Marketing Management Project

Jewellery buying Preference

Submitted to: Submitted by:

Ms. Vandana Gupta Group number 04

Garima Nagpal (A04)

Prerna Gupta (A06)

Tulika Agarwal (A13)

Laveena Taneja (A14)

Sharvi Raghuvanshi(A22)

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CERTIFICATE OF COMPLETION

 

This is to certify that the research project entitled "Consumer’s preference among the branded and non

branded jewellery “has been submitted by Group number, MBA- HR(2010 – 2012)

This report is the result of their own work and to the best of their knowledge, no part of it has earlier comprised any

other report, monograph, dissertation or book. This project was carried out under our overall guidance.

Signature of Faculty Guide

Date

Place

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CONTENTS

Acknowledgement..........................................................................................................................................

Objectives of study..........................................................................................................................................

Descriptive Problem......................................................................................................................................

Significiance of study.....................................................................................................................................

Introduction.......................................................................................................................................................

Research Methodology.................................................................................................................................

Data Analysis.....................................................................................................................................................

Conclusion..........................................................................................................................................................

Literary reviews...............................................................................................................................................

Bibliography......................................................................................................................................................

Annexure............................................................................................................................................................

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ACKNOWLEDGEMENT

A study such as this cannot be the work of a single group of six people. I hereby express deep gratitude to all those

who have helped us directly or indirectly in completing this work and who have encouraged and inspired us all

through the project.

Words are inadequate to express our deep sentiments and gratitude towards my project mentor and guide, Mrs.

VANDAN GUPTA, for her zeal and scholarly guidance during this pursuit in spite of her multifarious

responsibilities. The word of acknowledgement is an expression of heart-felt thankfulness for her inspiration.

Finally, we would like to thank the people who have taken time off from their busy schedule to help by providing us

with their valuable inputs.

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OBJECTIVE OF STUDY

The objective to study the “A comparative study on the consumer’s preference among

Branded and non branded jewellery” is to find out:

1) To compare between the consumer preference among the branded and non branded jewellery.

2) To know consumer perception towards jewellery.

3) Brand awareness of various brands in the jewelery market.

4) To have an idea about the parameters the consumers consider while buying jewellery.

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DESCRIPTION PROBLEM

The scope of study is limited due to the following reasons:

1) Time constraint - since the time span for the study was only one month, an in depth

study and analysis will become a little difficult

2) Sample size - the sample size of the study is only 100 which would not give a

comprehensive result. Many important samples may not be considered at all. The

conclusion of the study may not result to an accurate outcome due to the sample size

being small.

4) Awareness - the sample taken and the conclusion drawn can be led to only one side if

there is lack of awareness about branded jewellery.

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SIGNIFICANCE OF THE STUDY

The gems and 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 us to:

1) Understand the consumers preference while purchasing jewellery.

2) How much impact does a brand/ retailer has on their purchase decision.

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

4) Are the various promotional strategies adopted to combat competition.

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INTRODUCTION

India has a historic relationship with Jewellery.

Many kings, emperors and dynasties featuring countless wars, conquests and political

upheavals have ruled the Indian sub-continent. Different dynasties ruled different parts

of India with different monetary systems. Jewellery acted as a common medium of

exchange or store of value across the monetary systems of different kingdoms across

the sub-continent especially gold. Hence wealth could still be preserved in spite of wars

and political turbulence. Gold also helped preserve wealth through natural calamities

and disasters and for centuries was the only means of saving in rural India, land being

the other main asset of economic value. This has largely helped formulate, or evolve,

the Indian sentiment and fanatical passion for gold, which holds true even today. India is

estimated to hold more than 11,000 tonnes of gold.

Apart from its historical religious significance, Jewellery is valued as an important

savings and investment vehicle in India. Even in present times, Jewellery remains the

Indian bride’s `Streedhan’, the wealth she takes with her when she marries and which

remains hers. Gold jewellery is the preferred jewellery worn by women in India

irrespective of their religious beliefs. In marriages, gold jewellery is the gift preferred by

the near relatives of the bride and the groom. Jewellery is very popular among

farmers, with an upsurge in gold sales after a good agricultural season. Buying of gold is

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an important part of every stage of an Indian citizen’s life— at birth, marriage,

construction of home, festivals, religious ceremonies, setting up of new business, and

death.

As India makes rapid progress in the retail arena, the Indian Jewellery market is

undergoing a gradual metamorphosis from unorganised to organised formats. The

jewellery business in India is estimated to be at Rs 50,000 crore. According to the

independent estimation studies conducted by World Gold Council and McKinsey, out of

the overall market share, the share of organised jewellery market is less than Rs 1,000

crore. This accounts to about 2-3 per cent of the total market share. But given that this

is a relatively new segment of the market, it is poised to grow. Jewellery retailing is

moving from a ‘storehouse of value’ to a precious fashion accessory. Plain gold is

gradually easing its stranglehold on the Indian consumer psyche to give way to

diamonds, platinum and coloured gemstones. The way jewellery was worn before is

undergoing a tremendous change.

The young Indian woman who is the prime market for the organised retailers differr

from the traditional jewellery customer in many ways as enumerated below.

•She is well educated and more in tune with international trends

•Increase in working women with high disposable incomes

•Greater mobility

•Less constrained by traditions.

All these reasons and more ensure that the modern Indian woman is looking for

jewellery from a perspective different from the past. In addition, organised retailing

offers quality products, follows standardised practices and uniform pricing strategy.

Organised retail formats work on transparent policies that are not necessarily available

at the traditional jewellery shops. Today, goods and services offered by any retailer are

strongly driven by their identified Target Group . There are several examples of retailers

who are drawing in consumers either across a wide swathe or a segment of socio-

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economic classification, clearly defined by them. This has been the first step towards

organized jewellery retailing in India. In a short span of time, organised retailers have

successfully implemented a change in the buying pattern of the Indian consumer.

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.

STRUCTURE OF JEWELLERY IN INDIA

•Plain gold Jewellery

•Studded Jewellery

•Silver Jewellery

•CostumeJ ewellery

India is the largest consumer of Gold in the world with annual demand close to 800

tons. It is believed that 90% of this demand is directed towards manufacturing of

jewellery. The bulk of the Indian jewellery buying is still rooted in tradition and jewellery

is sold in traditional designs. Jewellery designs vary in different regions of India, making

the style unique to each region. In South India the designs are inspired by nature -

paisley motif of the mango, rice grains, melon and cucumber seeds, etc. In Western and

Northern India, the Mughal influence can be seen in the meenakari (enamelling) and

kundan work. Jewellery is crafted not just for humans but also for the deities,

ceremonial elephants, and horses. Hence the variety of gold jewellery in India is truly

mind-boggling and bears testimony to the excellent skills of Indian jewellers of today.

Ornaments are made practically for every part of the body - nose rings, bangles,

necklaces and special jewellery for the head, ankles, waistbands, and so on.

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Plain gold jewellery is fabricated mainly in 22-karat gold and even 18-karat is not

favoured, as the mindset does not accept low purity gold jewellery. The logic is that the

jewellery is primarily bought as an investment in gold, and investing in a low purity

product does not appeal to the Indian consumers. However for the studded gold

jewellery, 18 karat has become acceptable.

CONSUMER BUYING BEHAVIOUR WHILE BUYING JEWELLERY

While buying a product, consumer displays different kinds of behaviours towards

different kinds of products from a tube of toothpaste to a new car. More complex

decisions usually involve more buying participants and more buyer deliberation.

While buying an expensive product for jewellery, which satisfies a consumer’s self

esteem needs( according to the Maslow’s heirarchy of needs) a consumer displays

complex buying behaviour. Consumers undertake complex buying behaviour when they

are highly involved in a purchase and perceive significant differences among brands.

Consumers may be highly involved when the product is expensive, risky, purchased

infrequently, and highly self expressive.

This buyer will pass through a learning process, first developing belief about the

product, then attitudes, and then making a thoughtful purchase choice. Marketers of

high involvement products must understand the information gathering and evaluation

behaviour pf high involvement consumer, they need to hellp buyers learn about the

product- class attributes and their relative importance.

GOLD JEWELLERY MARKET IN INDIA

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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).

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BRANDED DEALERS

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.

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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. The market of tanishq jewellery is

growing since long time.

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Figure 1 growth in sales from 2000 to 2008 in Million Rupees

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GILLI

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 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. 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 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. 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, the company is 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.

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NAKSHATRA

A diamond is a symbol of power and beauty –a creation that captures the essence of nature’s magical process through millions of years. The Indian jewellery market has been transformed in much the same way by Nakshatra. In less than a decade after launch, the brand has appropriated the physical values of the diamond – its quality, brilliance and clarity – and made a deep impact on the Indian psyche. So stunning has this impact been that within one year of its debut Nakshatra had registered a 93% top-of mind recall – surpassing every other diamond jewellery brand by a long margin (Source: Global Tracking Study conducted by Research International, January 2003).This recall has also been reflected in the volumes Nakshatra had achieved. Between 2005and 2007 the brand grew eleven times. It has impacted the jewellery trade in other ways, too. More than 70% of jewellery retail outlets have reported that Nakshatra has not only played a key role in generating overall diamond jewellery sales it has also helped them increase their own sales of floral jewellery to people who had come asking for Nakshatra. The effort to promote Nakshatra has gained recognition from more than just the retail trade.In 2003, the Nakshatra Utsav won the Best Trade Promotions award at the McDowell’s Signature All India Promo Awards. In 2007 the brand was given the Retail Jeweller Award for the Best TV Campaign of the Year. The in-house design team at Nakshatra with its wide repertoire of innovative designs, fresh ideas and novel concepts also won multiple honours including the CK– New Delhi Gold Souk Design Award in 2006, the IIGJ Award in 2007 and the Tahitian Pearl Awards in 2005 and 2007.

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LOCAL DEALERS

TALWAR JEWELLERS

A name that evokes history, quality and commitment. A name that evokes exquisite fires that gold and diamond inspire the heart.The TALWAR JEWELLERS have been providing with gold and diamond jewels for more than 5 decades. The Late Shri Tasrem Lal Talwar established a presence in Chandigarh from the year the city was founded in 1954. The showroom was first and the oldest. Their fame for quality and being on the leading edge of fashion in 22 carat gold and diamonds from all over India have been built on dedication to their clients expectations. Their commitment and dedication towards their customers have made them one of the leading jewelers in northern region.

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KHANNA JEWELLERS

The Khanna Group of companies was founded in 1953 by Late Shri Wazir Chand Khanna and his three sons. Their first showroom opened its doors to customers at Karol Bagh, New Delhi. Now the Khanna group of companies has, over the years, diversified into several new areas. Khanna jewelers India has been adding the magical sparkle of diamond, gold and platinum jewellery to the lives of the jewellery connoisseur for over 50 years.

OTHERS

There are many other local dealers for jewellery such as Champalal jewelers, Mahaveer jewelers, Chawla jewelers etc. who are earning a good name in jewellery market. Although they sell their own produced jewellery yet they have many consumers who prefer buying jewellery only from them. These dealers are preferred by consumers because of their good quality products and strong personal relations with consumers.

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SECTOR PROFILE

BRANDED VS. NON BRANDED JEWELLERY

BRANDED JEWELLERY NON BRANDED JEWELLERY

Name and reputation give a confidence to

the consumer.

Customers can tailor make jewellery

according to their preferences.

It comes with a written lifetime gurantee,

considering the emotional quotient of the

consumer.

No written lifetime guarantee, trust is purely based on the consumer.

Excellent quality, good selling policies andd

backup services for jewellery.

Minimum efforts in packaging, finishing,

sales and low advertising.

Has a more contemporary, stylish and

classicoutlook, which easily segments itself

amongthe traditional ones

Is usually bulky and traditional.

Available in multiple outlets Available only in traditional jewellery

outlets.

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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.

TYPE OF RESEARCH: Exploratory research

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.

COLLECTION OF DATA

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

collected from the articles, newspapers, journals and 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 instruments- questionnaires.

SAMPLE SIZE 100 respondents

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DATA ANALYSIS

Question 1 Yes No

Do you wear jewellery? 99 1

By studying the 100 questionnaire we have come to the conclusion that 99% of the total population wears jewellery whereas just 1% doesn’t wear the jewellery.

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Question 2 Once in a long time

Once in a year

Whenever any occasion comes up

How frequently do you make jewellery purchases? 20 45 35

45% of the total population buys jewellery in a year and 35% of the population buys whenever any occasion comes up whereas remaining 20% buys in a long time.

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Question 3 Local Dealers Brands (Tanishq, D’damas , etc..)

From where do you prefer purchasing jewellery?

45 55

From the analysis we came to know that 45% of the people prefer purchasing jewellery from local dealers and 55% of total poplution prefer buying brands.

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Question 4 I can choose from a wide variety of designs

The quality of the product is excellent

The stores are easily accessible as they have their outlets at many places

They provide good exchange offers

The jewellery is certified

If brands, what are the factors responsible for this choice (one or more)?

32 47 20 16 35

From the above pie chart we have concluded that why the people purchase brand is the quality of the product and its certification.

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Question 5 I can buy the products on credit

The store is located near my house, and so is easily approachable

The price are negotiable, I do not have to buy at the M.R.P

The products are comparatively priced low

The retailer is very reliable as I have been dealing with him since a long time

If local retailers, what factors affect this decision (one or more)?

11 16 23 21 37

The reason why 45% of the total population goes to the local retailers is there relaibility and low prices.

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Question 6 Schemes launched by the stores

Recommendations from Friends/ Relatives

Pamphlets distributed

From where did you get the knowledge of this store/ brand?

24 62 21

Recommendation from friends and reletaives contribute much more in spreading the knowledge about the store/ brand rather then distributing pamphlets or launching schemes.

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Question 7 I recently started visiting this store/ Brand

From past 5 to 10 years

Since a very long time, almost always

How long have you been making your purchases of jewellery from this store/ brand?

22 39 39

Most of the population says 70% are buying jewellery from the same store/ brand from past 5 to 10 years or a long time respectively.

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Question 8 Very satisfied

Satisfied Neither satisfied nor dissatisfied

Dissatisfied Very dissatisfied

How satisfied are you with the jewellery you buy?

45 48 7 - -

Almost everyone is satisfied with the jewellery they buy.

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Question 9 Extremely important

Very important

Somewhat important

Not very important

Not at all important

How important is the advertisement campaign followed by the store to make you opt for it?

9 23 28 34 3

35% of the population is not affected by the advertisement campaign but on the contrary advertisement is somewhat important for the 29% of the population.

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Question 10 Very significantly

Significantly Partially Neutral Not at all significant

Does the ambience and the services provided in the store affect your purchase?

14 39 24 20 1

The above pie chart represents that 40% of the population is significantly affected by the ambience and the services provided in the store.

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Question 11 Always Often Sometimes Rarely Never

Before making any jewellery purchases, do you compare the designs and prices of the same between the branded showroom and the local dealers?

12 14 30 28 16

People generally don’t compare the prices between the branded showroom and the local dealers.

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Question 12 Yes No Maybe

Do you plan to shift or change the source of purchasing jewellery?

9 48 43

From the about the data we have concluded that almost half of the population is satisfied with their retaliers and doesn’t want to change.

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CONCLUSIONWe have concluded from the above study that the individuals are moving towards

brands rather than local retailers. Most of the population buys jewellery frequently and

the reason why people people going for more of branded jewellery is the certification of

the jewellery.

It is not that people are ignoring local retailers large number of total population still

demands local jewelers and the reason is the reliability of the retailers. People generally

don’t compare the prices between the branded showroom and the local dealers. From

the about the data we have concluded that almost half of the population is satisfied

with their retaliers and doesn’t want to change.

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RECOMMENDATION

From the above analysis we have come to the conclusion that the local retailers should adopt the certification for the jewellery they are offering to the consumers. They should also provide wide range of the product they are offering so that they can capture larger share in the market.

Branded retailers should focus on reducing the cost and try to develop the trust factor with the consumers so that it will help them to increase there sales.

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LITERARY REVIEW

GEMS AND JEWELLERY

The gems and jewellery industry is one of the fastest growing industries in India, The

growth in the purchasing parity of the middle class and surging income levels have

resulted in consumtion growth of gems and jewellery by about 11 percent in the five

years preceeding 2006-2007. it also contributes over 15 percent of India’s total exports

and provides employment to 1.3 million people directly and indirectly.

The two major segments of the sector in India are gold jewellery and diamonds. Gold

jewellery forms around 80 per cent of the Indian jewellery market, with the balance

comprising fabricated studded jewellery that includes diamonds as well as gemstone

studded jewellery.

India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the world

gold consumption, of which nearly 600 tonnes goes into making jewellery. The Indian

jewellery market, estimated to be US$ 13.5 billion in fiscal 2006-07, accounts for 8.3 per

cent of world jewellery sales, according to a study by KPMG.

The industry is well supported by Government policies and the banking sector --

around50 banks provide nearly US$ 3 billion credit to the Indian diamond industry. In

addition,India is expected to have a diamond bourse soon.

India Advantage

India is the world’s largest diamond processing (cutting and polishing) country with an

estimated 1 million processors handling over 57 per cent of the world’s rough diamonds

by value. According to industry estimates, 11 out of 12 stones (diamonds) set in

jewellery

are cut and polished in India. Processing is done on rough diamonds in full range of sizes

and qualities, including stones larger than 10 carats.

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In terms of carat, India's share in this sector is about 80 per cent of the world market.

Employing over 90 per cent of the global diamond industry workforce, India also

accounts for 90 per cent of the volume of diamonds processed in the world.

Exports

After making its mark in the world diamond processing industry, India is well on its way

to becoming the leading global gems and jewellery hub. India’s gems and jewellery

industry is now on a high growth trajectory.

Exports from the industry fetched US$ 17.1 billion in 2006-07 against US$ 16.64 billionin

2005-06, showing a growth of 26 per cent. While diamonds accounted for 64 percent of

the total exports, gold jewellery accounted for 30.47 per cent, colored gem stones

andothers accounted for 1.44 per cent and 1.04 per cent respectively last year.

Cut and polished diamond segment exports were US$ 10.90 billion, while gold jewellery

exports fetched US$ 5.21 billion last year. Coloured gemstone exports yielded US$

246.48 million last fiscal, against US$ 232.35 million in 2005-06.

The growth momentum has continued into the current fiscal. The gems and jewellery

export industry grew by a robust 27 per cent export during the first half of the current

fiscal at US$ 9.4 billion, as compared to US$ 7.4 billion in the corresponding period of

2006, according to the Gems and Jewellery Export Promotion Council (GJEPC).

The growth in diamond exports was 28 per cent, in jewellery it was 21 per cent and in

coloured gemstones, it was 22 per cent. The major destinations for exports have been

the

US, UAE, Hong Kong, Belgium and Israel. In fact, the US, UAE and Hong Kong

together accounted for over 70 per cent of the total exports in the previous fiscal year.

Consumption

The increasing levels of disposable household income have resulted in record

consumption levels in the domestic market. Indian jewellery demand rose by 70 per

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cent during the first half of 2007 compared with the same period last year. Jewellery

demand increased to 387 tonnes from 227 tonnes during the period.

Also, gold consumption during the first six months of 2007 grew by 70 per cent to 528

tonnes compared to 307 tonnes in the same period last year. India’s total gold

consumption in 2006 was slightly over 700 tonnes. While jewellery accounted for

around

73 per cent of gold demand, investments in the forms of coins and bars accounted for

the rest.

According to the World Gold Council (WGC), India’s gold consumption this year could in

fact cross the 1,000-tonne mark for the first time. The booming domestic market along

with export advantage of the industry and the Government's decision to allow foreign

direct investment of up to 51 per cent in single brand retail stores has attracted a large

number of players to the sector.

• Swarovski, the global crystal goods manufacturer and marketer, is on an

expansion spree in India and hopes to achieve 5 to 10 per cent of its global

turnover from the country in the next 10 years. The company plans to set up 30

stores by 2009, from the current 13.

•D’Damas India, part of one of the largest jewellery retail outlets in the world, is

adding 16 new stores to its present dozen stores in India.

• Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively

purchased a 7 per cent stake in Gitanjali Gems for around US$ 27.8 million.

• Goldman Sachs and UBS Securities have acquired 6.28 per cent in Shrenuj & Co

at around US$ 2.07 million and US$ 2 million, respectively.

• Gemology Headquarters International (GHI), a US-based gemological grading

and research laboratory, has opened its first Indian branch at Opera House,

Mumbai.

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• Reliance Retail is planning an aggressive entry into the jewellery retail market through

its 400 to 500 jewellery retail outlets in the country.

Looking Ahead

The booming economy along with the rapid increase in income levels is estimated to

further accelerate the growth of this industry. According to a KPMG study, India’s

growing importance in the global jewellery market is only expected to increase in the

future with total estimated jewellery sales of US$ 21 billion by 2010 and US$ 37 billion

by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per

cent in 2010.

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BIBLIOGRAPHY

The magazines and journals referred:

Solitaire International

Web sources:

www.google.com

www.indiandata.com

www.valuenotes.com

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QUESTIONNAIRE

Jewellery buying preference : Local retailers or Brands

1. Do you wear jewellery?

□ Yes

□ No

2. How frequently do you make jewellery purchases?

□ Once in a long time

□ Once in a year

□ Whenever any occasion comes up

3. From where do you prefer purchasing jewellery?

□ Local Dealers

□ Brands (Tanishq, D’damas, etc.)

4. If brands, what are the factors responsible for this choice (one or more)?

□ I can choose from a wide variety of designs

□ The quality of the products is excellent

□ The stores are easily accessible as they have their outlets at many places.

□ They provide good exchange offers.

□ The jewellery is certified.

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5. If local retailers, what factors affect this decision (one or more)?

□ I can buy the products on credit .

□ The store is located near my house, and so is easily approachable.

□ The prices are negotiable, I do not have to buy at the M.R.P.

□ The products are comparatively priced low .

□ The retailer is very reliable as I have been dealing with him since a long time.

6. From where did you get the knowledge of this store/ brand?

□ Schemes launched by the store.

□ Recommendations from Friends / Relatives.

□ Pamphlets distributed.

7. How long have you been making your purchases of jewellery from this store/

brand?

□ I recently started visiting this store / brand.

□ From past 5 to 10 years

□ Since a very long time, almost always.

8. How satisfied are you with the jewellery you buy?

□ Very satisfied

□ Satisfied

□ neither satisfied nor dissatisfied

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□ Dissatisfied

□ Very dissatisfied

9. How important is the advertisement campaign followed by the store to make

you opt for it?

□ Extremely important

□ Very important

□ Somewhat important

□ Not very important

□ Non at all important

10. Does the ambience and the services provided in the store affect your purchase?

□ Very Significantly

□ Significantly

□ Partially

□ Neutral

□ Not At All Significant

11. Before making any jewellery purchases, do you compare the designs and prices

of the same between the branded showrooms and the local dealers?

□ Always

□ Often

□ Sometimes

□ Rarely

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□ Never

12. Do you plan to shift or change the source of purchasing jewellery?

□ Yes

□ No

□ Maybe

NAME: ________________________ ADDRESS:

_____________________________________________

PROFESSION: __________________ MONTHLY INCOME: - □ 3 FIGURES □ 4

FIGURES □ 5 FIGURES

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