jewellery

2. Marketing Management
Project
jewellery buying ii 2ferenCe

3. Submitted to:
Submitted by:

4. CERTIFICATE OF COMPLETION
F l his is to certify that the research project entitled "Consumers preference
among the branded and non branded jewellery "has been submitted bv
Group number, MBA- HR. (20I U - 2 0 1 ?
)
`l leis report is the result of their own work and to the best of their knowle4e, no
part of it has earlier comprised any other report, monograph, dissertation or book.
This project was carried our under our overall guidance.
4

5. ic,naturc of Faculty Guide
Late
Place
5

6. C O N T E N T S
V
aCKNO LEDE11ENT ......................................................................................................................................4
OB1ECTI E OF STUD ............................................................................................................5
DESCRIPTION PROBLEM .......................................................................................................6
si nif canto of the stud ...........................................................................................................7
introduction......................................................................................................................... 8
research methodology................................................................................................................1
Data anal sis...........................................................................................................................21
Conclusion... ........................................................................................................................................................___
RECOMMENDATION. ...................................................................................................................................... 35
literary review ................................................................................................................................................... 36
bibliography. ...................................................................................................................................................... 40
QUESTIONNAIRE.... .......................................................................................................................................... 41
6

7. ACKNOWLEDGEMENT
study such as this. cannot be the work o f a sin ,le L,r up 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 througil the
project.
W T ords are inadequate to express our sentiments and gratitude towards Inv
project mentor and guide, ,. . t * 0 .________. # • • • * • • . # . , for her zeal and scholarly
vidance durin , this pursuit in spite oilier multifarious responsibilities. 'I -
Ile
word of acknowledgement is an expression of heart-felt thankfulness for her
Inspiration.
Finally, we would like to thank the people who have taken tlme off from their
busy schedule to help by providing us with their valuable Inputs.
7

8. 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.
To know consumer perception towards jewellery.
Brand awareness of various brands in the jewelery market.
4) To have an idea about the parameters the consumers consider while buying
jewellery,
8

9. 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 monthf an in depth
study and analysis will become a little difficult
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.
9

10. 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.
How much impact does a brand/ retailer has on their purchase decision.
Does price play an important role in guiding their purchase decision.
4) Are the various promotional strategies adopted to combat competition.
10

11. 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 ' 5treedhanx
f 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
an important part of every stage of an Indian citizen'
s life- at birth,. marriage,
11

12. 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 di err
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.
AU these reasons and more ensure that the modern Indian woman is looking for
jewellery from a perspective different from the past. I n 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-
economic classification, clearly defined by them. This has been the first step towards
12

13. organized jewellery retailing in India. I n 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,
Oyzterbayf Gili and Trendsmith - several regional players have opened branches to
leverage the trust and reputation that they have built up over the years.
STRUaURE OF JEWELLERY IN INDIA
'Plain gold Jewellery
'Studded Jewellery
'Silver Jewellery
*Costume) e eller
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 I nil ia, 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.
13

14. 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 hell p buyers learn about the
product- class attributes and their relative importance.
GOLD JEWELLERY MARKET IN INDIA
14

15. 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 199 f 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, Pravda. 5u- Raj (India) Ltd. launched its collection of diamond and 2 2 -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. Ca rtiers 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
Gen Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).

16. BRANDED DEALERS
TA N~Q
7C
IA NISI-IQ
1 ' I F : I 1 1 ' J I l l 1 ' 1`uui lip
%
In 1984, Questar Investments Limited (a Tata group company) and the Tamil Nadu
Industrial Development Corporation Limited (TIDCO) jointly promoted Than Watches
Limited (Titan). Initially involved in the watches and docks business, Titan later ventured
into the jewellery businesses. I n 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.
16

17. 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.
17

18. fr1NiSI.
lQ
10aca0
50 0 0
2 .W0 2 MM] 2D0 2 ? W I 2 00 1 2 X F5 2 G 7DO 7 2 W 3
I
18

19. Figure 1 growth in sales from 2000 to 2008 in Million Rupees
19

20. GILLI
Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In
1999, the Dili 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
Dili distributed its jewellery priced between Rs. 500 and Rs. 40f000 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. 000 to Rs.1O,
000, the company is focused on penetrating the premium market of customized
jewellery. For this Gitanjali jewels opened a jewellery salon, Giant, to provide
customized jewellery to clients in India.
20

21. NAIBS HATRA
0 1 A M O f t O J e W V i t t R V
N A K S H A T R A
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
2005
and 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. I n 2007 the brand was given the Retail Jeweller
Award for the Best T f 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 C K- New Delhi Gold Souk Design Award in 2006, the IIGJ
Award in 2007 and the Tahitian Pearl Awards in 2005 and 2007.
LOCAL DEALERS
TALWAR
JEWELLERS
.. r,,
f [ ~ uL :. ~L
ti -te
r
21

22. 22

23. 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 totheir clients expectations.
Their commitment and dedication towards their
customers have made them one of the
leading jewelers in northern region.
23

24. .KHAN N JEWELLERS
KHANNX
1 ~ w 1 L : t ~ . ~ s
The Khanna Group of companies was founded in 1953 by Late Shri Wazir Chanel 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
a's
Champa(aliflewelTers• 4 $
PF ~~ MINT EUF ?MIQLJS PEOPLE
~~Z4ZCG
~lUe&z]
There are many other local dealers for jewellery such as Cha mpa lal jewelers, ahaveer -
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.
24

25. 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 wriften lifetime gurantee,
considering the emotional quotient of th e
consumer.
No
wrifen
pu re
ly
lifetime guarantee, trust
is
ase nthe nsu m r,
Excellent quality, good selling policies andd
backu p services for jewellery.
Minimum efforts in packaging, finishing,
sales and low advertising.
Has a more contemporary, stylish
and
classicoutlook1 which easily segments itself
a mongthe traditional ones
Is usually bulky and traditional.
Available in multiple outlets Available only in traditional jewellery
outlets.
0

26. 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.
T1 PE 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.
Research instruments- questionnaires.
SAMPLE SIZE 100 respondents
DATA ANALYSIS

27. Question Yes No
D u you wear jewellery? 99 1
Do you wear jewellery
Yes No
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.

28. Question 2 Once in a long
time
Once in a
year
Whenever any
occasion comes up
l row frequently do you
make jewellery purchases? 2 45 35
How frequently do you make
jewellery purchases?
Once i ~I a Ion > t~ ~')c' Once ~n a year whenever Cl ply OCCC7Sion conies up
3 5 ° 2 0 %
'
4 5 %
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 longtime.
28

29. Question 3 Local Dealers Brands (Tanishq,
D d amas , etc..)
From here do you prefer purchasing
jewellery?
45 5 5
29

30. From where do you prefer
purchasing
jewellery?
L 1 C ~ a l r B r a n d s ( T a n i s h q , D ' l . j n i a s ,
e t c . . . )
5

31. 5

32. Frorrti the analysis we came to know that 45% of
the people prefer purchasing jewellery
from local dealers and 55% of totaJ pop lotion
prefer buying brands.
Question 4 I can choose
from a wide
variety of
designs
The
quality of
the
product is
excellent
The stor
are easil
accessib
as they
have the
outlets a
many
places
If brands, what are
the factors
responsible for this
choice (one or
more).
32 47 2
If brand, what are the factors
responsible
for this choice done or more)?
5

33. n I cap) choose from a r
ide variety of dcsips
n The quality of the product is excellent
The stores are easily accessible as they have their outlets
at m4 ny places
n They provide good exchan re offers
n The jewellery is certified
23% 21%
11'' -
14% 31%
From the above pie chart we have concluded
that why the people purchase brand is the
quality of the product and its certification.
5

34. Question 5 I can buy
the
products
on credit
The store is
located near
my house,
and so is
easily
approachabl
e
The price
are
negotiable,
[ do not
have to
buy at the
M.R.P
The products
are
comparative)
y 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 1 23 21 37
If local retailers, what factors affect this decision
(one or more)?
E r car) buy the products oncreditit
§ 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,# .P
n The products are comparatively priced low
n The retailer is very reliable as I have been dealing with him since a long time
34

35. 1O'f6
34
z
35

36. 21%
20%
36

37. The reason why 45% of the total population goes to
the local retailers is there rdlaibility and low prices,
Question 6 Schemes launched
by the stores
Recommend
from Friends
Relatives
From where did you
get the knowledge of
this store/ brand?
24 62
From where did you get the
knowledge of this store/ brand?
n Schemes launched by the stores
n Rccoiiimcr7dtitions from Friends/ Relatives
Panmphiets distrik uitcd
20% 22%
37

38. 581 J
Recommendation from friends and reletaives
contribute much more in spreading the
knowledge about the store/ brand rather then
distributing pamphlets or launching
schemes.
Question 7 I recently started
risitinn this
store/ Brand
F
1
[low long have you been making
your purchases of jewellery from
this store/ brand?
22 3
How long have you been making
your
purchases of jewellery from this
store) brand?
38

39. I recent]' stci rted visiting this
store/ Brand From p.mt 5 t 10
years
Since a very long time, almost always
Most of the population says 70% are buying
jewellery from the same store/ brand from
past 5 to 10 years or a longtime respectively.
39

40. Question 8 Very
satisfied
Satisfied
Neither
satisfied
liar
dissatisfied
Dissatisfied Very
dissatisfied
[low satisfied
are you with
the jewellery
you buy?
45 48 7
How satisfied are you with the
jewellery you buy?
Very satisfied Satisfied Neither
satisfied nor dissatisfied • Dissatisfied
r Very dissatisfied)
7%
4E
Almost everyone is satisfied with the jewellery they buy.
Question 9 Extremely
important
Very
important
Somewhat
important
Not very
important
Not at all
important
[low
important
the
advertisement
campaign
followed
by the
is
to
for it
9 23 2 34 3
2 40

41. How important is the advertisement
campaign followed by the store to
make you opt for it?
n Extremely important i Very important Somewhat important
n Not very important Not at all ir17portaiit
3f. 9 0/.
of
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.
Question 1 Very
significantly
Significantly Partially Neutral Not at all
significant
Doe
s
ambie
nce
servic
es
in
the
and the
provided
store affect
purchase?
14 3 24 2 1
2 41

42. Does the ambience and the services
provided in the store affect your
purchase?
Vcr'' signiricanrly Significantly Partially • Neutral Not at all
significant 1
20% 14%
The above pie chart represents that 40% of the population is significantly affected by
the ambience and the services provided in the store.
Question 11 Always Often Sometimes Rarely Never
Before making an
jewellery purchases, do
you compare the designs
and prices of the same
between the branded
showroom and the local
dealers?
12 14 3 2 1
Before making any jewellery
purchases, do you compare the designs
and prices of the same between the
branded showroom and the local
dealers?
Alwoys olteli sort is imc2s rarely Ii 'Vef
2 42

43. People generally don't compare the prices between the branded showroom and the
local dealers,
Question 12 Yes No Maybe
D o you plan to shift or
change the source o f
purchasing jewellery
9 48 43
Do you plan to shift or change the
source of purchasing jewellery?
Y C S N p M J y b C
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,
2 43

44. CONCLUSION
We 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.
3
44

45. 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.
3
45

46. LITERARY REVIEW
GEMS AND JEWELLERY
The gems and jeweller- 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 U 13.5 billion in fiscal 2006-07, accounts for 8.3 per
cent of world jewellery sales, according to a study by KP MG.
The industry i s well supported by Government policies and the banking sector --
around5O banks provide nearly US$ 3 billion credit to the Indian diamond industry. I n
addition, I nd is 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.
3
46

47. 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 U 1E64 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 U 5.21 billion last year. Coloured gemstone exports yielded U
246.48 million last fiscal, against U 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 U 9.4 billion, as compared to U 7.4 billion in the corresponding period of
2006, according to the Gems and Jewellery Export Promotion Council ( J EPC).
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, UAEF 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
47 7

48. 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 (W GC), 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
direst investment of up to 51 per cent in single brand retail stores has attracted a large
number of players to the sector.
· warovskif 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 11
* IY
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 tanle f Citigroupf Goldman Sachs and BMA Ltd. collectively
purchased a 7 per cent stake in Gitanjali Gems for around U 27.8 million,
* Goldman Sachs and U35 Securities have acquired 6.28 percent in Shrenuj & Co
at around U 2.07 million and US$ 2 million, respectively.
· Gemology Headquarters International (GHQ, a US-based gemological grading
and research laboratory, has opened its first Indian branch at opera House,
Mu mbai.
3 48

49. 0 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 U 21 billion by 2010 and U 37 billion
by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per
cent in 2010.
3 49

50. BIBLIOGRAPHY
The magazines and journals referred:
Solitaire International
Web sources:
www. oo Ie.com
www.indiandata.com
www.valuenotes.com
50

51. QUESTIOIYIYAIRE
Jewellery buying preference : Local retailers or Brands
I. Do you wear jewellery?
1 Yes
No
How frequently do you make jewellery purchases?
Once in a longtime
fl Once in a year
= Whenever any occasion comes up
From where do you prefer purchasing jewellery?
= Local Dealers
_ Brands (Tan ishq, Dx
damas, etc.)
4. If brands, what are the factors responsible for this choice (one or more)?
= I can choose from a wide variet of designs
1 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,
51

52. 5. If local retailers, what factors affect this decision (one or more)?
- I can buythe 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 .
= Th e retailer is very reliable as i have been dealing with him since a
E. 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?
l recently started visiting this store brand.
From past 5 to 10 years
Since a very Iona time, almost always.
8. How satisfied are you with the jewellery you buy?
_ Very satisfied
Satisfied
neither satisfied nor dissatisfied
4

53. Dissatisfied
Very dissatisfied
9. How important is the advertisement campaign followed by the store to make
you opt for it?
Extremely important
Very important
u Somewhat important
Not very impoftant
= 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
53

54. Never
54

55. 1 2. Do you plan to shift or change the source
of purchasing jewellery?
_ Yes
No
Maybe
NAME:________________________
_______________________________ADDRESS:
PROFESSION:
MONTHLY INCOME: - r 3 FIGURES _ 4
FIGURES _ 5 FIGURES
4

56. 56