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A study on the consumers preference towards branded jewellery

Introduction
Till the early 1990s, the average Indian bought jewellery for investment rather than
for adornment. Jewellery made of 18!arat gold was not favored as it was
"onsidered a #oor investment.
$onfiden"e in the lo"al jeweler was the hallmar! of the gold jewellery trade in India.
% jeweler or goldsmith in a lo"al area had a fi&ed and loyal "lientele. The buyer had
im#li"it faith in his jeweler. %dditionally, the lo"al jeweler "atered to the lo"al taste for
traditional jewellery.
'owever, sin"e the late 1990s, there was a shift in "onsumer tastes( women were
in"reasingly o#ting for fashionable and lightweight jewellery instead of traditional
"hun!y jewellery. There was a rise in demand for lightweight jewellery, es#e"ially
from "onsumers in the 1) to 2* age grou#, who regarded jewellery as an a""essory
and not an investment. The new millennium witnessed a definite "hange in
"onsumer #referen"es.
+randed jewellery also gained a""e#tan"e for"ing traditional jewelers to go in for
branding. ,iven the o##ortunities the branded jewellery mar!et offered- the number
of gold retailers in the "ountry in"reased shar#ly. +randed #layers su"h as Tanish.,
/y0terbay, ,ili and $arbon o#ened outlets in various #arts of the "ountry. Traditional
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jewelers also began to bring out lightweight jewellery, and some of them even
laun"hed their inhouse brands. 'owever, the share of branded jewellery in the total
jewellery mar!et was still small 1about 2s. 10 billion of the 2s. 300 billion #er annum
jewellery mar!et in 20024, though growing at a #a"e of 20 to 50 #er"ent annually.
The branded jewellery segment o""u#ied only a small share of the total jewellery
mar!et be"ause of the mindset of the average Indian buyer who still regarded
jewellery as an investment. 6oreover, "onsumers trusted only their family jewelers
when buying jewellery. $onse.uently, the branded jewellery #layers tried to "hange
the mindset of the #eo#le and woo "ustomers with attra"tive designs at affordable
#ri"es.
'owever branded jewellery #layers will "ontinue to fa"e lot of "om#etition from lo"al
jewelers. In order to gain mar!et share, they will have to "ome u# with designs that
"ustomers want and win the trust and "onfiden"e of "onsumers by hallmar!ing and
demonstrating the #urity of the gold used by them.
To "om#ete with traditional #layers, branded #layers must also find some way to
differentiate themselves. 7hile the su""ess of a #arti"ular brand will de#end on
differentiation, affordability and .uality will be a !ey element in sustaining a brand.
In addition, branded #layers re.uire fo"used advertising and astute salesmanshi# to
"om#ete with traditional jewelers. +esides the major brands Tanish., $arbon,
/y0terbay, ,ili and Trendsmith several regional #layers have o#ened bran"hes to
leverage the trust and re#utation that they have built u# over the years.
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/bje"tive of study
14 The "onsumer8s buying #referen"es towards +randed jeweler8s
9ignifi"an"e of the study
The gems and jewellery industry o""u#ies an im#ortant #osition in the Indian
e"onomy and is one of the fastest growing industries in the "ountry.
'en"e the resear"h "ondu"ted would hel# me
14 :nderstand the "onsumers #referen"e while #ur"hasing jewellery
24 'ow mu"h im#a"t does a brand have on their #ur"hase de"ision
54 ;oes #ri"e #lay an im#ortant role in guiding their #ur"hase de"ision
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Justifi"ation of the study
The #revious resear"h done on branded and non branded jewellery mar!ets are
14 Indian ,ems and Jewellery 6ar!et <uture =ros#e"ts to 2011
24 The im#a"t of re"ession on the jewellery industry
54 The growth of the +randed jewellery mar!et in India
>o study has been done to find out the #referen"e of "onsumer8s between
branded and non branded jewelers. The study would also hel# to find out the
"onsumer #referen"e and their buying behavior towards branded and non
branded jeweler8s, this would hel# both the retailers to !now what are the
"onsumer #referen"e and what strategies should they ada#t to grab the mar!et.
2

Literature Review
The emergence of branded gold jewellery(
In the late 1990s, the Indian jewellery mar!et witnessed a shift in "onsumer
#er"e#tions of jewellery. Instead of being regarded as only an investment o#tion,
jewellery was being #ri0ed for its aestheti" a##eal. In other words, the fo"us seemed
to have shifted from "ontent to design. Trendy, affordable and lightweight jewellery
soon gained familiarity. +randed jewellery also gained a""e#tan"e for"ing traditional
jewelers to go in for branding.
,iven the o##ortunities the branded jewellery mar!et offered- the number of gold
retailers in the "ountry in"reased shar#ly. +randed #layers su"h as Tanish.,
/y0terbay, ,ili and $arbon o#ened outlets in various #arts of the "ountry. Traditional
jewelers also began to bring out lightweight jewellery, and some of them even
laun"hed their inhouse brands.
'owever, the share of branded jewellery in the total jewellery mar!et was still small
1about 2s. 10 billion of the 2s. 300 billion #er annum jewellery mar!et in 20024,
though growing at a #a"e of 20 to 50 #er"ent annually
The branded jewellery segment o""u#ied only a small share of the total jewellery
mar!et be"ause of the mindset of the average Indian buyer who still regarded
jewellery as an investment. 6oreover, "onsumers trusted only their family jewelers
when buying jewellery. $onse.uently, the branded jewellery #layers tried to "hange
the mindset of the #eo#le and woo "ustomers with attra"tive designs at affordable
#ri"es.
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Gold Jewellery Market in India
+efore the liberali0ation of the Indian e"onomy in 1991, only the 6inerals and 6etals
Trading $or#oration of India 166T$4 and the 9tate +an! of India 19+I4 were allowed
to im#ort gold. The abolition of the ,old $ontrol %"t in 1992, allowed large e&#ort
houses to im#ort gold freely
?&#orters in e&#ort #ro"essing 0ones were allowed to sell 10 #er"ent of their
#rodu"e in the domesti" mar!et. In 1995, gold and diamond mining were o#ened u#
for #rivate investors and foreign investors were allowed to own half the e.uity in
mining ventures. In 199@, overseas ban!s and bullion su##liers were also allowed to
im#ort gold into India. These measures led to the entry of foreign #layers li!e
;e+eers, Tiffany and $artiers into the Indian mar!et.
In the 1990s, the number of retail jewellery outlets in India in"reased greatly due to
the abolition of the ,old $ontrol %"t. This led to a highly fragmented and
unorgani0ed jewellery mar!et with an estimated 100,000 wor!sho#s su##lying over
5*0,000 retailers, mostly familyowned, single sho# o#erations. In 2001, India had
the highest demand for gold in the world- 8** tons were "onsumed a year, 9*A of
whi"h was used for jewellery. The bul! of the jewellery #ur"hased in India was
designed in the traditional Indian style.
Jewellery was fabri"ated mainly in 18, 22 and 23"arat gold. %s 'allmar!ing was not
very "ommon in India, under"arat age was #revalent. %""ording to a survey done by
the +ureau of Indian 9tandards 1+I94, most gold jewellery advertised in India as 22
"arat was of a lesser .uality. /ver 80A of the jewelers sold gold jewellery ranging
from 15.* "arats to 18 "arats as 22"arat gold jewellery.
The late 1990s saw a number of branded jewellery #layers entering the Indian
mar!et. Titan sold gold jewellery under the brand name Tanish., while ,itanjali
Jewels, a 6umbaibased jewellery e&#orter, sold 18"arat gold jewellery under the
brand name ,ili. ,itanjali Jewels also started selling 23"arat gold jewellery in
asso"iation with a Thai "om#any, =randa. 9u2aj 1India4 Btd. laun"hed its "olle"tion
of diamond and 22 "arat gold jewellery in 199@.
The 6umbaibased grou#, +eautiful, whi"h mar!eted the Tiffany range of #rodu"ts in
India, laun"hed its own range of studded 18"arat jewellery, ;agina. $artiers
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entered India in 199@ in a fran"hise agreement with 2avissant. /ther #layers who
entered the Indian branded gold jewellery mar!et during the 1990s and 200001
in"luded Intergold ,em Btd., /y0terbay, $arbon and Tribhovandas +himji Caveri
1T+C4.
,ili( In 1993, ,ili Jewellery was established as a distin"t brand by ,itanjali Jewels,
soon after the abolition of the ,old $ontrol %"t by the Indian government. ,ili offered
a wide range of 18"arat #lain gold and diamondstudded jewellery, designed for the
"ontem#orary Indian woman. The designs "ombined both the Indian and western
styles and motifs. 7ith sales of 2s.0.13 billion for the year 200001, ,ili had a 0.05
#er"ent share of the 300 billion jewellery mar!et in India and a 1.3 #er"ent share of
the branded jewellery mar!et.
Tanish.( In 1983, Duestar Investments Bimited 1a Tata grou# "om#any4 and the
Tamil >adu Industrial ;evelo#ment $or#oration Bimited 1TI;$/4 jointly #romoted
Titan 7at"hes Bimited 1Titan4. Initially involved in the wat"hes and "lo"!s business,
Titan later ventured into the jewellery businesses. In 199*, Titan "hanged its name
from ETitan 7at"hes Btd.E to ETitan Industries Btd.E in order to "hange its image from
that of a wat"h manufa"turer to that of a fashion a""essories manufa"turer. In the
same year, it also started its jewellery division under the Tanish. brand.
%mong the branded jewellery #layers in the Indian mar!et, Tanish. is "onsidered to
be a trendsetter. 7hen it was laun"hed in 199*, Tanish. began with 18"arat
jewellery. 2eali0ing that su"h jewellery did not sell well in the domesti" mar!et, the
18"arat jewellery range was e&#anded to in"lude 22 and 23"arat ornaments as
well. 7hen Tanish. was laun"hed, it sold most of its #rodu"ts through multibrand
stores. In 1998, Tanish. de"ided to set u# its own "hain of retail showrooms to
"reate a distin"tive brand image.
+y 2002, Tanish. retailed its jewellery through *5 e&"lusive stores a"ross 31 "ities.
To meet in"reasing demand, Tanish. #lanned to o#en @0 stores by the end of 2005
and offer a range of EwearableE #rodu"ts with #ri"es starting at 2s. 300. 7ith sales of
2s. 2.)) billion in 200001, Tanish. had a 0.)) #er"ent share of the total jewellery
mar!et and a 2@ #er"ent share of the branded jewellery mar!et.
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$arbon( In early 1991, the +angalore based =ea!o! Jewellery =vt. Btd., 1=ea!o!4
was in"or#orated and 6ahesh 2ao 12ao4 was a##ointed dire"tor. =ea!o! reali0ed
that the Indian "onsumerEs relationshi# with gold jewellery would grow beyond an
investment need towards a lifestyle and #ersonality statement. In 199), within the
=ea!o! fold a new brand of 18"arat goldbased jewellery "alled $arbon was
laun"hed.
In 200001, with sales of 2s. 0.13 billion, "arbon had a 0.05 #er"ent share of the
jewellery mar!et and a 1.3 #er"ent share of the branded jewellery mar!et. The
"om#any e&#e"ted $arbon sales to tou"h 2s. 1.* billion by 200*0) and e&#orts to
start by 2008. The brand was available at 30 outlets in 1) "ities in 2002 and would
be made available in 25 "ities by 200*.
/y0terbay( /y0terbay was founded by Fasant >angia and his team in July 2000. It
began o#erations in 6ar"h 2001. +y >ovember 2002, the "om#any had 31 outlets
a"ross the "ountry. /y0terbay see!s to build a national brand in the jewellery
industry in India and as#ires to be the largest branded jewellery "om#any in the
"ountry with a "hain of 100 stores and several hundreddistribution #oints by 2003.
7ith sales of 2s. 0.1@ billion in 200001, /y0terbay had a 0.03 #er"ent share of the
2s.300 billion jewellery mar!et and a 1.@ #er"ent share of the branded jewellery
mar!et
Trendsmith( 6umbaibased Tribhovandas +himji Caveri 1T+C4, whi"h had been in
the jewellery business sin"e 18)3, saw tremendous s"o#e in the branded segment
and o#ened its new "on"e#t store ETrendsmithE in 6umbai in ;e"ember 2001.
?n"ouraged by the res#onse towards its first store, the Caveris #lanned to ta!e
Trendsmith 1India4 =vt. Btd. all over the nation by o#ening as many as *0 stores by
200). Trendsmith offered eight lines of e&"lusive designer jewellery from well!nown
e&#ort jewellery manufa"turers and designers from 6umbai and ;elhi.
+2%>;?; ,/B; J?7?BB?2G 6%2H?T 16%J/2 =B%G?294
+rand 6ar!et share 12000014 in A4
Tanish. [email protected]
2
/y0terbay 1.@
,ili 1.3
$arbon 1.3
9our"e( I$<%I $entre for 6anagement 2esear"h.
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Gold Jewellery Becomes Fashion Accessory
Till the early 1990s, the average Indian bought jewellery for investment rather than
for adornment. Jewellery made of 18!arat gold was not favored as it was
"onsidered a #oor investment. $onfiden"e in the lo"al jeweler was the hallmar! of
the gold jewellery trade in India. % jeweler or goldsmith in a lo"al area had a fi&ed
and loyal "lientele. The buyer had im#li"it faith in his jeweler. %dditionally, the lo"al
jeweler "atered to the lo"al taste for traditional jewellery.
'owever, sin"e the late 1990s, there was a shift in "onsumer tastes( women were
in"reasingly o#ting for fashionable and lightweight jewellery instead of traditional
"hun!y jewellery. There was a rise in demand for lightweight jewellery, es#e"ially
from "onsumers in the 1) to 2* age grou#, who regarded jewellery as an a""essory
and not an investment. The new millennium witnessed a definite "hange in
"onsumer #referen"es. %""ording to 9amrat Caveri, $?/ of Trendsmith, I2esear"h
shows that the Indian jewellery se"tor is in the transition #hase with "onsumersE
desire for #ossession of jewellery for its aestheti" a##eal and not as a form of
investment.I
In /"tober 2002, 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:
J The Indian mar!et was witnessing an a""elerated shift from viewing jewellery as an
investment to regarding it as aestheti"ally a##ealing ornaments. The fo"us had
shifted from "ontent to design.
J The younger generation was loo!ing at trendy, "ontem#orary jewellery and "learly
avoiding heavy, traditional gold jewellery.
J The "onsumer wanted a wider sele"tion at a single "onvenient lo"ation and
e&#e"ted an international sho##ing e&#erien"e.
J The Indian "onsumer was willing to e&#eriment with new designs.
The late 1990s and early 2000s, with the in"rease in the number of designers from
design s"hools su"h as the >ational Institute of <ashion Te"hnology 1>I<T4, a wide
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range of new designs be"ame available. In addition, the growing number of
manufa"turers needed a retailing #latform with global and national rea"h. %ll these
led to the #roliferation of branded jewellery #layers.
Strategies for Wooing !stomers
Tanish.
In the late 1990s, #layers in the branded gold jewellery mar!et formulated strategies
for wooing "ustomers. %""ording to Ja"ob Hurian 1Hurian4, $hief /#erating /ffi"er of
Tanish., the "hallenges were many. %s the jewellery mar!et was highly fragmented,
la"!ed branding, and allowed many unethi"al #ra"ti"es to flourish, Tanish. wor!ed
hard on a two#ronged brandbuilding strategy( "ultivate trust by edu"ating
"ustomers about the unethi"al #ra"ti"es in the business and "hange the #er"e#tion
of jewellery as a high#ri"ed #ur"hase. 9aid Hurian, I7e are "hanging the attitudes
of "ustomers from blind trust to informed trust.I
To in"rease its mar!et share, Tanish. formulated a strategy for luring #eo#le away
from traditional neighborhood jewelers. Tanish.Es strategy was to "reate
differentiation and build trust.
%""ording to Hurian, the first #art of the strategy was Ito #rovide a #oint of
differentiation in a highly "ommoditi0ed "ategory whi"h is the whole #oint of
branding.I The se"ond #art of the strategy was to #roje"t Tanish. as an
unim#ea"hable mar! of trust. %""ording to Hurian, IIf differentiation #lays the role of
#rimary attra"tion, trust ta!es "are of lifelong loyalty.K
/ne way to "reate differentiation was through design. The em#hasis had to be on
design be"ause lo"al jewelers "ould offer to design any #attern a""ording to the
"ustomerEs s#e"ifi"ations. <or a national brand a generi" design "on"e#t with
regional variations had to be evolved.
<or this, Tanish. set u# a seven member inhouse design team and also outsour"ed
designs from freelan"e designers. The designers travelled the length and breadth of
the "ountry to get feedba"! on Tanish.Es designs and learn about "ustomer
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#referen"es. /n the basis of this feedba"!, ea"h showroom "ould sele"t the designs
it would "arry.
9our"e(htt#(LLwww.i"mrindia.orgLfreeA20resour"esL"asestudiesLbrandedgold
jewellery1.htm
2
Brand a""eal
+randed jewellery has found a ni"he for itself in the tough Indian mar!et, and its
in"reasing growth rates show that before long it will "orner a signifi"ant share of the
jewellery mar!et. 7IT' the retail industry in India burgeoning, several "om#anies
have made inroads into the traditional jewellery industry, selling the #rodu"t that was
never really Imar!etedI in IbrandI new ways. 9o mu"h so that branded jewellery is
the new mantra in the mar!et, having ra#idly a".uired a ni"he over the #ast few
years.
9ome of the "om#anies have even "leverly #layed on Indian "ustoms and tradition to
advertise and establish their brands. Jewellery is now mar!eted for every o""asion-
even FalentineEs ;ay "alls for Ia s#e"ial something MdiamondN for a s#e"ial
someoneI.
In s#ite of #essimism about the mar!etability of branded jewellery in a "ountry rooted
in buying ornaments from the traditional goldsmith, 50 brands were laun"hed in
2003. 'owever, this does not ta!e away from the fa"t that India is a tough mar!et.
%""ording to 6ehul $ho!si of the ;E;amas and ,itanjali ,rou#, branded jewellery
has witnessed more than *0 #er "ent growth in the last three years. The diamond
branded jewellery, he says, is es#e"ially im#ressive with the segment witnessing a
20 #er "ent rise annually as against 10 #er "ent a de"ade ago.
%lthough branded jewellery a""ounts for less than 10 #er "ent of the 2s.30,000"rore
jewellery mar!et, a study has "on"luded that it is growing in #o#ularity at a
tremendous #a"e of 2050 #er "ent annually. 9u"h is the #otential of this industry
that the "onsulting firm 6"Hinsey estimates the branded jewellery mar!et in India to
grow at the rate of 30 #er "ent #er annum to tou"h 2s.10,000 "rores by 2010.
+ig drivers of this !ind of jewellery are the numerous malls o#ening a"ross the
"ountry with the emergen"e of an affluent "lass following the su""essful growth of
the new e"onomy "om#anies.
In the #ast de"ade, the "ountry has seen a se"tion of the #o#ulation gaining
e&#osure to designer wear, fashion a""essories and globally branded #rodu"ts.
I7hy not have a""esses to themOI as!s 2ima Hhan, a brand e&e"utive. I/f "ourse
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jewellery is harder to brand but it has done well given the tough "om#etition,I she
says.
/ne of the reasons branded jewellery is doing well is that now anyone "an wal! into
a mall, window sho# and de"ides at their own what they would li!e to buy. The entire
"ulture of sho##ing has "hanged with attentive and hel#ful attendants and well
dis#layed #rodu"ts. IGou no longer have the sales staff who loo! at you and de"ide
whether you are worth serving or not. ?veryone is a #otential "ustomer in the new
mar!et,I says 2ima Hhan. Get the most im#ortant #art of branded jewellery is that
you "an get a #ie"e of jewellery with a diamond for as little as 2s.1,*00. %nd as
branded is e.uated with .uality, you are assured of a good #rodu"t. I9uddenly
jewellery has be"ome a""essible and affordable for all in"ome bra"!ets.I
The shift was visible in 2003 when more than 50 #layers entered the mar!et. Today
there are more than *0 brands, endorsed by models, film a"tors, s#orts "elebrities
and other well!nown fa"es. 9ome designs of these brands are so #o#ular that lo"al
jewelers have begun to "o#y them. I7hile it is a "om#liment to the industry that
#eo#le li!e the #rodu"t, it "ould also affe"t the "om#any be"ause the "ost may be
lower,I says 2ima Hhan.
The biggest "hallenge #erha#s is in edu"ating the "onsumer. $onsumers need to
understand the four $s $ut, $arat, $olor and $larity. $om#anies that brand their
#rodu"ts #la"e a lot of em#hasis on edu"ating and therefore hel#ing the "ustomer
ma!e his #ur"hase. I+uying jewellery is a very #ersonal thing and we need to
understand what we are buying,I says 9eema Tha!ur, an attendant in a jewellery
store at a mall in 6umbai. I7e have an average of *0 #eo#le on a wee! day and at
least 100 on a wee!end who wal! in and loo! around the sho#. If you ma!e the
#rodu"t loo! s#e"ial, for instan"e, a##eal to a young gentleman to buy it for a loved
one, he is often interested.I %nd the big selling #oint is( IIf you "an s#end 2s.1,000
on two musi" $;s, why not s#end for that s#e"ial #erson in your life.I
The branded jewellery industry is still in its infan"y, but in"reasing growth rates show
that in a short time it will "orner a signifi"ant "hun! of the mar!et. =erha#s the best
"om#liment to the branded segment is that old jewellery showrooms have also
begun to design jewellery lines under a brand name.
2
9our"e( htt#(LLwww.flonnet."omLfl2225LstoriesL200*1118005809800.htm
2
Indian !stomers Showing Interest in Branded Jewellery
=osted by 2>$/9 on /"tober 2@ 2009
%s #er our re"ently #ublished resear"h re#ort PIndian ,ems and Jewellery 6ar!et Q
<uture =ros#e"ts to 2011K, gems and jewellery mar!et in India #osses tremendous
#otential for future growth sin"e it has an added advantage of low #rodu"tion "ost
and highly s!illed labor that se#arate it from its "om#etitors. It is #roje"ted that the
overall gems and jewellery mar!et will grow at a $%,2 of around 13A during 2009
2012.
India #ossesses world8s most "om#etitive gems and jewellery mar!et due to its low
"ost of #rodu"tion and availability of s!illed labor. %s #er our new resear"h re#ort
PIndian ,ems and Jewellery 6ar!et <uture =ros#e"ts to 2011K, highly s!illed and
low "ost man#ower, along with strong government su##ort in the form of in"entives
and establishment of 9?Cs, has been the major driver for the Indian gems and
jewellery mar!et. The mar!et also #lays a vital role in the Indian e"onomy as it is a
leading foreign e&"hange earner and a""ounts for more than 12A of India8s total
e&#orts. $urrently the Indian mar!et remains highly fragmented, but is ra#idly
transforming into an organi0ed se"tor.
$urrently, the industry is fa"ing a slowdown due to global e"onomi" turmoil. +ut due
to various government efforts and in"entives "ou#led with #rivate se"tor initiatives,
the Indian gems and jewellery se"tor is e&#e"ted to grow at a $%,2 of around 13A
from 2009 to 2012. %t #resent, the Indian gems and jewellery mar!et is dominated
by the unorgani0ed se"tor- however, the trend is set to "hange in near future with the
branded jewellery mar!et growing at an e&#e"ted $%,2 of more than 31A in the
"oming four years. %s #er our resear"h re#ort, with its "onsum#tion #egged at nearly
20A, India remains world8s largest gold "onsumer and this share is e&#e"ted to grow
further.
,iven the fa"t that majority of mar!et share is o""u#ied by familyowned jewelers,
the domination of unorgani0ed segment still "ontinues on the Indian gems and
jewellery mar!et. 'owever, this s"enario is gradually "hanging with the entran"e of
organi0ed #layers who #rimarily fo"us on "ustomer satisfa"tion by giving better and
2
finer .uality #rodu"ts. Thus, "onsumers are now moving towards branded jewellery
whi"h is more reliable in terms of .uality and design.
P7ith "hanging "ustomers8 attitude towards branded jewellery and entran"e of
organi0ed #layers in the mar!et, this segment will grow at mu"h faster #a"e 1annual
growth of more than 30A4 than the overall jewellery mar!et in "oming years,K said a
2esear"h %nalyst at 2>$/9.
The future outloo! given in the re#ort is based on #ast growth trends, "urrent
industry and regulatory develo#ments besides base drivers, o##ortunities and
"hallenges fa"ed by the gems and jewellery industry in India.
9our"e( htt#(LLwww.rn"os."omL2e#ortLI6138.htm
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Traditional #$s Branded jewelers
Introduction
,ems and Jewellery sales and mar!eting re"eived a fa"elift with the advent of the
su#ermar!et "ulture. %s organi0ed retail in India #rogresses to the ne&t la#,
9adanand 9ubramanian "he"!s for ;iamond 7orld with some #re"ious Industry
#layers about their #re#aredness and strategy to a"hieve ma&imum mileage.
%s India rea"ts to a retail revolution, the hitherto sober gems and jewellery industry
seems to have jum#ed on the bandwagon with a "lear #lan of a"tion. The industry
has already made a mar! by "a#turing 5 #er "ent of the organi0ed retail s#a"e
than!s to the leadershi# shown by a handful of "om#anies #re#ared to da00le the
world. 7hile organi0ed retail under this segment im#ressively grows at over *0 #er
"ent annually, deliberations are on to arrive at what the industry in general must do
to !ee# the "ustomer #erennially delighted. The gems and jewellery mar!et in India
is estimated to be about 2s.80,000 "rores and the to#most agenda is to ado#t the
right strategy to a""elerate its growth !ee#ing in mind "urrent global dynami"s. <or
now the industry fa"es !een "om#etition from other lu&ury goods su"h as ele"troni"
innovations and other #ersonal a""essories. 'ow far is it ne"essary for the gems
and jewellery se"tor to seriously "onsider itO
There is no doubt that things are a lot more organi0ed in stores inside malls. They
also show"ase and #resent #rodu"ts very attra"tively. +ut in my o#inion, real sales
ta!e #la"e through traditional jewellery stores as jewellery is mainly sold on trust.
,hanshyam ;hola!ia
The urgen"y in the industry indi"ates ra#id "hanges in the way goods are #rodu"ed
and mar!eted. The evolution of new formats for sale and the massive te"hnology
and to some e&tent, si0eable infrastru"tural develo#ments ta!ing #la"e all foretell a
#ros#e"t of growth way beyond the "urrent overall 10 #er "ent.
The Indian gems and jewellery industry boasts a strength of over 5 la!h jewellery
retailers a"ross the length and breadth of this "ountry. The huge number indi"ates
strength in itself but it also indi"ates a diffi"ult diversity to gra##le with when
e&#loring "ommon grounds to formulate united a##roa"hes to ta"!le "ommon
"on"erns.
2
Organized Vs Traditional !etail:
$om#arisons have always been drawn between organi0ed retail and traditional
retail. %ttem#ts have always been made to define them. 2ooting for organi0ed retail,
>avneet ,oen!a, Fi"e $hairman of ,oen!a ;iamond and Jewels says, P2ight now
organi0ed retail seems to have wrested an edge over traditional retail.K ,oen!a
argues that the indi"ations to this effe"t are seen in the manner large #ro#ortions of
the so"iety are be"oming lifestyle oriented, es#e"ially the younger generation. 7hen
"onsidering India8s statisti" of having the highest #er"entage of youth in the world,
this observation "annot be ta!en lightly. ,oen!a says that the gems and jewellery
se"tor is one of the fastest growing segments. 'e adds, PThe young generation
today has more dis#osable in"ome and they are willing to s#end it on lu&uries of
"hoi"e.K
,hanshyam ;hola!ia, #artner, 'ari!risha ?&#orts holds a different view with regard
to the tussle for su#rema"y over the two formats. PThere is no doubt that things are a
lot more organi0ed in stores inside malls,K he "on"edes. PThey also show"ase and
#resent #rodu"ts very attra"tively. +ut in my o#inion, real sales ta!e #la"e through
traditional jewellery stores as jewellery is mainly sold on trust.K 7hile e&#laining his
#oint of view, he adds, PTo the "redit of traditional jewellery stores they also have
u#graded themselves in various ways in"luding the overall ambien"e in the last five
to ten years. They are also "hanging themselves in the matters of #resentation and
the "ustomer a##roa"h.K ;hola!ia says that in #romotions and awareness "reation,
traditional retailers have reali0ed its im#ortan"e thereof and have started allo"ating
si0eable budgets for them. $onse.uently this se"tion has already started rea#ing the
benefits of .uality #romotions by "reating awareness about their #rodu"ts and
servi"es. ;hola!ia is some what em#hati" with regard to modern day organi0ed retail
"itadels, PIn my #ersonal o#inion malls mainly serve the #ur#ose of #romotion and
show of #rodu"ts. I don8t thin! a lot of gems and jewellery sale ta!es #la"e in malls.K
%shwin 9hah, 'ead of 2etail at $. 6ahendra ?&#orts holds a similar view with
regard to jewellery sales at modern sho##ing malls. 'e o#ines, PThe sales that ta!e
#la"e in a mall are of a very different !ind. Gou "an "all it window sho##ing if you
li!e.K 9hah elu"idates his #oint, PThe young generation often resorts to some im#ulse
buying.K 'e stresses that serious buyers who are loo!ing for high value #ur"hases
2
for o""asions su"h as weddings #refer to #lan their jewellery sho##ing and
eventually #ur"hase from !nown re#uted jewelers.
2
"hanges in #ems $ %ewellery !etail:
7hilst organi0ed retailers are ahead when it "omes to ta!ing "are of the different
as#e"ts in the mar!eting and sales value "hain, those in traditional retail are also
"hanging or ada#ting to the needs of the modern "ustomer in the areas of servi"e
and "ustomer "are. They too are im#roving their style of #resenting and dealing with
"ustomers. PIn the #ast, jewelers didn8t have mu"h modern edu"ation. Today, there
are a number of 6+%8s in these families and amongst !ey #ersonnel em#loyed by
them,K #oints out ,hanshyam ;hola!ia.
!etailing the Organized &ay:
7hile "om#lementing the #lanned a##roa"h by organi0ed retail, 6ahesh ,andani
'ead 2etail, 'ari Hrishna ?&#orts says, P7e "an see that times have "hanged and
somewhere along the way, the whole a##roa"h to mar!eting has also undergone
transformation.K ,andani says that for branded diamond jewellery there is mu"h
#lanning involved. 'e says meti"ulous strategy is "harted out, and there is
systemati" #resentation of the #rodu"t. %ll this goes on even as a #rodu"t #ortfolio is
made and #romotions are "arried out. ,andani says "reating brand awareness in the
minds of the "onsumers is all about ado#ting a few strategi" ste#s. P/ne might say
the differen"e between traditional and organi0ed is just doing and doing by #lanning.K
2e"ent develo#ments have been both a boon as well as a bane. %"tually, this has
s#urred us on to be"ome innovative with our offerings to suit the mar!et. 7e have
a"tually managed to redu"e "ost by ado#ting the strategy of redu"ing the volume of
gold in some of our #rodu"ts to ma!e it affordable. %shwin 9hah
9#ea!ing about organi0ed retail, F. 6uraleedharan, gems and jewellery #rofessional
and visiting fa"ulty at well !nown management institutes in 6umbai says, PThe
number of foreign brands "oming into India is sim#ly ama0ing. +rands that were only
heard of a few years ago are today very mu"h within anyone8s rea"h here.
6uraleedharan goes on to e&#lain, P9o far #eo#le who had only seen traditional
offerings have started ma!ing intelligent international "om#arisons with Indian
#rodu"ts and this has brought about real room for retail to grow a number of times.K
2
7ell !nown brands have always insisted that when they tal! about a #arti"ular
grade, they are "ertified. 6oreover the .uality standard is "onfirmed and authori0ed
and remains the same in any laboratory in the world. 6uraleedharan says, PIn my
o#inion the .uality a brand e&#resses, and the "ertifi"ation ma!e it easy for a
"ustomer to "onfidently buy the #rodu"t.K
The Value 'roposition:
PToday everyone is loo!ing for value for money, a new design, a new "on"e#t,
something very "reative and that is the "on"e#t of retail today. It is not li!e yesterday
where the sho#!ee#er or the manufa"turer used to dominate. Today, the "ustomer is
going for "ustomi0ed designs- the whole "on"e#t is "hanging,K says 6uralidharan.
PThe "onsumer is loo!ing for value for money, when they buy diamonds. They li!e to
buy from re#uted #layers li!e e&am#le Tanish., ,itanjali, ,oen!a, >a!shatra, Hiah
and >irvana. %ll of whom have a"hieved very organi0ed #resen"e in the mar!et
today. ?a"h one of them has a standard .uality "ertifi"ation internationally and that is
what is going in the minds of the "ustomer when they tal! about buying from the
organi0ed se"tor.K
9our"e( htt#(LLwww.#ressabout."omLindian"ustomersshowinginternetinbranded
jewellery238)0L
2
A ST%&' () T*+ J+W+,,+-' I)&%ST-'
I(T!O)*"TIO( TO I()I+( %,&,--,!. I()*/T!.
India is a leading #layer in the global gems and jewellery mar!et. The gems and
jewellery industry o""u#ies an im#ortant #osition in the Indian e"onomy. It is a
leading foreign e&"hange earner, as well as one of the fastest growing industries in
the "ountry.
The two major segments of the se"tor in India are gold jewellery and diamonds. ,old
jewellery forms around 80 #er "ent of the Indian jewellery mar!et, with the balan"e
"om#rising fabri"ated studded jewellery that in"ludes diamond studded as well as
gemstone studded jewellery.
The Indian gems and jewellery industry is "om#etitive in the world mar!et due to its
low "ost of #rodu"tion and the availability of s!illed labor. In addition, the industry
has set u# a worldwide distribution networ!, of more than 5,000 offi"es for the
#romotion and mar!eting of Indian diamonds.
YESTERAY T!AY
:nbranded +randed
9ilver R ,old jewellery ,old R ;iamond jewellery
Investment Investment S <ashion
Traditional design <ashionable R innovative design
6arriage R festival is #ea!
season
7ear ability and gifts
2
"ichael #orters $ive $orce "odel for %ewellery Industry
Inter&$irm Rivalry &'I('
Two ty#es of rivalry. 114 Inside India R 124 /utside India.
Barge #resen"e of unorgani0ed se"tor. 0.2 6illion ,old jewelers and over
8,000 ;iamond jewelers
International rivals 9u"h as, $hina
Threat from #rodu"ing nation li!e 9.%. R 2ussia.
)ar*ainin* #ower of Suppliers & "edium
In jewellery industry the su##liers are 9.%., :%?, %ustralia, :9, $ongo,
+otswana, 2ussia, ;T$.
<ew %lternatives of "utting R #olishing.
9!illed labor
+argaining #ower of India is enhan"ed be"ause India is largest "onsumer of
gold jewellery.
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;ivided in two ty#es 1. ;omesti" buyers R
2. <oreign buyers
%s investment 1;emand in"rease4
+argaining #ower of Indian e&#orter is high be"ause 6ajority of the worldEs
rough diamond #rodu"tion is "ut and #olished in India.
Threat of Substitutes+ Low
9ubstitutes are 2eal assets, 9to"! mar!et, R +an! de#osits R mutual fund
investment and /ther ty#es of jewellery li!e imitation jewellery, bagasra
jewellery, stone jewellery et".
9e"ond #referred investment behind ban! de#osits
9tatus and standard of living in"rease so demand is in"reasing at high rate.
)arriers to entry Low to "edium
Bow "a#ital re.uirement
,overnment subsidy
?TI6 #oli"y R government8s rulesregulations are high
9!illed man#ower is essential
%dvan"ed te"hnology re.uired
2
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2
TRE.S I. %E1ELLERY
RE#!RT
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1H%6%B%HH%>>%> , H%2T'IH% ;?=%2T6?>T /< 6%>%,?6?>T 9T:;I?9
9$'//B /< 6%>%,?6?>T =/>;I$'?22G :>IF?29ITG4
%ewellery Industry
I.,STRY !2ER2IE1
Indian Jewellery mar!et in 200@ was valued at @0,000 "r. I>2 1+usiness 9tandard4.
J India8s Jewellery mar!et si0e is :9U 15 billion
J ,old Jewellery mar!et $%,2 10 1*A
J ;iamond Jewellery mar!et growth 2@A
J India remains in world8s largest "onsumer of gold.
J ?&#orts about U 1@ 6illion in 200)
Share of India=s (em and %ewellery Sector
/rgani0e
d
2etailer
<amily
Jeweler
s
3A 9)A
2
%bout, 9)A of Indian Jewellery 6ar!et is unorgani0ed. The unorgani0ed se"tor
re#resents 500,000 traditional retailers or P<amily jewelersK who are #resent only in
one town. The organi0ed se"tor a""ounts to only 3 #er"ent
T!AY
The industry of jewellery has flourished in the #ast few years due to the in"reased
demand of fashionable jewellery. The e&#ort and im#ort of jewellery has also
am#lified. =eo#le nowadays have a #assion for jewellery whi"h a""ounts for the
growth of this industry all over the world. Jewellery is used for fashion as well as
de"oration. In the #ast jewellery was used to adorn bible monuments and other
de"orations were made using different #ie"es of valuable jewels. % wide variety of
jewellery is available- "ostume jewellery, fashion jewellery, body jewellery, anti.ue
jewellery, traditional jewellery, modern jewellery and many more.
LATEST TRE.S
a4 2e"ent flu"tuations in the sto"! mar!et, redu"ed Interest rates made investment
attra"tive on jewellery.
b4 The gems and jewellery industry o""u#ies an im#ortant #osition in the Indian
e"onomy.
"4 It is a leading foreign e&"hange earner, as well as one of the fastest growing
industries in the "ountry.
d4 The Indian gems and jewellery industry is "om#etitive in the world mar!et due to
its low "ost of #rodu"tion and the availability of s!illed labor.
e4 The industry has set u# a worldwide distribution networ!, of more than 5,000
offi"es for the #romotion and mar!eting of Indian diamonds.
f4 India is the diamond #olishing "a#ital of the world s#e"ially the states of ,ujarat
and 6aharashtra.
g4 100A <;I is #ermitted in gems and jewellery se"tor.
h4 The growth of +randed Jewellery is eminent in the "oming days.
2
Till now, Indian households in villages used to buy gold from their nearby jeweler
who used to be an a".uaintan"e also in most "ir"umstan"es be"ause the sho#
owners used to !now almost everybody in the village. +ut, things are "hanging fast
in India with the onset of reforms. >ow, Indians, the biggest buyers of yellow metal in
the world, are in"reasingly aware of the .uality of gold and they now started loo!ing
for the branded jewellery.
This "hange in trend in India8s urban and rural areas has lured several big names in
global jewellery trade li!e $artier to India. +randed gold, diamond and silver
jewellery showrooms are o#ening u# a"ross Indian "ities and village towns.
Till now, Indians used to buy gold from the traditional jewellery sho# owner whom
they trust.
+ut, with ,en>e&t Indians having enough dis#osable in"ome want a "hange from
that and they are o#ting for brightly lit showrooms with marble floors, glass dis#lay
"ases and #rofessional sales#eo#le, #referably at a "om#any whose brand name
im#lies so"ial status and wealth.
Tata8s Tanish. o#ened their first outlet in 1993 and now has 11@ showrooms a"ross
the "ountry. %venue 6ontaigne, India8s largest branded jewellery retail outlet,
suggests the shift towards brands refle"ts so"ial "hanges, but also new ways of
viewing gold. In India, the #re"ious metal is traditionally given to brides at the time of
marriage as a store of wealth #roviding finan"ial se"urity.
9ome of the most famous "om#anies in 7estern jewellery su"h as ;e+eers, Tiffany
and $artier have also moved into India sin"e 199@ when overseas ban!s and bullion
su##liers were allowed to im#ort gold. They are drawn by the enormous si0e of the
mar!et, rising in"omes and the fra"turing relationshi# between buyers and traditional
family jewelers. %bout 1*,000 tones of gold are #rivately held in India. ;emand
remains strong des#ite new re"ords being set for the #ri"e of the metal on an almost
daily basis.
2
=remium international brand $artier laun"hed their #lush showroom in >ew ;elhi in
2008 and also o#erates through a strong dealer networ! to sell their jewellery and
wat"hes in India.
9hare of branded jewellery in India8s total mar!et was growing at a #a"e of 2050 #er
"ent annually.
The number of gold retailers in the "ountry has in"reased by 30 #er "ent sin"e the
year 2000, with 1*0 domesti" and over )* international established brands. 2elian"e
has o#ened 13 jewellery stores in 15 Indian "ities sin"e 200@ and has announ"ed
that it will laun"h showrooms in various other "ities and towns a"ross the "ountry.
9our"e( htt#(LLwww."ommodityonline."omLnewsL+randedgoldjewellerysho#slure
[email protected]
2
Indians optin* for branded *old jewellery
=osted on V 9unday, ;e"ember 20, 2009
>?7 ;?B'I( Indians, the worldEs biggest buyers of gold, are in"reasingly o#ting for
branded jewellery, attra"ting fran"hisers and foreign grou#s li!e $artier at the
e&#ense of traditional retailers.
Traditionally, most Indians would go to their small family jewelers and sit down on
"otton mattresses with the jeweler and #i"! out some items.
The #ro"ess wor!ed on trust built u# in some "ases over generations between buyer
and jeweler, who would mostly offer #rodu"ts from artisanal designers and #rodu"ers
from his area.
>owadays, young Indians are o#ting for brightly lit showrooms with marble floors,
glass dis#lay "ases and #rofessional sales#eo#le #referably at a "om#any whose
brand name im#lies so"ial status and wealth.
IThere is a te"toni" shift in the business now. If you want your gold jewellery
business to survive brand it and advertise,I said 9andee# Hulhali, vi"e#resident of
Tanish., one of IndiaEs oldest branded retail jewellery "hains, owned by the Tata
"onglomerate.
Tanish. o#ened first outlet in 1993 and now has 11@ showrooms a"ross the "ountry.
I?arlier it was diffi"ult to "onvin"e "onsumers to buy branded gold,I said Hulhali.
IThese days they "ome to us e&#e"ting better servi"es, #remium .uality, e&"hange
#oli"y and attra"tive offers li!e buying jewellery on a monthly installment basis,I he
added.
%mit +umb, dire"tor of %venue 6ontaigne, IndiaEs largest branded jewellery retail
outlet, suggests the shift towards brands refle"ts so"ial "hanges, but also new ways
of viewing gold.
The #re"ious metal is traditionally given to brides at the time of marriage as a store
of wealth #roviding finan"ial se"urity.
2
IThere is a shift in "onsumer tastes( wor!ing women in the 20 to 52 age grou#
regard jewellery as an a""essory and not just as an investment,I +umb said. IIt is in
this mar!et that the brand names wor!.I
9ome of the most famous "om#anies in 7estern jewellery su"h as ;e+eers, Tiffany
and $artier have also moved into India sin"e 199@ when overseas ban!s and bullion
su##liers were allowed to im#ort gold.
They are drawn by the enormous si0e of the mar!et, rising in"omes and the
fra"turing relationshi# between buyers and traditional family jewelers.
%""ording to the International 6onetary <und, about 1*,000 tones of gold are
#rivately held in India. ;emand remains strong des#ite new re"ords being set for the
#ri"e of the metal on an almost daily basis.
=remium international brand $artier laun"hed its #lush showroom in >ew ;elhi last
year and also o#erates through a strong dealer networ! to sell jewellery and wat"hes
in India.
I7e are ha##y with the res#onse from buyers in India,I said a saleswoman at the
$artier store in ;elhi, who said "ustomers were drawn to the fa"t the highend brand
stood out from its Indian "om#etitors.
% study released by the +ullion %sso"iation of India in 6ar"h said that the share of
branded jewellery in the total mar!et was growing at a #a"e of 2050 #er "ent
annually. The number of gold retailers in the "ountry has in"reased by 30#" sin"e
2000, with 1*0 domesti" and over )* international established brands, the study
said.
<a"ed with the "hanging dynami"s, traditional jewelers are loo!ing to jum# on the
Ibrand wagonI by investing in advertising and trying to build a #resen"e in the minds
of "onsumers.
Traditional jewelers li!e >otandas R 9ons in 6umbai and = $ Jewelers in >ew ;elhi
have signed u# +ollywood heroines as brand ambassadors and also lend their
#rodu"ts to "ontestants in beauty #ageants.
9our"e( htt#(LLwww.gulfdailynews."omL>ews;etails.as#&OstoryidW2))902
2
Analysis of Literature Review
To draw a "on"lusion from the above literature review one "an observe that there is
immense s"o#e for the growth of branded jewellery.
In s#ite of the e"onomi" slowdown e&#erts believe that it will grow at a $%,2
of 2*A. There are also statements li!e the industry does not "over the entire
#o#ulation ma!ing a s"o#e for further growth.
The review also brings light to the fa"t that the Indian "onsumers are #ri"e
sensitive and hen"e the branded jewelers "annot "harge e&uberant #ri"es for
the same.
The jewelers have to offer designs that are more Indian in their "ulture rather
than a#ing the west this "an be #roved by the e.g. of Tanish. and should also
be affordable.
9in"e the thesis fo"uses on a "om#arative study of the #o#ularity of branded
vLs non branded jewellery the review hel#s understand the growth of the retail
industry whi"h have leased branded jewellery stores and also the #o#ularity of
traditional goldsmith
The number of foreign entrants also #ose a "hallenge to the traditional
jewelers and hen"e we "an see that these jewelers also "ome u# with
strategies to retain their "ustomers these #ra"ti"es were not #revalent in the
mar!et #reviously.
The branded jewelers on the other hand have to ada#t strategies to win the
trust of their "ustomers and attra"t new "ustomers.
% few resear"h re#orts also hel# us gauge the "hanging trends in the
jewellery mar!et and the #o#ularity of diamonds.
2
Analysis and $indin*s
The obje"tives of the study was to understand the "onsumer8s buying #referen"es,
the rea"h of branded jeweler8s, brand awareness of various brands in the jeweler8s
mar!et.
'en"e the first .uestion was to find out the fa"tors that guide a "ustomer while
#ur"hasing jewellery whi"h dealt with nine attributes. The res#ondents where just
as!ed to ti"! on the attribute that guided that #ur"hase de"ision. The result is as
follows
;esign =ri"e =urity Image Fariety
;is#la
y
=romotion
and /ffers
9ervi"
e
<amily
and
<riend
s
8* 92 8@ )* )@ * 10 2 12
Table 1
<rom the above results an observation "an be drawn that out of the 100 res#ondents
92 of them feel that #ri"e is a major fa"tor that guides their #ur"hase de"ision. %#art
from #ri"e #urity also is "onsidered im#ortant by 8@ res#ondents, followed by design
with 8* res#ondents feel it is an im#ortant fa"tor. Fariety and image are the other
im#ortant attributes that are "onsidered while ma!ing a #ur"hase de"ision. %ttributes
li!e family and friends, #romotions and offers are still not very #o#ular among the
res#ondents sele"ted for this resear"h. The attributes li!e servi"e and dis#lay have
been sele"ted only by 2 and * res#ondents res#e"tively showing that these are the
least im#ortant thing that guide an individual to #ur"hase jewellery.
The diagram below shows the guiding fa"tor of the res#ondents while #ur"hasing
jewellery in an as"ending manner.
2
$i*ure >
Duestion two dealt with the awareness of various brands of jewellery available in the
mar!et. This .uestion would hel# find out the #er"entage of the res#ondents who are
aware about branded jewellery.
Ges >o
100 0
Table 2
<rom the above result it "an be observed that there is 100A awareness about
branded jewellery. /ut of the 100 res#ondents there is not a single res#ondent who
is not aware about branded jewellery.
2
The third .uestion was to find out the #o#ularity of * brands. The res#ondents were
as!ed to ti"! against the brands that they are aware about. The * brands "onsidered
here are ,ili, Tanish., ;damas, /y0terbay, and Trendsmith. These are the
#rominent brands for gold jewellery there are many other #layers but the resear"h is
limited to gold jewellery.
)rands ,ili
Tanish
.
Ta!le +afna
.o of
Responden
ts
@0 80 100 100
Table 5
7
67
87
?7
97
>77
>67
>st /tr 6nd /tr :rd /tr 8th /tr
East
$i*ure 6
<rom the above table and figure inferen"e "an be drawn that brands li!e ,ili,
Tanish. are !nown but the traditional >asi! outlets of Ta!le and +afna our #referred
2
The fourth .uestion was to find out the reason why the res#ondent #ur"hases
jewellery that is the reason for #ur"hasing. Is it #ur"hased as an investment o#tion or
on o""asions, festivals or as a fashion statementO

Investme
nt
<ashio
n
/""asio
ns
<estival
s
>o of
2es#onden
ts
53 59 11 1)
Table 3
53 res#ondents buy jewellery for investment #ur#ose, 59 res#ondents loo! out for
fashion or the latest trends while #ur"hasing jewellery. 11 res#ondents buy jewellery
during o""asions li!e weddings, anniversary, birthday8s et". and 1) res#ondents buy
jewellery during festivals.
$i*ure :
2
The fifth .uestion is a dire"t .uestion whi"h in.uires the res#ondent #referen"e for
jewellery that is it branded or family jeweler.
=referen"e
+randed
Jeweller
y
<amily
Jewele
r
>o of
2es#onden
ts
)9 51
Table *
<rom the above table it "an be observed that )9 res#ondents #refer branded
jewellery and 51 res#ondents #refer family jewelers. This ma!es branded jewellery
more #o#ular among the res#ondents.
$i*ure 8
2
The si&th .uestion further #robes into finding out how many among the res#ondents
have bought branded jewellery.
+randed
Jewellery
+ought
>ot
bought
>o of
2es#ondent
s
@8 22
Table )
$i*ure ;
/ut of the 100 res#ondents @8 have bought branded jewellery and 22 have not
bought branded jewellery. 'owever even if these 22 res#ondents have not bought
branded jewellery they are aware of branded jewellery being sold and also !now the
brands by their names.
2
9in"e the sam#le "onsist of females and males the ne&t set of .uestion deals with
whether jewellery is bought for gifting #ur#ose
If the res#ondents do buy jewellery for gifting #ur#ose then where is it bought from
family jeweler or branded sho#s.
+uy jewellery
for gifting
Ges >o
>o of
2es#ondents
50 @0
Table @
50 res#ondents of the 100 buy jewellery for gifting #ur#ose among these 50 12 are
men. @0A of the res#ondents do not buy jewellery for gifting #ur#ose.
The ne&t .uestion was the jewellery #ur"hased for gifting is branded or non branded
and the result found are as under

+rande
d
<amily
jeweler
>o of
2es#onden
ts
13 1)
Table 8
13 res#ondents out of 50 buy branded jewellery for gifting and 1) out of 50 buy
jewellery from their family jeweler for gifting. =er"entage wise 3)A buy branded
jewellery for gifts and *3A buy jewellery for gifting from their family jeweler.
2
$i*ure ?
2
The ninth .uestion was
,iven below are few "hara"teristi"s of traditional family jeweler8s 1or lo"al
jewellery retail stores4. =lease give ea"h "hara"teristi" some #oints based on
your assessment, su"h that the #oints range from 1 to 10. 11 being the lowest
and 10 being the highest4.
-haracteristics of $amily %ewelers .umber of points
$onvenient
Trustworthy
,ood Investment
=ri"e
Traditional design
This .uestion will hel# gain an insight as to whi"h #arameter of a family jeweler
attra"ts res#ondent towards them.
9in"e the #oints are given out of 10 and there are 100 res#ondents ea"h #arameter
will be out of 1000.
-haracteristics
of $amily
%ewelers
$onvenient Trustworthy
,ood
Investment
=ri"e
Traditional
design
.umber of
points
))0 89* @@* 8@0 @3*
Table 9
The res#ondents were as!ed to give #oints on a s"ale of 1 to 10 where 10 was the
highest hen"e the total figures are arrived by adding the #oints given by all the 100
res#ondents. 'en"e if the X"onvenien"e8 "hara"teristi" was to be ta!en then it s"ored
))0 out of the grand total of 1000.
The res#ondents have rated trust as#e"t of family jewelers high hen"e it has s"ored
89*. The res#ondents also feel that the #ri"e "harged by the family jewelers is
reasonable and hen"e have given it de"ent #oint8s i.e. 8@0. 7hile #ur"hasing
jewellery from family jewelers the res#ondents "onsider it to be a good investment.
<amily jewelers are #o#ular for traditional designs and the res#ondents have given it
#oints that add u# to @3*.
2
The 10
th
.uestion was
If you #ur"hase branded jewellery then given below are a few "hara"teristi"s.
=lease give ea"h "hara"teristi" some #oints based on your assessment, su"h
that the #oints range from 1 to 10. 11 being the lowest and 10 being the
highest4.
-haracteristics of branded jewellery .umber of points
7ide range of #rodu"ts under one roof
9ho##ing e&#erien"e
Trendy and fashionable jewellery
=ri"e
9in"e the #oints are out of 10 and the no of res#ondents who have bought branded
jewellery are @8. 'en"e the assessment of this .uestion is based on the #oints given
only by these @8 res#ondents. 'en"e the total would be @80 and not 1000 here.
-haracteristics of
branded jewellery
7ide range
of #rodu"ts
under one
roof
9ho##ing
e&#erien"e
Trendy and
fashionable
jewellery
=ri"e
.umber of points ))5 *90 @2@ )@5
Table 10
2es#ondents rate trendy and fashionable jewellery highest when it "omes to
branded jewellery. It s"ores @2@ out of @80. =ri"e also a""ording to the res#ondents
is justified hen"e it s"ores )@5. 9ho##ing e&#erien"e wise branded showroom
s"ores least among the other "hara"teristi"s. This "ould also be be"ause when a
"ustomer goes to buy jewellery he may not be loo!ing for the e&#erien"e but wanting
good trendy jewellery whi"h is #ri"ed a##ro#riately.
2
The eleventh .uestion was to find the level of satisfa"tion on a s"ale of 1 to 10 for
family jewelers. 9in"e the #oints are given out of 10 and there are 100 res#ondents
the level of satisfa"tion will be out of 1000.
<amily jeweler
Bevel of
satisfa"tion
>o of
res#ondents
@)*
Table 11
The level of satisfa"tion that the res#ondents have is @)*. 'en"e if the average were
to be removed it would be between @ and 8.
The last .uestion was to find the level of satisfa"tion for branded jewellery on a s"ale
of 1 to 10. 'ere again the rating is out of @80 be"ause only those res#ondents who
have bought branded jewellery are being "onsidered.
+randed
jewellery
Bevel of
satisfa"tion
>o of
res#ondents
)95
Table 12
The level of satisfa"tion on the whole for branded jewellery is )95 and if the mean
were to be removed then it would be between 8 and 9 hen"e the level of satisfa"tion
that the res#ondents have towards branded jewellery is higher then that towards
family jewelers.
2
'ypothesis
/ign test
/ut of the total 100 res#ondents )9 #refer branded jewellery over non branded
jewellery and 5 #refer non branded jewellery over branded jewellery. 6a!ing it )9A
who #refer branded and 51A who #refer non branded or family jewelers.
/tep 0
/etting up the hypothesis
.ull hypothesis+ '
o
+ # @ !A; 3;7 B prefer branded jewellery4
Alternate hypothesis+ '
>
+ # C7A; 3"ore than ;7 B prefer branded jewellery4
7here, = res#ondents who #refer branded jewellery
>o. of 1S4 sign W )9
%nd D is res#ondents who do not #refer branded jewellery
>o. of 14 sign W 51
/tep 1
14 $al"ulation of = 1S4 R . 14(
>o. of res#ondents who #refer branded jewellery W= 1S4 W )9L100 W 0.)9
>o. res#ondents who do not #refer branded jewellery W. 14 W 51L100 W 0.51
/tep 2
14 9tandard deviationW Y
#
W Z #.Ln W Z 0.* [ 0.*L100 W Z 0.002* W 0.0*
0 W # Q 0.*L Y
#
W 0.)9 0.*L0.0* W 5.8

2
Si*nificance level 3D4 @ ;B

<rom the above diagram, it is seen that the null hy#othesis is reje"ted be"ause
The 0 value 15.84 lays outside the a""e#tan"e region i.e. S1.)3, hen"e the null
hy#othesis that states that *0A of res#ondents #refer branded jewellery is reje"ted
and the alternate hy#othesis whi"h states that more than *0A res#ondents #refer
branded jewellery is a""e#ted.
2
-onclusion
The "on"lusions that "an be drawn from the study are(
1. The guiding fa"tor behind #ur"hasing jewellery is #ri"e, #urity and design
whi"h s"ore the ma&imum. /ther fa"tors are variety, the brand image,
influen"e of family and friends. The least guiding fa"tor for #ur"hasing
jewellery is the servi"e and dis#lay. 'en"e when a "ustomer goes to buy
jewellery they do !ee# the #ri"e in mind followed by the #urity and the design.
<a"tors li!e servi"e given the sho# or by the jeweler and the dis#lay do not
have a very big im#a"t on the "ustomers.
2. +randed jewellery is e&tremely #o#ular sin"e it has 100A awareness. This
may be due to the wide s#read #ubli"ity ta!en u# by the various brands.
+rands li!e ,ili, ;damas, and Tanish. are again the most #o#ular brands.
Trendsmith is a brand by Tribhovandas +himji Caveri 1T+C4 whi"h is not very
#o#ular.
3. %s stated in the literature review that Xthere was a shift in "onsumer tastes(
women were in"reasingly o#ting for fashionable and lightweight jewellery
instead of traditional "hun!y jewellery.8 Is #roved to be "orre"t by this
resear"h as res#ondents have sele"ted fashion over investment while
#ur"hasing jewellery. >ow jewellery is regarded as more of an a""essory and
less of an investment.
4. +randed jewellery is bought by more than 5L3
th
of the #o#ulation. 'en"e it "an
be said that the #o#ulation is aware and has also tried these brands.
5. 7hen jewellery is bought for gifting #ur#ose the #o#ulation still wants to buy it
from their family jewelers.
6. 7hen it "omes to family jewelers the level of satisfa"tion that the #o#ulation
has on a s"ale of 1 to 10 is a little more than @. These jewelers are also
#o#ular be"ause of the trust that they have with their "ustomers and also
be"ause they "harge reasonable #ri"es. These family jewelers are also
#o#ular for traditional designs hen"e when a "ustomer is s#e"ifi"ally loo!ing
2
out for traditional jewellery they a##roa"h these jewelers. The jewellery
bought from these jewelers is "onsidered to be #ure and a good investment.
7. The level of satisfa"tion that the #o#ulation has towards branded jewellery is a
little higher than 8. These branded jewelers have be"ome #o#ular for latest
and trendy jewellery. %lso the #ri"es that the branded jewelers "harge is
justified and they #rovide a wide range of #rodu"ts under one roof.
8. The level of satisfa"tion that the #o#ulation has for branded jewellery is higher
then that for non branded jewellery ma!ing branded jewellery more #o#ular.
9. The "onsumers #refer buying branded jewellery over non branded jewellery.
This has also been #roved by using the sign test.
'ence to conclude branded jewellery is preferred over non branded
jewelleryA
2
Limitations
The limitations fa"ed during the resear"h and after the data "olle"tion were
14 Time "onstraint sin"e the time s#an for the thesis was only three months an
in de#th study and analysis be"ame a little diffi"ult.
24 9am#le si0e the sam#le si0e of the study is only 100 whi"h do not give a
"om#rehensive result. The "on"lusion of the study may not have resulted to
an a""urate out"ome due to the sam#le si0e being small.
54 +ound to only >asi! "ity the other limitation of the study is it is limited to only
the main "ity area of >asi! and ignores the sam#les from the smaller #arts of
the distri"t. The buying behavior of an individual varies from #la"e to #la"e.
34 Duestions left blan! "ertain .uestion have been left blan! whi"h does not
allow an a""urate analysis.
*4 +iasness among the 100 res#ondents few of them were brand loyal and few
of them were the ones who had still stu"! to their traditional jewelers hen"e to
an e&tent there was biasness involved in the study.
2
References
9e"ondary data "olle"ted from the internet. The web sites are(
14 htt#(LLwww.i"mrindia.orgLfreeA20resour"esL"asestudiesLbrandedgold
jewellery1.htm
24 htt#(LLwww.flonnet."omLfl2225LstoriesL200*1118005809800.htm
54 9our"e( htt#(LLwww.rn"os."omL2e#ortLI6138.htm
34 htt#(LLwww.#ressabout."omLindian"ustomersshowinginternetinbranded
jewellery238)0L
*4 htt#(LLwww.s"ribd."omLdo"L1990108*LJewellery$om#anies$om#arison
)4 htt#(LLwww."ommodityonline."omLnewsL+randedgoldjewellerysho#slure
[email protected]
@4 htt#(LLwww.gulfdailynews."omL>ews;etails.as#&OstoryidW2))902
84 htt#(LLwww.diamondworld.netL"ontentview.as#&OitemW23)*
94 htt#(LLtravelersindia."omLar"hiveLv*n2Lv*n2indian\jewelry.html
104htt#(LLwww.i"mrindia.orgL"asestudiesL"atalogueL+usiness
A209trategy1L+9T2031.htm
114htt#(LLwww.rn"os."omL6ar!et%nalysis2e#ortsLIndian,emsandJewellery
6ar!et<uture=ros#e"tsto2011I6138.htm
124htt#(LLwww.allheadlinenews."omLarti"lesL@01@2@2*51
>ews#a#ers(
14 The Times of India
24 The ?"onomi" Times
54