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R e la t iv e S iz e o f In d ia n
C o n s u m e r M a rk e ts
1 1 1 .8 7 Jewellery is
T e le c o m 88 amongst the
75 largest and
A p p a r e l 9 .6 most broad based
8 .6 S e rie s 1
consumer markets
W a tc h2 .5
in India
0 50 100 150
R s T h o u s a n d C ro re s
Background
• Market Size
• Fourth largest consumer market in the world
• Jewellery Market Size: Rs75,000 crores
• Diamond jewellery: Rs10,000 crores
• Largest market in terms of volume of gold
• India accounts for more than 22% of the total gold
used for jewellery purposes
• Growth
• Gold jewellery Market Growth: 8-10%
• Diamond jewellery Market:18%-20%
Per Capita consumption
180 170
160
140 123 It a ly
115
120 USA
100
Japa n
80
60 C h in a
40 In d ia
12 10
20
0
P e r C a p it a c o n s u m p t io n in U S $
What’s Changed
Direct A+ outlets
Imports Chains
Large A category
Jewellery outlets
Manufacturers
Open
Whole
Market
sellers
Independent
A+,/A,someB
Diamonds Branded outlets in
Mining Sight
companies Holders Shopping malls
Share of Organised retail in the
market
95%
Family
jewellers
Organised
5%
Retailers
2005
In d e p e n d e n ts
53% 49% 49%
D is c o u n t
s to r e s
22%
23% 24% J e w e lle r y
C h a in s to r e s
20% 20% 20% N o n s to r e
4% 7% 9% R e ta ile r s
1987 1992 2004
Organised retail making a dent
% Organised Retail
50%
40%
30%
20%
10%
0%
W atch Footw Clothin Books, Health Consu Furnis Mobile Caterin
Others
es ear g,Texti Music & mer hings, Hands g
% Organised Retail 46% 38% 19% 13% 11% 10% 9% 8% 7% 11%
% Organised Retail
Industry standards are set
Merchandising
& Manufacturing Marketing Retail
Design
Unlike the traditional jewelers in the past who had a single owner
manager structure, clear streams of specialization emerging in the industry
Design Differentiation becoming the
USP
• Traditional industry relied on Karigar skills
• Retail
• Seduce the consumer in the retail space as competition
is not only within jewelry category but categories like
electronics, wellness services and luxury items
– Evolve a distinct retail identity – in terms of
product, store look and customer experience
• Trend of the speciality Jewellery markets/ malls
• Increasing traditional players renovating/refurbishing
store spaces
Concept of strong retail brand in jewellery industry
gaining strength
…What else is changing?
140000
120000
100000
80000
60000
40000
20000
0
5
6
7
8
9
0
1
2
3
4
200
201
201
201
200
200
200
200
201
201
• Direct selling
• Modicare launching jewellery sales
• Pantaloon acquiring a 10% stake in Goldiam
• E-retailing
• Fabmall/Gold Palace starting e-retailing of
jewellery
Different stages-Different strategies
Strategies
Strategies
Market
maturity
Transition • Cost cutting measures
• Jewellery is used adopted by most
as a status symbol jewellers
Mature
• Jewelelry has little • Management of the
differentiation and distribution chain
adopt a “me to” • Alliances
strategy Consolidated
• Local partnerships Risks
are important to • Industry Restructuring
succeed Fragmented
• Loss of customer trust
Risks Time
• Loss of customer Strategies Risks
trust • Creation of a •Unclear market
• Low customer local brand segmentation
protection • Use of • Unclear offering
innovative • Loss of customer
distribution trust
channels
• Local alliances
Lessons to learn from apparel
• But, truly speaking, retail can impact the minds and hearts of customers
as strongly as it can reach the vicinity of their homes
• This is truly the moment of truth for every retail brand – the
point of seduction, leading to consumer choice & purchase