Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Indian Imitation Jewellery Market - Feb'14


Published on

  • Be the first to comment

Indian Imitation Jewellery Market - Feb'14

  1. 1. Indian Imitation Jewellery Market All rights reserved. This publication is protected by copyright. No part of it may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic mechanical, photocopying, recording or otherwise without the prior written permission of the publisher.
  2. 2. Overview Indian jewellery business has undergone a drastic transformation over the years. Original diamond and gold jewellery has now made a way forward for artificial jewellery. The sky-rocketing prices of the traditional jewellery whether it is gold, diamond or silver, have encouraged people to opt for affordable imitation jewellery. Indian Imitation jewellery market has witnessed tremendous growth in the past few years. In 2012, the market grew around 85% compared to the previous year. The imitation jewellery market was estimated to reach INR 98.5 Billion by the end of 2013 due to rising demand. Imitation jewellery such as fashion jewellery is very much prevalent, especially amongst the college going teenagers. Since the prices are cheap, they can get a wide variety and also keep up with the changing fashion. Indian fashion jewellery industry is growing in quantum, patronized mainly by the youngsters. Figure 1: Indian Imitation Jewellery Market (Billion INR), 2011-2017 228.9 185.8 151.4 122.7 98.5 79.6 43.1 2011e 2012e 2013e 2014f 2015f 2016f 2017f Source: RNCOS In future, the imitation jewellery market is expected to grow further with soaring gold and silver prices, rising consumer preference, availability of more innovative designs and variety etc. Considering these factors, the imitation jewellery market in India is anticipated to grow at a CAGR of around 23.5% during 2013-2017. Indian Imitation Jewellery Market
  3. 3. Market Driving Factors • High Demand: The demand for imitation jewellery has surged by over 85% in the last one year. People, especially women have adopted better standards of grooming after being influenced by daily soaps. They ape the jewellery and the costumes which are worn by the television stars. Moreover with the rise in standard of living and disposable income customers undoubtedly prefer to go in for branded products. • Consumer preferences: The changing outlook of people regarding jewellery as a daily wear commodity rather than an asset for life has made imitation jewellery more popular. • Variety and Affordability: Due to affordable range of the artificial jewellery, it is much easier to make a collection for regular as well as formal occasions. Generally working women prefer to change their jewllery (earrings, neck-pieces, rings etc) according to their dresses. • Drastic hike in gold and silver price - With the prices of gold raising sharply, the popularity of imitation jewellery has further increased. • Security purpose: Imitation jewellery is safer to wear as compared to the authentic jewellery. In the present day when theft and crime is increasing in society, customers feel more secure wearing fake jewellery. • Excellent innovative designs: Imitation jewellery comes with unlimited and exquisite designs which can be easily purchased. • Value for money: Traditional jewellery cannot be changed according to latest fashion. However imitation jewellery can be worn and discarded according to latest trends due to their low cost benefit. • Lack of gender bias: In the past jewellery was exclusively for the fairer sex but in the recent times men have also initiated an interest in adorning themselves with this. One can easily come across specially designed fashion jewellery like bracelets, rings, chains, pendants, earrings for the male gender also. Though imitation jewellery market is dominated by urban India, rural India also accounts for significant share in the market. Figure 5: Share of Urban and Rural India in Imitation Jewellery (%), 2012 Regionally, Mumbai is the main hub for Imitation Jewellery, which eventually goes to several cities in India. Mumbai is more in to Casual and fashionable Jewellery i.e. used for wearing on day to day basis. However, complex and rich designed Jewellery is meant more for occasions and events. Urban Rural North and South of India are two biggest markets for High end Imitation Jewellery. These part of India, buy lot of Imitation Jewellery. North Indians wear bigger size jewellery while in South, people like small jewellery designs. Source: Fashion and You Indian Imitation Jewellery Market
  4. 4. Opportunities & Challenges Opportunities • Online jewellery Market Currently, the online imitation jewellery segment is in nascent stage, however it is poised to register fast growth with increasing number of online buyers in India. IAMAI study reported that jewellery had attracted more clicks than any other categories in the past few months, implying growing consumer interest. Presently, around 2% of the total imitation jewellery market is sold online. • Low Penetration The imitation jewellery segment, which is less than 1% of the overall market presently, is set to grow quickly in tier-2 and 3 cities where accessibility has been a big issue. Fad for fashion and contemporary jewellery (generally motivated from Bollywood and daily soap operas) will add more demand in coming years. • Exports India is the second largest manufacturer of imitation jewellery after China. Indian imitation jewellery has a huge demand in the US, Europe, Canada, Australia and many other Asian countries. The exports of fashion jewellery and accessories from India went up from INR 12.38 Billion in 2011-12 to INR 20.07 Billion in 2012-13. • Product Diversification With recent shift in jewellery consumption pattern, women prefer wearing hair ornaments, which are the new rage and everyone swears by their increasing demand. Similarly, men also prefer to wear imitation jewellery items these days such as chain, rings etc. This will create demand for new products in the market. • Franchising Earlier there were a few unorganised players but with the popularity of costume jewellery more and more players are making their presence felt via jewellery franchise option as it is considered to be the route for guaranteed success. In future, as the demand for the product is growing the number of players are also expected to grow via franchising. Indian Imitation Jewellery Market
  5. 5. Challenges • Cheap Imports from China Imitation jewellery from China is flooding the Indian market and imports from China has already captured 30% of the country’s domestic market. It is also hurting imitation jewellery manufacturers, as Indian traders are now importing finished goods from China. • According to data from the ministry of commerce, India imported imitation jewellery worth about INR 1.3 Billion in 2011-12. During the period April-September 2012, 0.6 Billion worth of finished imitation jewellery was imported from China. However, this figure underestimates the actual level of imports, which are believed to be 10 times higher. • Accessibility Besides metros and tier one cities, accessibility of standardized imitation jewellery is a big issue, and therefore, a significant portion of the consumer segment is underserved. • Highly Unorganized Indian Imitation jewellery market is highly unorganized with the organized market is nearly three-fourth of unorganized sector. In addition, the number of organized players is also less in the sector. • Lack of Customer Awareness The customers need to be educated on the basic artificial jewellery care to maintain the quality or the polish of the product. “Also, Indian customers need to be informed that certain regions in India have humid weather which adversely affects the shine and the plating of the product. • Costly Labour For the artificial jewellery industry labor is very expensive. In addition, there is a lot of attrition due to which the manufacturers have to continuously increase the wages of the labor, which adds to the overhead costs. • Low Quality Jewellery In case of imitation jewellery, same designs are available in low quality material at low cost which is affecting the growth of the market. Indian Imitation Jewellery Market
  6. 6. Future Outlook The jewellery industry in India adds a distinctive feature with high domestic and international demand. With rising gold and silver prices, imitation jewellery market has been witnessing significant growth over the past few years. Moreover, Indian imitation jewellery making is emerging as the next big market which has been predominantly driven by its indigenous designs and local demand. In addition, the perspective of manufacturers, wholesalers, traders and retailers of the imitation jewellery industry holds much more capability than the conventional offering. The industry dynamics and consumer behavior patterns have made India the world’s second-largest manufacturer of imitation jewellery after China. Rajasthan, Uttar Pradesh, West Bengal, Bihar and Madhya Pradesh are some of the important states known for such products. Further, with the entry of large organized players, the market will become more competitive and people have more choices among branded and quality products. Beside, Indian imitation jewellery has a huge potential for exports and enjoys huge demand in the foreign markets. The demand is also rising in many Asian countries which will help further the industry to accelerate in the near future. However, there are also certain challenges such as cheap imports from China, costly labour, etc which needs to be addressed as these can affect the growth of the industry. Considering the above factors, the future of Indian imitation jewellery market seems quite bright. Indian Imitation Jewellery Market
  7. 7. Major Imitation Jewellery Manufacturers • Juvalia & You • Kumar Jewels • Lotus jewellery • Vatika Jewellers • Delhi Artificial Jewellery • Vasudevam International • Alex Jewellery Indian Imitation Jewellery Market
  8. 8. Looking for an in-depth study Our Proposition RNCOS is a leading Business Consultancy firm helping its clients to enter new geographies and in attaining growth by developing market strategies for them. GROWTH PARTNER We help you make informed decisions through the practical application of research, hand holding you to your success… Critical questions that businesses need to address: • • • • Where should you set up your business? Who should be your distributors? What is the current market structure & size? Who should be your customers? We understand your immediate needs and your long-term goals and objective and work with you on how to accomplish them. RNCOS blends the best of strategy consulting with the best of market research to provide organizations with accurate, succinct answers to their most important business questions. Our offerings Product Segments Market Insights • • • What is the market size Structure of the market Who are buyers • • • • Competitive Assessment Identification • • Most suitable distributors and channels for your business. Analyzing their strength, credibility. Similar products in the market Features, attributes & market share of these products Customer preferences Price range of these products • • Financial & strategic analysis of existing competition Acceptance level among customers Indian Imitation Jewellery Market
  9. 9. For more information on how we can work with you, contact MARKETING TEAM RNCOS E mail: Website: Phone: +91 120 4224700 /01 / 02/ 03