• Like
The ultimate project on Jewellery all the data ever you wanted
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

The ultimate project on Jewellery all the data ever you wanted

  • 1,543 views
Published

jewellery

jewellery

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,543
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
59
Comments
0
Likes
2

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Source: CBI Market Information Database – www.cbi.eu • Contact marketinfo@cbi.eu • Publication date 30.11.2011 Performing a competitor analysis for jewellery Look at your competition and learn from them. Your competitors are the existing suppliers of your potential consumers. Try to identify your main competitors in your priority countries. What are their strengths and weaknesses? Which strategic moves are they likely to make in response to the opportunities and threats presented by the market? Why conduct a competitor analysis? Understanding your competitors is an essential pre-requisite to exporting. Understanding the strengths and weaknesses of your current and potential competitors helps you to appreciate your own strengths and weaknesses, as well as your own best opportunities and greatest threats. Many companies only undertake this analysis on an ad hoc or unstructured basis. It is recommended that a proper systematic competitor analysis is carried out, rather than relying on informal assumptions, impressions and instincts. A competitor analysis can provide an understanding of your competitors’ current strategies, but more importantly provide an insight into their likely future strategy. It will also help you develop your own strategy that gives you a competitive advantage. You can also estimate how competitors will respond to your future new product or pricing activity. How do you conduct a competitor analysis? Where are they from? Remember that competitors can come from anywhere. They not only include those domestic companies in your selected countries, but also those from other developing countries, including your own country, and from other (Eastern) EU countries. How many competitors? You may think that having many competitors may make your task more difficult. That would depend. The quality of your competition (how well established are they with customers, how close are their relationships with key trade customers etc) is more important than the number of competitors. Who are they? A list of names and addresses is not sufficient. You need to find out whether they are owned by another parent company and a whole list of other information on each actual and potential competitor including: • What is their profile and marketing strategy? For example, what are the company’s size, turnover, organisational structure, consumer profiles, jewellery collection (USP), brand strategy, market share, are they generalists or specialists, their price level, profitability, distribution channels used and promotion strategy. • What threats do they pose? For example, do they possess technical skills, special styling or design ability, can they offer jewellery at low price levels? Do they have advantages in production capacity, (natural) resources or use of particular (recycled) materials?
  • 2. Performing a competitor analysis for jewellery Source: CBI Market Information Database – www.cbi.eu • Contact marketinfo@cbi.eu • Publication date 30.11.2011 • What are their company objectives? For example, in case of a developing country, are they helping producers in their country in a sustainable way? What is their vision or philosophy? • What are their export marketing objectives? Are they likely to diversify into other markets or other product groups, or are they likely to be thinking about taking over other competitors to increase their market presence? • What strategies are they pursuing and how successful are they? For example, are they pursuing long-term or short-term goals? Are they more interested in market share or technological leadership, or just short-term financial gain? • What are their strengths and weaknesses? • How is each competitor likely to respond to your own business actions? How do you find the information? There are many ways to find information on competitors. The most thorough investigation will consist of using a combination of sources. • Published data includes information you can find through the trade directories, company’s annual report and brochures, trade press releases and articles or analyst reports. • Field data includes information on the competitor company that requires more investigation, such as looking for their price lists, catalogues, advertising campaigns or promotional activity. • Opportunistic data requires most planning and organisation, much of which is 'anecdotal', coming from discussions with suppliers, customers or previous management of competitors. This will include discussions at trade shows, sales meetings, conferences, discussions with shared distributors, previous employees and social contacts with competitors. An example of a competitor analysis in the jewellery sector This is an illustration of how to carry out a competitor analysis, using an imaginary company called Beads Eye Concepts BEC wants to target pre-teens and teens in the Spanish and Portuguese markets as offering good prospects for lucky charm jewellery. They primarily would target those girls and boys who are attracted to ‘adventure’ or to ‘wildlife in Africa’ but still want to be ‘protected’. Beads eye bracelets are a popular gift items and are meant to ward off all evil eyes from its wearer. Some people believe that it protects against negative energies, such as anger, hatred, fear, jealousy and other such evil energies. BEC found out that celebrities such as Cameron Diaz, Brad Pitt, Sharon Stone, Richard Gere, Madonna, Britney Spears and Demi Moore wear evil eye bracelets or an evil eye necklace. Beads Eye Concepts (BEC) specialises in jewellery with eye beads and is based in Angola. They have 2 own workshops for silver and copper jewellery and source most of their eye beads from Mauretania. They have one designer who creates jewellery collections that use different combinations of eye beads, silver (charms), copper, terracotta beads, shelves and recycled material. Most of their jewellery consists of neckwear, bracelets and hair accessories that are assembled by women in 20 villages in the area of the Kongo people (meaning ‘hunter’). An important objective of BEC is to create sustainable opportunities for women in the Atlantic Coast area of Angola. Now that their production capacity and export marketing know-how has improved, they look for an expansion into the EU market.
  • 3. Performing a competitor analysis for jewellery Source: CBI Market Information Database – www.cbi.eu • Contact marketinfo@cbi.eu • Publication date 30.11.2011 The competitor analysis process would take the following steps: Determine your research objective. This would be to find out who your main competitors are in the Spanish market, what their market share is and how they operate. Classify your competitors. Each competitor is different. Your competitors will not only be manufacturers or exporters of silver jewellery from Angola, they will also be exporters of silver jewellery from other developing countries, other EU countries or domestic Spanish producers. You may already be aware that many eye beads are made in Mauretania and Mali as well as in Greece and Turkey that have a long-established reputation in eye bead production and are closer to the EU market. Your competitors could also be manufacturers or exporters targeting Spanish teens with jewellery collections made of silver, titanium, copper or plain metal with glass beads, ‘troll beads’ (replaceable beads from Denmark), Swarovski crystals or with semi-precious stones. Find the information. BEC needs to carry out a combination of desk and field research. CBI market research reports on jewellery may show the leading supplying countries, names of leading manufacturers in Spain and leading retailers. • Using Eurostat statistics, analysis of leading importers shows that 25-30% of all silver jewellery imports are intra-EU, and the majority come from Thailand, India and China. While Mexico, Indonesia, Turkey, Mauritius, Sri Lanka and Nepal were other important developing country suppliers. Spain also imported some silver jewellery from Niger. While the majority of imitation jewellery with parts of glass comes from Austria with China, India, Thailand being the main developing country suppliers, and to a lesser extent, Morocco, Philippines, Tunisia and Indonesia. • Analysis of Spanish production shows a considerable amount of production of silver jewellery with (semi-) precious stones and costume jewellery. However, as Spain was badly affected by the recession, there is a trend towards production of innovative silver jewellery with lower cost alternatives for stones such as colourful beads. • After identifying the source countries, further investigation is required to find out the names of the leading competitor manufacturers from those countries. Approach the leading sources. As you are interested in the Spanish market, you need to identify the main players on the market. Key sources include: • The leading trade shows are the Iberjoya and Bisutex – http://www.iberjoya.es and http://www.ifema.es – which take place twice a year in January and September. Both shows produce a catalogue that identifies exhibitors by type of product. • The leading Spanish manufacturers offering jewellery at an affordable price: Luxenter (http://www.luxenter.com) that makes jewellery with stones using material from Africa. Or, Majorica (http://www.majorica.com) being a leading manufacturer of costume jewellery. Other important Spanish brands are Tous, Belen Bajo and Lola Casademunt. • Other useful links to potential competitors are Fashion from Spain - http://www.fashionfromspain.com – which includes a directory of jewellery companies. This site also gives examples of joint developments of jewellery collections with stones between Spanish fashion designers e.g. Angel Schlesser and jewellers e.g. Le Cado. • The Association of Spanish Jewellers and Watchmakers at http://www.iberjoya.es or the Spanish jewellery exporters Association at http://www.joyex.com, which features good links to other organisations. • The main Spanish jewellery trade press – http://www.grupoduplex.com – with the magazines ‘Arte y Joya’ and ‘Jewellery Duplex’, which for example includes an article about the latest colours in stones and beads. • Look at websites of the main Spanish retailer El Corte Inglés, International accessory
  • 4. Performing a competitor analysis for jewellery Source: CBI Market Information Database – www.cbi.eu • Contact marketinfo@cbi.eu • Publication date 30.11.2011 chains such as Claire’s, Accessorize, Bijoux Brigitte, Swarovski, Agatha as well as online sellers Joyeria Virtual (http://www.joyeriavirtual.net), Bolsos y Accesorios (http://lilianaesquivia.com/bolsos/index.html) and Equipaje BCN (http://www.equipajebcn.com). • You may be interested in niche competitors. For example, in the fair trade segment, Alternativa3 – http://www.alternativa3.com – is an organisation that imports and distributes several products, including jewellery, within Spain from groups of artisans and producers in developing countries. It features a list of its suppliers. • Look at Spanish consumer magazines (jewellery, fashion, glamour, leisure, music) targeted at teens and try to identify competitors. Also check the most important fashion magazines such as Punt&Moda, Elle Espagna, Cosmopolitan, Marie Claire Espagna, Revista Atelier etc.. Analyse your list of competitors. Being an exporter from Beads Eyes Concepts you have contacted the main sources. Next, try to make a shortlist of your main competitors and compile as much relevant information about them as possible. See CBI’s manual Your guide to market research - Your Research Practice (Part 2) and Export Marketing Planner for more information. You can do this by: • Looking at their websites, sending off for their brochures. • Finding out about them from industry sources (industry associations ) or via trade fairs. • What other material do they use in their bracelets or neckwear (e.g. silver, copper, fibres, leather etc...), which design, patterns, symbols or style do they use? • Who is their main target group? • Trying to work out their sales plans by analysing beaded bracelets ranges, pricing and distribution strategy (via importer, direct to e.g. El Corte Inglés, or via online clothing sellers). How do they compare with your own plans? • Think about how to differentiate with your eye-bead bracelet designs from the competition: evoking sympathy, ethic patterns from Angola or funky design? • How are bead-eye bracelets promoted to Spanish consumers, for example is it related to a special event? How often promotions are done for jewellery in general? Any seasonal pattern? • Trying to anticipate how they might react to your market entry (would they decrease their prices? Would they increase their range? Would they broaden their distribution? A possible result for Beads Eye Concepts could be that the Spanish beaded jewellery market is dominated by companies from China, Turkey, North African countries or EU countries (e.g. Denmark) offering wide ranges of colourful beaded printed jewellery at retail prices between € 10 and € 50. Main channels are the accessory chains and El Corte Inglés. Internet sales of jewellery is growing fast. Competitors mainly target younger consumers who regard price, design and fashion colours most important. There are a few other Angolan companies operating in Spain but they sell also fashion accessories. So, Beads Eye Concepts could focus on middle-aged people in Spain or travellers who still regard the ‘protection’ element to be more important than price. They can be reached direct by Internet sellers. Partnership For many exporters managing partnerships has been essential to successfully entering export markets. Individual producers and exporters often lack the economies of scale to sell products directly to retailers in the EU in order to compete with well-established competitors that have already established networks.
  • 5. Performing a competitor analysis for jewellery Source: CBI Market Information Database – www.cbi.eu • Contact marketinfo@cbi.eu • Publication date 30.11.2011 Within many DCs there are agencies promoting export cooperation between different producers and/or exporters. As a producer wishing to export to the EU it is important to evaluate possible cooperation, seek new partners and to use existing support organisations, for example joining forces with other Angolan jewellery or fashion accessory makers. The importance of partnerships. • To improve your potential transaction size • To improve your bargaining power • To extend your product range • To minimise risk and improve service • To reduce costs for shipping, storage, quality control, presence in foreign markets via shared endeavours • To benefit from shared promotion, product development and other innovation • To share knowledge on issues such as certification of special legislation (see example above). This survey was compiled by Searce in cooperation with Mart Krijger Disclaimer CBI market information tool: http://www.cbi.eu/disclaimer
  • 6. Volume : 3 | Issue : 4 | April 2014 ISSN - 2250-1991 29 | PARIPEX - INDIAN JOURNAL OF RESEARCH Research Paper A Study on Consumer Awareness About Gold Jewellery in Tamil Nadu Commerce P. ANBUMANI Ph.D Research Scholar, Department of Commerce, Annamalai University, Annamalai Nagar -608002, Chidambaram, Tamil Nadu. DR.V.SUNDAR Associate Professor, Department of Commerce, Annamalai Uni- versity, Annamalai Nagar – 608002, Chidambaram, Tamil Nadu. KEYWORDS Gold jewellery, Consumer Awareness, Karat, Karat Meter, Hallmark, Branded Jewellery, BIS ABSTRACT Indian Jewellery market is the largest market in the world next to China. Indian consumers are buying gold jewellery mainly for the wedding ceremony. Indian wedding generates 50 percent of the world annual gold demand. Over the next two decades, 15million weddings to be arranged. Therefore, there is a high demand for gold jewellery in India. Consumers are buying gold jewellery for all occasion. But, it is important to know whether, they are fully aware about gold purity/ fineness, market price of gold, making charges, wastages charges, and fineness/ hallmark certificate issued by Bureau of Indian Standards. Many buyers are still buying gold jewellery from non-branded stores, and not insisting purchase bill for their transactions. Many gold jewellers are not ready to buy back the gold jewellery sold buy them. This shows a lack of awareness among the consumers of gold jewellery in India. Hence, the purpose of the article is to analyze the consumers awareness about gold jewellery in the select districts of Tamil Nadu. Introduction China and India is the largest market for gold jewellery in the world. Approximately 3000 tones of gold produced in the world, of which approximately 750-800 tonnes of gold have been imported by India every year. However, the government of India has been taking steps to reduce the current account deficit and control the import the gold, but current account deficit and import of gold are not reducing. In the gold mar- ket, around 80 percent of the gold import, used for gold jewellery fabrication, and 15 percent for investment demand, barely 5 percent is for industrial use. Jewellery industry is a great industry; it is giving directly em- ployment to 2.5 million and contributed to INR 99,000 crore as value addition to the economy. The gems and jewellery industry is one of the highest contributors to Indian econo- my, highest contributor to export(INR 227,000 crore – 2012- 2013).[1] Further, many branded and non- branded jewellery stores are targeting the jewellery consumers and selling jewel- lery worth crores and crores of Indian rupee every year. Indians are fond of gold jewellery from the ancient period. Out of the total sales every year 20 percent have been pur- chased by northern states, 15 percent by eastern states, 30 percent by western states, and the maximum 35 percent by Kerala, Karnataka, Andhra Pradesh and Tamil Nadu, states which are actively buying gold jewellery every day. Major con- tribution in sales by southern states of India. Consumers are buying gold jewellery mainly for wedding. Apart from this, across the country regional festivals are celebrated with gold: in south Akshaya Trithiya, Pongal, Onam and Ugadi, in the east Durga Puja, in the west Gudi Pavda, in the north(1) Baisa- ki and Karva Chauth. Gifting gold is deeply ingrained part of marriage rituals in Indian society. Weddings in India generate approximately 50 percent of annual gold demand, and over the next two decades 15 million marriages are to be celebrat- ed. There are many jewellery stores in India. The jewellery stores are selling gold jewellery in different karat. Karat means, noti- fying the purity/ fineness of gold.( not – carat: carat is relating to diamond as measuring of weight). Pure is gold is 100 per- cent gold and is called as 24 karat gold or 24k gold. This 24K gold is so soft, and it cannot be used for any jewellery making purpose. Hence making it bit hard some other metals such as, copper, silver or cadmium etc., to be added to it. Based on adding other metals of gold purity of gold changes from 24K , 22K,18K, or 14K. Below table shows the details of the same. Table 1: Purity/ fineness of Gold 24K gold 100% pure + 0% other metals 23K gold 95.8% pure +4.2 % other metals 22K gold 91.6% pure + 8.4% other metals 21K gold 87.5%pure +12.5% other metals 18K gold 75% pure + 25% other metals 17K gold 70.8%pure +29.2% other metals 14K gold 58.5% pure+ 41.5% other metals 12K gold 50% pure+50% other metals 9K gold 37.5% pure +62.5% other metals Source: www.bis.org.in Further, the purity of gold is certified by Bureau of Indian Standards(BIS). This is called hallmark of BIS. If the jewellery bears the hallmark symbol over it, it shows the purity of gold. Hence, purity of gold is important for the buyers of gold jew- ellery when they buy. Further, fineness/ purity is a major de- terminant in the price fixation of gold. The price of the gold jewellery is fixed in the following manner. Actual weight of gold and its purity(K) ……..Rs.XXX Add: Wastage charges (8% to 25%)………....Rs.XXX Add: Making charges (labour charge)……….Rs.XXX Add: Value Added Tax………………………Rs.XXX …………………………………… Selling price of gold Ornament Rs.XXXX …………………………………… The above details show the cost of making and selling price. However, in practice, not all jewellery stores, but many stores not following ethics in their business. The purpose of the re- search article is to analyze the awareness of the buyers about gold jewellery, whether they aware of all these this before
  • 7. Volume : 3 | Issue : 4 | April 2014 ISSN - 2250-1991 30 | PARIPEX - INDIAN JOURNAL OF RESEARCH buying jewellery or not. Based on the above the researcher decided to undertake the study. Statement of the Problem The Consumer movement is as old as commerce and trade in India. But consumer awareness is not improved even after many years. According to the report prepared by CUTS, inter- national, only 20 percent of the consumers know about the Consumer Protection Act, and who has heard about consumer rights is just 42 percent only. Right to information is one of the rights of the consumers according to the law. Therefore, all necessary information to be given to the consumer about the goods and services they acquire. All necessary information to be provided for all products hence, jewellery has exception. The necessary information like, right purity of gold, hallmark symbol, correct weight, correct color, the correct percentage of wastage, and making charges. But many of the buyers are unaware of karat, wastage, making charges, whether it is branded or non-branded. It is not an excuse, hence; it is the responsibility of the buyers of gold jewellery, to make neces- sary enquiry about the purity of the gold, right weight, mak- ing charges, wastage, color of gold, hallmark, makers mark, either stone value has been deducted while buying stone studded gold jewellery from the original gold value or not. Further, some jewelers are not ready to buy the jewellery sold by them to the consumers. All these are the subject matter warranting enquiry, and this has prompted the researcher to carry out a micro level study on awareness about gold jewel- lery in Tamil Nadu. Objective of the Study The objective of the present research paper is to examine the consumer awareness about gold jewellery in the select districts of Tamil Nadu. Data Source The data source for the study is primarily based on the pri- mary data collected from 600 respondents from the select dis- tricts of Tamil Nadu. Sampling technique and Methodology Simple random sampling method has been adopted for the study. Since the population universe is very large, this meth- od has been used. In the first stage twelve districts of Tamil Nadu, viz., Chennai, Coimbatore, Erode, Madurai, Nagapa- ttinam, Ramanathapuram, Salem, Thanjavur, Tiruchirappalli, Dindigul, Tirunelveli and Thiruvarur districts have been select- ed at random. Out of these 12 districts, fifty respondents have been chosen at random from each district, (12´50=600) and a pre-tested interview schedule has been administered to the respondents, and their responses recorded. Analysis and Discussion The main aim of the study is to ascertain the awareness of consumer towards gold jewellery in the study area. The re- searcher used both optional and bipolar type of questions to ascertain the awareness level of gold jewellery buyers. In this context, the researcher used simple percentage analysis to de- scribe and measure the awareness level of gold jewellery buy- ers. Table 2 Factors responsible for buying gold jewellery S.No Particulars Variables Frequency Percentage 1 Type of gold jewellery wish to buy Man – made Machine made 399 201 66.5 33.5 2 Awareness on man - made gold jewellery More weight Limited design Price comparatively less Luck of hand 131 96 65 107 32.8 24.1 16.3 26.8 3 Awareness on machine made gold jewellery Less weight Confirm pure quality More design Status 41 57 94 09 20.4 28.4 46.8 4.5 4 Frequency of advertisement watched Once Twice Thrice Many times 57 37 31 475 9.5 6.2 5.2 79.2 5 Commercial advertisement in gold jewellery shops Lalitha jewellery Kalyan jewellery Jos – alukkas Joy – alukkas Thangamayil Khazana jewellery 63 300 144 29 20 44 10.5 50.0 24.0 4.8 3.3 7.3 Source: Primary Data The above table shows the factors responsible for gold jew- ellery. It is prepared by using simple percentage analysis, and prepared to find the factors responsible for buying gold jew- ellery. The sample size of the study is 600, of which 66.5 per- cent of respondents belong to; man – made gold jewellery and remaining percentage machine made gold jewellery. 32.8 percent of the respondents in the man made gold jewellery is aware of more weight; 46.8 percent of the respondents in the machine made gold jewellery is aware of more design. It is generally dependent on the wealth of the consumers and further found that 79.2 percent of the respondents has seen gold jewellery advertisement in many times and 50.0 percent of the respondents in the kalyan jewellery advertisement of gold jewellery has created consumer awareness. 1.2 Features Considered for Buying Gold Jewellery On 11th April 2000, the BIS launched its hallmarking scheme. The primary objectives of the scheme were consumer protec- tion, to enhance exports, to improve the quality, and purity of gold jewellery produced and to monitor any loss to the econ- omy due to the improper karat. Hallmarking involves Bureau of International Standards (BIS) symbol or logo, the symbol of hallmark bears, hallmarking center, code of purity in percent- age, code of marking year and symbol of jeweller. The fol- lowing frequency distribution presents the most preferred fea- tures considered for buying gold jewellery by the consumers. Table 3 Features Considered for Buying Gold Jewellery Features Considered for Buying Gold Jewellery Yes No Total BIS Hallmark year 22kt (916) Jewellery Mart Stamp Hallmark 303 (50.5%) 170(28.33%) 459(76.5%) 247(41.17%) 170(28.33%) 297 (49.5%) 430 (71.67%) 141 (23.5%) 353 (58.83%) 430 (71.62%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) Source: Primary Data From the above table it is found that, 76.5 percent of the respondents considered buying gold jewellery for 22kt (916) followed by 50.5 percent of the respondents for Bureau of In- dian Standards (BIS). It is further found that, 41.17 percent of the respondents considered for jewellery mart stamp, 28.33 percent of the respondents considered buying gold jewellery for hallmark (H). Similarly, same percentage of the respond- ents (28.33 percent) stated that they aware of hallmark year also. The researcher segmented the question in two types. The first type, the researcher completely describe the percentage con- tribution of different options in the awareness domain. The bi-
  • 8. Volume : 3 | Issue : 4 | April 2014 ISSN - 2250-1991 31 | PARIPEX - INDIAN JOURNAL OF RESEARCH REFERENCES 1. ATkearney (2013). All that glitters is gold: India jewellery review 2013. Author. Retrieved from http://www.ficci.com/spdocument/20332/India-Jewellery-Review-2013.pdf pg.8 | 2. India Jewellery Market | Indian Gold Designs | World Gold Council. (n.d.). Retrieved from http://www.gold.org/jewellery/india-market_br | 3. www.bemoneyaware. com/blog/gold-basics/Understandingof gold: Purity,Color, Hallmark | 4. Leon G.Schiffman, Leslie Lazar Kanuk. (2008). Consumer behaviour, (9th Ed.). Prentice – hall of India, private limited, New Delhi. | 5. Roger D. Blackwell, Paul W.Miniard, James F.Engel. (2005). Consumer behaviour, (9th Ed.). Vikas publishing house Pvt. Ltd., Jangpura, New Delhi. | 6. Balanaga Gurunathan K, Muniraj S. (2012). Impact of customer awareness and buyer behaviour on buying jewellery products – with special references to Tamil Nadu state. European Journal of Social Sciences, 29(3), 337-342. | 7. Nega Jain. (2013). A comparative study of Indian women’s perception towards branded & non branded jewellery in Jaipur city. Applied Research and Development Institute Journal, 7(7), 59-64. polar type of questions are separately considered for the neat presentation and convenience. Table 4 Awareness about Gold jewellery S.No Variables Yes No Total 1 2 3 4 5 6 7 8 Checking of purity/ fineness Aware of karatmeter Aware of market rate Aware of price fixation of gold jewellery Insisting purchase receipt Purchase through online shopping Awareness on consumer movement Lodged a complaint regarding gold jewellery in consumer court. 527 (87.8 %) 347 (57.8 %) 501 (83.5%) 367 (61.2%) 500 (83.3%) 64 (10.7%) 331 (55.2%) 38 (6.3%) 73 (12.2 %) 253(42.2 %) 99 (16.5%) 233 (38.8%) 100 (16.7%) 536 (89.3%) 269 (44.8%) 562 (93.7%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) Source: Primary Data From the above table, it is found that the consumer and their awareness level are more in the case of gold jewellery charac- teristics. It is revealed that 87.8 percent of consumer of gold jewellery checks the purity of both items in the pair. 57.8 percent of the respondents are aware of karatmeter . The researcher found that majority of the respondents (83.5 per- cent) knew and aware of the market rate of gold jewellery. Most of the respondents eagerly wait to know the market rate because the gold rate is fixed twice a day and strongly influenced by supply and demand. 61.2 percent are known the price fixation of gold jewellery. The gold jewellery price is same in all over the world, but the making charges and wast- ages are different from place to place and from the shop to shop. It is opined that the 83.3 percent of the respondents insisted and received the receipt from jewellery shop. 10.7 percent of the respondents like to buy gold jewellery through online shopping. The researcher observed that the youth, like corporate employees like to buy through online shopping be- cause they do not find time and not ready to spend hours for shopping, so they conveniently do online shopping. In the sample respondents, 55.2 percent were aware of the consum- er movement and rights regarding gold jewellery. Most of the consumers were aware almost confined to urban areas. 6.3 percent of the respondents lodged complaint has expressed an opinion that they believe in the consumer grievance redres- sal system. Findings and conclusion The researcher empirically identified that the most of the con- sumers are aware of the gold jewellery. 66.5 percent of the consumers wish to buy man – made gold jewellery. The rea- son for buying man – made gold jewellery is primarily for more weight and more design for machine made gold jew- ellery. The consumers watched many times in gold jewellery advertisements and also kalyan jewellery shop commercial ad- vertisement has created consumer awareness on gold jewel- lery. The findings of the research reports that 76.5 percent of the respondents considered and aware of buying gold jewel- lery for 22kt (916). The findings of the research revealed that 87.8 percent of consumers of gold jewellery check the quality of both items in the pair. 10.7 percent of the respondents like to buy gold jewellery through online shopping and 6.3 per- cent of the respondents gave lodged complaints. It is further ascertained that the consumer awareness of gold jewellery for karat meter, aware of the market rate, price fixation, receiv- ing receipt and consumer movement and rights is considerably satisfactory. However, the level of awareness about gold jewel- lery must be increased in the minds of consumers. Therefore, the consumer councils, forums, and the Government of India should take necessary steps to improve the awareness in the minds of consumers, and this will certainly help the consumers of gold jewellery.
  • 9. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International List of Contents and Tables PERSONAL GOODS IN SWEDEN......................................................................................................1  Executive Summary.....................................................................................................................................................1  Sales of Personal Goods Unaffected by Global Crisis .................................................................................................1  Sales in More Sectors Driven by Well-known Brands ..................................................................................................1  Swedish Personal Goods Market Remains Conservative .............................................................................................1  Traditional Retailers Turning Into Fashion Stores.......................................................................................................1  Well-known Brands Driving Future Sales.....................................................................................................................1  Key Trends and Developments...................................................................................................................................1  was There A Global Economic Crisis? .........................................................................................................................2  Well-known Brands All More Important.......................................................................................................................2  Swedish Personal Goods Market Becoming Polarised.................................................................................................3  Modern Technology Affecting Some Markets ...............................................................................................................4  Fashion Causes Rapid Changes....................................................................................................................................5  Market Data .................................................................................................................................................................5  Table 1  Sales of Personal Goods by Category: Value 2004-2009 ....................................................5  Table 2  Sales of Personal Goods by Category: % Value Growth 2004-2009...................................6  Table 3  Personal Goods Company Shares 2005-2009.......................................................................6  Table 4  Personal Goods Brand Shares 2006-2009 ............................................................................6  Table 5  Sales of Personal Goods by Distribution Format: % Analysis 2004-2009..........................7  Table 6  Sales of Personal Goods by Sector and Distribution Format: % Analysis 2009 .......................................................................................................................................8  Table 7  Forecast Sales of Personal Goods by Category: Value 2009-2014......................................8  Table 8  Forecast Sales of Personal Goods by Category: % Value Growth 2009-2014....................8  Definitions.....................................................................................................................................................................8  Summary 1  Research Sources...................................................................................................................9  LOCAL COMPANY PROFILES - SWEDEN ......................................................................................10  Ballograf Ab ...............................................................................................................................................................10  Strategic Direction.......................................................................................................................................................10  Key Facts......................................................................................................................................................................10  Summary 2  Ballograf AB: Key Facts.....................................................................................................10  Summary 3  Ballograf AB: Operational Indicators.................................................................................10  Company Background..................................................................................................................................................10  Production....................................................................................................................................................................11  Competitive Positioning...............................................................................................................................................11  Summary 4  Ballograf AB: Competitive Position 2009..........................................................................11  Burde Förlagsaktiebolag...........................................................................................................................................11  Strategic Direction.......................................................................................................................................................11  Key Facts......................................................................................................................................................................11  Summary 5  Burde Förlagsaktiebolag: Key Facts...................................................................................11  Summary 6  Burde Förlagsaktiebolag: Operational Indicators...............................................................12  Company Background..................................................................................................................................................12  Production....................................................................................................................................................................12  Summary 7  Burde Förlagsaktiebolag: Production Statistics 2009.........................................................12 
  • 10. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Competitive Positioning...............................................................................................................................................12  Summary 8  Burde Förlagsaktiebolag: Competitive Position 2009........................................................13  Iduna Ab .....................................................................................................................................................................13  Strategic Direction.......................................................................................................................................................13  Key Facts......................................................................................................................................................................13  Summary 9  Iduna AB: Key Facts...........................................................................................................13  Summary 10  Iduna AB: Operational Indicators.......................................................................................13  Company Background..................................................................................................................................................14  Production....................................................................................................................................................................14  Competitive Positioning...............................................................................................................................................14  Summary 11  Iduna AB: Competitive Position 2009................................................................................14  Kin Ab .........................................................................................................................................................................15  Strategic Direction.......................................................................................................................................................15  Key Facts......................................................................................................................................................................15  Summary 12  KIN AB: Key Facts.............................................................................................................15  Summary 13  KIN AB: Operational Indicators.........................................................................................15  Company Background..................................................................................................................................................15  Production....................................................................................................................................................................16  Competitive Positioning...............................................................................................................................................16  Summary 14  KIN AB: Competitive Position 2009..................................................................................16  Venue Retail Group Ab.............................................................................................................................................16  Strategic Direction.......................................................................................................................................................16  Key Facts......................................................................................................................................................................17  Summary 15  Venue Retail Group AB: Key Facts....................................................................................17  Summary 16  Venue Retail Group AB: Operational Indicators................................................................17  Company Background..................................................................................................................................................17  Production....................................................................................................................................................................18  Competitive Positioning...............................................................................................................................................18  Summary 17  Venue Retail Group AB: Competitive Position 2009 ........................................................18  JEWELLERY IN SWEDEN ................................................................................................................19  Headlines.....................................................................................................................................................................19  Trends .........................................................................................................................................................................19  Competitive Landscape.............................................................................................................................................20  Prospects .....................................................................................................................................................................21  New Product Developments.........................................................................................................................................21  Summary 18  New Product Launches 2009 ..............................................................................................21  Category Data.............................................................................................................................................................21  Table 9  Sales of Jewellery by Category: Value 2004-2009 ............................................................21  Table 10  Sales of Jewellery by Category: % Value Growth 2004-2009...........................................22  Table 11  Sales of Jewellery by Type: % Value Breakdown 2004-2009...........................................22  Table 12  Jewellery Company Shares 2005-2009...............................................................................22  Table 13  Jewellery Brand Shares 2006-2009 ....................................................................................22  Table 14  Costume Jewellery Company Shares 2005-2009 ...............................................................23  Table 15  Costume Jewellery Brand Shares 2006-2009.....................................................................23  Table 16  Real Jewellery Company Shares 2005-2009 ......................................................................23  Table 17  Real Jewellery Brand Shares 2006-2009............................................................................24 
  • 11. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Table 18  Sales of Jewellery by Distribution Format: % Analysis 2004-2009 ..................................24  Table 19  Forecast Sales of Jewellery by Category: Value 2009-2014..............................................24  Table 20  Forecast Sales of Jewellery by Category: % Value Growth 2009-2014............................25 
  • 12. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International PERSONAL GOODS IN SWEDEN EXECUTIVE SUMMARY Sales of Personal Goods Unaffected by Global Crisis Sales on the Swedish market in personal goods grew strongly over the review period, despite the onset of the global economic crisis in 2008. The only sector that was slightly affected by the global economic crisis was personal stationery, whose sales declined briefly in 2008 before recovering in 2009. Two factors seem to have been protecting the Swedish market in personal goods. First, it is small overall, and Swedes appear to be consuming no more than their basic needs. Second, increased interest in well-known brands has fuelled sales. Sales in More Sectors Driven by Well-known Brands Some sectors of the Swedish market in personal goods, such as jewellery and watches, underwent strong structural changes during the review period on account of an increasing interest in well-known international brands. Consumers now place their trust in the well-known international brands, as they once did in the craftsmanship of independent goldsmiths and watchmakers. More sectors of the Swedish market in personal goods are being driven by this increasing interest in fashion and design. Well-known brands have become symbols of credibility, lifestyle, values and a certain level of quality, and they must be able to meet the consumers’ expectations. Swedish Personal Goods Market Remains Conservative There are wide differences in the competitive environments of the different subsectors of the Swedish market in personal goods. Some sectors, such as jewellery and handbags, have become increasingly fragmented as more well-known international brands compete for consumers’ attention. Others, such as writing instruments and luggage, are concentrated on a few strong brand owners. New product development has been rather limited in all sectors of the Swedish market in personal goods, and there have been few innovations. The most common features of new product development have been a concentration on trendy exterior design, together with the introduction of eco-friendly materials in some sectors, such as pens. Traditional Retailers Turning Into Fashion Stores Well-known Brands Driving Future Sales KEY TRENDS AND DEVELOPMENTS Content removed from sample Content removed from sample
  • 13. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International was There A Global Economic Crisis? Current impact Outlook Future impact Well-known Brands All More Important Current impact Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample
  • 14. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Outlook Future impact Swedish Personal Goods Market Becoming Polarised Current impact Outlook Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample
  • 15. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Future impact Modern Technology Affecting Some Markets Current impact Outlook Future impact Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample
  • 16. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Fashion Causes Rapid Changes Current impact Outlook Future impact MARKET DATA Table 1 Sales of Personal Goods by Category: Value 2004-2009 SEK million 2004 2005 2006 2007 2008 2009 Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods , , , , , , Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample Data removed from sample
  • 17. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Table 2 Sales of Personal Goods by Category: % Value Growth 2004-2009 % current value growth 2008/09 2004-09 CAGR 2004/09 TOTAL Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 3 Personal Goods Company Shares 2005-2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 4 Personal Goods Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Data removed from sample Data removed from sample
  • 18. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 5 Sales of Personal Goods by Distribution Format: % Analysis 2004-2009 % retail value rsp 2004 2005 2006 2007 2008 2009 Store-Based Retailing Grocery Retailers Non-Grocery Retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Leisure and personal goods retailers Mixed Retailers Other store-based retailing Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 100.0 100.0 100.0 100.0 100.0 100.0 Data removed from sample Data removed from sample
  • 19. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 6 Sales of Personal Goods by Sector and Distribution Format: % Analysis 2009 % retail value rsp J PS TG W WI Store-Based Retailing Grocery Retailers Non-Grocery Retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Leisure and personal goods retailers Mixed Retailers Other store-based retailing Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 100.0 100.0 100.0 100.0 100.0 Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Key: J = Jewellery; PS = Personal Stationery; TG = Travel Goods; W = Watches; WI = Writing Instruments Table 7 Forecast Sales of Personal Goods by Category: Value 2009-2014 SEK million 2009 2010 2011 2012 2013 2014 Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods , , , , , , Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 8 Forecast Sales of Personal Goods by Category: % Value Growth 2009-2014 % constant value growth 2009-14 CAGR 2009/14 TOTAL Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates DEFINITIONS Data removed from sample Data removed from sample Data removed from sample
  • 20. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International JEWELLERY IN SWEDEN HEADLINES  Over the period 2004–2009, the sales value of jewellery in Sweden decreased by 8.2% (at a CAGR of - 1.7%), from SEK 4.2 to SEK 3.8 billion. In 2009, however, the sales value increased by 1.3% from the SEK 3.8 billion recorded in 2008.  The Swedish jewellery market is currently undergoing large structural changes as it is increasingly driven by well-known international brands. Jewellery is more than ever a fashion accessory.  Real jewellery is the larger subsector of the Swedish market, with sales of SEK 3.3 billion in 2009. Nevertheless, only costume jewellery displayed positive growth, rising by a total of 2.7% during 2004– 2009.  In 2009, the leading brand owners on the Swedish jewellery market were the Swedish retailer Iduna AB (15.6%), together with the manufacturers Schalins Ringar AB (6.9%), Efva Attling Stockholm AB (4.7%) and Näslund & Jonsson Import AB (4.7%).  Over the forecast period, the Swedish jewellery market is expected to grow by 9.9% (at a CAGR of 1.9%) to reach SEK 4.2 billion in 2014. TRENDS  The most important factor influencing the Swedish jewellery market is a strong structural change. In recent years, well-known international brands have become increasingly important to Swedish consumers in general. This is apparent in almost all markets, including clothing, furniture and consumer electronics, where well-known designers are attracting considerable attention. Jewellery retailers report that consumers previously put their trust in their skills as goldsmiths, but today they believe in brands.  Consumers expect that a well-known international brand, such as Calvin Klein, will maintain a certain level of quality. The quality need not be exceptional and the product need not be exclusive, but the product must meet consumers’ expectations, because the brand has become the symbol of a certain lifestyle and values.  As brands are more important than craftsmanship to the modern Swedish consumer of jewellery, sales on the Swedish market have fluctuated strongly over the review period. This is because many retailers and domestic jewellery producers are still living in the past and waiting for this new and whimsical movement to pass, so they can again focus on what is important to them – their own skills in the trade – once order is re-established.  Many Swedish retailers and jewellery producers have failed to notice that they are dealing with new groups of consumers. Previously, men bought upper-end jewellery pieces as gifts for women, but today many women buy their own jewellery. Women are not necessarily interested in the upper-end products the retailers like to sell, which represent their own skill in the trade, since they may prefer buy something simple they fancy for the moment.  An illustration of the new trend is the Rock brand by Sweden Åsitas, created by the Swedish TV celebrity Laila Bagge and the designer Åsa Lötbom. This is a line of silver jewellery in the form of, for example, skulls. Goldsmiths regard this as an abomination, while critics, the media and consumers love the brand. This development also illustrates that the distinction between real and costume jewellery is increasingly blurred.  The global economic crisis in 2008 does not seem to have had a large effect on the Swedish jewellery market. Rather, because of the structural changes there have been strong ups and downs over the review period. In the last few years, the market has been growing slowly with decreasing growth rates, and it appears to be stabilising as the major retailers learn to deal with the new market conditions.  Most Swedish jewellery retailers offer a wide assortment of neckwear and rings. Rings represented 35%, neckwear 30%, earrings 20% and wristwear the remaining 15% of the total value sales of jewellery in 2009.
  • 21. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Rings and earrings appear to be gaining in popularity relative to neck- and wristwear, and sales of rings are currently believed to be driven by anticipation of the royal wedding in Sweden in 2010.  The faster-growing subsector of the Swedish jewellery market is costume jewellery, which is currently growing slightly faster than real jewellery, although the distinction between these two subsectors is increasingly blurred as a result of the current trend towards the growth of strong and well-known brands. Today it is perfectly acceptable for a consumer to buy low-end neckwear made from silver and leather, or even rubber, if the designer or the brand is well known.  COMPETITIVE LANDSCAPE  The strongest player on the Swedish jewellery market is the Iduna Group, which owns the three largest retail chains: Guldfynd, Hallbergs Guld and Albrekts Guld. Its own brands – Albrekts Guld, Mood, Posh, Q Från Guldfynd, and I me my. – held a combined market share of 15.6% in 2009.         Content removed from sample Content removed from sample
  • 22. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Jewellery , , , , , , Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 10 Sales of Jewellery by Category: % Value Growth 2004-2009 % current value growth 2008/09 2004-09 CAGR 2004/09 TOTAL Costume Jewellery Real Jewellery Jewellery Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 11 Sales of Jewellery by Type: % Value Breakdown 2004-2009 % retail value rsp 2004 2005 2006 2007 2008 2009 Earrings Neckwear Rings Wristwear Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 12 Jewellery Company Shares 2005-2009 % retail value rsp Company 2005 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 13 Jewellery Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Data removed from sample Data removed from sample Data removed from sample Data removed from sample Data removed from sample
  • 23. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 14 Costume Jewellery Company Shares 2005-2009 % retail value rsp Company 2005 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 15 Costume Jewellery Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 16 Real Jewellery Company Shares 2005-2009 % retail value rsp Company 2005 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Data removed from sample Data removed from sample Data removed from sample Data removed from sample
  • 24. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Table 17 Real Jewellery Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 18 Sales of Jewellery by Distribution Format: % Analysis 2004-2009 % retail value rsp 2004 2005 2006 2007 2008 2009 Store-Based Retailing Grocery Retailers Non-Grocery Retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Leisure and personal goods retailers Mixed Retailers Other store-based retailing Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 19 Forecast Sales of Jewellery by Category: Value 2009-2014 SEK million 2009 2010 2011 2012 2013 2014 Costume Jewellery Real Jewellery Jewellery , , , , , , Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Data removed from sample Data removed from sample Data removed from sample
  • 25. www.euromonitor.com Sample Report for Illustration ONLY © Euromonitor International Table 20 Forecast Sales of Jewellery by Category: % Value Growth 2009-2014 % constant value growth 2009-14 CAGR 2009/14 TOTAL Costume Jewellery Real Jewellery Jewellery Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Data removed from sample
  • 26. 1 Julie Boadilla JEWELLERY INDUSTRY GUIDE Updated January 2014 Small Business Help Craft and Art (Small Business Help) [(B) SBH 745.5068] Covers all aspects of setting up and maintaining a craft business. Start and Run Your Own Shop (Small Business Help) [(B) SBH 658.87] Aimed at the aspiring retailer with limited means. Antiques and Fine Art Dealer – BOP199 (COBRA, 2013) [available onsite via electronic sources] Provides information about starting up as an antiques and fine art dealer. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with. Clock and Watch and Repair Service – MBP435 (COBRA, 2013) [available onsite via electronic sources] Provides information about starting up a clock and watch repair service. It describes the skills required, the training available, current market trends, and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. Clothing and Accessories Retail – SYN041 (Cobra, 2012) [available onsite via electronic sources] An overview of the current performance, trends and key factors affecting the UK clothing and accessories retail industry including jewellery. Fashion Accessories Retailer – BOP109 (COBRA, 2012) [available onsite via electronic sources] Provides information about starting up as a fashion accessories retailer. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information.
  • 27. 2 Julie Boadilla Jewellery – BOP106 (Cobra, 2012) [available onsite via electronic sources] Provides information about starting up as a jewellery. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. Jewellery Maker – BOP008 (COBRA, 2012) [available onsite via electronic sources] Provides information about starting up as a jewellery maker. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. New Age Shop – MBP298 (COBRA, 2011) [available onsite via electronic sources]Provides brief information on trading issues connected with new age shops (retailers of products and gifts associated with a broad range of new age beliefs and philosophies). Selling Your Crafts online with Etsy, eBay and Pinterest (Small Business Help, 2012) [(B) SBH 745.50688 BUS] A step by step guide for succeeding in the world’s biggest online, crafts market places. Gives tips and advice on everything from creating listings to getting a fair price, processing payments to providing outstanding service. Setting up a successful Jewellery Business (Small Business Help, 2011) [(B) SBH 739.27068 BUS] This book is for anyone who designs, makes and sells jewellery. Either directly to the public or through shops and galleries. This book will also give you the tools you need to help you price, promote and sell your work. Market Research & Statistics Consumer Attitudes Towards Luxury Brands – UK (Mintel, 2011) [available onsite via electronic sources] Analysis of sector and trends including many tables showing responses to questions on buying and usage behaviour. Consumer Expenditure on Jewellery, Silverware, Watches and Clocks (Euromonitor Passport, 2012) [available onsite via electronic sources] Brief data for numerous individual countries and regions. Corporate and promotional giftware Market Report (Key Note, 2013) [A-Z sequence by title] (also available online via electronic sources) Extensive analysis of sector including sales, competitors, future trends, SWOT analysis, buying behaviour, current issues and the global market. Fashion accessories - UK ( Mintel, 2012) [available onsite via electronic sources] Includes costume jewellery. Analysis of sector and trends, including tables showing responses to questions on buying and usage behaviour. GFMS: Gold survey 2012 (GFMS) [(B) MKT 338.2741021 BUS] Provides data on gold prices, investment, mine supply, supply from above ground stock, gold bullion trade and fabrication demand. Giftware (Key Note, 2011) [A-Z sequence by title] (also available online via electronic sources) Extensive analysis of sector including sales, competitors, future trends, SWOT analysis, buying behaviour, current issues and the global market.
  • 28. 3 Julie Boadilla Global Airport Retailing: Market Size, Retailer Strategies and Competitor Performance (Verdict, 2012) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Global Jewellery Retailing: Market Size, Retailer Strategies and Competitor Performance (Verdict, 2010) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Global Luxury Retailing: Market Size, Brand Strategies and Competitor Performance (Verdict, 2011) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Index of Jewellery, Silverware, Watches and Clocks, Travel Goods Prices (Euromonitor Passport, 2013) [available onsite via electronic sources] Covers numerous individual countries and regions to show variation in prices for the sector. Figures from 2006. International Retail Spend in the UK (Verdict, 2013) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Jewellery industry: Financial Survey Report (Key Note, 2012) [A-Z sequence by title] Brief financial data for medium-sized and smaller UK companies. Jewellery trade: Business Ratio Report (Key Note, 2011) [A-Z sequence by title] (also available online via electronic sources) Detailed financial data for leading UK companies followed by ranked lists for financial performance, number of employees, sales per employee, etc. Jewellery and Watches Market Report (Key Note, 2013) [A-Z sequence by title] (also available online via electronic sources) Extensive analysis of sector including sales, competitors, future trends, SWOT analysis, buying behaviour, current issues and the global market. Jewellery in The United Kingdom (Euromonitor Passport, 2013) [available onsite via electronic sources] Individual reports on numerous countries. Includes analysis, sector trends and forecasts, sales share from, usually, 2008, by sub sector, company and by brand, and share by distribution format such as grocery outlets or the Internet. UK report includes new product launches and company and brand share by sub sector such as costume jewellery. Luxury Jewellery and Timepieces – in the United Kingdom (Euromonitor Passport, 2013) [available onsite via electronic sources] Individual reports on numerous countries. Includes analysis, sector trends and forecasts, sales share from, usually, 2006, by sub sector, company and by brand, and share by distribution format such as grocery outlets or the Internet. Platinum (Johnson Matthey PLC, 1985 onwards) [ZC.9.b.41] (Humanities, must be ordered on Explore the British Library) Annual review of platinum, palladium and rhodium markets (to some extent ruthenium and iridium). Statistics on demand by industry, regions etc. Includes prices, and new applications. Watches – country reports (Euromonitor Passport, 2013) [available onsite via electronic sources] Individual reports on numerous countries. Includes analysis, sector trends and forecasts, sales share from, usually, 2008 by sub sector, company and by brand, and share by distribution format such as
  • 29. 4 Julie Boadilla grocery outlets or the Internet. UK report includes new product launches and company and brand share by sub sector such as sports or casual formats. Watches and Jewellery – UK (Mintel, 2012) [available onsite via electronic sources] Analysis of sector, trends and purchasing patterns, including many tables showing responses to questions on buying and usage behaviour. World Silver Survey (The Silver Institute, 2012) [(B) MKT 338.4766923 BUS] Covers market analysis, summary and outlook, silver prices, Investment, mine supply, supply from above ground stock, silver bullion trade and fabrication demand. Worldwide Jewelry Stores Industry (Barnes Reports, 2012) [available onsite via Business Source Complete]Covers trends in industry establishments, sales, employment , size of firm industry estimates, and industry ratios for 2009-2013. Trade Magazines Basel Magazine (CRU Publishing Ltd, monthly, 1999 onwards) [ZK.9.b.13909] (Humanities, must be ordered on Explore the British Library). Covering diamonds, watches, designers, luxury goods, market reports and trade show reviews Crafts - the magazine for contemporary craft (Crafts council, 1973 onwards) [ P.423/209] (Humanities, must be ordered on Explore the British Library). Gems & Jewellery (Gemmological Association, 2005 onwards) [General Reference Collection ZK.9.b.23145] (Humanities, must be ordered on Explore the British Library) This journal is published quarterly, earlier title was Gem & jewellery news. Covering gems, precious stones and the jewellery trade. Gift focus magazine (Kline Davis Ltd) [(P) 381.4567-E(1)Bus] Bi-monthly journal for giftware industry. Product and company profiles, trade shows and news, including jewellery. Gifts Today (Lema Publishing Ltd, 1997 onwards), [ZK.9.b.10592] (Humanities, must be ordered on Explore the British Library). This journal offers leisure, distribution, and consumer goods (including jewellery and giftware). GR - Giftware Review [(B) 745.094105-E(1)Bus] The last 4 years only held for this publication. News of products in the giftware sector including jewellery. Harrington & Hallworth (H&H) (Network Jewellery Magazines, 2008 onwards) [General Reference Collection, ZC.9.b.8841](Humanities, must be ordered on Explore the British Library). Annual publication on the jewellery and watch industry. Jewellery Focus (Mulberry Publications, 2008 onwards) [General Reference Collection ZK.9.b.26500] (Humanities, must be ordered on Explore the British Library). A glossy monthly publication including articles, reviews, exhibitions and news. Luxury Product and Service Briefing (Atlantic Publishing Ltd., 1995 onwards) [(P) AL 90-E (64) BUS] Information on the luxury goods industries including jewellery. Progressive jewellery (Max Publishing), [(P) 381.573927094105 -E (1) BUS] The last 4 years only held for this publication.
  • 30. 5 Julie Boadilla Trade magazine for retailers, wholesalers and importers. Includes company and retailer profiles, bestsellers, product finder, new product and people news. SA Jewellery News (Johannesburg: Diamond News and SA jeweller, 2000 onwards, monthly) [(P) TN76-E (11)] Contains information on the jewellery and diamond industry in South Africa. Directories The British Jeweller Yearbook (Retail Jeweller, 2008) [(B) DIR 338.47739270941 BUS] Includes information on various aspects of the jewellery trade as well as details of forthcoming trade fairs, and company listing and commodity indices. Indicateur de L’Horlogerie (ISH Indicateur Suisse SA, 2011) [P.621/296] (Humanities, must be ordered on Explore the British Library). Watch and clock directory including styles, movements, fashion, gem, mechanical, quartz and sports watches. Also includes larger wall clocks. JCK (Jewellers Circular Keystone), Directory and Guide (Reed Business Information, 2008) [(B) DIR 381.45739270294 BUS] US directory including sections on diamonds, pearls and gemstones. Includes suppliers of finished jewellery, watches and clocks. Also some company information. Retail Jewellers Buyers Guide (Retail Jeweller 2009) [(B) DIR 381.457392702541 BUS] A listing guide for sourcing raw materials, tools, equipment, etc. Also lists finished jewellery products and services for retail jewellers. Internet Sources Association for Contemporary Jewellery The Association for Contemporary Jewellery is devoted to the promotion, representation, understanding and development of contemporary jewellery in the United Kingdom and abroad. www.acj.org.uk The British Jewellers Association The national trade association promoting the growth and prosperity of UK jewellery and silverware suppliers. With over 600 member companies, BJA represents manufacturers, bullion suppliers, casting houses, diamond and gem dealers, designer jewellers and silversmiths, equipment suppliers and wholesalers. www.bja.org.uk British Allied Trades Federation, BATF Represents trade associations which represent the design, manufacture and supply of jewellery, giftware, travel goods and accessories www.bjgf.org.uk The British Watch and Clock Makers Guild Guild Council composed of practical experts who provide help for members with information and solving various problems such as those concerning obsolete parts, Insurance, starting a business etc. www.bwcmg.org
  • 31. 6 Julie Boadilla The Crafts Council Glossy review of important contemporary crafts people, reviews of exhibitions, details of craft galleries, services for craft and decorative arts practitioners, specialist courses etc. Covers textiles, ceramics, sculpture, metalwork, jewellery, lighting, furniture, applied arts etc. www.craftscouncil.org.uk The Jewellery Distributors’ Association of the United Kingdom Trade body supporting those who wholesale, distribute, import and export precious and fashion jewellery, accessories, watches, clocks and other items to the jewellery and allied trades. www.jda.org.uk The London Bullion Market Association The trade association that represents London’s wholesale over-the-counter market for gold and silver. The ongoing work of the Association encompasses many areas, among them refining standards. www.lbma.org.uk Major Jewellery Associations Lists the major Jewellery Associations around the world. info.goldavenue.com/Info_site/in_jewe/in_je_majo.htm The National Association of Goldsmiths (N.A.G.) Represents jewellery retailers. www.jewellers-online.org Responsible Jewellery Council Promotes responsible business practices throughout the diamond and gold jewellery supply chain. www.responsiblejewellery.com The World Jewellery Confederation Encourages harmonisation and international cooperation, and protecting consumer confidence in the industry. www.cibjo.org Note: Every effort has been taken to ensure the accuracy of the information contained in this document, however some recently acquired items may have been added to the collection since this document was last updated. Please ask for help at the enquiry desk or check Explore the British Library for more details. Images by becca_and_rich, , Nikita, Glass Elements under a Creative Commons license
  • 32. CONSUMER MARKETS The global gems and jewellery industry Vision 2015: Transforming for Growth A GJEPC–KPMG report
  • 33. The gems and jewellery industry is extremely global in nature-given the geographic dispersion of the value chain - from mining of gold, diamonds, and platinum in Africa, Canada, Australia, and Russia to polishing and jewellery manufacturing in India, China, and Turkey, and retailing in the U.S., European Union, Japan, and the emerging markets of China and India. As one of the most traditional industries, it has witnessed sweeping changes since the beginning of this millennium. Supply sources have become fragmented, raw material prices have shot up, and consumers have become more demanding and less loyal than ever before. Regulators are cautious and consumer activism is on the rise. These pressures have driven changes that are more intense and lasting than any witnessed in the previous 50 years. In the absence of a comprehensive global view of the current and likely future state of the industry, players indulge in selective future gazing. Given the leadership role of Gem and Jewellery Export Promotion Council (GJEPC) of India in the development of the industry, it was considered appropriate to initiate a study to take stock of the current challenges and predict a future for the industry. KPMG, a global network of professional services firms, which has done extensive work in the industry joined in and over the last six months, teams from both organisations conducted a study of the global industry. The study focusess on understanding the current size and scale of the value chain, identifying trends that will have an impact on the future, predicting the likely state of the industry by 2015, recommending initiatives, and developing a roadmap for various players given the expected changes in the environment. Apart from interviews with major industry leaders to gather insights, the study used quantitative modelling techniques to estimate changes in the size and structure of the industry. The report is limited to the precious jewellery segment of the industry, covering the entire jewellery value chain and its three main elements – diamonds, gold, and platinum, which constitute 95 per cent of the industry in terms of value. Silver, coloured gemstones, and palladium have been covered partially. 1 Executive summary
  • 34. Industry size, segments, and historical growth The size of the global gems and jewellery industry is estimated at 146 billion U.S. dollars (USD) at retail prices in 2005. The industry has grown at an average Compounded Annual Growth Rate (CAGR) of 5.2 per cent since 2000. Diamond-studded jewellery is the largest segment of this industry (2005 sales estimated at USD 69 billion); it has grown at a CAGR of 5 per cent over the last five years. The plain gold jewellery segment is a close second with total retail sales of USD 60.7 billion in 2005. Over the last five years, this segment has grown the fastest (at a CAGR of 5.5 per cent), a direct result of the rise in gold prices (CAGR of close to 13 per cent since 2001). 2 CAGR (2000-2005) 5.2%146 136 124 118 111113 0 40 80 120 160 200 2000 2001 2002 2003 2004 2005 USDbillion Figure 1: Global jewellery sales (2000-2005), USD billion Source: KPMG analysis Plain gold jewellery 41.6% Others 5.0% Plain platinum jewellery 6.2% Diamond Jewellery 47.2% Figure 2: Retail mix of various jewellery segments (2005) Source: KPMG analysis Growth in industry segments Market share of various jewellery segments
  • 35. 3 Sale of jewellery is concentrated in eight key world markets, which corner more than three fourth of the world’s sales. The U.S. is the world's largest market for jewellery and accounted for an estimated 31 per cent of world jewellery sales in 2005. India and China are the emerging centres of jewellery consumption and have steadily increased their share of the pie to 8.3 per cent and 8.9 per cent, respectively (2005) Value addition at the two ends of the value chain is the highest, with intermediate segments adding relatively lower value (29 per cent in diamond cutting and polishing and 32 per cent in jewellery manufacturing). Key trends and likely scenarios Various socio-economic and political forces are driving the pace of change in the gems and jewellery industry. These forces have given rise to a number of visible trends (described in Figure 5) in each segment of the jewellery value chain: • Sourcing: This segment has witnessed an increased fragmentation of rough diamond supply, emergence of new mines, local beneficiation movement in mining countries and a bull-run in precious metal prices. Competition and overcapacity in polishing and high debt levels have placed intense financial pressure on most players in traditional processing centres. • Jewellery fabrication: Accelerating fashion cycles, relative factor costs between manufacturing and consuming nations, and volatile metal prices have fuelled a drive towards moving fabrication to low cost countries. India 8.3% Japan 8.3% Turkey 2.9% Middle East 8.9%UK 3.1% US 30.8% Rest of the World 23.7% China 8.9% Italy 5.0% Figure 3: Geographic share of the global jewellery consumption (2005) Source: KPMG analysis 146 67.2 20.6 12.7 40.6 17.6 0.7 (2.4) 4.4 1.7 0.5 0 20 40 60 80 100 120 140 160 USD billion Figure 4: The global gems and jewellery value chain (2005) Source: KPMG analysis Eight key world markets Diamond rough production Diamond mine sales Diamond rough trade CPD output Jewellery retail World jewellery sales Polished diamond inventory Polished diamond trade Precious metals Jewellery fabrication/wholesale Polished diamond at wholesale prices The global gems and jewellery value chain (2005)
  • 36. 4 • Jewellery retail: Increasing consumer sophistication, dwindling investment- driven purchases, and competition from other luxury goods are influencing the quantum and pattern of jewellery consumption in markets across the world. Stagnation in key jewellery markets and retail organisation in emerging markets are continuously altering the geographic distribution of jewellery consumption. Increased consumer consciousness about issues around origin/source of product' and 'labour conditions in manufacturing countries' adds to the complexity. Diamond mining Coloured gemstone mining Gold mining Platinum mining Recovery of silver Jewellery design & fabrication Jewellery retail SOURCES OF PRECIOUS STONES AND METALS JEWELLERY FABRICATION JEWELLERY RETAIL Local beneficiation in African countries Gold price bull run Steady supply of diamonds emergence of new mines, mining companies Declining market share of large diamond marketing companies Diamond supply controlled by few having high bargaining power Traditional centres finding rough procurement difficult Increasing rough prices Technological developments reducing labour and skill intensity Changing retail channels Competition and overcapacity in traditional centres High debt levels in traditional centresHigh and volatile platinum prices Israel and Belgium losing market share High cost of financing stock due to volatile prices Shrinking margins Stagnating demand in the U.S. – the largest market Aggressive marketing to boost demand Creation of store and product brands Competition from other luxury items increasing Jewellery ‘s declining value proposition Increasing consumer sophistication Consumer demand for quality, hallmarking gaining importance Emerging consumption centres linked with economic growth Shortening fashion cycles Intense competition in the export markets Bullion trading Ore processing & scrap recovery Gemstone processing Figure 5: Snapshot of key trends impacting the industry Source: KPMG research
  • 37. 5 KPMG used the scenario analysis method for forecasting and modelling the impact of each of these trends on the future of the industry. Based on trends distilled from an analysis of current events and expectations of industry experts, eight scenarios were identified as likely to cause a significant disruption to the industry equilibrium. The eight key scenarios that are likely to impact the industry are: 1. Mining countries encourage local beneficiation and capture a share of the polishing industry. 2. Supply sources get fragmented and rough supply increases. 3. Consolidation occurs across the jewellery value chain. 4. Existing centres of the industry lose out in favour of new ones. 5. Substitutes such as synthetic diamonds and non-precious metals capture a share of the precious jewellery market. 6. Demand for plain gold jewellery declines. 7. Large emerging retail markets such as China and India organise and consolidate. 8. Jewellery loses out to competing luxury goods. The effect of all the scenarios was estimated by building an economic model and evaluating sensitivity of industry size and structure to the forces of change – first independently, to each scenario, and later, collectively with assigned probabilities. Future of the global jewellery industry Based on the collective impact of the eight scenarios identified, projections were made about the most likely industry end state. What follows are seven key conclusions about the size, state, and structure of the industry in 2010 and 2015. Global jewellery sales growth will be sluggish, and will see emergence of new markets Global jewellery sales will grow at 4.6 per cent year-on-year to touch USD 185 billion in 2010 and USD 230 billion in 2015. Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together, accounting for about 82 per cent. Diamond jewellery will be the slowest growing segment at a CAGR of 3.3 per cent. Growth in the industry will be slow as compared to that expected in other luxury goods categories such as watches, perfumes, etc. For example, luxury apparel, a USD 100 billion market today, is expected to grow at 10-15 per cent over the next seven years1 . CAGR (2000-2005) 4.6% 146 185 230 0 40 80 120 160 200 240 280 2005 2010 2015 USDbillion Figure 6: Projected global jewellery sales (2010, 2015), USD billion Sluggish world jewellery sales 1 Source: Global market review of luxury apparel - forecasts to 2012, Just - Style (2006)
  • 38. 6 China and India together will emerge as a market equivalent to the U.S.market by 2015. The Middle East will surface as another large market, accounting for close to 9 per cent of the global jewellery sales in 2015. Jewellery fabrication will feel the pressure of sluggish demand and will move to new centres Global jewellery fabrication output will grow at a CAGR of 5.1 per cent to reach USD 95 billion by 2015. China and India will be the new centres for the fabrication of studded jewellery, as the U.S.'s share will decline. Turkey will take over a significant share of the gold jewellery fabrication market from Italy. Value addition in diamond processing stage of the pipeline will increase significantly Cutting and polishing of diamond (CPD) centres will be the primary beneficiaries of the fall in rough prices and value addition in polishing will increase from 29.3 per cent in 2005 to 34.1 per cent in 2015. They will also benefit from an increased flow of diamond rough through the trade channel (a low margin route), which would imply that rough prices being paid by CPD players will see a downward trend. The jewellery pipeline will see consolidation Shrinking margins and increasing debt levels in the industry will force the diamond industry to consolidate. This consolidation will have the maximum impact on the diamond-processing segment of the value chain. Smaller players will be acquired or will go out of business, and the following will emerge: • Handful of large integrated gems and jewellery players • High volume polishers • Niche polishers Others 5% Plain Palladium jewellery 6% Plain platinum jewellery 7% Plain gold jewellery 41% Diamond jewellery 41% Middle East 9% UK 2% US 26% RoW 28% China 13% India 12% Italy 3% Japan 4% Turkey 3% Figure 7: Projected share of various jewellery segments (2015) Source: KPMG analysis Figure 8: Projected share of key markets for jewellery consumption (2015) Source: KPMG analysis Projected share of industry segments and key consumption markets
  • 39. 7 • Mass jewellery fabricators • Niche jewellery fabricators • Several retail formats The structure of the diamond-processing industry will change considerably This segment of the value chain will see changes in rough allocation to countries, emergence of strong players, and weaker ones exiting the market. India's share of the processing pie will drop from 57 per cent today to around 49 per cent (in value terms) by 2015. China will emerge as a strong player with 21.3 per cent of the diamond processing share. By 2015, around 9 per cent of the world's diamonds, in volume terms, will be processed locally by mining countries, with Angola, Namibia, and Botswana emerging as profitable CPD centres in Africa. Fragmentation of supply sources and slow diamond jewellery growth will make the rough diamond industry more demand sensitive Changes in demand-supply dynamics will decrease the ability of mining companies to push rough at any price. Rough supply will become more fragmented. The share of centralised distribution will decrease from the current 55 per cent to less than 40 per cent (in value terms) and rough sold through traders will increase to account for 45 per cent of total rough. As more rough is channelled through traders and sold directly by mining companies, the industry will become more competitive, leading to a drop in the value addition in diamond trading from the present 12.9 per cent to 11.6 per cent in 2010 and 9.9 per cent in 2015. Russia 7.1% US 1.4% South Africa 5.5% Namibia 1.5% Israel 4.7% India 49.3% China 21.3% Botswana 5.3% Belgium 0.7% Angola 3.2% Figure 9: Projected share of world diamond rough for processing (2015), in value terms Source: KPMG analysis Projected structure of the global diamond processing industry
  • 40. 8 Demand-supply trends will also exert a downward pressure on rough prices, which would fall by 15-20 per cent to ensure the sustainability of the downstream industry. A number of distinct business models will emerge along the value chain by 2015 By 2015, the industry will witness the emergence of six-seven large conglomerates with presence across the jewellery value chain. These large conglomerates will be the industry leaders of tomorrow. In addition to this, players in each part of the industry vaue chain will evolve into business models (described in Figure 10) which will enable them to remain competitive in the changed industry scenario. Large Mining Companies Integrated Industry Majors Multi-product Retailers (Global and National) Mass Jewellery Fabricators Backward Integrated Retailers Local Jeweler/ Independents Junior Mining Companies Pure Play Rough Traders Niche CPD players High Volume CPD Players Niche Jewellery Fabricators Jewellery Brands e-tailers MNC Jewellery Chains National Jewellery Retailers Regional Jewellery Chains Value Chain Relative scale of operation Upstream Downstream Mining Sourcing Diamond Processing Jewellery Retail Jewellery Fabrication Figure 10: Sustainable business models of the future (2015) Source: KPMG analysis Structure of the industry in 2015
  • 41. 9 Aspirational view of the future While a modelling of the realistic case showcases the most likely turn of events, history is witness to collective action changing industry fortunes. We believe that if the actions recommended in this report are undertaken, the industry has the potential to grow beyond USD 230 billion. We have estimated the range of impact to be around USD 50 billion, taking the industry size to USD 280 billion by 2015. In such a situation, the industry would be growing at a CAGR of 6.7 per cent, an increment of 2.1 per cent over the realistic case. At this rate, the industry would be growing faster than the Gross Domestic Product (GDP) per capita and would be claiming a share of the market from other luxury goods. Diamond and plain gold jewellery (product segments) and India and China (markets) will contribute the bulk of this incremental growth. This additional growth will also have a salutary impact on other parameters of industry health e.g. inventory levels (will decrease from 19 per cent to 7.5 per cent). In order to realise this vision, stakeholders must come together, overcoming internal differences and competitive issues, to undertake certain actions. Action programmes for the industry To realise its potential by 2015, the industry would have to focus on growing demand for jewellery as a category and strengthening industry-level and enterprise-level capabilities. These programmes need to be initiated within the next 12-18 months for its benefits to be realised over the next 10 years. 0 100 200 300 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 USDbillion Aspirational case Realistic case 50 billion Figure 11: Projected potential jewellery sales (2015), USD billion Source: KPMG analysis US 35% China 25% India 17% Middle East 9% Turkey 9% Others 5% USD 50 billion Figure 12: Contributing markets to additional growth of USD 50 biilion Source: KPMG analysis Others 5% Plain palladium jewellery 5%Plain platinum jewellery 1% Plain gold jewellery 43% Diamond jewellery 46%USD 50 billion Figure 13: Contributing product segments to additional growth of USD 50 billion Source: KPMG analysis Capturing the industry potential – segments and markets Jewellery sales could reach USD 280 billion by 2015
  • 42. 10 Develop demand for jewellery as a category The biggest threat that the jewellery industry faces is from other luxury goods industries. The industry needs to get together and defend itself against this onslaught. If jewellery as a category can outgrow other luxury goods industries, the benefits would be enjoyed by all constituents of the industry just as the problems of low demand growth will be shared by all. Several initiatives will have to be undertaken to foster the growth of jewellery as a category. • Promote jewellery as a category instead of distinct metals and stones: While individual promotion organisations (World Gold Council, DTC, Rio Tinto Diamonds, Platinum Guild International, etc.) have done a great deal to sustain the demand for jewellery at its current level, much more can be achieved if these agencies were to act collectively. We recommend the formation of World Jewellery Federation, a nodal body comprising various segments of the industry which will promoting jewellery as a category. • Identify new product and consumer segments: Unlike other luxury goods, the target segments and value proposition of jewellery have remained relatively unchanged. We believe it is time for the industry to think creatively and target new customer segments and address newer needs. This extension is an absolute necessity for guarding against stagnating sales. • Manage the portfolio of markets: Like any enterprise, an industry needs to have a portfolio of markets – markets that provide scale (large volumes, slow growth), markets that provide growth (smaller volumes growing rapidly), and markets with high potential for growth and volumes. For this the industry needs to - Grow the jewellery market Strategic Capabilities Operational Capabilities Financial Capabilities Supporting Capabilities Strategic Capabilities Operational Capabilities Financial Capabilities Supporting Capabilities Build enterprise capabilities Buildenterprisecapabilities Figure 14: Action plan for the industry Source: KPMG analysis Agenda for realising industry potential
  • 43. 11 Re-establish value proposition in developed markets: Stagnation in developed markets must be dealt with through aggressive marketing and brand development, product and service innovation, and reaching out to untapped consumer segments. Maximise potential of emerging markets: Attractive emerging markets like India and China suffer from lack of organisation, disparate trade practices, and extreme fragmentation. Industry bodies need to work with governments in these countries to modernise and transform these markets. Several segments within these markets remain untapped by large modern players due to lack of local knowledge or absence of scale. Identify markets of the future: We believe there are several other markets like Russia, and Brazil, which are likely to be high-growth economies and as such have the potential for jewellery consumption. Such markets need to be uncovered through trade delegation visits, conscious efforts by industry-promotion bodies, and bilateral discussions between local governments and governments of jewellery-manufacturing countries. Strengthen industry-level capabilities If the industry is to compete with the more glamorous, well-entrenched, and significantly researched luxury goods industry, players will have to come together to improve the general health of the sector. Increased transparency, professionalising, lowering of financing costs and attracting high quality talent are the needs of the hour. • Enhance image of the industry in the eyes of governments, regulators, and consumers: The traditional image of the industry poses a barrier for growth which is compounded by allegations of conflict diamonds, suspected links with money laundering, and lack of transparency. The industry needs to recognise this as a challenge and work towards eliminating such allegations/suspicions wherever possible and containing the problem where elimination is not possible. Publish information: Publishing as much data and information as possible about the industry is one sure way of making the industry visible to analysts and external stakeholders and alleviating doubts. At present, data is available on mining (most countries) and retail (only the U.S.), unlike other industries where industry bodies or players themselves regularly put out information in the public domain for the benefit of external stakeholders.
  • 44. 12 Promote transparency in business: Industry leaders, governments, and industry organisations need to take it upon themselves to promote greater transparency in all parts of the value chain. Some markets and some parts of the value chain are notorious for the extent of off - the - book transactions. Consequently, they depend on trusted family members for handling the business, which constrains the ability to grow, which in turn lowers the willingness to become transparent. • Professionalise and transform family-owned businesses: The bulk of the industry comprises family-owned businesses, with the promoters and family members playing hands-on/operational roles. To grow, individual enterprises need to transform into professionally managed corporations that are listed on stock exchanges, are widely held, guided by visionary founders, managed by professional managers, and that subscribe to the contemporary standards of corporate governance. • Attract talent from luxury goods industries: Nearly all the talent in the industry today is home grown. There has been little infusion of talent, either of young professionals at the entry stage or lateral entrants from other industries. We believe the industry can benefit significantly by attracting talent from other luxury goods industries. They can strengthen the branding, marketing, and retail experience capabilities and help the industry garner a greater share of discretionary spends. • Reduce the cost of financing: High-value raw materials have made the industry capital intensive, and low transparency has led to a premium on financing. Thus, while funds have been forthcoming, they are not at the most economical rates. Further, with relatively few players accessing the capital markets and modern financial products (compared to other industries), the overall cost of financing has remained high. The industry can reduce this cost and improve access to funds if individual players embrace transparency and go public. Players to select strategic position and enhance individual capabilities The changes that the industry is likely to face in the coming years should be looked upon both as challenges and opportunities. Over the next few years, players that develop multiple capabilities to manage growth will flourish. • Compete on one of the four strategic positions: The fast-unfolding future holds several challenges for the industry, but at the same time provides an opportunity to morph into players with sustainable business models. In the future, industry players will have to choose one of the following four strategic positions to survive and build sustainable competitive advantage:
  • 45. 13 Big brother (presence across the value chain): Players with presence across various segments of the value chain will function as a portfolio of businesses, allowing them end - to - end visibility of the supply chain, providing natural risk mitigation, and access to global talent. Volume player (large scale operations in a single segment): Depth in a particular segment of the value chain will allow players to compete with others on the back of economies of scale. These high-volume players will enjoy greater bargaining power, and their focus on one segment will allow them to develop processes and systems that are operationally the most efficient. Specialist (possession of skills): Players that choose to compete on skill will have to develop specialized expertise in various areas of business - organizational flexibility, product design and development, business operations, and the use of technology. The premium that their goods will fetch will allow these players to employ the best talent in the industry. Straddler (presence in adjacent segments): In comparison to players present only in one segment, these players would have the ability to shuffle resources between the two segments in which they are present, as well as hedge their risk and garner greater margins. • Critical capabilities for segments: Although the capabilities required by a player will be dependent on future strategic position and business model, a dominating presence in one segment of the value chain will force it to master certain skills. Mining: Wide-spread exploration, mining, and possible mergers and acquisitions are expected to place tremendous pressures on the availability of capital in this segment of the value chain. Therefore, the ability to raise capital at low costs will be crucial for players in this segment. Sourcing and processing: This is the segment that is likely to be at the heart of the shakeout in the industry. Several players will acquire scale through the inorganic-growth route. Managing mergers, acquisitions and alliances will, therefore, be one capability that players in this segment must possess. Jewellery fabrication: With the bulk of jewellery manufacture relocating to low-cost countries, players will be looking to squeeze out maximum margins in this segment. Therefore, operational planning, (including demand forecasting, supply chain optimisation, and distribution planning) will be a critical capability for players in this segment.
  • 46. Jewellery retail: With the reorganisation of the retail markets of India and China and increasing consumer sophistication, jewellery retailers will be competing with luxury goods for greater footfalls and consumers' share of the wallet. Consequently, skills to brand and market jewellery will be of utmost importance to these retailers. Way forward So far the industry has grown due to the intrinsic attraction of its product, the sporadic marketing push by some incumbents, and the entrepreneurial skills of individuals. However, the threat posed by luxury goods, changing consumer habits, industry's opaque and transactional mode of operation, and various socio- economic and political forces are fast changing the environment the industry operates in. Growth of the industry (and of individual players) is dependent on their successful reinvention of the category, substantial infusion of capital and talent, and adaptability to change. 14
  • 47. www.in.kpmg.com KPMG in India Mumbai KPMG House, Kamala Mills Compound 448, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 Tel: +91 22 39896000 Fax: +91 22 24913132 Delhi 4B, DLF Corporate Park DLF City, Phase III Gurgaon 122 002 Tel:+91 124 3074000 Fax: +91 124 2549101 Bangalore KPMG House 20/2, Vittal Mallya Road Bangalore 560 001 Tel: +91 80 2227 6000 Fax: +91 80 2227 3000 Pune 703, Godrej Castlemaine Bund Garden Pune 411 001 Tel: +91 20 30589764 Fax:+91 20 30585775 Chennai Wescare Towers 16 Cenotaph Road,Teynampet Chennai 600 018 Tel: +91 44 24332533 Fax:+91 44 24348856 Hyderabad II Floor, Merchant Towers Road No. 4, Banjara Hills Hyderabad 500 034 Tel: +91 40 23350060 Fax:+91 40 23350070 Kolkata Park Plaza, Block F, Floor 6 71 Park Street Kolkata 700 016 Tel: +91 33 22172858 Fax: +91 33 22172868 The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. © 2006 KPMG, an Indian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 15 Contact Us: KPMG Neelesh Hundekari Director Tel: +91 22 39835421 e-mail: nhundekari@kpmg.com Deepankar Sanwalka National Industries Director, Consumer Markets Tel: +91 124 3074302 email: dsanwalka@kpmg.com Ajay Mookerjee Head – Business Performance Services, Tel: +91 80 41866800 e-mail: ajaym@kpmg.com GJEPC Sanjay Kothari Chairman e-Mail: chairman@gjepcincia.com The Gem and Jewellery Export Promotion Council of India Mumbai 5th Floor, Diamond Plaza, 391-A, Dr. Dadasaheb Bhadkamkar Marg, Mumbai - 400 004. Tel: 0091-22-2382 1801 / 1806 Fax: 0091-22-2380 8752 / 2380 4958 Exhibition Cell: gjepc@mtnl.net.in www.gjepc.org Delhi F 17 - 18, Flatted Factories Complex, Jhandewalan,New Delhi - 110 055. Tel: + 91 11 2361 4197 / 2351 5395 Fax: 0091-11-23675274 Jaipur Rajasthan Chamber Bhavan, 3rd Floor, Mirza Ismail Road,Jaipur - 302 003. Tel: +91 141 256 8029 / 256 5731 Fax: +91 141 256 7921 Chennai Ankur Plaza, 3rd Floor, 52 G.N. Chetty Road, T. Nagar,Chennai - 600 017. Tel: +91 44 2815 5180 Fax: +91 44 2815 4526 Kolkata Vanijya Bhavan, 6th Flr, Left Wing, 1/1, Wood Street, Kolkata - 700 016. Tel: +91 33 2282 3630 / 2282 3629 Fax: +91 33 2282 3629 Surat 626-628 Belgium Tower, 6th Floor,Ring Road,Surat - 395 003. Tel: +91 261 243 5008 / 241 5579 Fax: +91 261 743 5008
  • 48. 1 A PROJECT REPORT ON “ ACOMPARATIVESTUDYONTHECONSUMER’S PREFERENCE TOWARDS BRANDED JEWELLERY OVERNON BRANDED JEWELLERY IN MUMBAI. ” SUBMITTED BY CHETAN N NAKTE (MARKETING)ROLL NO – B-07Batch 2011 - 2013UNDER THE GUIDANCE OF DR. AMIT AGGRAWAL CORE FACULTY - MARKETING
  • 49. 2 DECLARATION Iherebydeclarethattheprojectreportentitled “ A COMPARATIVE STUDY ON THE CONSUMER’SPREFERENCETOWARDSBRANDEDJEWELLERYOVERNONBRANDED JEWELLERYINMUMBAI” carriedoutat S.P.JEWELLERS ismyworksubmittedinpartialfulfillmentoftherequirementforDegreeofMASTEROF MANAGEMENTSTUDIES(MMS),UNIVERSITYOFMUMBAIfromKOHINOORBUSINESS SCHOOL,KURLA,MUMBAIandnotsubmittedfortheawardofanydegree,diploma,fellowshiporanysimilar titlesorprizes.Date:Signature:_______________Place:MumbaiStudentName:________
  • 50. 3 CERTIFICATE Thisistocertifythattheprojectentitled “ A COMPARATIVE STUDY ON THE CONSUMER’SPREFERENCETOWARDSBRANDEDJEWELLERYOVERNONBRANDED JEWELLERYINMUMBAI” issuccessfullycompletedby “ Chetan N Nakte ” duringthesecondyearofhercourse,inpartialfulfillmentoftheMastersDegreeinManagementStudies,underthe University of Mumbai ,through KOHINOOR BUSINESS SCHOOL, Kurla,Mumbai-400070. 3 CERTIFICATE Thisistocertifythattheprojectentitled “ A COMPARATIVE STUDY ON THE CONSUMER’SPREFERENCETOWARDSBRANDEDJEWELLERYOVERNONBRANDED JEWELLERYINMUMBAI” issuccessfullycompletedby “ Chetan N Nakte ” duringthesecondyearofhercourse,inpartialfulfillmentoftheMastersDegreeinManagementStudies,underthe University of Mumbai ,through KOHINOOR BUSINESS SCHOOL, Kurla,Mumbai-400070.Date:Place:Mumbai “Dr.Amit Aggrawal” 4 ACKNOWLEDGEMENT
  • 51. Itismyprivilegetoexpressmygratitudeandrespecttothosewhoguidedandinspiredmeinthecompletionofthis project.Iamdeeplyindebtedtomyprojectguideofthe Kohinoor Business School Dr.AmitAggrawal forgivingmethisopportunitytoundergomyprojectinhisesteemedorganizationandforhistimelysuggestionsand valuableguidance.Ialsowanttogivethanksto Mr. Namdev G Nakte Heconstantlyencouragedmeandshowedmetherightpathfromdayonetillthecompletionofmyproject.Iamalso thankfulto Mr. Dattaram Pujari forhelpingmetoproceedinconductingthesurveyandcompleteitontime.IamgratefultotheDirector,Faculties, administrativestaffandthelibrarianofKohinoorBusinessSchoolforprovidingmeallthesupportrequiredfor successfulcompletionofmyproject.ChetanNNakte INDEX CHAPTERNOCHAPTER NAMEPAGENO 1 INTRODUCTION EXECUTIVE SUMMERY 1 RESEARCH OBJECTIVES 3 RESEARCH DESIGN AND METHODOLOGY 4 SIGNIFICANCE OF THE STUDY 6 JUSTIFICATION OF THE STUDY 7 2 BACKGROUND OF TOPIC INDUSTRY INTRODUCTION 8THEEMERGENCEOFBRANDEDGOLDJEWELLERY9GOLDJEWELLERYMARKETININDIA 10GOLDJEWELLERYBECOMESFASHIONACCESSORY13STRATEGIESFORWOOING CUSTOMERS14BRANDAPPEAL15INDIANCUSTOMERSSHOWINGINTERESTINBRANDED JEWELLERY17TRADITIONALV/SBRANDEDJEWELERS18ORGANIZEDV/STRADITIONAL RETAIL19CHANGESINGEMS&JEWELLERYRETAIL20 3 PROFILE OF THE ORGANISATION S.P.JEWELLERS22 4 ANALYSIS OF DATA ANALYSISANDFINDINGS23
  • 52. 6 5 CONCLUSION C O N C L U S I O N 34 6 A P P E N D I C E S Q U E S T I O N N A I R E 36 B I B L I O G R A P H Y 38
  • 53. 7 Executive Summery Societyisadiversifiedinallaspects.Weseethisamongconsumers,marketers,producersandevenamongconsumer behaviorfromtheoreticalaspects.Thestudyofconsumerbehaviorenablesmarketertopredictaconsumerbehavior inthemarket;italsoproducesunderstandingoftherolethatconsumptionhasinthelivesofindividuals.Consumer behaviorisdefinedasabehaviorthatconsumersdisplaywhilesearchingforpurchase,using,evaluationanddisposal ofproducts,servicesandideasthattheytosatisfytheirneeds.Thestudyofconsumerbehaviorisconcernednotonly withwhatconsumersbuy,butalsowithwhattheybuyit,when,fromwhereandhowtheybuyitandhowoftenthey buyit.Itisconcernedwithlearningthespecificmeaningsthatproductsholdforconsumers.Consumerresearchtakes placeateveryphaseoftheconsumptionprocess;beforethepurchase,duringthepurchaseandafter purchases.Consumerbehavioristhestudyofhowpeoplebuy,whattheybuy,whentheybuyandwhytheybuy.It attemptstounderstandthebuyerdecisionprocesses/buyerdecisionmakingprocess,bothindividuallyandingroups.It studiescharacteristicsofindividualconsumerssuchasdemographics,psychographics,andbehavioralvariablesinan attempttounderstandpeople'swants.Italsotriestoassessinfluencesontheconsumerfromgroupssuchas family,friends,referencegroups,andsocietyingeneral.Whatwebuy,howwebuy,whereandwhenwebuy,inhow muchquantitywebuydependsonourperception,selfconcept,socialandculturalbackgroundandourageandfamily cycle,ourattitudes,beliefs,valuesmotivation,personality,socialclassandmanyotherfactorsthatarebothinternaland externaltous.Consumerbehaviorisinterdisciplinary;i.e.itisbasedonconceptsandtheoriesaboutpeoplethathave beendevelopedbyscientistinsuchdiversedisciplinesaspsychology,sociology,socialpsychology,cultural anthropologyandeconomics.Consumerresearchisthemethodologyusedtostudyconsumerbehavior. Thestudyofconsumerbehavioristhestudyofhoindividualsmakedecisiontospendtheiravailableresourceson consumptionelateditems.Itincludesthestudyofwhat,why,whenandformwheretheybuyetc.Consumerbehavior isarelativelynewfieldofstudyemergedinlate1960swithnohistoryorbodyofresearchofitsownunlikebranches ofeconomics.Manyearlytheoriesconcerningconsumerbehaviorwerebasedoneconomictheoryonthenotionthat individualsacttomaximizetheirbenefitsinthepurchaseofgoodsandservices.Therearenumberofreasonswhythe studyofconsumerbehaviordevelopedasaseparatemarketingdiscipline.Assumasthemarketingresearchersbegan tostudythebuying behavior of customers, they realized that, despite a something “me too” approach to fashions, manyconsumerrebelledatusingtheidenticalproductseveryoneelseused.Theprimarypurposeorstudyingaspart ofamarketingcurriculumistounderstandwhyandhowconsumersmaketheirpurchasedecisions.Theseinsights enablemarketertodesignmoreeffectivemarketingstrategies.Consumerbehaviorhasbecomeanintegralpartof strategicmarketplanning.Thebeliefthatethicsandresponsibilityshouldalsobeintegralcomponentsofevery marketingconcept,whichcallsonmarketertofulfilltheneedsoftheirtargetmarketinwaysthatimprovesocietyasa whole Objective of study The objective to study the “ Acomparativestudyontheconsumer’spreferencetowards
  • 54. branded jewellery over non branded jewellery in Mumbai. ” is to find out 1) The consumer‟s buying preferences 2) The reach of branded jeweler‟s 3) Brandaware ness of various brands in the jeweler‟s market Research Methodology Researchisinitiatedbyexaminingthesecondarydatatogaininsightintotheproblem.Theprimarydataisevaluated onthebasisoftheanalysisofthesecondarydata. DEVELOPING THE RESEARCH PLAN Thedataforthisresearchprojectwouldbecollectedthroughquestionnaire.Astructuredquestionnairewouldbe framedasitislesstimeconsuming,generatesspecificandtothepointinformation,easiertotabulateandinterpret. Moreoverrespondentsprefertogivedirectanswers.Bothtypeofquestionsi.e.Openendedandclosedended,would beused. COLLECTION OF DATAa) Secondary Data: Itwascollectedfrominternalsources.Thesecondarydatawascollectedfromthearticles,newspapers,management books,andtheinternet. b) Primary data: TheywerethemainsourceofPrimarydata.Themethodofcollectionofprimarydatawouldbedirectpersonal interviewthroughastructuredquestionnaire. SAMPLING PLAN Sinceitisnotpossibletostudywholepopulation,itisnecessarytoobtainrepresentativesamplesfromthepopulation tounderstanditscharacteristics. 1) Sampling Units : wouldcompriseofmenandwomen. 2) Research Instrument: StructuredQuestionnaire SAMPLE SIZE  100respondent
  • 55. Theprimarydatawouldbecollectedfrom1) ThepopulationofMUMBAIcityThesecondarydatawouldbecollectedfrom:1) Books2) Magazines/Projectreport3) Internet4) Articles The questionnaire‟s response format for the population would be close ended questions. With a mixofquestiontypesvaryingfromranking,multiplechoicetochecklistquestions.Theattitudeoftherespondents wouldbemeasuredbyitemizedcategoryscales,pictorialscale.Hypothesis – The null hypothesis would be: “50% of the consumer prefers buying branded jewellery.” The alternative hypothesis would be: “More than 50% of the consumer prefers buying non branded jewellery. Significance of the study ThegemsandjewelleryindustryoccupiesanimportantpositionintheIndianeconomyandisoneofthefastest growingindustriesinthecountry.Hencetheresearchconductedwouldhelpme1) Understandtheconsumerspreferencewhilepurchasingjewellery2) How