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CHAPTER 1



INTRODUCTION

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 to 25 age group,

who regarded jewellery as an accessory and not an investment.

The new millennium witnessed a definite change in consumer

preferences.

Branded jewellery also gained acceptance forcing

traditional jewelers to go in for branding. Given the opportunities

the branded jewellery market offered; the number of gold

retailers in the country increased sharply. Branded players such



as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various

parts of the country. Traditional jewelers also began to bring out

lightweight jewellery, and some of them even launched their in-

house brands. However, the share of branded jewellery in the

total jewellery market was still small (about Rs. 10 billion of the

Rs. 400 billion per annum jewellery market in 2002), though

growing at a pace of 20 to 30 percent annually. The branded

jewellery segment occupied only a small share of the total

jewellery market because of the mindset of the average Indian

buyer who still regarded jewellery as an investment. Moreover,

consumers trusted only their family jewelers when buying

jewellery. Consequently, the branded jewellery players tried to

change the mindset of the people and woo customers with

attractive designs at affordable prices.

However branded jewellery players will continue to face lot

of competition from local jewelers. In order to gain market share,

they will have to come up with designs that customers want and

win the trust and confidence of consumers by hallmarking and

demonstrating the purity of the gold used by them.

To compete with traditional players, branded players must

also find some way to differentiate themselves. While the

success of a particular brand will depend on differentiation,



affordability and quality will be a key element in sustaining a

brand.

In addition, branded players require focused advertising

and astute salesmanship to compete with traditional jewelers.

Besides the major brands- Tanishq, Carbon, Oyzterbay, Gili and

Trendsmith - several regional players have opened branches to

leverage the trust and reputation that they have built up over the

years.



CHAPTER 2



INTRODUCTION TO COMPANY

1. TANISHQ

Tanishq is India's largest, most desirable and fastest

growing jewelry brand in India. Started in 1995, Tanishq is the

jewelry business group of Titan Industries Ltd - promoted by the

TATA group, India's most respected and widely diversified

business conglomerate. This year marks a decade of successful

innings for Tanishq. With retail sales of 1200 crore last year and

gunning for 2000 crores this year, Tanishq has arrived in the

Indian jewelry market. It is a story of a successful Indian

enterprise, which has delivered value to its customers and

shareholders in a complex category, marked by its completely

localized front end as well as back end. Tanishq has set up

production and sourcing bases with through research of the

jewelry crafts of India. jewellery at Tanishq is crafted in one of

the world's most modern factories. The factory complies with all

labour and environmental standards. Located at Hosur, Tamil

Nadu, the 1, 35,000 sq. ft. factory is equipped with the latest and

most modern machinery and equipment. Every product at

Tanishq is painstakingly crafted to perfection. Diligent care and

quality processes ensure that the Tanishq finish is unmatched by

any other jeweller in the country. Tanishq challenged the age-old

jeweller's word with TATA's guaranteed purity. It exploded the



market with facts about rampant impurity across India. It

introduced technology-backed challenge in a category

completely governed by individual trust. Tanishq introduced

innovations like Karatmeter, the only non destructive means to

check the purity of gold. Tanishq also introduced professional

retailing in the dis-organised Indian jewelry bazaar, where

women can shop with comfort and peace, without worrying about

the purity of the jewelry they are buying, as well as, select from

the best jewelry collections available in the Indian market.

Tanishq today is India's most aspirational fine jewelry brand with

91 stores in 64 cities, with an exquisite range of gold jewelry

studded with diamonds or coloured gems and a wide range of

equally spectacular jewelry in 22Kt pure gold. Exquisite platinum

jewelry is also part of the product range.

Among the branded jewellery players in the Indian market,

Tanishq is considered to be a trendsetter. When it was launched

in 1995, Tanishq began with 18-carat jewellery. Realizing that

such jewellery did not sell well in the domestic market, the 18-

carat jewellery range was expanded to include 22 and 24-carat

ornaments as well. When Tanishq was launched, it sold most of

its products through multibrand stores. In 1998, Tanishq decided

to set up its own chain of retail showrooms to create a distinctive

brand image.



By 2002, Tanishq retailed its jewellery through 53 exclusive

stores across 41 cities. To meet increasing demand, Tanishq

planned to open 70 stores by the end of 2003 and offer a range

of 'wearable' products with prices starting at Rs. 400. With sales

of Rs. 2.66 billion in 2000-01, Tanishq had a 0.66 percent share

of the total jewellery market and a 27 percent share of the

branded jewellery market.

2. GITANJALI

Gitanjali Group a 5000 crores company, strategically

positioning itself as the leading diamond studded jewellery-

manufacturing company, today has one of the largest fully

integrated diamond and jewellery manufacturing plants in the

country. The Group, which has been a pioneer in the branded

jewellery industry, has always been at the threshold of boosting

the production of quality jewellery, which has obliquely proved to

be an excellent, branding and marketing strategy backed by a

formidable retailing network - all ensuring the group an enviable

advantage in the jewellery arena. The Gitanjali Group is engaged

in the business of sourcing rough diamonds, its manufacture,

import and export of diamonds, manufacture of plain and

diamond studded gold and platinum jewellery and its marketing

and domestic retailing. As Jewellery exports form one of the



largest contributors to the foreign exchequers, the jewellery

major Gitanjali, is one of Indiaâ€™s high-end contributors to the

foreign exchequer as well as a major player in the domestic

market.

Gitanjali has four decades of experience, being one of the

earliest diamond houses in India. Having received over 50

National and Council awards from the Ministry of Commerce for

outstanding exports, it is today one of the largest diamond

exporting companies in India. Presently the Gitanjali Group has

highly modernized diamond cutting and polishing facilities at 5

locations in India and globally diversified manufacturing

operations in Bangkok, Vietnam and China and a marketing

network spread across Europe, Hong Kong, USA and Japan. The

very basis of their existence is to successfully develop, produce

and sell high-quality jewellery brands worldwide & helps the

customers in getting the maximum Value for Money in the

process.

In 1994, Gili Jewellery was established as a distinct brand

by Gitanjali Jewels, soon after the abolition of the Gold Control

Act by the Indian government. Gili offered a wide range of 18-

carat plain gold and diamond-studded jewellery, designed for the

contemporary Indian woman. The designs combined both the



Indian and western styles and motifs. With sales of Rs.0.14 billion

for the year 2000-01, Gili had a 0.03 percent share of the 400

billion jewellery market in India and a 1.4 percent share of the


Gili distributed its jewellery priced between Rs. 500 and Rs.

40,000 through lifestyle and department stores across the

country to increase accessibility among its target segment, the

15 to 30 age group. The company's products were also made

available through a mail-order catalogue. In 1997, Gili launched a

collection of traditional Indian ornaments made of 18-carat gold.

In 1999, the Gili Gold range was introduced. This range included

rings, pendants, earrings, necklaces and bangles made of 24-

carat gold. All Gili products came with a guarantee of diamond

and gold quality. When research conducted in February 2000

showed that there was a big gap between the Rs. 1000 and Rs.

10000 price segment and keeping in view the teenage

population, and the kind of pocket money they had, Gili brought

out a collection targeting teens.

In 2000, Gili launched its 'diamond heart collection'

targeted at teenagers and priced between Rs 500 and Rs.2500.

The collection was promoted at college campuses with banners,

pamphlets and a few advertisements targeted at teens. Gili soon



realized that just pushing its product was not enough; it also had

to customize its products for special occasions. Following this, it

launched a Diamond Heart Collection specially designed for

Valentine's Day. This collection consisting of tiny, heart-shaped

diamond jewellery was well received by teens (Refer Exhibit VI).

Special packaging, catchy advertising and extensive press

coverage contributed to the success of the collection. Gili also

made special promotional offers during festive seasons like

Christmas and Diwali.

Having captured the low price point market of Rs.2000 to

Rs.10, 000, in 2000, the company focused on penetrating the

premium market of customized jewellery. For this, Gitanjali

jewels opened a jewellery salon, Gianti, to provide customized

jewellery to clients in India.

HIGHLIGHTS Q3 FY10:

• Jewellery Sales turnover increased by 60% to 1,098 cr. in

Q3 FY10

• EBIDTA gone up by 44% to 102 cr. in Q3 FY10

• Operating Profit registered a growth of 51%, stood at 91 cr.

• PAT of Q3 FY10 stood at 41 cr registering an increase of

39%



• Gems and Jewellery Sales volume grown to 1812 cr.

reported a growth of 63%

Mumbai, January 30, 2010:

Gitanjali Gems Limited, the flagship company of Gitanjali

Group, one of India’s leading integrated diamond and jewellery

retailing and manufacturing company, announced its results for

the third quarter ended 31 December, 2009 of FY 10.

NINE MONTHS FY10 Vs. NINE MONTHS FY09

• Jewellery Sales turnover increased by 43% to Rs. 2703 cr.

as compared to Rs. 1892 cr. in nine months period FY09

• EBIDTA gone up by 37% to Rs. 307 cr. from Rs.223 cr. in

nine months period FY09

• PAT of nine months period FY10 stood at Rs. 139 cr. as

compared to Rs 120 cr. in nine months period FY09

registering an increase of 16%

• Operating Profit of nine months period FY10 stood at

Rs.283 cr. as compared to Rs 201 cr. in nine months

period FY09, registering an increase of 41%

GITANJALI RETAIL BUSINESS

• Gitanjali has strong retail presence in the world’s largest

markets for jewellery. Retail business is a major Contributor

in Gitanjali’s revenue. Gitanjali has over 2000 plus retail



outlet across India and in the process of expansion in tier II

and III cities to cater to new segment of the customer.

•

USA is a largest jewellery consuming country and 45% of

worldwide diamond jewellery sales are made in the United

States. In FY 2007-08, Gitanjali made a strategic acquisition

in USA, including Samuels and Rogers, and now has about

137 stores in Centre and across USA, being expanded to

200 stores in the near future.

• Samuels and Rogers of Gitanjali are the 8th largest branded

jewellery retail chain in US.

• Gitanjali’s integrated supply chain business model has

given an advantage to survive and post profit despite of US

recession.

• Gitanjali retail business has spread through all channels

and in all geographies, across all the market segments

• Net Profit has gone up because of shift in market from

wholesale to retail.

RETAIL STRATEGY

• Gitanjali’s strategy is to increase the market share of

various brands and its positioning in the market. Strategy is

to generate demand for branded diamond jewellery in the

future



• Gitanjali has also acquired a 76% stake in Salasar Retail

and will roll out multi-format retail stores under the ’Maya’

brand. The Salasar stake gives Gitanjali Lifestyle 10 multi-

storey stores with 200,000 square feet of retail space in

Northern India.

• Flagship product brands of the company are able to convert

themselves into retail brands.

• The group has introduced many promising brands to its

bouquet. The new collection includes World of Solitaire,

World of Silver, ME Solitaire, Maya, Gitanjali Menz, Maya

Bridal, Bezel and many more.

INDUSTRY

• Overall Gold and jewellery industry is estimated to be about

USD 35 billion, out of which 12-15% is constituted by

diamond jewellery market. i.e. USD 4 billion, 10% of which

is branded jewellery market accounts for USD 500 million

•

Overall Industry is growing at the rate of 15-18% and where

as share of diamond jewellery is growing at 18-20%

• Out of 10 leading gems and jewellery brands in India 6 of

them are under the Gitanjali umbrella. Share of branded

diamond jewellery in India is growing by 25-30% and

therefore, share of Gitanjali growing at that pace.



• In modern retail, Gitanjali holds 65-70% market share

• These industry dynamics has compounding effect on the

growth of the Gitanjali Gems.

3. D’DAMAS:

D'damas is one of the most popular jewellery brands in the

country today with a presence in over 159 towns and cities. A

joint venture between Gitanjali Gems and the Dubai based

Damas Group; D'damas is a sub-brand that combines

international quality with Indian values.

D'damas' vast variety of brand allows every customer a

choice of jewellery to reflect her personality, tastes and to suit

every occasion. It has gold and diamond studded jewellery

matching various lifestyle, occasion and price points that cater to

diversified customers.

D'damas is committed to the highest levels of customer

satisfaction, and every piece of jewellery comes with a special

certificate of authenticity assuring of both the diamond and gold

content of the piece. D'damas jewellery is accompanied with an

IGI certificate & Hallmarking, a world renowned, further certifies

the diamonds, which is headquartered in Antwerp.



Each sub-brand under D'damas offers stylized and

contemporary designs, conceptualized and created by an in-

house team of award winning designs.

Their strength in design has been recognized repeatedly

with D'damas designers having won a number of design awards.

4. KOHINOOR DIAMOND (AKA KOH-I-NOOR)

The Kohinoor Diamond is one of the most famous diamonds in

the world. The Kohinoor diamond was first mentioned in 1306 when

it was taken from a Rajah of Malwa, whose family had held the

diamond for centuries. It was described as weighing 186 carats and

was an oval cut white diamond - the shape and size of a small hen's

egg. The Kohinoor diamond belonged to various Indian and Persian

rulers but it became part of the Crown Jewels of England at the time

that Queen Victoria was proclaimed empress of India. The Kohinoor

was re-cut at this time and now weighs 108.93 carats and is kept in

the Tower of London.

ORIGIN / MEANING

Origin / Meaning of the name Kohinoor Diamond (aka Koh-i-

Noor) The Kohinoor (Koh-i-Noor) originated from India in Golconda

at the Kollur mine and was specifically mined from the

*Rayalaseema diamond mine (meaning *Land of Stones) during the

rule of the Kakatiya dynasty. The Kohinoor was then passed from

one ruling dynasty to the next. The original name of the diamond



was ‘Samantik Mani’ (Prince and leader among diamonds). In 1739

Nadir Shah, the King of Persia, invaded India and was said to refer

to the diamond as the "Mountain of Light". The Persian-Arabic

words for "Mountain of Light" were Koh-i-Noor. The magnificence of

the diamond and its value symbolized the power of an Empire. It

was said that "He who owns this diamond will own the world, but

will also know all its misfortunes." Possession of the Kohinoor led to

murder, torture, mutilation and treachery and stories of the Curse

of the Kohinoor Diamond...

The Curse of the Kohinoor Diamond (aka Koh-i-Noor)

The Curse of Kohinoor Diamond dates back to a Hindu text from the

time of the first authenticated appearance of the diamond in 1306.

The history and lives of the rulers who owned the Koh-i-Noor

diamond were filled with violence, murders, mutilations, torture and

treachery. Whether or not people believe in the Curse of the

Kohinoor Diamond, the history of the stone is undeniable - and the

threat of the Koh-i-Noor curse is enough to make people cautious.

The British Royal family were obviously aware of the Curse of the

Kohinoor and from the reign of Queen Victoria, when the Kohinoor

diamond came into their possession, it has always gone to the wife

of the male heir to the British throne. The History Timeline details

the story of the Kohinoor diamond.

HISTORY



Myths and legends surround the stone. It was of incredible

value and described by one of its owners, the Emperor Babur, the

Great Mogul, as "Worth the value of one day's food for all the

people in the world". The men who fought for it, and the Kingdoms

and great Empires that were won and lost, produced many stories

of ill-luck that plagued the owners and became part of the history of

the Kohinoor diamond.

UNBRANDED JEWELLERY

The share of unbranded jewellery market in India is still

more than 90% of the total jewellery market branded and

unbranded.

There are some specific shops of unbranded jewellery in

Ludhiana like Khunkhun ji jewelers, Jewar kothi etc. the public

trust more on these.

There are some small shops also like Priya jwellers, Alankar

abhushan bhandar, the middle class families often purchase from

them.



CHAPTER 3



REVIEW OF LITERATURE

The emergence of branded gold jewellery :

In the late 1990s, the Indian jewellery market witnessed a

shift in consumer perceptions of jewellery. Instead of being

regarded as only an investment option, jewellery was being

prized for its aesthetic appeal. In other words, the focus seemed

to have shifted from content to design. Trendy, affordable and

lightweight jewellery soon gained familiarity. Branded jewellery

also gained acceptance forcing traditional jewelers to go in for

branding.

Given the opportunities the branded jewellery market

offered; the number of gold retailers in the country increased

sharply. Branded players such as Tanishq, Oyzterbay, Gili and

Carbon opened outlets in various parts of the country. Traditional

jewelers also began to bring out lightweight jewellery, and some

of them even launched their in-house brands.

However, the share of branded jewellery in the total

jewellery market was still small (about Rs. 10 billion of the Rs.

400 billion per annum jewellery market in 2002), though growing

at a pace of 20 to 30 percent annually

The branded jewellery segment occupied only a small share

of the total jewellery market because of the mindset of the



average Indian buyer who still regarded jewellery as an

investment. Moreover, consumers trusted only their family

jewelers when buying jewellery. Consequently, the branded

jewellery players tried to change the mindset of the people and

woo customers with attractive designs at affordable prices.

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 Cartiers 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.

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 as 22-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).

1. Gili: In 1994, Gili Jewellery was established as a distinct

brand by Gitanjali Jewels, soon after the abolition of the Gold

Control Act by the Indian government. Gili offered a wide range

of 18-carat plain gold and diamond-studded jewellery, designed

for the contemporary Indian woman. The designs combined both

the Indian and western styles and motifs. With sales of Rs.0.14

billion for the year 2000-01, Gili had a 0.03 percent share of the

400 billion jewellery market in India and a 1.4 percent share of

the branded jewellery market.

2. Tanishq: In 1984, Questar Investments Limited (a Tata

group company) and the Tamil Nadu Industrial Development

Corporation Limited (TIDCO) jointly promoted Titan Watches

Limited (Titan). Initially involved in the watches and clocks

business, Titan later ventured into the jewellery businesses. In

1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan

Industries Ltd.' in order to change its image from that of a watch

manufacturer to that of a fashion accessories manufacturer. In



the same year, it also started its jewellery division under the

Tanishq brand.

Among the branded jewellery players in the Indian market,

Tanishq is considered to be a trendsetter. When it was launched

in 1995, Tanishq began with 18-carat jewellery. Realizing that

such jewellery did not sell well in the domestic market, the 18-

carat jewellery range was expanded to include 22 and 24-carat

ornaments as well. When Tanishq was launched, it sold most of

its products through multibrand stores. In 1998, Tanishq decided

to set up its own chain of retail showrooms to create a distinctive

brand image.

By 2002, Tanishq retailed its jewellery through 53 exclusive

stores across 41 cities. To meet increasing demand, Tanishq

planned to open 70 stores by the end of 2003 and offer a range

of 'wearable' products with prices starting at Rs. 400. With sales

of Rs. 2.66 billion in 2000-01, Tanishq had a 0.66 percent share

of the total jewellery market and a 27 percent share of the


3. Carbon: In early 1991, the Bangalore based Peakok

Jewellery Pvt. Ltd., (Peakok) was incorporated and Mahesh Rao

(Rao) was appointed director. Peakok realized that the Indian

consumer's relationship with gold jewellery would grow beyond

an investment need towards a lifestyle and personality



statement. In 1996, within the Peakok fold a new brand of 18-

carat gold-based jewellery called Carbon was launched.

In 2000-01, with sales of Rs. 0.14 billion, carbon had a 0.03

percent share of the jewellery market and a 1.4 percent share of

the branded jewellery market. The company expected Carbon

sales to touch Rs. 1.5 billion by 2005-06 and exports to start by

2008. The brand was available at 40 outlets in 16 cities in 2002

and would be made available in 23 cities by 2005.

4. Oyzterbay: Oyzterbay was founded by Vasant Nangia and

his team in July 2000. It began operations in March 2001. By

November 2002, the company had 41 outlets across the country.

Oyzterbay seeks to build a national brand in the jewellery

industry in India and aspires to be the largest branded jewellery

company in the country with a chain of 100 stores and several

hundred-distribution points by 2004. With sales of Rs. 0.17 billion

in 2000-01, Oyzterbay had a 0.04 percent share of the Rs.400

billion jewellery market and a 1.7 percent share of the branded

jewellery market

5. Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri

(TBZ), which had been in the jewellery business since 1864, saw

tremendous scope in the branded segment and opened its new

concept store 'Trendsmith' in Mumbai in December 2001.

Encouraged by the response towards its first store, the Zaveris



planned to take Trendsmith (India) Pvt. Ltd. all over the nation by

opening as many as 50 stores by 2006. Trendsmith offered eight

lines of exclusive designer jewellery from well-known export

jewellery manufacturers and designers from Mumbai and Delhi.

Indian Customers Showing Interest in Branded Jewellery

Posted by RNCOS on October - 27 - 2009

As per our recently published research report “Indian Gems and

Jewellery Market – Future Prospects to 2011”, gems and jewellery

market in India posses tremendous potential for future growth

since it has an added advantage of low production cost and

highly skilled labor that separate it from its competitors. It is

projected that the overall gems and jewellery market will grow at

a CAGR of around 14% during 2009-2012.

India possesses world’s most competitive gems and jewellery

market due to its low cost of production and availability of skilled

labor. As per our new research report “Indian Gems and Jewellery

Market - Future Prospects to 2011”, highly skilled and low cost

manpower, along with strong government support in the form of

incentives and establishment of SEZs, has been the major driver

for the Indian gems and jewellery market. The market also plays

a vital role in the Indian economy as it is a leading foreign

exchange earner and accounts for more than 12% of India’s total



exports. Currently the Indian market remains highly fragmented,

but is rapidly transforming into an organized sector.

Currently, the industry is facing a slowdown due to global

economic turmoil. But due to various government efforts and

incentives coupled with private sector initiatives, the Indian gems

and jewellery sector is expected to grow at a CAGR of around

14% from 2009 to 2012. At present, the Indian gems and

jewellery market is dominated by the unorganized sector;

however, the trend is set to change in near future with the

branded jewellery market growing at an expected CAGR of more

than 41% in the coming four years. As per our research report,

with its consumption pegged at nearly 20%, India remains

world’s largest gold consumer and this share is expected to grow

further.

Given the fact that majority of market share is occupied by

family-owned jewelers, the domination of unorganized segment

still continues on the Indian gems and jewellery market.

However, this scenario is gradually changing with the entrance of

organized players who primarily focus on customer satisfaction

by giving better and finer quality products. Thus, consumers are

now moving towards branded jewellery which is more reliable in

terms of quality and design.



“With changing customers’ attitude towards branded jewellery

and entrance of organized players in the market, this segment

will grow at much faster pace (annual growth of more than 40%)

than the overall jewellery market in coming years,” said a

Research Analyst at RNCOS.

The future outlook given in the report is based on past growth

trends, current industry and regulatory developments besides

base drivers, opportunities and challenges faced by the gems

and jewellery industry in India.



CHAPTER 4



OBJECTIVE OF THE STUDY

The objective to study the “ A comparative study on the

consumer’s preference towards branded jewellery over

non branded jewellery ” is to find out

1) The consumer’s buying preferences regarding branded and

non branded jewellery

2) To know the reasons for buying branded and non branded

jewellery

3) What factors consumer consider while purchasing jewellery.



CHAPTER 5



RESEARCH METHODOLOGY

Research is initiated by examining the secondary data to

gain insight into the problem. The primary data is evaluated on

the basis of the analysis of the secondary data.

DEVELOPING THE RESEARCH PLAN

The data for this research project would be collected

through questionnaire. A structured questionnaire would be

framed as it is less time consuming, generates specific and to the

point information, easier to tabulate and interpret. Moreover

respondents prefer to give direct answers. Both type of questions

i.e. Open ended and closed ended, would be used.

COLLECTION OF DATA

a) Secondary Data: It was collected from internal sources. The

secondary data was collected from the articles, news papers,

management books, and the internet.

b) Primary data: They were the main source of Primary data. The

method of collection of primary data would be direct personal

interview through a structured questionnaire.

SAMPLING PLAN : Since it is not possible to study whole

population, it is necessary to obtain representative samples from

the population to understand its characteristics.



1) Sampling Units: would comprise of men and women.

2) Research Instrument: Structured Questionnaire

SAMPLE SIZE : 50 respondent

The primary data would be collected from

1) The population of Ludhiana city

The secondary data would be collected from:

1) Books

2) Magazines/ Project report

3) Internet

4) Articles

The questionnaire’s response format for the population would be

close ended questions. With a mix of question types varying from

ranking, multiple choice to checklist questions. The attitude of

the respondents would be measured by itemized category scales,

pictorial scale.



SCOPE OF THE STUDY

The jewellery industry occupies an important position in the

Indian economy and is one of the fastest growing industries in

the country.

Hence the research conducted would help me

1. Understand the consumers preference while purchasing

jewellery

2. How much impact does a brand have on their purchase

decision

3. Does price play an important role in guiding their purchase

decision



DATA ANALYSIS AND INTERPRETATION

Table 1 : Do you like wearing jewellery

Particulars No. of respondents % age of respondents

Yes 96 96%

No 4 4%

96%

4%

Yes No

INTERPRETATION

Above graph shows that 96% of the respondents are wearing jewellery

and 4% are not.



Table 2 : Do you purchase jewellery your self


Yes 68 68%

No 32 32%

68%

32%

Yes No

INTERPRETATION

Above graph shows that 68% of the respondents are

purchase your self and 32% are says no.



Table 3 : How often do you


Monthly 16 16%

Yearly 8 8%

Occasionally 54 54%

Festival 22 22%

16%

8%

54%

22%

Monthly Yearly Occasionally Festival

INTERPRETATION

Above graph shows that 54% of the respondents are purchasing

occasionally, 22% in festival, 16% are purchasing monthly and 8% yearly



Table 4: Are you aware of various jewelry brand available in the

market


Yes 92 92%

No 8 8%

92%

8%

Yes No

INTERPRETATION

Above graph shows that 92% of the are aware of various jewelry brand

available in the market and remaining 8% are not



Table 5 : Which jewellery do you prefer


Branded 88 88%

Non-Branded 12 12%

88%

12%

Yes No

Interpretation

Above graph shows that 88% of the respondents are preferbranded jewellery and 12% are aware about non-branded jewellery



Table 6 : If branded then tick against the brand that you


Gilli 20 20%

Tanishq 26 26%

D’Dmas 20 20%

Nakshtra 14 14%

Kohinoor 8 8%

23%

29%23%

16%

9%

Gilli Tanishq D’Dmas Nakshtra Kohinoor

INTERPRETATION

Above graph shows that 26% of the respondents are prefer Tanishq, 20% Gilli, D’Dmas

20%, 14% Nakshtra and 8% prefer to Kohinoor



Table 7 : If non branded why do you prefer non branded jewelery


Reliable 4 33%

Economical 2 17%

Less replacement cost 6 50%

Family jewelers 0 0%

33%

0%

50%

17%

Reliable Economical

Less replacement cost Family jewelers

INTERPRETATION

Above graph shows that 33% of the respondents says that non branded

jewellery is reliable, 50% says it is less replacement cost and remaining says

that it is economical



Table 8 : Factors that affect while purchasing jewellery


Design 28 28%

Price 22 22%

Purity 12 12%

Family/friends 12 12%

Varity 0 0%

Status 0 0%

38%

30%

%

16%0%0%

Design Price Purity

Family/friends Varity Status

INTERPRETATION

Above graph shows that 28% says that design is affecting their purchase

decision, 22% says that it is price, constantly 12% says it is by family /

friends and variety

Table 9 : You buy jewllery for




Investment 26 26%

Fashion 40 40%

Occasion 28 28%

Festival 6 6%

26%

40%

28%

6%

Investment Fashion Occasion Festival

The above graph shows that 40% of respondents buy jewellery for

fashion , 28% respondents says that they but for occasions , 26% for

investment and 6% for festivals.



Table 10 : Do you buy jewllery for gifting purpose


Yes 74 74%

No 26 26%

74%

26%

Yes No

The above graph shows that 74%respondents says that they buy

jewellery for gifting purpose and 26 %says that they don’t buy for

gifting.



Table 11 : Are you satisfied with your choice ?


Yes 100 100%

No 0 0%

100%

0%

Yes No

The above graph shows that 100% of respondents says that they are

satisfied with their choice.



Table 12. Would you like to switch ?


Brand to Brand 70 70%

Bran to non Brand 18 18%

Non Brand- Brand 0 0%

Non-brand to Non-brand 12 12%

70%

18%

0%12%

Brand to Brand Bran to non Brand

Non Brand- Brand Non-brand to Non-brand

The above graph shows that 70% of respondents would like to shift from

brand to brand , 18% says that brand to non brand , 12 %says that non

brand to non brand.



QUESTIONNAIRE

Name : _________________________________________ Age : ________________

Sex : _______________________________ Occupation : _____________________

1. Do you like wearing jewellery

a) Yes b) No

2. Do you purchase jewellery your self

a) Yes b) No

3. How often do you

a) Monthly b) Yearly

c) Occasionally d) Festival

4. Are you aware of various jewelry brand available in the market

a) Yes b) No

5. Which jewellery do you prefer

a) Branded b) Non Branded

6. If branded then tick against the brand that you

a) Gilli b) Tanishq

c) D’Dmas d) Nakshtra

e) Kohinoor

7. If non branded why do you prefer non branded jewelery

a) Reliable

b) Economical

c) Less replacement Cost

d) Family jewllers



8. Factors that affect while purchasing jewellery

a) Design b) Price

c) Purity d) Family/Friends

e) Variety f) Status

9. You buy jewllery for

a) Investment b) Fashion

c) Occasion d) Festival

10. Do you buy jewllery for gifting purpose

a) Yes b) No

11. Are you satisfied with your choice ?

a) Yes b) No

12. Would you like to switch ?

a) Brand to Brand

b) Bran to non Brand

c) Non Brand- Brand

d) Non-brand to Non-brand

-jewellery-project.doc

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