SYNOPSIS FOR DISSERTATION SUBMITTED TOWARDS THE

PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN

INTERNATIONAL BUSINESS

CONSUMER PREFERENCE OVER

BRANDED JEWELLERY AND NON-
BRANDED JWELLERY

SUBMITTED BY:
ANKUR VARMA
MBA-IB (2008-2010)
Roll No. : A-06

AMITY INTERNATIONAL BUSINESS SCHOOL,

NOIDA

AMITY UNIVERSITY – UTTAR PRADESH

1
TABLE OF CONTENTS

Chapter No. Subject Page No.

Ch.# 1.0 Introduction…………………..

Ch.# 2.0 Research Methodology
2.1 Primary Objective(s)…………. ………
2.2 Hypothesis…………………………….
2.3 Research Design……………………....
2.4 Sample design………………………...
2.5 Data ………………………..................
Ch.# 3.0 Critical Review of Literature…………...
Ch.# 4.0 Sector Profile ……………………..........
Ch # 5.0 Conclusion………………………………
Ch.# 6.0 Recommendations……………………….
Ch.# 7.0 Bibliography……………………………..
Ch.# 8.0 References

2
INTRODUCTION

India has a historic relationship with Jewellery.

Many kings, emperors and dynasties featuring countless wars, conquests and political
upheavals have ruled the Indian sub-continent. Different dynasties ruled different parts of
India with different monetary systems. Jewellery acted as a common medium of
exchange or store of value across the monetary systems of different kingdoms across the
sub-continent especially gold. Hence wealth could still be preserved in spite of wars and
political turbulence. Gold also helped preserve wealth through natural calamities and
disasters and for centuries was the only means of saving in rural India, land being the
other main asset of economic value. This has largely helped formulate, or evolve, the
Indian sentiment and fanatical passion for gold, which holds true even today. India is
estimated to hold more than 11,000 tonnes of gold.

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

savings and investment vehicle in India. Even in present times, Jewellery remains the
Indian bride’s `Streedhan’, the wealth she takes with her when she marries and which
remains hers. Gold jewellery is the preferred jewellery worn by women in India
irrespective of their religious beliefs. In marriages, gold jewellery is the gift preferred by
the near relatives of the bride and the groom. Gold 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,
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

3
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. Traditional designs are yielding to modern jewellery, heavy gold is giving way to
light and simple designs. Consumers are more quality conscious than ever before. The
jewellery market is one of the largest consumer sectors in the country – larger than
telecom, automobiles, apparel, and perhaps second only to the foods sector. Interestingly,
organised retailers have attempted to understand the market, anticipate social changes and
strategise appropriately. They have ceaselessly endeavored to derive the formulae of
‘What the consumer wants?’

The young Indian woman who is the prime market for the organised retailers differs
from the traditional jewellery customer in many ways as enumerated below.
• She is well educated and more in tune with international trends
• Increase in working women with high disposable incomes
• Greater mobility
• Less constrained by traditions.

All these reasons and more ensure that the modern Indian woman is looking for jewellery
from a perspective different from the past. In addition, organised retailing offers quality
products, follows standardised practices and uniform pricing strategy. Organised retail
formats work on transparent policies that are not necessarily available at the traditional
jewellery shops. Today, goods and services offered by any retailer are strongly driven by
their identified Target Group (TG). 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 organised
jewellery retailing in India. In a short span of time, organised retailers have successfully
implemented a change in the buying pattern of the Indian consumer. This is evident from

4
the shift from the traditional jeweller to the jeweller with an identity. This shift clearly
indicates a change in viewpoint of jewellery as a commodity to brand identification.
RESEARCH METHODOLOGY

Statement of objectives
1. To compare between Branded and Non-Branded Jewellery.

2. To know Consumer perception towards Jewellery.

3. To know the Major Players of Jewellery industry.

4. To have an idea about parameters consumer consider while buying Jewellery.

5. To have knowledge about demographic segments.

6. To know the Marketing strategies used by various jewellery brands.

RESEARCH AND SAMPLE DESIGN:

This research will accomplish chiefly through qualitative approach that is based on the
secondary information as well as quantitative studies like surveys etc. are also considered
and taken into account.

Qualitative research includes the reviewing and analysis of the articles, research papers,
interviews and other published information in order to gain a deeper understanding of the
prevailing scenario. These methods will help to understand the opinion and views of
eminent and learned academicians and leading businessmen and provide an idea of future
developments in Jewellery sector.

Also, quantitative information, in which survey reports etc done on the basis of
questionnaires was beneficial in the way that it provides a comparative insight into the

5
consumer perception for branded jewellery and non-branded jewellery and their
preferences over it. It is good for examining consumer behaviour in the current trends of
jewellery sector.

TYPE OF RESEARCH:
 EXPLORATORY
 QUALITATIVE

SAMPLING FRAME:

 NOIDA
 DELHI REGIONS SUCH AS LAJPAT NAGAR,SOUTH EXTENSION,NEW
FRIENDS COLONY,SAKET ETC

Data Collection
 The research study will be accomplished through in-depth review and analysis of
secondary information available in the published form, which includes data from
textbook, journals, management reports seminar papers etc. The electronic data
and results of surveys conducted by organizations were also important data
sources for the report.
To gather all the information that my report need, I will find related information
by accessing reference books business magazines and journals & Web sources.
 Primary data was basically collected by conducting survey through a
questionnaire (Sample size=50-100) and area of conducting survey was New
Delhi AND NCR. The research design was exploratory and descriptive.

6
CRITICAL REVIEW OF LITERATURE

Gems and Jewellery

The Gems & Jewellery Industry is one of the fastest growing industries in the country.
The growth in purchasing parity of the middle class and surging income levels have
resulted in consumption growth of gems and jewellery by about 11 percent in the five-
year period preceding 2006-07. It also contributes over 15 per cent of India’s total
exports and provides employment to 1.3 million people directly and indirectly.

7
The two major segments of the sector in India are gold jewellery and diamonds. Gold
jewellery forms around 80 per cent of the Indian jewellery market, with the balance
comprising fabricated studded jewellery that includes diamonds as well as gemstone
studded jewellery.

India consumes nearly 800 tonnes of gold accounting for about 20 per cent of the world
gold consumption, of which nearly 600 tonnes goes into making jewellery. The Indian
jewellery market, estimated to be US$ 13.5 billion in fiscal 2006-07, accounts for 8.3 per
cent of world jewellery sales, according to a study by KPMG.

The industry is well supported by Government policies and the banking sector -- around
50 banks provide nearly US$ 3 billion credit to the Indian diamond industry. In addition,
India is expected to have a diamond bourse soon.

India Advantage

India is the world’s largest diamond processing (cutting and polishing) country with an
estimated 1 million processors handling over 57 per cent of the world’s rough diamonds
by value. According to industry estimates, 11 out of 12 stones (diamonds) set in jewellery
are cut and polished in India. Processing is done on rough diamonds in full range of sizes
and qualities, including stones larger than 10 carats.

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.

8
Exports from the industry fetched US$ 17.1 billion in 2006-07 against US$ 16.64 billion
in 2005-06, showing a growth of 26 per cent. While diamonds accounted for 64 per cent
of the total exports, gold jewellery accounted for 30.47 per cent, coloured gem stones and
others accounted for 1.44 per cent and 1.04 per cent respectively last year.

Cut and polished diamond segment exports were US$ 10.90 billion, while gold jewellery
exports fetched US$ 5.21 billion last year. Coloured gemstone exports yielded US$
246.48 million last fiscal, against US$ 232.35 million in 2005-06.

The growth momentum has continued into the current fiscal. The gems and jewellery
export industry grew by a robust 27 per cent export during the first half of the current
fiscal at US$ 9.4 billion, as compared to US$ 7.4 billion in the corresponding period of
2006, according to the Gems and Jewellery Export Promotion Council (GJEPC).

The growth in diamond exports was 28 per cent, in jewellery it was 21 per cent and in
coloured gemstones, it was 22 per cent. The major destinations for exports have been the
US, UAE, Hong Kong, Belgium and Israel. In fact, the US, UAE and Hong Kong
together accounted for over 70 per cent of the total exports in the previous fiscal year.

Consumption

The increasing levels of disposable household income have resulted in record

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

9
According to the World Gold Council (WGC), India’s gold consumption this year could
in fact cross the 1,000-tonne mark for the first time.

The booming domestic market along with export advantage of the industry and the
Government's decision to allow foreign direct investment of up to 51 per cent in single
brand retail stores has attracted a large number of players to the sector.

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

expansion spree in India and hopes to achieve 5 to 10 per cent of its global
turnover from the country in the next 10 years. The company plans to set up 30
stores by 2009, from the current 13.
• Damas India, part of one of the largest jewellery retail outlets in the world, is
adding 16 new stores to its present dozen stores in India.
• Morgan Stanley, Citigroup, Goldman Sachs and BSMA Ltd. collectively
purchased a 7 per cent stake in Gitanjali Gems for around US$ 27.8 million.
• Goldman Sachs and UBS Securities have acquired 6.28 per cent in Shrenuj & Co
at around US$ 2.07 million and US$ 2 million, respectively.
• Gemology Headquarters International (GHI), a US-based gemological grading
and research laboratory, has opened its first Indian branch at Opera House,
Mumbai.
• Reliance Retail is planning an aggressive entry into the jewellery retail market
through its about 400 to 500 jewellery retail outlets across the country.

Looking Ahead

The booming economy along with the rapid increase in income levels is estimated to
further accelerate the growth of this industry. According to a KPMG study, India’s
growing importance in the global jewellery market is only expected to increase in the
future with total estimated jewellery sales of US$ 21 billion by 2010 and US$ 37 billion
by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per
cent in 2010.

10
STRUCTURE OF JEWELLERY IN INDIA

• Plain gold Jewellery

• Studded Jewellery
• Silver Jewellery
• Costume Jewellery
As was stated earlier, India is the largest consumer of Gold in the world with annual
demand close to 800 tons. It is believed that 90% of this deman is directed towards
manufacturing of jewellery. The bulk of the Indian jewellery buying is still rooted in
tradition and jewellery is sold in traditional designs. Jewellery designs vary in
different regions of India, making the style unique to each region. In South India the
designs are inspired by nature - paisley motif of the mango, rice grains, melon and
cucumber seeds, etc. In Western and Northern India, the Mughal influence can be
seen in the meenakari (enamelling) and kundan work. Jewellery is crafted not just for
humans but also for the deities, ceremonial elephants, and horses. Hence the variety
of gold jewellery in India is truly mind-boggling and bears testimony to the excellent
skills of Indian jewellers of today. Ornaments are made practically for every part of
the body - nose rings, bangles, necklaces and special jewellery for the head, ankles,
waistbands, and so on. 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.

11
SECTOR PROFILE
BRANDED JEWELLERY V/S NON-BRANDED JEWELLERY
BRANDED JEWELLERY
Name and reputation attached to any item gives
a degree of confidence to the consumer.
Branded Jewellery comes with a written
lifetime guarantee, keeping in mind the
emotional quotient of the consumer.
Excellent quality, quality of finish, packaging,
sales force and selling policies and backup
service for their jewellery.
Gives value for money, good quality, good
service, and variety of products and has a good
advertising & continue to do so.
Manufactured in modern factories with
different departments, each devoted to one
aspect of the manufacturing process. Branded
jewellery generally comes only in safe styles.
Can be bought at any time of the year, could
TRADITIONAL JEWELLERY/ NON-
BRANDED JEWELLERY
Traditional Jewellery will also be around where
by consumers tailor-make their jewelry
according to their preferences.
There is no written lifetime guarantee. Trust is
purely based on individual's trust in his
jeweller.
Minimum efforts in packaging, finishing, sales
and low advertising.
Jewellery buying is largely done on 'trust'. A lot
of people who have been buying from their
family jeweler for years marketing campaign.
A one-off item painstakingly crafted by a single
person. Traditional jewellery can be
handcrafted in several styles.
Is bought for specific occasions like marriage,
12
also be impulsive buying. festivals etc.

Manufactured by the lost wax casting process Manufactured by the "Babus" or the cottage
which is more machine based. industry kind of manufacturers.

Run by experienced and new breed Run by traditional jewellers.

manufactures that have prior marketing
background from their business in the export
markets.

Has a more contemporary, stylish and classic Is usually traditional, bulky and ornate.
outlook, which easily segments itself among
the traditional ones.

Most branded jewellery is diamond-studded Traditional jewellery is primarily gold.

jewellery.

Most diamond jewelry is certified for gold and Need not necessarily be certified and comes
diamond content and is sold at an MRP without with a complete break up of the gold and
a break up of the gold and diamond content. diamond content, including making and
wastage charges.

A mark up for the department store/jeweller Is devoid of all these costs.

and a basic markup to cover brand building
costs.

Available in multiple outlets. Available only in the traditional jewellers

outlets.

A large section of gold buyers though, still favor small jeweller families. But huge brand-
building exercises are making people buy jewellery off the counter. Focused advertising,
display and astute salesmanship are being combined to take on traditional jewellers.
Pricing for jewellery is based on the designs, quality of material (metal and diamonds)
and category. By and large branded jewellery does carry a premium over traditional

13
jewellery but then it offers a quality and assurance of purity that is reliable and
guaranteed. However, all said and done, if all quality of diamonds, purity of the metal
and quality of manufacturing is taken into account and we compare an apple for an apple,
then the premium on branded jewellery would be in the range of 8- 10%.

Brands offers the consumer distinctive values. This is true in every product category,
including jewellery. These values could range from trust, distinctive design, specific
product benefits or superb shopping experience. Over a course of time, brands build
strong, long-term affiliations with their consumers because these distinctive values come
to possess timeless appeal. Consumers trust brands, and remain loyal to their favorite
brands.

FAMOUS INDIAN JEWELERY

BRANDS

Giving glitter a name

Readymade and branded jewellery are

becoming increasingly popular, especially
among the young. But there are also some
who continue to trust only the good
goldsmith. Buying jewellery is about trusting
people with: dreams and hard-earned money.
So, the choice of the jewellery is not a non-
issue.

But there has been a marked change in the

tradition of jewellery-making and buying
trends in the last two decades, with
readymade jewellery becoming increasingly
popular. The past few years have also seen
the arrival of branded pure gold, diamond
and platinum jewellery at the market. While the recently introduced brands project their

14
quality and designer value, the older jewellers fall back on their experience and trust built
up over the years.

Many manufacturers have launched jewellery brands in the past 4-5 years but are all of
them clearly identified and focused? This could generally speaking go well for the
industry as this kind of a thrust on branding gives a momentum to the product segment
and the promotions and advertising that goes with it invariably expands the market.
Though in the long run there could be a shake out and a few of the brands may fold over,
the market expansion may stop or even shrink a little but is always far more than the
market size before the branding thrust.

It's the DTC brand strategies for site holders to start new brands and also regional players
that are increasingly looking at launching their own brands, expanding into new markets,
adopting new retail formats and hiring jewellery designers to improve their product
range. However, one of the reasons behind indigenous brand launches could be the desire
to get ready for the foreign brands that could flood the market.

To woo the consumer further, the local players are now setting aside promotional budgets
to entice the brand and quality conscious consumers looking for products backed by
hallmark and guarantee certifications. Freebies and loyalty clubs are the order of the day.
These could range from chauffeur-driven car service to free airline tickets in lieu of
certain spend. Local brands are also tying up with fashion houses to appeal to a wider,
discerning audience. Just like darzis disappeared once the ready-to-wear garments market
matured, smaller jewellery players will close shop and what can we say. ..may the fittest
survive! The demand for branded jewellery is growing in India following the
international trends.

Nakshatra - Powerful Floral Designs

Nakshatra was among the first diamond jewellery brands to be launched in India by DTC
and has today become an iconic brand. The brand has a halo effect on the whole category.
The growth of Nakshatra diamond jewellery over the years has been in line with the
annual growth in the diamond jewellery market i.e. about 15%.

15
Nakshatra has become a benchmark and a point of reference for all other brands entering
the market today and has been instrumental in the growth of branded diamond jewellery
in India. The floral design is a very powerful design concept and has worked well to give
the brand a distinct identity. The consumers can identify e brand very easily and this
makes them more confident of their purchase. Besides this Nakshatra offers a unique
brand experience to the consumer at the point of purchase.

Asmi - For the Modern Indian Woman

DTC's other brand Asmi on the other hand is an offering for the modem
Indian Woman. Launched in the year 2002, the Asmi woman is between
the age group of 25 to 40. Asmi is a collection of diamond designs, inspired
by the fusion of the East and the West, and is characterized by an elegant
curve studded with tiny diamonds highlighting a single diamond as its core.

Sangini - For Special Milestones

DTC's brand Sangini is an offering for the married segment of the market. It has been
positioned as the ultimate gift on special milestones and occasions like anniversaries,
birthdays etc. The brand derives its design from the concept of being the special one to
the spouse. The centre stone of every piece of Sangini Diamond Jewellery is of slightly
larger size than the other diamonds within the piece. This centre stone is also set
differently; its unique Bezel Setting clearly makes it stand out from the other stones set
within the same piece.

Arisia - Diamond Solitaires

Arisia, the niche brand of Diamond Solitaires was launched in 2001. This brand targets
the huge segment of the super elites in India, which incidentally, is also the segment with
the highest rate of diamond acquisition. Arisia comprises diamond
solitaires, from I carat and above in round, princess and emerald cut with
IGI certification.

16
Tanishq - Purity Personified

Tanishq is market leader in India's nascent but rapidly growing market for branded
jewellery. Within eight years of its launch in 1996, Tanishq has built a nationwide
network of 67 exclusive jewellery boutiques in 52 cities and towns across India. Over the
past four years, Tanishq has also grown rapidly, and is today India's largest retailer of
jewellery in the organised branded sector. Tanishq awarded the coveted IFA-Images
"Most admire brand" award for two years consecutively. Last World chose to feature
three Indian brands, transformed the branded space for a woman in Iru was one of these
three chosen brands. Karatmeter stores offer consumers the most reliable non-destructive
way of determining the purity of gold.

Gili - Superbrand

Gitanjali Group is one of the earliest diamond houses in India and today is one of the
largest diamond exporting companies in India. Along with this they also have facet-shops
based on shop concepts. Their collection is doing extremely well with over 1000 outlets
all over India. They believe in creating brands for everyone, through all the ranges.
Recently Gili, was awarded the status of a "Superbrand' for its long-standing tradition of
customer service and constant focus on quality and innovation in design. Each brand has
been introduced keeping in mind the target clientele that it caters to. One of their USPs is
their commitment level with respect to consumers.

Intergold & ORRA

Intergold is part of the Rosyblue Group- the world's largest diamond manufacturing
company with a presence across fifteen countries headquartered in New York. It is the
largest sight holder of DTC. The Group has been the largest jewellery exporter for twelve
years consecutively. Intergold is the only jewellery company in India which has tie ups
with the three leading jewellery organizations namely, DTC, PGI & WGC. Currently
Intergold has 24 stand-alone stores across 15 cities. Intergold showrooms are spread
across the country from Mumbai, Delhi, Chandigarh, Hyderabad, Chennai, Coimbatore,
Rajkot, Baroda, Surat, Ahmedabad, Mumbal, Goa, Pondicherry, Pune, Bangalore, and
Kolkata. Recently InterGold ran campaigns of changing its brand name to Orra after

17
which they realized that this was a wrong step on their part so they planned to keep the
two as separate brand identities.

D'damas -Adding a Hint of Glamour

D,damas is one of the major brands from the Gitanjali group. On the lines of international
trends, where brand ambassadors are roped in to help design the product itself, jewellery
firm, D'damas, roped in Hollywood stars to help design jewellery under the name ‘IIFA
Glitterati collection,’ with the different lines being named after the stars themselves.
Their designers spent ample time with the stars in order to design the jewellery in line
with their personality. The signatures of the stars is laser inscribed in each piece of
jewellery , which has used both white and yellow gold, and the entry-level pricing is Rs
15,000. The company is a joint venture between Gemplus Jewellery and Damas, which
claims to be the largest retailing jewellery brand chain in the West Asia.

Adora -Affordable Diamonds

Adora was born on July 3, 2003 with a big event in Mumbai. Within a month of the
launch, Adora created 3 world records, which was duly endorsed by Limca Books of
Records namely. The 3 records were Biggest Rakhi, Expensive Rakhi & Adora
Interactive Kiosk with an onboard computer with touch screen and Internet to deliver
multiple marketing, sales and promotional functions. The brand was launched in phase
manners. Phase I was Mumbai launch, Phase II was National launch in 9 cities, Phase III
which is currently going on is launch in semi metros and towns of India & Phase IV
would be International launch. The USP of Adora is easy availability, choice &
affordability.

Kiah - From a Beautiful Place

A sight holder with DTC, Sheetal Manufactunng Co (SMC) has the status of being the
world's largest volume manufacturer of polished diamonds with an annual turnover of 1.5
million carats. The company has recently bagged the outstanding export performance
award in the DTC category and has also become a Star Trading House, a recognition
awarded to them by the Government of India. The first retail brand will be "KIAH' an
Australian aboriginal term, which means “from a beautiful place.”

18
Oyzterbay - Jewellery for the Living

Oyzterbay is in retailing apart from running signature stores that showcase precious
metals, gemstones and crafted jewellery designs. It is a young brand at the forefront
of change in the jewellery industry. It was the first to launch a brand catering to the
young new woman of today, with contemporary wearable designs. Oyzterbay's
byline,

"Jewellery for the Living”, epitomizes the ethos of the brand. With 29 stylish and
exclusive stores across the country, and another 20 outlets in department stores, it is the
fastest growing jewellery brand in the country. To date, Oyzterbay, in just over three
years has sold close to 300,000 pieces of jewellery, indicating tremendous acceptability
of the product and the brand.

Carbon - Stylish Designs

Carbon has been an important factor in initiating and bringing about

excitement into this personal domain. Established in 1996, Carbon
launched its first fashion accessory collection ‘Venus’ at the first Carbon
outlet in Shoppers Stop, Bangalore and recently opened its exclusive
boutique in Bangalore. Exploring with accessories that nudged jewellery out of the vault
and into the wardrobe, collections examined the world of fashion, emotion, lifestyle and
helped consumers elevate their personal sense of style.

Design is the sole factor that led to the birth of Carbon, the brand. The Carbon design
studio regards material and technology as a tool or means of expressing the intangible
fashion and lifestyle needs of consumers.

Agni - Anmol... Alp hi ki taraha

Agni is a brainchild of the House of Shoors, nationally renowned jewellers, originally

from Jalandhar, Punjab and presently based in Mumbai. Over a decade and a half of
excellence in creating a range of exclusive gold jewellery gave them a clear insight into
the heart and mind of the Indian customer.

19
As pioneers of the branded gold jewellery segment with Agni, the Shoors intend to drive
their head start across the country to make a beginning towards creating a product that
focuses solely on the customer's benefit and interest.

For the first time in India Agni makes gold jewellery available with MRP regulation.

Platinum Guild International - Promoting Brand Platinum

Platinum is the most precious metal used for branded jewellery. Platinum is pure, an
expression of integrity, a reflection of inner truth. Platinum's purity endows it with a
brilliant white luster. This helps to reflect the true radiance of diamonds. It is rare, the
coveted treasure of discerning individuals. There is very little platinum on this earth and
it is found in very few places around the world. Its density and weight make it more
durable, than other jewellery metals. In addition to its strength and density, platinum has
another remarkable quality -pliability. The Platinum Guild International worldwide under
the Pt logo promotes platinum jewellery.

Cygnus - Diamonds for all

Cygnus is a brand of 18K gold and diamond jewellery in the domestic market. Priced in
the range of Rs.1, 000-30,000, Cygnus is being retailed at lifestyle stores, traditional
jewellers and exclusive franchise outlets. The brand is promoted by Rs.1, 000 crore

Laxmi Diamond Group. The group was set up in 1972, and is the second largest exporter
of polished diamonds in the country.

Ishis - Fusion Diamond Jewellery

Ishi's (which means the Goddess of Wealth) includes a range of diamond

jewellery for the Indian and West Asian markets, with an accent on fusion
design, incorporating traditional designs with modem designs. It is part of
the Suashish Group, which is one of the largest manufacturing site holders
of De Beers. Ishi’s is currently available through its signature outlets in
Mumbai, and Dubai, besides shop-in-shops stores. It plans to have 70 outlets by the end
of the year, and be present in over 500 outlets across the world in the next 10 years.

Bulaire - Champagne Diamond Jewellery

20
Bulaire Champagne diamond jewellery is rare, precious-set in alluring designs to embody
your inner desires, ambitions and aspirations and includes pendants, rings, earrings and
bracelets. The shop-in-shops are located in prominent shopping malls and traditional
jewellery stores. The company hopes it will make sales of $1.1 million within a year from
the jewellery.

Signity -Trendsetters in Cubic Zirconia

Signity is a world-leading brand of Swarovski and Golay specializing in precision-cut

genuine and created gemstones. Signity believes that the finest diamond look-alike ever
developed has to be cut to standards equivalent to those applied for the finest cut genuine
diamonds. So, they asked their most experienced cutters and engineers to determine
precise ideal proportions for their cubic zirconia. To test the validity of their findings,
they send their cubic zirconia stones to a respected independent gemological laboratory
specializing in the machine measurement of diamond brilliance.

Nirvana - Invisible Set Diamonds

Nirvana is targeted at contemporary independent- thinking women. This exquisite but

mid-priced range of pendants, rings and earrings, bracelets is available from Rs.3, 000
onwards. Nirvana uses ‘Invisible-setting’ wax-based setting, which helps set diamond
together without any gaps or joints. The ‘pressure-setting’ technology helps set round
diamonds in amazing designs without any clasps. The absence of visible support gives a
larger/ bigger look and adds luster and fire to the diamond. As proof of its commitment to
quality, Nirvana also offers consumers a lifetime warranty & exchange proposition.

Trendsmith - Bold and Unconventional

Trendsmith, a TBZ-promoted chain of jewellery retail stores holds

the distinction of hosting the largest number of branded and
designer jewellery under a single roof. Trendsmith broke new
ground by transforming jewellery buying from being a traditional
investment into a fashion statement. Trendsmith is an exciting,
innovative endeavor from the House of TBZ-Nirmal Zaveri, a
name with almost hundred and fifty years of expertise in the

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jewellery business. The Trendsmith style of jewellery is renowned for being bold and
unconventional.

Sveni -Creating Ripples

Brand Sveni from the company Shrenuj created ripples in the market and is doing very
well. The brand comprises solitaire rings, earrings, pendants and bangles in gold and
platinum. Sveni Solitaire jewellery comes in the range of 0.50 to 0.89 carat with laser
inscription and IGI certification. Bhavya brand from the same company was also
launched. Bhavya has solitaire rings, earrings and pendants in gold and platinum. Their
solitaire jewellery comes in the range of 0.20 to 0.50 carat with laser inscription and IGI
certification.

Imagem - Jewellery beyond Imagination

The jewellery manufactured by Imagem is a work of art. It is vibrant and made as per
International Standards. Imagem is all about expressions and dreams. Imagem is
‘jewellery beyond imagination’ with the right mix of classic, contemporary and modern
designs. Imagem creations are suited to all preferences from classic to contemporary,
causal to bridal wear. It is the change in the buying patterns of consumers today, who are
willing to posses not just jewellery, that stagnates in the bank lockers but jewellery that
can be adorned and appreciated on a regular basis and yet also be passed down
generations. All collections are backed with a theme that relates to expressions and
dreams.

Sogni O'oro - Rising Star on the Indian Horizon

Sogoi'D'Oro is the brand name of Italindi. It is ltalian jewellery on the

name Italindi that is being imported from ltaly-the hub of jewels and
fashion Sogni D'Oro or in other words “golden dreams” is exactly what the
brand name suggests - that one would want to own for its sheer beauty and
technicality. The jewellery collections are extremely innovative bold and
unconventional. All pieces of jewellery at Sogni D'Oro are either handcrafted or machine

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made that are legally imported from Italy to India. It is manufactured and procured from
all major jewellers who are from famous jewellery towns of Italy namely Vicenza and
Arezzo.

Hammer Plus - Branding Spirituality

Hammer Plus Jewellery as a brand believes in creating market focused

flint jewellery brands as per the market requirements for the retailers.
Hammer Plus believes in the ideology of “We make it happen for you”
by not just creating jewellery but also adding brand value to its products.
Each brand of Hammer Plus has its individual characteristics, a distinct
identity and an image of its own targeted at an audience, based on the
market requirements congruent with merchandising at specific price
points. The brands with adequate support of the various elements of marketing, consumer
research and visual merchandising give each brand a character of its own. Hammer Plus
has a production capacity of nearly 10,000 pieces per month & a total manpower of 200
people in the production department manufacturing brands like Divya Vinayak, Karma,
Ekkam, Tamorri & Vallaya.

Swarovski -The Fashion Brand

Although the company is more than 100 years old, the jewellery range was launched only
in 1977. It specializes in imported crystal components and extensive palette of Swarovski
crystal products to enjoy, towear, to give and to receive. Today the creations are both
fashion/trend inspired as well as a classic range with jewellery designs of the highest
quality. Swarovski in India is on an expansion mode. The product range keeps changing
with time and trends that are forecasted for the forthcoming seasons.

Ciemme - Jewel-in-the-crown Ciemme

is synonymous with exquisitely designed diamond studded jewellery. This international
flagship brand of diamond jewellery is itself a jewel-in-the-crown of the C. Mahendra
Diamond Product Group, catering to the medium to high price market segments. With its
state-of-the art infrastructure and hi- tech manufacturing facilities, Ciemme consistently
meets stringently high quality requirements and delivers never-ending customer

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satisfaction. The Ciemme collection includes, unique designs, generated along concept
lines, featuring rings, pendants, earrings, bracelets, and many more.

Vanshi - One for Everyone

Vanshi Diamond Jewellery is catering to all range of customers. It is positioned as “One

for everyone.” Vanshi Diamond Jewellery is recognized as “Value for Money” apart
from that Vanshi Diamond Jewellery is well known for its unique designs. It is different
from all other brands in terms of designs, craftsmanship, purity etc.

STRATEGIES FOR WOOING CUSTOMERS

TANISHQ

In the late 1990s, players in the branded gold jewellery market formulated strategies for
wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer
of Tanishq, the challenges were many. As the jewellery market was highly
fragmented, lacked branding, and allowed many unethical practices to flourish,
Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by
educating customers about the unethical practices in the business and change the
perception of jewellery as a high-priced purchase. Said Kurian, "We are changing
the attitudes of customers from blind trust to informed trust."

To increase its market share, Tanishq formulated a strategy for luring people away from
traditional neighborhood jewellers. Tanishq's strategy was to create differentiation and
build trust. According to Kurian, the first part of the strategy was "to provide a point of
differentiation in a highly commoditized category - which is the whole point of
branding." The second part of the strategy was to project Tanishq as an unimpeachable
mark of trust. According to Kurian, "If differentiation plays the role of primary attraction,
trust takes care of lifelong loyalty."

One way to create differentiation was through design. The emphasis had to be on design
because local jewellers could offer to design any pattern according to the customer's

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specifications. For a national brand a generic design concept with regional variations had
to be evolved. (Refer Exhibit I for Tanishq's design). For this, Tanishq set up a seven
member in-house design team and also outsourced designs from freelance designers.

The designers traveled the length and breadth of the country to get feedback on Tanishq's
designs and learn about customer preferences. On the basis of this feedback, each
showroom could select the designs it would carry. To stay ahead of competition from
local jewellers, Tanishq decided to focus on quality control. In 1999, it introduced
caratmeters, which showed the purity of gold. In fact, Tanishq's USP was the purity of its
gold. Accordingly, the company's ad campaigns emphasized the purity aspect of all
Tanishq ornaments. (Refer Exhibit II for Tanishq's Ad Campaign)

In November 2002, Tanishq introduced a new collection of jewellery called

'Lightweights.' The collection featured neckwear, earrings, bangles, rings and chains in
22 karat gold with prices starting at Rs 1,100. It also launched Lightweight Diamonds,
with prices starting at Rs 3,000. Tanishq focused not only on urban markets, but small
town markets as well. Real estate was less expensive in the small towns than in large
urban centers. Besides, competition from stores in small towns was less stiff than
competition from the large jewellery stores in the metropolitan cities. According to
Kurian, the best returns on investment came from small towns.

CARBON

Carbon's focus had always been to move jewellery from the vault to the dressing table
and bring the selling of jewellery out of heavily guarded jewellery stores. This was
achieved by persuading a few lifestyle stores to add branded jewellery to their vast array
of products. Besides selling from lifestyle stores, Carbon also sold its products as gift
items over the Internet.

Like Tanishq, Carbon laid emphasis on design. Students at the National Institute of
Fashion Technology (NIFT) through the diploma programme, which the company
sponsored, contributed most of its designs. In addition, Peakok's team of six designers,
(headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the

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U.K., Germany and India) turned out around 180 to 200 styles in a year, with 75 designs
per style. At any point in time, there were around 600 designs of Carbon on sale, and on
an average, 300 to 400 pieces per design were sold. In 2002, Carbon launched its 'Sun
Sign' collection, which was based on the symbols of the Zodiac. This collection was a set
of 12 pendants designed in a blend of 18 carat white and yellow gold (Refer Exhibit III).

While 18 carat gold was commonly used in Carbon products, some of the designs also
used white gold, titanium and steel. Diamond was the preferred precious stone, but other
colored stones were also used. Comprising items of everyday use, (rings, chains,
bracelets, ear studs, tie-pins and cuff links) Carbon items were an impulse purchases.
(Refer Exhibit IV) The brand had no off take cycles in the year, like the marriage season,
unlike traditional jewellery. The creation, manufacture and marketing of Carbon were
different from the making and selling of traditional jewellery. Carbon was attempting to
eliminate the low productivity, quality inconsistencies and high precious metal loss
associated with traditional jewellery making. It has instituted modern manufacturing
practices such as self- contained small groups in the assembly area, self-inspection by the
operators, the Japanese Kaizen approach to improvements in operational practices and the
like. The brand has brought down their manufacturing loss of gold to 6.8 per cent. The
average in the traditional Indian jewellery shop is as high as 22 per cent, while the world
average is only 2 per cent.

As the profile of the average customer likely to purchase a Carbon item was a well-paid
urban professional, 24 to 38 years old, having a credit card, it was decided that Carbon
should not be placed in the usual jewellery shops but made available at `shop-in-shop'
outlets in large lifestyle stores (such as Shoppers Stop, Ebony, Globus, The Bombay
Store, Lifestyle and Taj Khazana) and some premium boutiques (such as the Helvetica in
Chennai). Said Rao, "We are looking at cross-promoting Carbon jewellery with other
branded lifestyle products such as perfumes, clothing and cosmetics." Carbon products
were priced between Rs. 2,750 and Rs. 20,000 per piece. While the cost of traditional
jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform.

OYZTERBAY

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Oyzterbay, with its tag line "Jewellery for the Living", had become synonymous with the
entire gamut of occasions where modern young women would like to wear stylish and
affordable jewellery. Oyzterbay's collection comprised over 1200 designs in 18, 22 and
24 carat gold and sterling silver, with natural colored gemstones. The price of the
jewellery ranged between Rs. 500 and Rs.30000.

The initial focus of Oyzterbay was to give a lifestyle value to jewellery instead of the
traditional investment value. In the second year of its launch, Oyzterbay emphasised on
marketing and advertising strategies to give the necessary thrust for growth. In order to
transform itself from a youth brand to a brand for all occasions, Oyzterbay launched
media campaigns in August 2002 highlighting the new look. The new communication
strategy focused on addressing the 18 to 34 age group instead of the earlier 18 to 24 age
group. The new campaign focused on positioning Oyzterbay as jewellery for office wear,
evening wear or even a fitness session. (Refer Exhibit V) The broadening of focus to
include an older segment was the result of market research which showed that the brand
appealed to middle-aged working women and affluent housewives. The investment in the
new campaign was Rs 50 million.

Where Oyzterbay scored over others was its simple and refreshing designs and
affordability, making it distinct from the usual gold jewellery stocked in standard
jewellery showrooms and contemporary jewellery offered by traditional jewellery houses
trying to cater to the trend. Priyadarshi Mohapatra, Marketing Manager, Oyzterbay, said
"We began by selecting a completely different reach - everyday jewellery for the working
woman and jewellery for the youth. We felt that jewellery should be brought out of the
locker. So we positioned (it) to accessorize the dress of the young, college-going crowd,
which otherwise sported junk jewellery. The second segment was the working woman for
whom we sought to build a wardrobe of jewellery by making it affordable, so that she
could pick up pieces regularly." Oyzterbay later extended the same brand values to
diamonds too, the idea being to target a niche market.

Oyzterbay refurbished its collection every few months, keeping in mind international
trends. By so doing, they were able to offer exclusive products to clients. As part of the
Oyzterbay Summer 2002 collection, it offered pendants, earrings, finger rings, bracelets,

27
neckwear, and chains with natural gemstones set in white gold, as white gold was
evolving as a fashion statement across the world.

Although Ozyterbay was known for its jewellery in gold and sterling silver embellished
with natural gemstones, it decided to launch 'Your First Diamond', a complete range of
diamond jewellery set in white, pink, and yellow gold. The price of the collection started
from Rs. 500 with the most expensive piece not exceeding Rs. 12,000.

GILI

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 company's products were also made available through a mail-
order catalogue. In 1997, Gili launched a collection of traditional Indian ornaments made
of 18-carat gold. In 1999, the Gili Gold range was introduced. This range included rings,
pendants, earrings, necklaces and bangles made of 24-carat gold. All Gili products came
with a guarantee of diamond and gold quality.

When research conducted in February 2000 showed that there was a big gap between the
Rs. 1000 and Rs. 10000 price segment and keeping in view the teenage population, and
the kind of pocket money they had, Gili brought out a collection targeting teens. In 2000,
Gili launched its 'diamond heart collection' targeted at teenagers and priced between Rs
500 and Rs.2500. 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 (Refer Exhibit VI). Special packaging, catchy advertising and
extensive press coverage contributed to the success of the collection. Gili also made
special promotional offers during festive seasons like Christmas and Diwali.

Having captured the low price point market of Rs.2000 to Rs.10,000, in 2000, the
company focused on penetrating the premium market of customized jewellery. For this,

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Gitanjali jewels opened a jewellery salon, Gianti, to provide customized jewellery to
clients in India.

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RECOMMENDATIONS

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CONCLUSIONS

The dissertation will help to study the consumer preference over branded and non-
branded jewellery. The main objectives of the study were to compare between
Branded and Non-Branded Jewellery, to know Consumer perception towards
Jewellery, to know the Major Players of Jewellery industry, to have an idea about
parameters consumer consider while buying Jewellery, to have knowledge about
demographic segments, to know the Marketing strategies used by various jewellery
brands. India is growing at a very fast pace and jewellery sector is one which is
registered to achieve 65% international market by 2010. The jewellery sector is
largely unorganized in India but is changing into organized business because of many
major and influential players entering into the market and have started organizing the
market and focusing all segments of customers such as Tanishq by TATA and Gili by
Gitanjli jewellers etc.

The branded jewellery sectors is only 2-3% of the total jewellery market in India but
most of the brands have been able to make a mark on consumers with their highly
satisfying marketing strategies. The local jewellers or the unbranded jewellers do not
provide any guarantee of the purity and quality but brands such as Tanishq introduced
karometer in their outlets which help the consumer to test the purity of the jewellery.

As jewellery sector is changing, consumer is also changing today they are more
aware, have greater disposable income and want to be more secure. That is why when
given a preference between branded and non- branded jewellery most respondents
choose branded jewellery.

The booming economy along with the rapid increase in income levels is estimated to
further accelerate the growth of this industry. According to a KPMG study, India’s
growing importance in the global jewellery market is only expected to increase in the
future with total estimated jewellery sales of US$ 21 billion by 2010 and US$ 37

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billion by 2015. Diamond jewellery consumption in India is also estimated to jump by
78 per cent in 2010.

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BIBLIOGRAPHY

The magazines and journals referred:-

Solitaire International

Journal of Gem Industry

Web sources:-

www.retailbiz.com

www.business-standard.com

www.valuenotes.com

www.indiandata.com

www.google.com

www.proquest.com

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