with prices starting at Rs 3,000. Tanishq focused not only on urban markets, but small town markets as well. Real estate was less expensive in the small towns than in l a r e urban centers. Besides, competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. According to I uri an, the best returns on investment came from small towns. CARBON Carbon's focus had always been to move jewellery from the vault to the dressing table and bring the selling of jeweller out of heavily guarded jewellcr y stores. This was achieved by persuading a few l ifestl e stores to add branded jewellery to their vast array of products. Besides selling from lifestyle stores, Carbon also sold its products as gift items over the Internet, Like Tanishq. Carbon laid emphasis on design. Students at the National Institute of Fashion Technology (NWT) through the diploma programme, which the company sponsored, contributed most of its designs. In addition, Feakak's team of six designers, (headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the Project L F f I b a. b/o s j. rat. co n
  38. 38. Prof ect for ba. bt og o t. corn U , I „ Germany and India) turned out around 180 to 200 styles in a year, with 75 designs per style. At any. point in time, there were around 600 designs of Carbon on sale, and on an average. 300 to 400 pieces per design were sold. In 2001 Carbon launched its 'Sun Sign' collection, which was based on the symbols of the Zodiac. This collection was a set of 12 pendants designed in a blend of 18 carat white and yellow gold (Refer Exhibit 111). While 18 carat gold was commonly used in Carbon products. some of the designs also used white gold, titanium and steel. Diamond was the preferred precious stone, but other colored stones were also used. Comprising items of everyday use, (rings chains, bracelets, ear studs, tie-pins and cufflinks) Farb on items were an impulse purchases. (Refer Exhibit IV) The brand had no off take cycles in the year, like the marriage season, unlike traditional jewellery. The creati one manufacture and marketing of Carbon were different from the making and selling of traditional jewellery. Carbon was attempting to eliminate the low productivity, quality inconsistencies and high precious metal loss associated with traditional jewellery making. It has instituted modern manufacturing practices such as self- contained small groups in the assembly area, self-inspection by the operators, the Japanese I ai=en approach to improvements in operational practices and the like. The brand has brought down their manufacturing loss of gold to 6.8 per cent. The average in the traditional Indian jewellery shop is as high as 22 per cent, while the world average is only 2 per cent. As the profile of the average customer likely to purchase a Carbon item was a well-paid urban professional, 24 to 3 years old, having a credit card, it was decided that Carbon should not be placed in the usual jewellery shops but made available at ' shop-in-shop' outlets in large lifestyle stores (such as Shoppers Stop, Ebony, Globus, The Bombay Store, Lifestyle and Taj I hazana and some premium boutiques (such as the Helvetica in Chennai). Said Rao, "We are looking at cross-promoting Carbon jewellery with other branded lifestyle products such as perfumes, clothing and cosmeti cs." Carbon products were priced bemeen R s . 1750 and Rs. 20 000 per piece. While the cost of traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform. OY BAY Project L F f I b a. b/o s j. rat. co n
  39. 39. Prof ect for ba. bt og o t. corn yzterba F , with its tag line "Jewellery for the Living ", had become synonymous with the entire g amut of occasions 'where modern young women would like to wear stylish and affordable j e el ler-y, Oyzterbay's collection comprised over 1200 designs in 18, 22 and 24 carat gold and sterling silver, with natural colored gemstones. The price of the jewellery ranged between Rs. 500 and R s.30000. The initial focus of yzterba F was to give a lifestyle value to jewellery instead of the traditional investment value. I n the second year of its launch, Ovzterb ay emphasised on marketing and advertising strategies to give the necessary thrust for growth,. I n order to transform itself from a youth brand to a brand for all occasions, Ovzterbav launched media campaigns in August 2002 highlighting the new look. The new communication strategy focused on addressing the 18 to 34 age group instead of the earlier 18 to 24 age group. The new campaign focused on positioning Oyzterbay as jewellery for office wear, evening wear or even a fitness session. (Rekr Exhibit V) The broadening of focus to include an older segment was the result of market research which showed that the brand appealed to middle-aged working women and affluent housewives. The investment in the new campaign was Rs 50 million. Where ()yztcrbay scored over others vas its simple and refreshing designs and affordability, making it distinct from the usual gold jewellery stocked in standard jewell ert showrooms and contemporary jewellery offered by traditional j ev ell cry houses trying to cater to the trend. Priyadarshi I4ohapatra, Marketing Manager, (}yzterbav, said " ' e began by selecting a completely different reach - everyday jewellery for the working woman and jewellery for the youth. We felt that jewellery should be brought out of the locker, So we positioned (it) to accessorize the dress of the young, college-going crowd, which otherwise sported junk jewellery. The second segment was the working woman for whore we sought to build a Nwardrobe of jewellery by making it affordable, so that she could pick up pieces regularly." yzterbay later extended the same band values to diamonds too, the idea being to targ et a niche market. (Jyzterbay refurbished its collection every few months, keeping in mind international trends. By so doing, they were able to offer exclusive products to clients. As part of the yzterbay Summer 2002 collection, it offered pendants, earrings, finger rings, bracelets, Project L F f I b a. b/o s j. rat. co n
  40. 40. Prof ect for ba. bt og o t. corn neckwear, and chains with natural g emstones set in white g old. as white g old was evolving as a fashion statement across thevorld, Although Ozyterbay was known for its jewellery in gold and sterling silver embellished w ith natural gemstones_ it decided to launch 'Your First Diamond', a complete range of diamond jewellery set in white, pink, and yellow gold. The price of the collection started from Rs. 500 with the most expensive piece not exceeding Rs. 11000, [L[ ili distributed its je w ellcry priced between Rs. 500 and Rs.. 40,000 through lifest 'le and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. The company's products were also made available through a mail- order catalog ue. In 1 9 9 7 1 Gill launched a collection of traditional Indian ornaments made of 18-carat g old. I n 1 9 9 9. the Gili Gold rang e was introduced. This rang e included rims, pendants; earrings, necklaces and bangles made of 24-carat gold. All Gili products came with a guarantee of diamond and gold quality. When research conducted in February 2000 showed that there was a big gap between the Rs. 1000 and Rs. 10000 price segment and keeping in view the teenage population, and the kind of pocket money they had, Gili brought out a collection targeting teens. In 2000, launched its 'diamond heart collection' targeted at teenagers and priced between Rs 500 and R s.2500. The collection was promoted at college campuses with banners, pamphlets and a few advertisements targeted at teens. Gili soon realized that just pushing its product was not enough; it also had to customize its products for special occasions. Following this, it launched a Diamond Heart Collection specially designed for Valentine's Day. This collection consisting of tiny, heart-shaped diamond jewellery was well received by teens (Refer Exhibit VI). Special packaging_ catchy advertising and extensive press coverage contributed to the success of the collection. Gili also made special promotional offers during festive seasons like Christmas and Diwali. Having captured the low price point market of Ids, 2000 to f s.10,000, in 2000, the company focused on penetrating the premium market of customized jewellery. For this, Project L F f I b a. b/o s j. rat. co n
  41. 41. Prof ect for ba. bt og o t. corn ( i tan j ali jewels opened a jewellery salon, G i anti, to provide customized jewellery to clients in India. Project L F f I b a. b/o s j. rat. co n
  42. 42. Prof ect for ba. bt og o t. corn RECOMMENDATIONS Project L F f I b a. b/o s j. rat. co n
  43. 43. Prof ect for ba. bt og o t. corn CONCLUSIONS The dissertation will help to study the consumer preference over branded and non- branded jewellery. The main objectives of the study were to compare betw een Branded and Non-Branded J ewell er , to know Consumer perception towards Jeweller, to know the Major Players of Jewell erv industry, to have an idea about parameters consumer consider while buying Jewellery, to have knowledge about demographic segments, to know the Marketing strategies used by various jeweller F brands. India is growin2 at a very fast pace and j ewell erv sector is one which is registered to achieve 65 `f• M international market by 2010. The j ewel lerv sector is largely unorganized in India but is changing into organized business because of many major and influential players entering into the market and have started organizing the market and focusing all segments of customers such as Tanishq by TATA and Gill by Gitanjli jewellers etc. The branded jewellery sectors is only 2-3' of the total jewellery market in India but most of the brands have been able to make a mark on consumers with their hig hly s a t i f i n marketing strategies. The local jewellers or the unbranded jewellers do not provide any guarantee of the purity and quality but brands such as Tanishq introduced k o m e t e r in their outlets which help the consumer to test the purity of the jewellery_ As jewellery sector is changing, consumer is also changing today they are more aware, have greater disposable income and want to be more secure. That is why when given a preference between branded and non- branded jewellery most respondents choose branded jewellery. The booming economy along with the rapid increase in income levels is estimated to further accelerate the growth of this industry. According to a KPMG study} India's growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of USS 21 billion by 2010 and USS 37 Project L F f I b a. b/o s j. rat. co n
  44. 44. Prof ect for ba. bt og o t. corn billion by 2015. Diamond jewellery consumption in India is also estimated to jump by 7 per cent in 2010. Project L F f I b a. b/o s j. rat. co n
  45. 45. Prof ect for ba. bt og o t. corn I L I P H Themaainsrnjournals_________________d ~-etctie i:- Solitaire Intcrnatioral Journal of Gcm Indust' Web soures:- c ,rctailbiz.con ~ F,bnsincss-standard.con W _________TF vaIUCIIotcS.corfl . 1 1 1 __1 ____a.vur11 , coui F ______TT' . )rogUCst, corn Project L F f I b a. b/o s j. rat. co n