CHAPTER 1

INTRODUCTION TO A STUDY ON INCREASING DEMAND FOR BRAND/HALL MARKED JEWELLERY.

INTRODUCTION

Culturally, the Indian people have a great fascination for gold. It should be recognized that in India, in common with other Asian Countries, gold has a very important role in our cultural heritage. Gold is considered as a commodity, and not a product. Any form of gold is equal to any other form of gold. It is viewed to be homogenous and indistinguishable, having no brand or expiry date. As a result, gold demand is not price-elastic. Rather it is prosperity elastic - that is, increments in household income are generally matched by purchases of more gold.

Unless alloyed with a comparatively small proportion of some other metal, both pure gold and pure silver are too soft to withstand wear as an article for use or adornment. This necessity has always demanded some system of control if frauds on the public are to be prevented, because adulteration of articles manufactured from the precious metals by the introduction of too much of the strengthening alloy is a type of fraud to which the public is extremely vulnerable. It is easy to perpetrate, because with both metals a considerable excess of alloy can be introduced without changing the colour, and is difficult to detect without technical tests.

INDIAN SCENARIO

The annual consumption of gold which was estimated at 65 tonnes in 1982, has increased to over 500 tonnes presently about 80% is for jewellery fabrication (mainly over 22 carat purity) for domestic demand, 15% for investor demand and barely 5% for industrial use. The remarkable feature is the way investment in jewellery has come to dominate the market. Urban demand is for adornment jewellery rather than on investment jewellery but in rural areas gold's role is that of an informal barter economy. Here, gold remains a retail cottage industry, and therefore, it can still be said to be performing a monetary role. It barters the economy of the agricultural community which accounts for 70% of all gold consumption In India In the near future, therefore, the annual demand will continue to be over 500 tonnes, growing at the rate of around 4% in tandem with anticipated growth in per capita real income.

It is estimated that there are 100,000 manufacturing units throughout India mostly employing up to 10 workers, although, there are above 100 large mechanized factories employing up to several hundred workers. There is an abundance of cheap skilled labour. Because the traditional jewellery is almost totally hand-made, the workforce is large and totals about 2 million. Many of these artisans have been trained in jewellery making skills from the age of 10 years and they lack formal education. Many manufacturers and retailers subcontract work out to small workshops and this makes gold stock control and caratage quality control difficult to achieve.

Indian consumer is very often a victim of irregular metal quality. A buyer, for instance, will be told that he has bought gold of 22 carats. When he goes to sell or exchange it he discovers that the gold is actually only of 18 carats or many customers have lost money in this way. In India the emphasis is on high caratage jewellery, and problems have also arisen through

the lack of suitable high carat solders. The traditional handcrafted pieces in 22 carat contain many soldered joints and the use of solder alloys of a much lower caratage has meant a serious level of under-carating.

The oldest types of fraud are those of adulteration by the addition of too much alloy, and the similar fraud of selling, as of gold or silver, articles externally of standard fineness but with base metal cores. These frauds continued till Hallmarking scheme was launched by BIS.

The handcrafted jewellery is made using traditional tolls and working practices. Melting and alloying is done using charcoal or coke-fired furnaces. Soldering operations are done using a mouth blowpipe with a candle or oil flame. Many small workshops buy scrap which they sometimes re-use without refining, while other refine it themselves using old and crude technology.

Larger factories are equipped with modern electric melting units, investment casting facilities and machinery with their own modern refineries and producing gold either to 999 fineness via electrolytic refining as the final step or to 995 minimum fineness by conventional methods.

HALLMARKING- CERTIFICATION OF GOLD

Government of India took the cognizance and understood the necessity of protecting the public in its purchases of gold jewellery specially with regard to standards of fineness and the prevention of adulteration, be it deliberate or accidental. The principle objectives of the Hallmarking Scheme are to protect the public against the fraud of adulteration and to oblige manufacturers to maintain legal standards of fineness.

Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in gold. Hallmarks are thus official marks used in many countries as a guarantee of purity or fineness of gold jewellery.

Taking cognizance of these aspects the RBI Standing Committee on Gold and Precious Metals opined that introduction of a Hallmarking System would not only protect the public from fraud, but also assist exports of jewellery. While agreeing on this the Committee reckoned that compulsory certification of gold would not be implementable on account of the massive structure of trade. Recommending the pursuance of a voluntary scheme, it emphasized the deviations in purity of fine metal should invoke penalties under legislation and BIS was named as the sole agency in the country for Hallmarking of gold jewellery under the provisions of the BIS Act, 1986.

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 2009), 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.

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 2009), 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. As India makes rapid progress in the retail arena, the Indian Jewellerymarket is undergoing a gradual metamorphosis from unorganized to organizedformats. The jewellery business in India is estimated to beat Rs. 50,000 crores.According to the independent estimation studies conducted by World GoldCouncil & Mckinsey, out of the overall market share, the share of organized jewellery market is less than Rs. 1,000 crores. This accounts to about 2-3 % 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, platinumand colored gemstones. The way jewellery was worn before is undergoing atremendous change. Traditional designs are yielding to modern jewellery, heavygold is giving way to light and simple designs. Consumers are more qualityconscious than ever before. The jewellery market is one of the largest consumersectors in the country- larger than telecom, automobiles, and apparel andperhaps second only to the foods sector. Interestingly, organized retailers haveattempted to understand the market, anticipate social change and strategiesappropriately. They have ceaselessly endeavored to derive the formulae of What the consumer wants? The young Indian woman who is the prime market for the organizedretailers differs from the traditional jewellery customer in many ways asenumerated below-- She is well educated and more in tune with international trends- Increase in working women with high disposable incomes- Greater mobilityLess constrained by traditions

All these reasons and more ensure that the modern Indian woman islooking for jewellery from a perspective different from the past. In addition,organized retailing offers quality products, follows standardized practices &uniform pricing strategy. Organized retail formats work on transparent policiesthat are not necessarily available at the traditional jewellery shops. Today,goods and services offered by any retailer are strongly driven by their identifiedTarget Group. There are several examples of retailers who are drawing inconsumers either across a wide swath or a segment of socio-economicclassification, clearly defined by them. This has been the first step towardsorganized jewellery retailing in India. In a short span of time, organized retailershave successfully implemented a change in the buying pattern of the Indianconsumers. This is evident from the shift from the traditional jeweler to the jeweler with an identity. This shift clearly indicates a change in viewpoint of jewellery as a commodity to brand identification.

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.

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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 2000s and 2008-09 included Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).

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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 18carat 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 2008-09, 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.

Indias leading jewellery manufacturer retailer geetanjali group announced the appointment of Shraddha Kapoor as the brand ambassador for Parineeta wedding jewellery brand

Gitanjali Group appoints Shraddha Kapoor for Parineeta jewellery brand

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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 2009 and offer a range of 'wearable' products with prices starting at Rs. 400. With sales of Rs. 2.66 billion in 2006-07, Tanishq had a 0.66 percent share of the total jewellery market and a 27 percent share of the branded jewellery market.

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According to Bollywood Hungama's reliable sources, Sridevi has now been signed the brandambasder of the jewelry major Tanishq.

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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 hundreddistribution points by 2010. With sales of Rs. 0.17 billion in 2008-09, 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 .

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TOP 10 BRANDED JEWELLERY IN INDIA..

Tanishq

Having embarked on the retail journey a decade ago, Tanishq is the largest jewellery retailer in India. With a strong presence in 70 cities across India, unmatched collections and assured purity, Tanishq has quickly become the first choice of discerning customers.Although there are several small scale unorganized jewellery markets, Tanishq is the first and only jewellery brand to have organized mass jewellery retail chains across the country

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Nakshatra

Nakshatra is a brand renowned for being the first branded diamond jewelry range in the country and it has produced some great designs.Nakshatra Diamonds were launched in the year 2000.Today, the brand has become one of the leading fashion diamond jewelry brands in India, which is patronized by the women belonging to almost all the segments of the society. The reason for this is their amazing designs, combined with the reasonable price range.

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 DDamas

One of the predominant forces in the jewellery retail franchise sector, Ddamas offers Indians a vast array of world class gold, diamonds and other jewels. Prospective franchisees are sought throughout.Ddamas the flagship brand from the house of Gitanjali Group, is one of the largest manufacturers of diamonds in India.Ddamas range comprises ornaments like pendants, earrings, chains, necklaces, bangles, bracelets and sets.

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Asmi

Asmi in Sanskrit means I AM It is jewellery for the new age Indian woman, celebrating her new found economic & social independence. For her, self indulgence & self rewards are needs that co-exist with her family, social or professional responsibilities.The brand aims to fulfill every womans innate need for self expression while lauding her inner fire.Asmi Jewellery has a contemporary delicate and feminine look.

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Nirvana

Nirvana is a range of exquisitely crafted diamond jewellery launched in Indian in 2002 by Fine Jewellery Ltd., one of Indias largest exporters of Diamond Jewellery.It has been launched with a view to the new age customer who buys jewellery as a fashion statement, rather than just a mere valuable. It is not just in the field of design that the company has been innovative and contemporary.

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 Gili

Gili, the first branded jewellery of India, started in 1994 when jewellery was treated as apossession but Gili with the clear image of future needs, shifted this paradigm from occasionally to the need of every occasion.A team of people, with a vision and passion to venture into the jewellery market led to the establishment of the brand that you discern, distinguish, and devour as Gili today.

Kiah

Kiah diamond jewellery, from the house of Sheetal Group, has created an exquisite line

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ofjewellery for women.A collection of alluring diamonds studded in white and yellow gold, it is an assortment of pendants, rings and earrings. Designed to depict versatility, each jewellery piece has been created based on in-depth research, conducted to find the prevalent design preferences amongst young people.

Orra

A light called Orra is a leading diamond jewellery brand of the nation today. A legacy that spanned decades can now be summed up in one word Orra. A word that epitomises the person it was created for. Her spirit, her grace, her grit and most importantly, the invisible glow that surrounds her persona.It is a brandname that focussed on a womans nurturing spirit as well as her soaring ambitions

Sangini

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The Diamond Trading Company announced the launch of its new collection Sangini Diamond Jewellery (SDJ), in the year 2004, the perfect expression of love from a husband to his wife. What better way to express it than through a gift that speaks a thousand words. Sangini understands the delicacy of the emotional bond that exists between a couple and has come out with an entire collection that highlights this emotion.

Adora

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Adora diamond jewellery is themed on love and celebration of life. Adora was launched in July 2003 by Mumbai-based Concept Jewellery (India) Pvt. Ltd. Adora is now established as an accessible brand, both affordable and high-end, that rises above the concept of jewellery and approaches the bigger concept of lifestyle expression. In other words, Adora was conceived and launched as a brand with a high aspirational value backed by the highest degree of customer trust

GOLD JEWELLERY BECOMES FASHION ACCESSORY Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Confidence in the local jeweler was the hallmark of the gold jewellery trade in India. A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith in his jeweler. Additionally, the local jeweler catered to the local taste for traditional jewellery.

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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. According to Samrat Zaveri, CEO of Trendsmith, "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment." In October 2008, Trendsmith conducted a survey to understand the shifting needs, motivations and aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The research study arrived at the following conclusions: The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design. The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy, traditional gold jewellery. The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. The Indian consumer was willing to experiment with new designs. The late 1990s and early 2000s, with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT), a wide range of new designs

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became available. In addition, the growing number of manufacturers needed a retailing platform with global and national reach. All these led to the proliferation of branded jewellery players.

STRATEGIES FOR WOOING CUSTOMERS

Tanishq In the late 1990s, players in the branded gold jewellery market formulated strategies for wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the challenges were many. As the jewellery market was highly fragmented, lacked branding, and allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brandbuilding strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase. Said Kurian, "We are changing the attitudes of customers from blind trust to informed trust." To increase its market share, Tanishq formulated a strategy for luring people away from traditional neighborhood jewelers. Tanishq's strategy was to create differentiation and build trust. According to Kurian, the first part of the strategy was "to provide a point of differentiation in a highly commoditized category - which is the whole point of branding." The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. According to Kurian, "If differentiation plays the role of primary attraction, trust takes care of lifelong loyalty. One way to create differentiation was through design. The emphasis had to be on design because local jewelers could offer to design any pattern according to the customer's specifications. For a national brand a generic design concept with regional variations had to be evolved.

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For this, Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers. The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. On the basis of this feedback, each showroom could select the designs it would carry.

Brand appeal Branded jewellery has found a niche for itself in the tough Indian market, and its increasing growth rates show that before long it will corner a significant share of the jewellery market. WITH the retail industry in India burgeoning, several companies have made inroads into the traditional jewellery industry, selling the product that was never really "marketed" in "brand" new ways. So much so that branded jewellery is the new mantra in the market, having rapidly acquired a niche over the past few years. Some of the companies have even cleverly played on Indian customs and tradition to advertise and establish their brands. Jewellery is now marketed for every occasion; even Valentine's Day calls for "a special something [diamond] for a special someone". In spite of pessimism about the marketability of branded jewellery in a country rooted in buying ornaments from the traditional goldsmith, 30 brands were launched in 2004. However, this does not take away from the fact that India is a tough market. According to Mehul Choksi of the D'Damas and Gitanjali Group, branded jewellery has witnessed more than 50 per cent growth in the last three years. The diamond branded jewellery, he says, is especially impressive with the segment witnessing a 20 per cent rise annually as against 10 per cent a decade ago. Although branded jewellery accounts for less than 10 per cent of the Rs.40,000-crore jewellery market, a

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study has concluded that it is growing in popularity at a tremendous pace of 20-30 per cent annually. Such is the potential of this industry that the consulting firm McKinsey estimates the branded jewellery market in India to grow at the rate of 40 per cent per annum to touch Rs.10,000 crores by 2010. Big drivers of this kind of jewellery are the numerous malls opening across the country with the emergence of an affluent class following the successful growth of the new economy companies. In the past decade, the country has seen a section of the population gaining exposure to designer wear, fashion accessories and globally branded products. "Why not have accesses to them?" asks Rima Khan, a brand executive. "Of course jewellery is harder to brand but it has done well given the tough competition," she says One of the reasons branded jewellery is doing well is that now anyone can walk into a mall, window shop and decides at their own what they would like to buy. The entire culture of shopping has changed with attentive and helpful attendants and welldisplayed products. "You no longer have the sales staff who look at you and decide whether you are worth serving or not. Everyone is a potential customer in the new market," says Rima Khan. Yet the most important part of branded jewellery is that you can get a piece of jewellery with a diamond for as little as Rs.1,500. And as branded is equated with quality, you are assured of a good product. "Suddenly jewellery has become accessible and affordable for all income brackets." The shift was visible in 2004 when more than 30 players entered the market. Today there are more than 50 brands, endorsed by models, film actors, sports celebrities and other wellknown faces. Some designs of these brands are so popular that local jewelers have begun to copy them. "While it is a compliment to the industry that people like the product, it could also affect the company because the cost may be lower," says Rima Khan.

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The biggest challenge perhaps is in educating the consumer. Consumers need to understand the four Cs - Cut, Carat, Color and Clarity. Companies that brand their products place a lot of emphasis on educating and therefore helping the customer make his purchase. "Buying jewellery is a very personal thing and we need to understand what we are buying," says Seema Thakur, an attendant in a jewellery store at a mall in Mumbai. "We have an average of 50 people on a week day and at least 100 on a weekend who walk in and look around the shop. If you make the product look special, for instance, appeal to a young gentleman to buy it for a loved one, he is often interested." And the big selling point is: "If you can spend Rs.1,000 on two music CDs, why not spend for that special person in your life." The branded jewellery industry is still in its infancy, but increasing growth rates show that in a short time it will corner a significant chunk of the market. Perhaps the best compliment to the branded segment is that old jewellery showrooms have also begun to design jewellery lines under a brand name.

INDIAN

CUSTOMERS

SHOWING

INTEREST

IN

BRANDED

JEWELLERY

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

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grow at a CAGR of around 14% during 2009-2012. India possesses worlds 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 Indias 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 worlds 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.

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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 morethan 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.

TRADITIONAL V/S BRANDED JEWELERS

Introduction Gems and Jewellery sales and marketing received a facelift with the advent of the supermarket culture. As organized retail in India progresses to the next lap, Sadanand Subramanian checks for Diamond World with some precious Industry players about their preparedness and strategy to achieve maximum mileage. As India reacts to a retail revolution, the hitherto sober gems and jewellery industry seems to have jumped on the bandwagon with a clear plan of action. The industry has already made a mark by capturing 3 per cent of the organized retail space thanks to the leadership shown by a handful of companies prepared to dazzle the world. While organized retail under this segment impressively grows at over 50 per cent annually, deliberations are on to arrive at what the industry in general must do to keep the customer perennially delighted. The gems and jewellery market in India is estimated to be about Rs.80,000 crores and the topmost agenda is to adopt the right strategy to accelerate its growth keeping in mind current global dynamics. For now the industry faces keen competition from other luxury goods such as electronic innovations and other personal accessories. How far is it necessary for the gems and

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jewellery sector to seriously consider it? There is no doubt that things are a lot more organized in stores inside malls. They also showcase and present products very attractively. But in my opinion, real sales take place through traditional jewellery stores as jewellery is mainly sold on trust. Ghanshyam Dholakia The urgency in the industry indicates rapid changes in the way goods are produced and marketed. The evolution of new formats for sale and the massive technology and to some extent, sizeable infrastructural developments taking place all foretell a prospect of growth way beyond the current overall 10 per cent. The Indian gems and jewellery industry boasts a strength of over 3 lakh jewellery retailers across the length and breadth of this country. The huge number indicates strength in itself but it also indicates a difficult diversity to grapple with when exploring common grounds to formulate united approaches to tackle common concerns.

Organized V/s Traditional Retail: Comparisons have always been drawn between organized retail and traditional retail. Attempts have always been made to define them. Rooting for organized retail, Navneet Goenka, ViceChairman of Goenka Diamond and Jewels says, Right now organized retail seems to have wrested an edge over traditional retail. Goenka argues that the indications to this effect are seen in the manner large proportions of the society are becoming lifestyle oriented, especially the younger generation. When considering Indias statistic of having the highest percentage of youth in the world, this observation cannot be taken lightly. Goenka says that the gems and jewellery sector is one of the fastest growing segments. He adds, The young generation today has more disposable income and they are willing to spend it on luxuries of choice.

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Ghanshyam Dholakia, partner, Harikrisha Exports holds a different view with regard to the tussle for supremacy over the two formats. There is no doubt that things are a lot more organized in stores inside malls, he concedes. They also showcase and present products very attractively. But in my opinion, real sales take place through traditional jewellery stores as jewellery is mainly sold on trust. While explaining his point of view, he adds, To the credit of traditional jewellery stores they also have upgraded themselves in various ways including the overall ambience in the last five to ten years. They are also changing themselves in the matters of presentation and the customer approach. Dholakia says that in promotions and awareness creation, traditional retailers have realized its importance thereof and have started allocating sizeable budgets for them. Consequently this section has already started reaping the benefits of quality promotions by creating awareness about their products and services. Dholakia is some what emphatic with regard to modern day organized retail citadels, In my personal opinion malls mainly serve the purpose of promotion and show of products. I dont think a lot of gems and jewellery sale takes place in malls. Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to jewellery sales at modern shopping malls. He opines, The sales that take place in a mall are of a very different kind. You can call it window shopping if you like. Shah elucidates his point, The young generation often resorts to some impulse buying. He stresses that serious buyers who are looking for high value purchases for occasions such as weddings prefer to plan their jewellery shopping and eventually purchase from known reputed jewelers.

Changes in Gems & Jewellery Retail:

34

Whilst organized retailers are ahead when it comes to taking care of the different aspects in the marketing and sales value chain, those in traditional retail are also changing or adapting to the needs of the modern customer in the areas of service and customer care. They too are improving their style of presenting and dealing with customers. In the past, jewelers didnt have much modern education. Today, there are a number of MBAs in these families and amongst key personnel employed by them, points out Ghanshyam Dholakia. Retailing the Organized Way: While complementing the planned approach by organized retail, Mahesh Gandani-Head Retail, Hari Krishna Exports says, We can see that times have changed and somewhere along the way, the whole approach to marketing has also undergone transformation. Gandani says that for branded diamond jewellery there is much planning involved. He says meticulous strategy is charted out, and there is systematic presentation of the product. All this goes on even as a product portfolio is made and promotions are carried out. Gandani says creating brand awareness in the minds of the consumers is all about adopting a few strategic steps. One might say the difference between traditional and organized is just doing and doing by planning. Recent developments have been both a boon as well as a bane. Actually, this has spurred us on to become innovative with our offerings to suit the market. We have actually managed to reduce cost by adopting the strategy of reducing the volume of gold in some of our products to make it affordable. Ashwin Shah Speaking about organized retail, V. Muraleedharan, gems and jewellery professional and visiting faculty at well known management institutes in Mumbai says, The number of foreign brands coming into India is simply amazing. Brands that were only heard of a few years ago are today very much within anyones reach here. Muraleedharan goes on to

35

explain, So far people who had only seen traditional offerings have started making intelligent international comparisons with Indian products and this has brought about real room for retail to grow a number of times. Well known brands have always insisted that when they talk about a particular grade, they are certified. Moreover the quality standard is confirmed and authorized and remains the same in any laboratory in the world. Muraleedharan says, In my opinion the quality a brand expresses, and the certification make it easy for a customer to confidently buy the product.

The Value Proposition: Today everyone is looking for value for money, a new design, a new concept, something very creative and that is the concept of retail today. It is not like yesterday where the shopkeeper or the manufacturer used to dominate. Today, the customer is going for customized designs; the whole concept is changing, says Muralidharan. The consumer is looking for value for money, when they buy diamonds. They like to buy from reputed players like example Tanishq, Gitanjali, Goenka, Nakshatra, Kiah and Nirvana. All of whom have achieved very organized presence in the market today. Each one of them has a standard quality certification internationally and that is what is going in the minds of the customer when they talk about buying from the organized sector.

MICHAEL PORTERS FIVE FORCE MODEL FOR JEWELLERY INDUSTRY Inter-Firm Rivalry -HIGH Two types of rivalry. (1) Inside India & (2) Outside India.

36

 Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000 Diamond jewelers International rivals Such as, China Threat from producing nation like S.A. & Russia. Bargaining Power of Suppliers - Medium In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana, Russia, DTC. Few Alternatives of cutting & polishing. Skilled labor Bargaining power of India is enhanced because India is largest consumer of gold jewellery.

Bargaining Power of Buyers - Low Divided in two types 1. Domestic buyers & 2. Foreign buyers As investment (Demand increase) Bargaining power of Indian exporter is high because Majority of the world's rough diamond production is cut and polished in India. Threat of Substitutes: Low

37

 Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment and Other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc. Second preferred investment behind bank deposits Status and standard of living increase so demand is increasing at high rate. Barriers to entry Low to Medium Low capital requirement Government subsidy EXIM policy & governments rules-regulations are high Skilled manpower is essential Advanced technology required

TRENDS IN JEWELLERY

JEWELLERY INDUSTRY

38

Industry Overview Indian Jewellery market in 2007 was valued at 70,000 cr. INR (Business Standard). Indias Jewellery market size is US$ 13 billion Gold Jewellery market CAGR 10 -15% Diamond Jewellery market growth 27% India remains in worlds largest consumer of gold. Exports about $ 17 Million in 2006

SHARE OF INDIA'S GEM AND JEWELLERY SECTOR

39

Organized Retailer

Family Jewelers

4%

96%

40

About, 96% of Indian Jewellery Market is unorganized. The unorganized sector represents 300,000 traditional retailers or Family jewelers who are present only in one town. The organized sector accounts to only 4 percent

TODAY The industry of jewellery has flourished in the past few years due to the increased demand of fashionable jewellery. The export and import of jewellery has also amplified. People nowadays have a passion for jewellery which accounts for the growth of this industry all over the world. Jewellery is used for fashion as well as decoration. In the past jewellery was used to adorn bible monuments and other decorations were made using different pieces of valuable jewels. A wide variety of jewellery is available; costume jewellery, fashion jewellery, body jewellery, antique jewellery, traditional jewellery, modern jewellery and many more.

LATEST TRENDS a) Recent fluctuations in the stock market, reduced Interest rates made investment attractive on jewellery. b) The gems and jewellery industry occupies an important position in the Indian economy. c) It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. d) The Indian gems and jewellery industry is competitive in the world market due to its low cost of production and the availability of skilled labor. e) The industry has set up a worldwide distribution network, of more than 3,000 offices for the promotion and marketing of Indian diamonds.

41

f) India is the diamond polishing capital of the world specially the states of Gujarat and Maharashtra. g) 100% FDI is permitted in gems and jewellery sector. h) The growth of Branded Jewellery is eminent in the coming days.

MUMBAI (Commodity Online): Till now, Indian households in villages used to buy gold from their nearby jeweler who used to be an acquaintance also in most circumstances because the shop owners used to know almost everybody in the village. But, things are changing fast in India with the onset of reforms. Now, Indians, the biggest buyers of yellow metal in the world, are increasingly aware of the quality of gold and they now started looking for the branded jewellery. This change in trend in Indias urban and rural areas has lured several big names in global jewellery trade like Cartier to India. Branded gold, diamond and silver jewellery showrooms are opening up across Indian cities and village towns. Till now, Indians used to buy gold from the traditional jewellery shop owner whom they trust. But, with GenNext Indians having enough disposable income want a change from that and they are opting for brightly lit showrooms with marble floors, glass display cases and professional salespeople, preferably at a company whose brand name implies social status and wealth. Tatas Tanishq opened their first outlet in 1994 and now has 117 showrooms across the country. Avenue Montaigne, Indias largest branded jewellery retail outlet, suggests the shif towards brands reflects social changes, but also new ways of viewing gold. In India, the precious metal is traditionally given to brides at the time of marriage as a store of wealth providing financial security.

42

Some of the most famous companies in Western jewellery such as DeBeers, Tiffany and Cartier have also moved into India since 1997 when overseas banks and bullion suppliers were allowed to import gold. They are drawn by the enormous size of the market, rising incomes and the fracturing relationship between buyers and traditional family jewelers. About 15,000 tones of gold are privately held in India. Demand remains strong despite new records being set for the price of the metal on an almost daily basis. Premium international brand Cartier launched their plush showroom in New Delhi in 2008 and also operates through a strong dealer network to sell their jewellery and watches in India. Share of branded jewellery in Indias total market was growing at a pace of 20-30 per cent annually. The number of gold retailers in the country has increased by 40 per cent since the year 2000, with 150 domestic and over 65 international established brands. Reliance has opened 14 jewellery stores in 13 Indian cities since 2007 and has announced that it will launch showrooms in various other cities and towns across the country. Source: http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians23837-3-1.html

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INDIANS OPTING FOR BRANDED GOLD JEWELLERY NEW DELHI: Indians, the world's biggest buyers of gold, are increasingly opting for branded jewellery, attracting franchisers and foreign groups like Cartier at the expense of traditional retailers. Traditionally, most Indians would go to their small family jewelers and sit down on cotton mattresses with the jeweler and pick out some items. The process worked on trust built up in some cases over generations between buyer and jeweler, who would mostly offer products from artisanal designers and producers from his area. Nowadays, young Indians are opting for brightly lit showrooms with marble floors, glass display cases and professional salespeople - preferably at a company whose brand name implies social status and wealth. "There is a tectonic shift in the business now. If you want your gold jewellery business to survive - brand it and advertise," said Sandeep Kulhali, vice-president of Tanishq, one of India's oldest branded retail jewellery chains, owned by the Tata conglomerate. Tanishq opened first outlet in 1994 and now has 117 showrooms across the country. "Earlier it was difficult to convince consumers to buy branded gold," said Kulhali. "These days they come to us expecting better services, premium quality, exchange policy and attractive offers - like buying jewellery on a monthly installment basis," he added. Amit Bumb, director of Avenue Montaigne, India's largest branded jewellery retail outlet, suggests the shift towards brands reflects social changes, but also new ways of viewing gold. The precious metal is traditionally given to brides at the time of marriage as a store of wealth providing financial security.

44

"There is a shift in consumer tastes: working women in the 20 to 32 age group regard jewellery as an accessory and not just as an investment," Bumb said. "It is in this market that the brand names work." Some of the most famous companies in Western jewellery such as DeBeers, Tiffany and Cartier have also moved into India since 1997 when overseas banks and bullion suppliers were allowed to import gold. They are drawn by the enormous size of the market, rising incomes and the fracturing relationship between buyers and traditional family jewelers. According to the International Monetary Fund, about 15,000 tones of gold are privately held in India. Demand remains strong despite new records being set for the price of the metal on an almost daily basis. Premium international brand Cartier launched its plush showroom in New Delhi last year and also operates through a strong dealer network to sell jewellery and watches in India. "We are happy with the response from buyers in India," said a saleswoman at the Cartier store in Delhi, who said customers were drawn to the fact the high-end brand stood out from its Indian competitors. A study released by the Bullion Association of India in March said that the share of branded jewellery in the total market was growing at a pace of 20-30 per cent annually. The number of gold retailers in the country has increased by 40pc since 2000, with 150 domestic and over 65 international established brands, the study said. Faced with the changing dynamics, traditional jewelers are looking to jump on the "brand wagon" by investing in advertising and trying to build a presence in the minds of consumers.

45

Traditional jewelers like Notandas & Sons in Mumbai and P C Jewelers in New Delhi have signed up Bollywood heroines as brand ambassadors and also lend their products to contestants in beauty pageants.

Difference between Branded and Non-Branded Jewellery.

46

BRANDED

NON-BRANDED

1.

Name

&

reputation

gives

aconfidence to the consumer

1.Customer 2.

can

tailor

make jewellery

It

comes

with

written according to theirpreferences.

lifetimeguarantee,

considering
2. No written lifetime guarantee, trustis

theemotional quotient of theconsumer. purely based on consumer. 3. Excellent quality, good

sellingpolicies and backup services for jewellery.

3. Minimum efforts in packaging,finishing,

4.

Has

more

contemporary sales & low advertising

stylishand classic outlook, which easilysegments thetraditional ones. 5. Available at multiple outlets. itself among
4. Is usually bulky & traditional.

47

5.

Available only in traditional jewellery

outlets

48

OBJECTIVE
1. To study to awareness related to branded and non branded jewellery in India. 2. To know the reason behind there buying attitude towards jewellary. 3. To measure the income group invested in jewellery. 4. To compare the price of branded and non branded jewellary. 5. To know the difference between quality of branded and non branded jewellery.

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THE SCOPE OF THE STUDY

The scope of comparative study of branded v/s non branded jewellary with special reference to Delhi. To obtain awareness of Delhi jewellary customer with respect to branded and nonbranded jewellary product. They have any knowledge about, what are difference between branded and non-branded jewellary or they din't aware to difference betweeen branded jewellary what is to be? Measurement of purity of gold product recognised by govt. Of india given to any branded jewellary product as be identified by name of HALLMARK

LITERATURE REVIEW

50

G o l d

J e w e l l e r y

M a r k e t

i n

I n d i a

Before the liberalization of the Indian economy in 1991, only theMinerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold ControlAct in 1992, allowed large export houses to import gold freely Exporters inexport processing zones were allowed to sell 10 percent of their produce in thedomestic market. In 1993, gold and diamond mining were opened up for privateinvestors and foreign investors were allowed to own half the equity in miningventures. In 1997, overseas banks and bullion suppliers were also allowed toimport 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 theGold Control Act.This led to a highly fragmented and unorganized jewellery market withan estimated

100,000 workshops supplying over 350,000 retailers, mostlyfamily-owned, single shop operations. In 2001, India had the highest demandfor gold in the world; 855 tons were consumed a year, 95% of which was usedfor jewellery. The bulk of the jewellery purchased in India was designed in thetraditional Indian style. Jewellery was fabricated mainly in 18, 22 and 24-caratgold. As Hallmarking was not very common in India, under-carat age wasprevalent. 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. Over80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 caratsas22-carat gold jewellery. The late 1990s saw a number of branded jewelleryplayers entering the Indian market. Titan sold gold jewellery under the brandname Tanishq, while Gitanjali Jewels, a Mumbai-based jewellery exporter, sold18carat gold jewellery under the brand name Gili. Gitanjali Jewels also startedselling 24-carat gold jewellery in association with a Thai company, Pranda. Su-Raj (India) Ltd. launched its collection of diamond and 22 -carat gold jewelleryin 1997.The Mumbai-based group, Beautiful, which marketed the

51

Tiffany rangeof 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 t h e included Intergold Gem Ltd., 1990s and 2000-01 and

Oyzterbay,Carbon

Tribhovandas Bhimji Zaveri (TBZ). Gold Jewellery Becomes Fashion Accessory Till the early 1990s, the average Indian bought jewellery for investmentrather than for adornment. Jewellery made of 18-karat gold was not favored as itwas considered a poor investment. Confidence in the local jeweler was thehallmark of the gold jewellery trade in India. A jeweler or goldsmith in a localarea 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: womenwere increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. There was a rise in demand for

lightweight jewellery, especially from consumers in the 16 to25 age group, who regarded jeweller y as an accessory and not an investment. The new millennium witnesseda definite change in consumer preferences. According to Samrat Zaveri, CEO of Trend Smith, "Research shows that the Indian jewellery sector is in thetransition phase with consumers' desire for possession of jewellery for itsaesthetic appeal and not as a form of

investment."In October 2002, Trendsmith conducted a survey to understand theshifting need, motivations and aspirations of consumers in the jewellery market,and to identify new trends and opportunities. The research study arrived at thefollowing conclusions: The Indian market was witnessing an accelerated shift from viewing jewellery

52

as an investment to regarding it as aesthetically appealing ornaments. The focushad shifted from content to design. The younger generation was looking at trendy, contemporar y jewellery andclearly avoiding heavy, traditional gold jewellery. The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. The Indian consumer was willing to experiment with new designs. The late 1990s and early 2000s, with the increase in the number of designersfrom design schools such as the National Institute of Fashion Technology(NIFT), a wide range of new designs became available. In addition, the growingnumber of manufacturers needed a retailing platform with global and nationalreach. All these led to the proliferation of branded jewellery players. Brand appeal Branded jewellery has found a niche for itself in the tough Indian market,and its increasing growth rates show that before long it will corner a significantshare of the jewellery market. With the retail industry in India burgeoning,several companies have made inroads into the traditional jewellery industry,selling the product that was never really "marketed" in "brand" new ways. Somuch so that branded jewellery is the new mantra in the market, having rapidlyacquired a niche over the past few years. Some of the companies have evencleverly played on Indian customs and tradition to advertise and establish theirbrands. Jewellery is now marketed for every occasion; even Valentine's Daycalls for "a special something [diamond] for a special someone". In spite of pessimism about the marketability of branded jewellery in a country rooted inbuying ornaments from the traditional goldsmith, 30 brands were launched in2004.

53

Analysis of Literature Review To draw a conclusion from the above literature review one can observethat there is immense scope for the growth of branded jewellery. In spite of theeconomic slowdown experts believe that it will grow at a CAGR of 25%. Thereare also statements like the industry does not cover the entire population makinga scope for further growth. The review also brings light to the fact that theIndian consumers are price sensitive and hence the branded jewelers cannotcharge exuberant prices for the same. The jewelers have to offer designs that aremore Indian in their culture rather than aping the west this can be proved by thee.g. of Tanishq and should also be affordable. Since the thesis focuses on acomparative study of the popularity of branded v/s non branded jewellery thereview helps understand the growth of the retail industry which have leasedbranded jewellery stores and also the popularity of traditional goldsmith. Thenumber of foreign entrants also pose a challenge to the traditional jewelers andhence we can see that these jewelers also come up with strategies to retain their customers these practices were not prevalent in the market previously. Thebranded jewelers on the other hand have to adapt strategies to win the trust of their customers and attract new customers. A few research reports also help usgauge the changing trends in the jewellery market and the popularity of diamonds.

IMPORTANCE

54

In the globalised era, jewellery in india like many other traditional segment is undergoing an astounding change of perception. While it continues to enjoy the position of being an enhancer of beauty and means of security, the new age consumer perceives jewellery as a personal accessory that manifests the wearnes attitude, personality and lifestyle. jewellery is this segment is also a means of investment and future security traditionally constituting the wealth that a bride taken with her to her new home. this offers the biggest opportunities to designers they need to understand that traditional jewellery emphasises a deep symbology and meaning socio-cultural, religios and psychological that places it way beyond its sole function of a dornment. There is an unimaginably vast opportunity for us to leverage this by packaging the context of tradition and culture in designs that are universal andcontemporary in their authentic appeal. As for the pendent, the beads were first replaced by diamonds but have now made a comeback. The variations in design are actually askee for today by young brides of traditional and modern tastes. There exists a traditional indian woman within every modern woman and jewellary has to appeal to both.

55

CHAPTER-2

RESEARCH METHEDOLOGY

RESEARCH Research in common parlance refers to a search for knowledge. One can also define

56

research as a scientific and systematic search for pertinent information on a specific topic. The word research has been derived from French word Researcher means to search FRANCIES RUMMER defined Research: It is a careful inquiry or examination to discover new information or relationship and to expand or verify existing knowledge. Research is the solution of the problem, whether created or already generated. When research is done, some new out come, so that the problem (created or generated) to be solved. METHODOLOGY Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis According to Clifford Woody, Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions. Accordingly, the methodology used in the project is as follows: Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives)

57

Feedback from the employees Analysis of feedback Conclusion, findings and suggestions.

RESEARCH DESIGN: Research Design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data. The design used for carrying out this research is Descriptive. Sources of Data Collection: Research will be based on two sources: 1. Primary data 2. Secondary data

1) PRIMARY DATA:

58

Questionnaire: Primary data was collected by preparing questionnaire for customers. The questionnaire was filled through personal interview.

2). SECONDARY DATA: Secondary data will consist of different literatures like books which are published, articles, internet , the company manuals and websites of company- www.iciciprulife.com. In order to reach relevant conclusion, research work needed to be designed in a proper way. This research methodology also includes:Familiarization with the concept of insurance and its various terms. Thorough study of the information collected. Conclusions based on findings. Statistical Tools Used The main statistical tools used for the collection and analyses of data in this project are: Questionnaire Pie Charts Bar Diagrams The sources of collection of secondary data are: Questionnaire

59

Books Websites Magazine Brochure Selection of Sample Size: For the survey, a sample size of 100 has been taken into consideration Sampling Technique Used: This research has used convenience sampling technique .1) Convenience sampling technique : Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient SAMPLING PLAN: It is very difficult to collect information from every member of a population .As time and costs are the major limitation that the researcher faces.

60

CHAPTER-3 DATA ANALYSIS &

INTERPRETATION

61

Q.1. Factor that guide you while purchasing jewellery ?

Design 85

Price 87

Purity 92

Service 20

100 90 80 70 60 50 40 30 20 10 0 Design Price Purity Services No. of respondents

62

ANALYSIS 85% Of respondents feel Design is an important factor. 87% Of respondents feel that Price is a major factor that guides their purchase decision. 92% Of respondents feel Purity is an important factor. 20% Of respondents feel service is an important factor

INTERPRETATION

From the above results an observation can be drawn that out of the 100 respondents 85 of them feel that Design is a major factor that guides their purchase decision. Apart from Design Price is also considered important by 87 respondents, followed by Purity with 92 respondents feel it is an important factor. The attributes like service have been selected only by 20 respondents respectively showing that these are the least important thing that guide an individual to purchase jewellery.

63

Q.2. Tick against the brands that you are aware about in the jewellery market.

Brands No. of respondents

Gili 100

Tanishq 100

DDmas 100

Oyezterbay 84

100 90 80 70 60 50 40 30 20 10 0 Gili Tanishq D'Dmas Oyzterbay No. of respondents

64

ANALYSIS

100% Of respondents are aware of Gili .

100% Of respondents are aware of Tanishq .

100% Of respondents are aware of DDmas .

84% Of respondents are aware of Oyzterbay .

INTERPRETATION

From the above table and figure inference can be drawn that brands like Gili, Tanishq and Ddamas are extremely popular as they have 100% awareness. Oyzterbay is popular among 84 respondents. Oyzterbay has a brand has been discontinued from the market however as observed it was quiet popular among the population.

65

Q.3. Which jewellery do you prefer? Preference No. of respondents Branded jewellery 59 Family jewellery 41

Sales

41% Branded jewllery Family jeweller

59%

66

ANALYSIS 59% Of respondents prefer Branded jewellery.

41% Of respondents prefer Family jewellery.

INTERPRETATION

From the above table it can be observed that 69 respondents prefer branded jewellery and 31 respondents prefer family jewelers. This makes branded jewellery more popular among the respondents.

67

Q.4. Have you bought any branded jewellery? Bought Branded jewellery No. of respondents Yes 56 No 44

No. of respondents

44% 56% Yes No

68

ANALYSIS 56% Of respondent bought Branded jewellery . 44% Of respondent did not bought Branded jewellery.

INTERPRETATION Out of the 100 respondents 56 have bought branded jewellery and 44 have not bought branded jewellery. However even if these 22 respondents have not bought branded jewellery they are aware of branded jewellery being sold and also know the brands by their names.

69

Q.5. Do you buy jewellery for gifting?

Buy jewllery for gifting No. of respondents

Yes 30

No 70

No. of Respondents

30%

Yes 70% No

70

ANALYSIS 30% Of respondents buy jewellery for gifting purpose 70% Of the respondents do not buy jewellery for gifting purpose.

INTERPRETATION 30 respondents of the 100 buy jewellery for gifting purpose 70 of the respondents do not buy jewellery for gifting purpose.

71

Q.6. Where do you prefer to buy the jewellery from(for gifting)?

Branded jewellers No. of respondents 24

Family jewelers 76

Sales
24%

Branded Showroom 76% Family jeweller

72

ANALYSIS 24% Of respondents buy jewellery for gifting purpose from Branded Showroom 76% Of the respondents do not buy jewellery for gifting purpose from Family jewellers

INTERPRETATION

76 out of 100 respondents buy jewellery from their family jeweler for gifting. Percentage wise 24% buy branded jewellery for gifts from the Branded Showroom

73

Q.7. Are your jeweller provides you after sale services?

After sale service No. of respondents

Yes 72

No 28

No. of respondents

28%

Yes 72% No

74

ANALYSIS 72% Of respondents get after sales service from their jewellers 28% Of respondents did not get after sales service from their jewellers

INTERPRETATION Out of 100 respondents, 72 respondent get after sale service from their jeweler and rest 28 did not get the benefit of after sale service.

75

Q.8 Does the branded jewellery satisfy you? Please rate on the scale of 1 to 5 with 5 being best. Branded jewellery No of respondents Level of satisfaction 345

500 450 400 350 300 250 200 150 100 50 0 level of satisfaction Unsatisfied Satisfied

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This question was to find the level of satisfaction on a scale of 1 to 10 for Branded jewellery. Since the points are given out of 5 and there are 100 respondents the level of satisfaction will be out of 500. ANALYSIS 345 respondents are satisfied with branded jewellery. 155 respondants are not satisfied with branded jewellery.

INTERPRETATION The level of satisfaction on the whole for branded jewellery is 693 and if the mean were to be removed then it would be between 8 and 9 hence the level of satisfaction that the respondents have towards branded jewellery is higher then that towards family jewelers.

77

Q.9 From which product you get discount schemes?

Discount scheme No of respondents

Branded 50

Non-Branded 30

Both 15

None 20

50 45 40 35 30 25 20 15 10 5 0 Branded Non-Branded Both None NO. of respondents4 NO. of respondents3 NO. of respondents2 NO. of respondents

78

ANALYSIS 50% Of respondents get Discount scheme from Branded jewellery. 30% Of respondents get Discount scheme from Non-Branded jewellery. 15% Of respondents get Discount scheme from Both. 20% Of respondents get Discount scheme from None

INTERPRETATION Out of 100 respondents 50% of the respondent get the Discount scheme from the Branded jewellery, 30% get discount from the Non-Branded jewellery, there are 15% respondents who get discount from both Branded and Non-Branded jewellery and 20% of them did not get the benefit of discount scheme.

79

Q.10 The services provide after sales, are of which product segment better? After sales service No of respondents Branded 60 Non-Branded 20 Both 35 None 15

60 50 40 30 20 10 0 Branded Non-Branded Both None

NO. of respondents4 NO. of respondents3 NO. of respondents2 NO. of respondents

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ANALYSIS 60% Of respondents get After sales service from Branded jewellery. 20% Of respondents get After sales service from Non-Branded jewellery. 35% Of respondents get After sales service from Both. 15% Of respondents get After sales service from None

INTERPRETATION Out of 100 respondents 60% of the respondent get the After sales service from the Branded jewellery, 30% get After sales service from the Non-Branded jewellery, there are 15% respondents who get After sales service from both Branded and Non-Branded jewellery and 20% of them did not get the benefit of After sales service

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Q.11. Given below are few characteristic of traditional family jewellers please give each characteristics some points based on your assessment, such that the points range from 1 to 10 (1 be the highest) CHARACTERISTICS OF FAMILY JEWELERS Convenient Trust Worthy Good Investment Price Traditional Design No. Of Points

CHARACTERISTICS FAMILY JEWELERS No. Of Points

OF Convenient

Trust Worthy

Good Investment 775

Price

Traditional Design

660

895

870

745

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1000 900 800 700 600 500 400 300 200 100 0 Convenient Trust Worthy Good Investment Price Traditional Design Points5 Points4 Points3 Points2 Points

ANALYSIS Convenient got 660 ponts out of 1000 Trust Worthy got 895 ponts out of 1000 Good Investment got 775 ponts out of 1000 Price got 870 ponts out of 1000 Traditional Design got 745 ponts out of 1000

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INTERPRETATION The respondents were asked to give points on a scale of 1 to 10 where 10 was the highest hence the total figures are arrived by adding the points given by all the 100 respondents. Hence if the convenience characteristic was to be taken then it scored 660 out of the grand total of 1000. The respondents have rated trust aspect of family jewelers high hence it has scored 895. The respondents also feel that the price charged by the family jewelers is reasonable and hence have given it decent points i.e. 870. While purchasing jewellery from family jewelers the respondents consider it to be a good investment. Family jewelers are popular for traditional designs and the respondents have given it points that add up to 745.

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Q.12. If you purchase Branded jewellery then given below are a few characteristics. Please give each characteristics some points based on your assessment, such that the points range from? CHARACTERISTICS OF BRANDED JEWELLERY Wide range of products under one roof Shopping Experience Trendy and fashionable jewellery Price No. Of Points

CHARACTERISTICS OF Wide BRANDED JEWELERY

range

of Shopping

Trendy and Price fashionable jewellery

products under one Experience roof

No. Of Points

663

590

727

673

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800 700 600 500 400 300 200 100 0 Wide range of products under one roof Shopping Experience Trendy and fashionable jewellery Price Points5 Points4 Points3 Points2 Points

ANALYSIS Wide range of products under one roof got 663 Points Shopping Experience got 590 Points Trendy and fashionable jewellery got 727 Points Price got 673 Points

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INTERPRETATION Respondents rate trendy and fashionable jewellery highest when it comes to branded jewellery. It scores 727 out of 780. Price also according to the respondents is justified hence it scores 673. Shopping experience wise branded showroom scores least among the other characteristics. This could also be because when a customer goes to buy jewellery he may not be looking for the experience but wanting good trendy jewellery which is priced appropriately.

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CHAPTER-4 FINDINGS RECOMMENDATIONS &

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FINDINGS

On an analysis and evaluation of the data collected from the respondents the following findings were found. Consumers prefer jewellery mostly for adornment purpose. Consumers are aware about the different jewellery brands available in the market . Consumer prefer tanishq & gili the most. Most of the consumer purchase that particular jewellery which they are using because they are easily available in the market. A Majority of the people come to know about their particular brand by advertising. A Majority of the people are satisfied with their jewellery brand. Most of the respondents are satisfied by the price of their branded jewellery. Most of the respondents purchase jewellery occassionly. Investors expect handsome returns and the full guarantee of their jewellery. Consumers prefer gold & diamond the most.

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RECOMMENDATIONS

Focus on growing core brands across categories. Reaching out to new geographies, within and outside India. Improve operational efficiencies by leveraging technology. Be the preferred company to meet the personal adornment needs of consumers. Provide consumers with pure gold products. Companies should make their product available in semi urban & rural areas. Companies should improve their customers service. should provide better promotions to their product

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CHAPTER-5 CONCLUSION

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Conclusion The conclusions that can be drawn from the study are: 1. The guiding factor behind purchasing jewellery is price, purity and design which score the maximum. Other factors are variety, the brand image, influence of family and friends. The least guiding factor for purchasing jewellery is the service and display. Hence when a customer goes to buy jewellery they do keep the price in mind followed by the purity and the design. Factors like service given the shop or by the jeweler and the display do not have a very big impact on the customers. 2. Branded jewellery is extremely popular since it has 100% awareness. This may be due to the wide spread publicity taken up by the various brands. Brands like Gili, Ddamas, and Tanishq are again the most popular brands. Trendsmith is a brand by Tribhovandas Bhimji Zaveri (TBZ) which is not very popular. 3. As stated in the literature review that there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. Is proved to be correct by this research as respondents have selected fashion over investment while purchasing jewellery. Now jewellery is regarded as more of an accessory and less of an investment. 4. Branded jewellery is bought by more than 3/4th of the population. Hence it can be said that the population is aware and has also tried these brands. 5. When jewellery is bought for gifting purpose the population still wants to buy it from their family jewelers. 6. When it comes to family jewelers the level of satisfaction that the population has on a scale of 1 to 10 is a little more than 7. These jewelers are also popular because of the trust that they have

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with their customers and also because they charge reasonable prices. These family jewelers are also popular for traditional designs hence when a customer is specifically looking out for traditional jewellery they approach these jewelers. The jewellery bought from these jewelers is considered to be pure and a good investment. 7. The level of satisfaction that the population has towards branded jewellery is a little higher than 8. These branded jewelers have become popular for latest and trendy jewellery. Also the prices that the branded jewelers charge is justified and they provide a wide range of products under one roof. 8. The level of satisfaction that the population has for branded jewellery is higher then that for non branded jewellery making branded jewellery more popular. 9. The consumers prefer buying branded jewellery over non branded jewellery. This has also been proved by using the sign test.

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ANNEXURES

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QUESTIONNAIRE Your responses will be used kept confidential and will be used for academec purposes only, for the completion of research report I, HEMANT KUMAR UPADHYAY owe a deep sense of gratitude for your cooperation and support. NAME: AGE: OCUPATION:

Q.1. Factor that guide you while purchasing jewellery ? A) Design B) Price C) Purity D) Service

Q.2. Tick against the brands that you are aware about in the jewellery market. A) Gili B) Tanishq C) Ddmas D) Oyzterbay

Q.3. Which jewellery do you prefer? A) Branded B) Family jewellery

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Q.4. Have you bought any branded jewellery? A) Yes B) No

Q.5. Do you buy jewellary for gifting? A) Yes B) No

Q.6. Where do you prefer to buy the jewellery from(for gifting)? A) Branded showroom B)Family jeweller

Q.7. Are your jeweller provides you after sale services? A) Yes B) No

Q.8 Does the branded jewellery satisfy you? Please rate on the scale of 1 to 5 with 5 being best

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Q.9 From which product you get discount schemes? A) Branded B) Non-Branded C) Both D) None

Q.10 The services provide after sales, are of which product segment better? A) Branded B)Non-branded C) Both D) None

Q.11. Given below are few characteristic of traditional family jewellers please give each characteristics some points based on your assessment, such that the points range from 1 to 10 (1 be the highest) CHARACTERISTICS OF FAMILY JEWELERS Convenient Trust Worthy Good Investment Price Traditional Design No. Of Points

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Q.12. If you purchase Branded jewellery then given below are a few characteristics. Please give each characteristics some points based on your assessment, such that the points range from? CHARACTERISTICS OF BRANDED JEWELLERY Wide range of products under one roof Shopping Experience Trendy and fashionable jewellery Price No. Of Points

COMMENTS:

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BIBILIOGRAPHY REFFERENCES

&

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References Secondary data collected from the internet. The web sites are: 1) http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm 2) http://www.flonnet.com/fl2223/stories/20051118003809800.htm 3) Source: http://www.rncos.com/Report/IM148.htm 4) http://www.pressabout.com/indian-customers-showing-internet-in-branded-jewellery- 24860/ 5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison 6) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians-23837-31.html 7) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902 8) http://www.diamondworld.net/contentview.aspx?item=2465 9) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html 10) http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR041.htm 11) http://www.rncos.com/Market-Analysis-Reports/Indian-Gems-and-Jewellery-Market-FutureProspects-to-2011-IM148.htm 12) http://www.allheadlinenews.com/articles/7017272531 13) GOOGLE. COM 14) TANISHQ.COM

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Newspapers: 1) The Times of India 2) The Economic Times 3) Business today 4) Business world

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