Analysis consumer buying behavior of branded and non branded jewellery

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Analysis consumer buying behavior of branded and non branded jewellery

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Analysis consumer buying behavior of branded and non branded jewellery

  1. 1. Presented by- Chandan Srivastava Avinashi Soni Ashish Srivastava Ashutosh Pratap Singh Mahavir Kumar Gautam
  2. 2. TABLE OF CONTENTS S.no | Particulars | Page no.| 1. | Introduction | 3 | 2. | Objectives | 4 | 3. | Difference between branded & non-branded | 5 | 4. | Branded Jewellery| 6-11 | 5. | Non Branded Jewellery | 12-13 | 6. | Analysis | 14 |
  3. 3. INTRODUCTION As India makes rapid progress in the retail arena, the Indian Jewellery market is undergoing a gradual metamorphosis from unorganized to organized formats. Jewellery retailing is moving from a ‘Storehouse of value’ to a ‘Precious fashion accessory’. Consumers are more quality conscious than ever before. The jewellery market is one of the largest consumer sectors in the country- larger than telecom, automobiles, and apparel and perhaps second only to the foods sector.
  4. 4. OBJECTIVES To study and understand the buying behavior of consumers for branded and non branded jewellery To find the difference b/w perceptions, opinion and behavior of branded and non- branded jewellery buyers. To have an idea about parameters consumer consider while buying jewellery To know the knowledge level of customers regarding the jewellery brands available in the market
  5. 5. Difference between Branded and Non-Branded Jewellery BRANDED | NON-BRANDED | Name & reputation gives a confidence to the consumer | Customer can tailor make jewellery according to their preferences | It comes with a written lifetime guarantee, considering the emotional quotient of the consumer | No written lifetime guarantee, trust is purely based on consumer | Excellent quality, good selling policies and backup services for jewellery | Minimum efforts in packaging, finishing, sales & low advertising | Has a more contemporary stylish and classic outlook, which easily segments itself among the traditional ones. | Is usually bulky & traditional | Available at multiple outlets | Available only in traditional jewellery outlets |
  6. 6. BRANDED JEWELLERY Name & reputation gives a confidence to the consumer It comes with a written lifetime guarantee, considering the emotional quotient of the consumer Excellent quality, good selling policies and backup services for jewellery Has a more contemporary stylish and classic outlook, which easily segments itself among the traditional ones. Available at multiple outlets
  7. 7. BRANDED JEWELLERS  Nakshatra  Tiffany  Cartier’s  Gili  Tanishq  D’damas  Gitanjali Jewels
  8. 8. NON-BRANDED JEWELLERY Customer can tailor make jewellery according to their preferences No written lifetime guarantee, trust is purely based on consumer Minimum efforts in packaging, finishing, sales & low advertising Is usually bulky & traditional Available only in traditional jewellery outlets
  9. 9. Analysis Gold Jewellery Market in India Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. In 1993, gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartier’s into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act.
  10. 10. This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single shop operations. In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery. The bulk of the jewellery purchased in India was designed in the traditional Indian style. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not very common in India, under-carat age was prevalent. According to a survey done by the Bureau of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat was of a lesser quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as22-carat gold jewellery. The late 1990s saw a number of branded jewellery players entering the Indian market. Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand name Gili. Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda. Su-Raj (India) Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997.The Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India, launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered India in 1997 in a franchise agreement with Ravissant. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).
  11. 11. Gold Jewellery Becomes Fashion Accessory Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Confidence in the local jeweler was the hallmark of the gold jewellery trade in India. A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith in his jeweler. Additionally, the local jeweler catered to the local taste for traditional jewellery. However, since the late 1990s, there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to25 age group, who regarded jewellery as an accessory and not an investment. The new millennium witnessed a definite change in consumer preferences. According to Samrat Zaveri, CEO of Trend Smith, "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment."
  12. 12. In October 2002, Trendsmith conducted a survey to understand the shifting need, motivations and aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The research study arrived at the following conclusions: • The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design. • The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy, traditional gold jewellery. • The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. • The Indian consumer was willing to experiment with new designs.
  13. 13. Brand appeal Branded jewellery has found a niche for itself in the tough Indian market, and its increasing growth rates show that before long it will corner a significant share of the jewellery market. With the retail industry in India burgeoning, several companies have made inroads into the traditional jewellery industry, selling the product that was never really "marketed" in "brand" new ways. So much so that branded jewellery is the new mantra in the market, having rapidly acquired a niche over the past few years. Some of the companies have even cleverly played on Indian customs and tradition to advertise and establish their brands. Jewellery is now marketed for every occasion; even Valentine's Day calls for "a special something [diamond] for a special someone". In spite of pessimism about the marketability of branded jewellery in a country rooted in buying ornaments from the traditional goldsmith, 30 brands were launched in 2004.
  14. 14. Factors Which Influence The Consumer Buying Behavior Towards Non Branded Jewellary Price Believe Towards Traditional Shops Customization In Design Purity
  15. 15. Factors Which Influence The Consumer Buying Behavior Towards Branded Jewellary Price Purity Design Variety  Brand Image Influence of family and friends Service and Display
  16. 16. Factors that guide consumer while purchasing jewellery Factors (%) Design (85) Price (92) Purity (87) Image (65) Variety (67) Display (5) Promotion and Offers (10) Service (2) Family and Friends (12)
  17. 17. Conclusion The jewellery market in India is changing rapidly and the buying behavior of people is changing accordingly. The respondents under the study were highly co-operative and we came out with wonderful results about their perception and the behavior. The results show that the price of gold plays an important role in the purchasing procedure. The rising prices of gold are one of the main factors that affect the purchase for a middle class family. On the contrary, it is not a problem for the business class; they are indifferent in buying jewellery irrespective of the prices, designs and the brand. The consumers buying behavior shows a shift from content to design in jewellery i.e. fashionable jewellery is the rage nowadays and acquires a status symbol in their minds. Branded jewellery players will continue to face lot of competition from local jewelers. People also look for the convenience while visiting the store and this is the reason why some people today also visit non-branded jewellery shops for making purchases as they easily approachable, reliable, prices are negotiable and also they have a long term relationship with them.
  18. 18. Result Branded jewellery is bought by more than 3/4th of the population in India. Hence it can be said that the population is aware and has also tried these brands. ‘there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery.’ The level of satisfaction that the population has for branded jewellery is higher then that for non branded jewellery making branded jewellery more popular. The consumers prefer buying branded jewellery over non branded jewellery When jewellery is bought for gifting purpose the population still wants to buy it from their family jewelers (non branded).
  19. 19. 70% 30% 0% Branded jewellery preferred over Non Branded jewellery Non Branded Branded 0% 20% 40% 60% 80% Readymade Jewellery Customized jewellery From The Analysis We Observed That 70 % Consumer Preference For Branded And 30 % For Non Branded Jewellery

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