industry specification

1. Presentation
On
jewellery
industry
Submitted to :
Prof. SHIKHA SHARMA
Submitted by:
NITISH KUMAR
NAKUL PANDIT

2. People wants to showcasing a fine elegance and
sheen, the range of fashion jewellery which
reflect an amalgamation of many
cultures, traditions and customs.
Tradition

3. •Jewellery have been a part of most of the cultures of
the world at some point of time or other. From its basic
use as currency, it is now used as an instrument to store
and display wealth. In the recent past(last 3-4 decades),
this industry has shown an impressive growth world
wide. The current global market for the sector is
estimated at around $85bn USD and has shown a CAGR
of 5-10% in the last decade.
•India's 300,000 traditional jewellers – commonly
referred to as the unorganized sector – dominate the
country's jewellery retail landscape with a 96 per cent
market-share. Keeping in mind that only 4% of the
sector is in organized hands.
INTRODUCTION

4. India has the largest country from RAMAYAN &
MAHABHARAT times.
Indians are the first to start jewelry making.
India was the first country to mine diamonds.
Formerly diamonds were cutting & polishing traditionally.
 Nowadays diamonds are cutting & polished by adopting new
technology.
 Many institutes provides degree, diploma & certified courses
for gem & jewelry education. For Ex. Indian Institute of
Gemology etc.
 Gem and jewelry export promotional council worked to
promote export of gems and jewelry.
 Government has also introduced many measures to promote
gem and jewelry sector.
History & Current Scenario

5. jewellery is a type of
accessory
 includes
It
necklaces, rings, bracelets, watches, and
earrings
jewellery can be made from a variety of
different materials including
Silver, Gold, Metal, and Wood
 name originates from the Latin word
The
local a meaning plaything
Began with materials made from
bone, teeth, and shell
Considered a symbol of wealth and artistic
jewellery display
 incorporate beads, stones, gems, and
Can
diamonds

6. CONCLUSTION
The retail jewellery industry is comprised
of five main segments:
Bridal jewellery (30%)
Fashion jewellery (22%)
Watches (18%)
Precious stones (15%)
Precious metals (15%)
Industry Overview

7. The retail jewellery industry is highly fragmented.
 retailer claims more than 6 percent market share.
No
There are nearly 50,000 stores engaged in jewellery retail.
 industry employs approximately 200,000 individuals.
The
Annual jewellery store sales run about $27 billion;
wholesalers and manufacturers account for an additional $27
billion in sales.
Wal-Mart is the largest retailer
Continue….

8. Wal-Mart
 Corporation
Zale
Sterling Jewellers
Sears, Roebuck and Company
Finlay's Fine jewellery
 Penney
J.C.
QVC
Tiffany and Company
Service Merchandise
Kmart
Ten Largest jewellery Retailers

9. The consumers were to rank the
luxury jewellery designers based
on 4 criteria:
 superior quality
(1)
 uniqueness and exclusivity
(2)
 social status and
(3)
 excellent customer service
(4)
Royal earrings, Andhra
Pradesh, 1st Century BC
Criteria Byzantine
wedding ring.

10. Indiais a leading player in the global gems and
jewellery market
 gems and jewellery industry occupies an
The
important position in the Indian economy.
 two major segments of the sector in India
The
are gold jewellery and diamonds.
 Indian gems and jewellery industry is
The
competitive in the world market due to its low
cost of production and the availability of skilled
labour
INDIAN JEWELLERY INDUSTRY

11. Indian retail jewelry overview

12. Organized players such as Tata with its
Tanishq brand and Gitanjali a pioneer
in the branded jewelry segment.
Leading Brands

13. Indian jewellery industry is a highly regarded
industry and earns huge profits through the
jewellery exports all over the world.
 Indian jewellery sector is largely unorganized
The
at present.
 There are over 15000 players across the country
in the gold processing industry, of which only about 80
players have a turnover of over US$4.15 million
(Rs. 200 million).
There are about 450,000 goldsmiths spread
throughout the country.
INDIA SITUATION

14. Wal-Mart Stores was established in
1962 by Sam Walton.
 was registered as a corporation on
It
October 31, 1969.
 became listed on New York Stock
It
Exchange in 1972
The world’s largest jewellry retailer
WAL-MART

15.  Jewellery Stores had not been
affected by
global financial crisis.
It is carrying on with its expansion
activities in India as well as other
world markets
Impact of financial crisis

16.  The Indian gems & jewelry sector is
expected to cross US$ 26 billion by 2012.
 The consumption of the diamond jewelry
is expected to touch US$ 6.41 billion in
2012.
 State Run National Mining Development
Corporation (NMDC) planned to produced
close to 100000 carats of diamonds from the
panna diamond mines in Madhya
Pradesh.(2010-11).
FUTURE

17. 1.Strong risk management focus as part of strategy.
2.Investments in upgrading the technology and setting up
new units in
Kolkotta and Bangalore.
3.Manufacture handicraft jewellery along with branded
jewellery to cater
to diverse markets.
4.Long standing relationship with dealers in US, Antwerp,
Dubai etc.
STRENGTHS
SWOT ANALYSIS

18. 1.A smaller player in size compared to the rest of the competitors
such as Rajesh Exports and Gitanjali Gems and Jewellery, and
therefore would not be able to enjoy the same benefits of returns to
scale as the others.
2.No well established brand like other firms (e.g. Gili from Gitanjali
Gems and Jewellery or Tanishq from Tata).
3.Lacked infrastructure to cater to the retail customers abroad.
Company sells most of its product to the wholesalers in which case
they have much of the bargaining power.
WEAKNESS

19. 1.Gems and Jewellery to grow by 12% (as calculated by the demand
forecasting).India’s share is projected to be around 1.5 to 2 percent of
the global industry.
2.Tax regime to be structured to develop India as a global hub for
gems and jewellery.
3.Increase in wealth leading to increase consumption is expected to
boost demand for this sector.
4.Global Silver to Gold ratio is improved to 15:3 from 7:3 in 2000 in
the world market; this is mainly because
of a younger generation’s preference for a white metal than gold.
5.Increase demand in Middle East and North American countries,
forming the largest segment and offering the highest growth in the
previous financial year.
OPPORTUNITIES

20. THREATS
1.Emergence of China as a competitor.
2.Unusual increase in the price of gold and rough diamonds.
3.Fluctuation in currency, especially appreciation of rupee against the dollar.
4.Change in fashion trends.
5.As per the CMIE data, only 4% of the gems and jewellery sector is in the organized
hands, Tanisq, Gili (subsidiary of Gitanjali Gems), Oyster bay, being the major players
from whom company faces a lot of competition.
6.Substitution of gold and other banking products as a better source of investment
has lead to the decline in the consumption of silver.
7.The reduction of consumption of silver in the Indian market. Witnessed a decrease
of 53.1% from 1996 to 2005 in consumption.
8.Low availability of skilled labor in processing of diamonds.
9.Infrastructure bottlenecks, absence of latest technology.
10.China, Sri Lanka and Thailand's entry in small diamond segment.

21.  Large presence of unorganized sector.
Increase in gold jewelry consumption.
Increase in gold prizes.
Cheating on carat age.
Possible long term threat from China.
[
Continued support from government crucial.
LIMITATION

22. Jewelry has become a vital element in everyone’s life.
Men, women and even kids love to wear jewelry
articles all the time. Wearing jewelry is the demand of
modern fashion. A few years back jewelry was used
only on special occasions like weddings, engagements
and other formal parties and it was associated with
the brides and married girls only. But nowadays it is
worn casually as well as formally and everyone likes
to wear beautiful and elegant jewelry items. Trendy
and stylish jewelry is in fashion these days. The gems
and jewelry industry has been growing rapidly and
has become one of the most profitable industries of
the world.
CONCLUSION:

23. Thank You
Diamonds are a girl’s best friend!