CHAPTER-1

INTRODUCTION & HISTORY OF

JEWELERY INDUSTRY

INTRODUCTION
Till the early 1990s, the average Indian bought jewelery for investment rather than for
adornment. Jewelers made of 18-karat gold were not favored as it was considered a poor
investment. Confidence in the local jeweler was the hallmark of the gold jewelery trade in India.
A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith
in his jeweler. Additionally, the local jeweler catered to the local taste for traditional jewelery.
However, since the late 1990s, there was a shift in consumer tastes: women were increasingly
opting for fashionable and lightweight jewelery instead of traditional chunky jewelery. There was
a rise in demand for lightweight jewelery, especially from consumers in the 16 to 25 age group,
who regarded jewelery as an accessory and not an investment. The new millennium witnessed a
definite change in consumer preferences. Branded jewelery also gained acceptance forcing
traditional jewelers to go in for branding. Given the opportunities the branded jewelery market
offered; the number of gold retailers in the country increased sharply. Branded players such as
Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the country. Traditional
jewelers also began to bring out lightweight jewelery, and some of them even launched their inhouse brands. However, the share of branded jewelery in the total jewelery market was still small
(about Rs. 10 billion of the Rs. 400 billion per annum jewelery market in 2002), though growing
at a pace of 20 to 30 percent annually. The branded jewelery segment occupied only a small
share of the total jewelery market because of the mindset of the average Indian buyer who still
regarded jewelery as an investment. Moreover, consumers trusted only their family jewelers
when buying jewelery. Consequently, the branded jewelery players tried to change the mindset of
the people and woo customers with attractive designs at affordable prices. However branded
jewelery players will continue to face lot of competition from local jewelers. In order to gain
market share, they will have to come up with designs that customers want and win the trust and
confidence of consumers by hallmarking and demonstrating the purity of the gold used by them.
To compete with traditional players, branded players must also find some way to differentiate
themselves. While the success of a particular brand will depend on differentiation, affordability
and quality will be a key element in sustaining a brand. In addition, branded players require
focused advertising and astute salesmanship to compete with traditional jewelers. Besides the

major brands- Tanishq, Carbon, Oyzterbay, Gili an Trend smith - several regional players have
opened branches to leverage the trust and reputation that they have built up over the years.

A STUDY ON THE JEWELERY INDUSTRY:INTRODUCTION TO INDIAN JEWELERY INDUSTRY

India is a leading player in the global gems and jewelery market. The gems and jewelery industry
occupies an important position in the Indian economy. It is a leading foreign exchange earner, as
well as one of the fastest growing industries in the country. The two major segments of the sector
in India are gold jewelery and diamonds. Gold jewelery forms around 80 per cent of the Indian
jewelery market, with the balance comprising fabricated studded jewelery that includes diamond
studded as well as gemstone studded jewelery. The Indian gems and jewelery industry is
competitive in the world market due to its low cost of production and the availability of skilled
labor. In addition, the industry has set up a worldwide distribution network, of more than 3,000
offices for the promotion and marketing of Indian diamonds.

Michael Porters Five Force Model for Jewelery Industry

3

 Inter-Firm Rivalry HIGH

Two types of rivalry.
(1) Inside India &
(2) Outside India.
Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000 Diamond
jewelers
International rivals Such as, China
Threat from producing nation like S.A. & Russia.
Bargaining Power of Suppliers Medium
In jewelery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana, Russia,
DTC.
Few Alternatives of cutting & polishing.

 Skilled labor
Bargaining power of India is enhanced because India is largest consumer of gold jewelery.E
S
POTNY
Bargaining Power of Buyers Low
Divided in two types 1. Domestic buyers & 2. Foreign buyers
As investment (Demand increase)
Bargaining power of Indian exporter is high because Majority of the world's rough diamond
production is cut and polished in India.
Threat of Substitutes: Low
Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment and
Other types of jewelery like imitation jewelery, bagasra jewelery, stone jewelery etc.
Second preferred investment behind bank deposit
Status and standard of living increase so demand is increasing at high rate.
Barriers to entry Low to Medium
Low capital requirement
Government subsidy
EXIM policy & governments rules-regulations are high

CHAPTER-2
INTRODUCTION TO THE TOPIC

Jewelry Market in India

6

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading
Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold.
The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely
Exporters in export processing zones were allowed to sell 10 percent of their produce in the
domestic market. In 1993, gold and diamond mining were opened up for private investors and
foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas
banks and bullion suppliers were also allowed to import gold into India. These measures led to
the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market. In the
1990s, the number of retail jewelery outlets in India increased greatly due to the abolition of the
Gold Control Act. This led to a highly fragmented and unorganized jewelery market with an
estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single
shop operations. In 2001, India had the highest demand for gold in the world; 855 tons were
consumed a year, 95% of which was used for jewelery. The bulk of the jewelery purchased in
India was designed in the traditional Indian style. Jewelery was fabricated mainly in 18, 22 and
24-carat gold. As Hallmarking was not very common in India, under-carat age was prevalent.
According to a survey done by the Bureau of Indian Standards (BIS), most gold jewelery
advertised in India as 22-carat was of a lesser quality. Over 80% of the jewelers sold gold
jewelery ranging from 13.5 carats to 18 carats as 22-carat gold jewelery. The late 1990s saw a
number of branded jewelery players entering the Indian market. Titan sold gold jewelery under
the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based jewelery exporter, sold 18 carat
gold jewelery under the brand name Gili. Gitanjali Jewels also started selling 24-carat gold
jewelery in association with a Thai company, Pranda. Su- Raj (India) Ltd. launched its collection
of diamond and 22 -carat gold jewelery in 1997. The Mumbai-based group, Beautiful, which
marketed the Tiffany range of products in India, launched its own range of studded 18-carat
jewelery, Dagina. Cartiers entered India in 1997 in a franchise agreement with Ravissant. Other
players who entered the Indian branded gold jewelery market during the 1990s and 2000-01
included Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).

Gili:
In 1994, Gili Jewelery was established as a distinct brand by Gitanjali Jewels, soon after the
abolition of the Gold Control Act by the Indian government. Gili offered a wide range of 18-carat
plain gold and diamond-studded jewelery, designed for the contemporary Indian woman. The
designs combined both the Indian and western styles and motifs. With sales of Rs.0.14 billion for
the year 2000-01, Gili had a 0.03 percent share of the 400 billion jewelery market in India and a
1.4 percent share of the branded jewelery market.

Tanishq:
In 1984, Questar Investments Limited (a Tata group company) and the Tamil Nadu Industrial
Development Corporation Limited (TIDCO) jointly promoted Titan Watches Limited (Titan).
Initially involved in the watches and clocks business, Titan later ventured into the jewelery
businesses. In 1995, Titan changed its name from 'Titan Watches Ltd.' To 'Titan Industries Ltd.' in
order to change its image from that of a watch manufacturer to that of a fashion accessories
manufacturer. In the same year, it also started its jewelery division under the Tanishq brand.
Among the branded jewelery players in the Indian market, Tanishq is considered to be a
Trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewelery. Realizing that
such jewelery did not sell well in the domestic market, the 18-carat jewelery range was expanded
to include 22 and 24-carat ornaments as well. When Tanishq was launched, it sold most of its
products through multibrand stores. In 1998, Tanishq decided to set up its own chain of retail
showrooms to create a distinctive brand image. By 2002, Tanishq retailed its jewelery through 53
exclusive stores across 41 cities. To meet increasing demand, Tanishq planned to open 70 stores
by the end of 2003 and offer a range of 'wearable' products with prices starting at Rs. 400. With
sales of Rs. 2.66 billion in 2000-01, Tanishq had a 0.66 percent share of the total jewelery market
and a 27 percent share of the branded jewelery market.

Carbon:
8

In early 1991, the Bangalore based Peakok Jewelery Pvt. Ltd., (Peakok) was incorporated and
Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian consumer's
relationship with gold jewelery would grow beyond an investment need towards a lifestyle and
personality statement. In 1996, within the Peakok fold a new brand of 18-carat gold-based
jewelery called Carbon was launched. In 2000-01, with sales of Rs. 0.14 billion, carbon had a
0.03 percent share of the jewelery market and a 1.4 percent share of the branded jewelery
market. The company expected Carbon sales to touch Rs. 1.5 billion by 2005-06 and exports to
start by 2008. The brand was available at 40 outlets in 16 cities in 2002 and would be made
available in 23 cities by 2005.

Oyzterbay:
Oyzterbay was founded by Vasant Nangia and his team in July 2000. It began operations in
March 2001. By November 2002, the company had 41 outlets across the country. Oyzterbay
seeks to build a national brand in the jewelery industry in India and aspires to be the largest
branded jewelery company in the country with a chain of 100 stores and several hundreddistribution points by 2004. With sales of Rs. 0.17 billion in 2000-01, Oyzterbay had a 0.04
percent share of the Rs.400 billion jewelery market and a 1.7 percent share of the branded
jewelery market.

Trendsmith:
Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewelery business
since 1864, saw tremendous scope in the branded segment and opened its new concept store
'Trendsmith' in Mumbai in December 2001. Encouraged by the response towards its first store,
the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over the nation by opening as many
as 50 stores by 2006. Trendsmith offered eight lines of exclusive designer jewelery from wellknown export jewelery manufacturers and designers from Mumbai and Delhi.

BRANDED JEWELERY MARKET (MAJOR PLAYERS)

9

Brand

Market share (2012-13) in %)

Tanishq

27.0

Oyzterbay

1.7

Gili

1.4

Carbon

1.4

Gold Jewelery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewelery for investment rather than for
adornment. Jewelery made of 18-karat gold was not favored as it was considered a poor
investment. Confidence in the local jeweler was the hallmark of the gold jewelery trade in India.
A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith
in his jeweler. Additionally, the local jeweler catered to the local taste for traditional jewelery.
However, since the late 1990s, there was a shift in consumer tastes: women were increasingly
opting for fashionable and lightweight jewelery instead of traditional chunky jewelery. There was
a rise in demand for lightweight jewelery, especially from consumers in the 16 to 25 age group,
who regarded jewelery as an accessory and not an investment. The new
millennium witnessed a definite change in consumer preferences. According to Samrat Zaveri,
CEO of Trendsmith, "Research shows that the Indian jewelery sector is in the transition phase
with consumers' desire for possession of jewelery for its aesthetic appeal and not as a form of
investment." In October 2002, Trendsmith conducted a survey to understand the shifting needs,
motivations and aspirations of consumers in the jewelery market, and to identify new trends and
opportunities. The research study arrived at the following conclusions:
The Indian market was witnessing an accelerated shift from viewing jewelery as an investment to
regarding it as aesthetically appealing ornaments. The focus had shifted from content to design.

10

 The younger generation was looking at trendy, contemporary jewelery and clearly avoiding
heavy, traditional gold jewelery.
The consumer wanted a wider selection at a single convenient location and expected an
international shopping experience.
The Indian consumer was willing to experiment with new designs. The late 1990s and early
2000s, with the increase in the number of designers from design schools such as the National
Institute of Fashion Technology (NIFT), a wide range of new designs became available. In
addition, the growing number of manufacturers needed a retailing platform with global and
national reach. All these led to the proliferation of branded
jewelery players.

Strategies for Wooing Customers;Tanishq

In the late 1990s, players in the branded gold jewelery market formulated strategies for wooing
customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the
challenges were many. As the jewelery market was highly fragmented, lacked branding, and
allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brandbuilding strategy: cultivate trust by educating customers about the unethical practices in the
business and change the perception of jewelery as a high-priced purchase. Said Kurian, "We are
changing the attitudes of customers from blind trust to informed trust." To increase its market
share, Tanishq formulated a strategy for luring people away from traditional neighborhood
jewelers. Tanishq's strategy was to create differentiation and build trust.
According to Kurian, the first part of the strategy was "to provide a point of differentiation in a
highly commoditized category - which is the whole point of branding." The second part of the
strategy was to project Tanishq as an unimpeachable mark of trust. According to Kurian, "If
differentiation plays the role of primary attraction, trust takes care of lifelong loyalty. One way
11

to create differentiation was through design. The emphasis had to be on design because local
jewelers could offer to design any pattern according to the customer's specifications. For a
national brand a generic design concept with regional variations had to be evolved.
For this, Tanishq set up a seven member in-house design team and also outsourced designs from
freelance designers. The designers travelled the length and breadth of the country to get feedback
on Tanishq's designs and learn about customer preferences. On the basis of this feedback, each
showroom could select the designs it would carry.

Brand appeal
Branded jewelery has found a niche for itself in the tough Indian market, and its increasing
growth rates show that before long it will corner a significant share of the jewelery market.
WITH the retail industry in India burgeoning, several companies have made inroads into the
traditional jewelery industry, selling the product that was never really "marketed" in "brand" new
ways. So much so that branded jewelery is the new mantra in the market, having rapidly acquired
a niche over the past few years.
Some of the companies have even cleverly played on Indian customs and tradition to advertise
and establish their brands. Jewelery is now marketed for every occasion; even Valentine's Day
calls for "a special something [diamond] for a special someone". In spite of pessimism about the
marketability of branded jewelery in a country rooted in buying ornaments from the traditional
goldsmith, 30 brands were launched in 2004.
However, this does not take away from the fact that India is a tough market. According to Mehul
Choksi of the D'Damas and Gitanjali Group, branded jewelery has witnessed more than 50 per
cent growth in the last three years. The diamond branded jewelery, he says, is especially
impressive with the segment witnessing a 20 per cent rise annually as against 10 per cent a
decade ago
Although branded jewelery accounts for less than 10 per cent of the Rs.40,000-crore jewelery
market, a study has concluded that it is growing in popularity at a tremendous pace of 20-30 per
cent annually. Such is the potential of this industry that the consulting firm McKinsey estimates
the branded jewelery market in India to grow at the rate of 40 per cent per annum to touch
Rs.10,000 crores by 2010. Big drivers of this kind of jewelery are the numerous malls opening
12

across the country with the emergence of an affluent class following the successful growth of the
new economy companies.
In the past decade, the country has seen a section of the population gaining exposure todesigner
wear, fashion accessories and globally branded products. "Why not have accesses to them?" asks
Rima Khan, a brand executive. "Of course jewelery is harder to brand but it has done well given
the tough competition," she says.
One of the reasons branded jewelery is doing well is that now anyone can walk into a mall,
window shop and decides at their own what they would like to buy. The entire culture of
shopping has changed with attentive and helpful attendants and well-displayed products. "You no
longer have the sales staff who look at you and decide whether you are worth serving or not.
Everyone is a potential customer in the new market," says Rima Khan. Yet the most important
part of branded jewelery is that you can get a piece of jewelery with a diamond for as little as
Rs.1,500. And as branded is equated with quality, you are assured of a good product. "Suddenly
jewelery has become accessible and affordable for all income brackets."
The shift was visible in 2004 when more than 30 players entered the market. Today there are
more than 50 brands, endorsed by models, film actors, sports celebrities and other well known
faces. Some designs of these brands are so popular that local jewelers have begun to copy them.
"While it is a compliment to the industry that people like the product, it could also affect the
company because the cost may be lower," says Rima Khan. The biggest challenge perhaps is in
educating the consumer. Consumers need to understand the four Cs - Cut, Carat, Color and
Clarity. Companies that brand their products place a lot of emphasis on educating and therefore
helping the customer make his purchase. "Buying jewelery is a very personal thing and we need
to understand what we are buying," says
Seema Thakur, an attendant in a jewelery store at a mall in Mumbai. "We have an average of 50
people on a week day and at least 100 on a weekend who walk in and look around the shop. If
you make the product look special, for instance, appeal to a young gentleman to buy it for a
loved one, he is often interested." And the big selling point is: "If you can spen Rs.1,000 on two
music CDs, why not spend for that special person in your life." The branded jewelery industry is
still in its infancy, but increasing growth rates show that in a short time it will corner a significant
13

chunk of the market. Perhaps the best compliment to the branded segment is thatold jewelery
showrooms have also begun to design jewelery lines under a brand name.

Indian Customers Showing Interest in Branded Jewelery

As per our recently published research report Indian Gems and Jewelery Market Future
Prospects to 2011, gems and jewelery market in India posses tremendous potential for future
growth since it has an added advantage of low production cost and highly skilled labor that
separate it from its competitors. It is projected that the overall gems and jewelery market will
grow at a CAGR of around 14% during 2009-2012. India possesses worlds most competitive
gems and jewelery market due to its low cost of production and availability of skilled labor. As
per our new research report Indian Gems and Jewelery Market - Future Prospects to 2011,
highly skilled and low cost manpower, along with strong government support in the form of
incentives and establishment of SEZs, has been the major driver for the Indian gems and
jewelery market. The market also plays a vital role in the Indian economy as it is a leading
foreign exchange earner and accounts for more than 12% of Indias total exports. Currently the
Indian market remains highly fragmented, but is rapidly transforming into an organized sector.
Currently, the industry is facing a slowdown due to global economic turmoil. But due to various
government efforts and incentives coupled with private sector initiatives, the Indian gems and
jewelery sector is expected to grow at a CAGR of around 14% from 2009 to 2012. At present,
the Indian gems and jewelery market is dominated by the unorganized sector; however, the trend
is set to change in near future with the branded jewelery market growing at an expected CAGR
of more than 41% in the coming four years. As per our research report, with its consumption
pegged at nearly 20%, India remains worlds largest gold consumer and this share is expected to
grow further. Given the fact that majority of market share is occupied by family-owned jewelers,
the domination of unorganized segment still continues on the Indian gems and jewelery market.
However, this scenario is gradually changing with the entrance of organized players who
primarily focus on customer satisfaction by giving better and finer quality products. Thus,
consumers are now moving towards branded jewelery which is more reliable in terms of quality
and design. With changing customers attitude towards branded jewelery and entrance of

14

organized players in the market, this segment will grow at much faster pace (annual growth of
more than 40%) than the overall jewelery market in coming years, said a Research Analyst at
RNCOS. The future outlook given in the report is based on past growth trends, current industry
and regulatory developments besides base drivers, opportunities and challenges faced by the
gems and jewelery industry in India.

Traditional v/s Branded jewelers

Introduction
Gems and Jewelery sales and marketing received a facelift with the advent of the supermarket
culture. As organized retail in India progresses to the next lap, Sadanand Subramanian checks for
Diamond World with some precious Industry players about their preparedness and strategy to
achieve maximum mileage As India reacts to a retail revolution, the hitherto sober gems and
jewelery industry seems to have jumped on the bandwagon with a clear plan of action. The
industry has already made a mark by capturing 3 per cent of the organized retail space thanks to
the leadership shown by a handful of companies prepared to dazzle the world. While organized
retail under this segment impressively grows at over 50 per cent annually, deliberations are on to
arrive at what the industry in general must do to keep the customer perennially delighted. The
gems and jewelery market in India is estimated to be about Rs.80,000 crores and the topmost
agenda is to adopt the right strategy to accelerate its growth keeping in mind current global
dynamics. For now the industry faces keen competition from other luxury goods such as
electronic innovations and other personal accessories. How far is it necessary for the gems and
jewelery sector to seriously consider it? There is no doubt that things are a lot more organized in
stores inside malls. They also showcase and present products very attractively. But in my
opinion, real sales take place through traditional jewelery stores as jewelery is mainly sold on
trust. Ghanshyam Dholakia The urgency in the industry indicates rapid changes in the way goods
are produced and marketed. The evolution of new formats for sale and the massive technology
and to some extent, sizeable infrastructural developments taking place all foretell a prospect of
growth way beyond the current overall 10 per cent. The Indian gems and jewelery industry
boasts a strength of over 3 lakh jewelery retailers across the length and breadth of this country.
15

The huge number indicates strength in itself but it also indicates a difficult diversity to grapple
with when exploring common grounds to formulate united approaches to tackle common
concerns.
Organized V/s Traditional Retail:
Comparisons have always been drawn between organized retail and traditional retail. Attempts
have always been made to define them. Rooting for organized retail, Navneet Goenka, ViceChairman of Goenka Diamond and Jewels says, Right now organized retail seems to have
wrested an edge over traditional retail. Goenka argues that the indications to this effect are seen
in the manner large proportions of the society are becoming lifestyle oriented, especially the
younger generation. When considering Indias statistic of having the highest percentage of youth
in the world, this observation cannot be taken lightly. Goenka says that the gems and jewelery
sector is one of the fastest growing segments. He adds, The young generation today has more
disposable income and they are willing to spend it on luxuries of choice.
Ghanshyam Dholakia, partner, Harikrisha Exports holds a different view with regard to the
Tussle for supremacy over the two formats. There is no doubt that things are a lot more
organized in stores inside malls, he concedes. They also showcase and present products very
attractively. But in my opinion, real sales take place through traditional jewelery stores as
jewelery is mainly sold on trust. While explaining his point of view, he adds, To the credit of
traditional jewelery stores they also have upgraded themselves in various ways including the
overall ambience in the last five to ten years. They are also changing themselves in the matters of
presentation and the customer approach. Dholakia says that in promotions and awareness
creation, traditional retailers have realized its importance thereof and have started allocating
sizeable budgets for them. Consequently this section has already started reaping the benefits of
quality promotions by creating awareness about their products and services. Dholakia is some
what emphatic with regard to modern day organized retail citadels, In my personal opinion
malls mainly serve the purpose of promotion and show of products. I dont think a lot of gems
and jewelery sale takes place in malls.

16

Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to
jewelery sales at modern shopping malls. He opines, The sales that take place in a mall are of a
very different kind. You can call it window shopping if you like. Shah elucidates his point, The
young generation often resorts to some impulse buying. He stresses that serious buyers who are
looking for high value purchases for occasions such as weddings prefer to plan their jewelery
shopping and eventually purchase from known reputed jewelers.
Changes in Gems & Jewelery Retail:
Whilst organized retailers are ahead when it comes to taking care of the different aspects in the
marketing and sales value chain, those in traditional retail are also changing or adapting to the
needs of the modern customer in the areas of service and customer care. They too are improving
their style of presenting and dealing with customers. In the past, jewelers didnt have much
modern education. Today, there are a number of MBAs in these families and amongst key
personnel employed by them, points out Ghanshyam Dholakia.
Retailing the Organized Way:
While complementing the planned approach by organized retail, Mahesh Gandani-Head Retail,
Hari Krishna Exports says, We can see that times have changed and somewhere along the way,
the whole approach to marketing has also undergone transformation. Gandani says that for
branded diamond jewelery there is much planning involved. He says meticulous strategy is
charted out, and there is systematic presentation of the product. All this goes on even as a
product portfolio is made and promotions are carried out. Gandani says

creating brand

awareness in the minds of the consumers is all about adopting a few strategic steps. One might
say the difference between traditional and organized is just doing and doing by planning.
Recent developments have been both a boon as well as a bane. Actually, this has spurred us on to
become innovative with our offerings to suit the market. We have actually managed to reduce
cost by adopting the strategy of reducing the volume of gold in some of our products to make it
affordable. Ashwin Shah Speaking about organized retail, V. Muraleedharan, gems and jewelery
professional and visiting faculty at well known management institutes in Mumbai says, The
number of foreign brands coming into India is simply amazing. Brands that were only heard of a
few years ago are today very much within anyones reach here. Muraleedharan goes on to
17

explain, So far people who had only seen traditional offerings have started making intelligent
international comparisons with Indian products and this has brought about real room for retail to
grow a number of times.
Well known brands have always insisted that when they talk about a particular grade, they are
certified. Moreover the quality standard is confirmed and authorized and remains the same in any
laboratory in the world. Muraleedharan says, In my opinion the quality a brand expresses, and
the certification make it easy for a customer to confidently buy the product.
The Value Proposition:
Today everyone is looking for value for money, a new design, a new concept, something very
creative and that is the concept of retail today. It is not like yesterday where the shopkeeper or
the manufacturer used to dominate. Today, the customer is going for customized designs; the
whole concept is changing, says Muralidharan. The consumer is looking for value for money,
when they buy diamonds. They like to buy from reputed players like example Tanishq, Gitanjali,
Goenka, Nakshatra, Kiah and Nirvana. All of whom have achieved very organized presence in
the market today. Each one of them has a standard quality certification internationally and that is
what is going in the minds of the customer when they talk about buying from the organized
sector.

2006

2007

2008 2009

2010

18

2011 2012 2013

2006 2007 2008

SOURCE OF

ROSY

DIFFERENC

BLUE

E
SALES

7200

4832

TARGET

Upper

CUSTOMER

Middle

2009

GITANJALI

2010

2011

TANISHQ

2012

2013

JOY

RELIANCE

ALUKKA

JEWELS

3520

3350

800

Middle

Upper

Middle

Middle

&above

middle

&above

&above

TURNOVER
(in Crores)

&above

&above

MARKETING
STRATEGY

Events

Advertisin

Customer

Theme

Press

Schemes

based

releases

advertisin
g

19

 TRENDS IN JEWELERY
INDUSTRY OVERVIEW
Indian Jewelery market in 2013 was valued at 70,000 cr. INR (Business Standard).
Indias Jewelery market size is US$ 13 billion
Gold Jewelery market CAGR 10 -15%
Diamond Jewelery market growth 27%
India remains in worlds largest consumer of gold.
Exports about $ 17 Million in 2012
Share of India's Gem and Jewelery Sector

About, 96% of Indian Jewelery Market is unorganized. The unorganized sector represents
300,000 traditional retailers or Family jewelers who are present only in one town. The
organized sector accounts to only 4 percent.
20

TODAY
The industry of jewelery has flourished in the past few years due to the increased demand of
fashionable jewelery. The export and import of jewelery has also amplified. People nowadays
have a passion for jewelery which accounts for the growth of this industry all over the world.
Jewelery is used for fashion as well as decoration. In the past jewelery was used to adorn bible
monuments and other decorations were made using different pieces of valuable jewels. A wide
variety of jewelery is available; costume jewelery, fashion jewelery, body jewelery, antique
jewelery, traditional jewelery, modern jewelery and many more.
LATEST TRENDS
a) Recent fluctuations in the stock market, reduced Interest rates made investment attractive on
jewelery.
b) The gems and jewelery industry occupies an important position in the Indian economy.
c) It is a leading foreign exchange earner, as well as one of the fastest growing industries in the
country.
d) The Indian gems and jewelery industry is competitive in the world market due to its low cost
of production and the availability of skilled labor.
e) The industry has set up a worldwide distribution network, of more than 3,000 offices for the
promotion and marketing of Indian diamonds.
f) India is the diamond polishing capital of the world specially the states of Gujarat and
Maharashtra.
g) 100% FDI is permitted in gems and jewelery sector.
h) The growth of Branded Jewelery is eminent in the coming days.

21

MUMBAI (Commodity Online):

Till now, Indian households in villages used to buy gold from their nearby jeweler who used to
be an acquaintance also in most circumstances because the shop owners used to know almost
everybody in the village. But, things are changing fastin India with the onset of reforms. Now,
Indians, the biggest buyers of yellow metal in the world, are increasingly aware of the quality of
gold and they now started looking for the branded jewelery.

This change in trend in Indias urban and rural areas has lured several big names in global
jewelery trade like Cartier to India. Branded gold, diamond and silver jewelery showrooms are
opening up across Indian cities and village towns.
Till now, Indians used to buy gold from the traditional jewelery shop owner whom they trust.
But, with Gen Next Indians having enough disposable income want a change from that and they
are opting for brightly lit showrooms with marble floors, glass display cases and professional
salespeople, preferably at a company whose brand name implies social status and wealth.
Tatas Tanishq opened their first outlet in 1994 and now has 117 showrooms across the.country.
Avenue Montaigne, Indias largest branded jewelery retail outlet, suggests the shift towards
brands reflects social changes, but also new ways of viewing gold. In India, the precious metal is
traditionally given to brides at the time of marriage as a store of wealth providing financial
security
Some of the most famous companies in Western jewelery such as DeBeers, Tiffany and Cartier
have also moved into India since 1997 when overseas banks and bullion suppliers were allowed
to import gold. They are drawn by the enormous size of the market, rising incomes and the
fracturing relationship between buyers and traditional family jewelers. About 15,000 tones of
gold are privately held in India. Demand remains strong despite new records being set for the
price of the metal on an almost daily basis.

22

Premium international brand Cartier launched their plush showroom in New Delhi in 2008 and
also operates through a strong dealer network to sell their jewelery and watches in India.Share of
branded jewelery in Indias total market was growing at a pace of 20-30 per cent annually.
The number of gold retailers in the country has increased by 40 per cent since the year 2000,
with 150 domestic and over 65 international established brands. Reliance has opened 14 jewelery
stores in 13 Indian cities since 2007 and has announced that it will launch showrooms in various
other cities and towns across the country

Indians opting for branded gold jewelery

NEW DELHI: Indians, the world's biggest buyers of gold, are increasingly opting for branded
jewelery, attracting franchisers and foreign groups like Cartier at the expense of traditional
retailers.
Traditionally, most Indians would go to their small family jewelers and sit down on cotton
mattresses with the jeweler and pick out some items.
The process worked on trust built up in some cases over generations between buyer and jeweler,
who would mostly offer products from artisanal designers and producers from his area.
Nowadays, young Indians are opting for brightly lit showrooms with marble floors, glass display
cases and professional salespeople - preferably at a company whose brand name implies social
status and wealth.
"There is a tectonic shift in the business now. If you want your gold jewelery business to survive
- brand it and advertise," said Sandeep Kulhali, vice-president of Tanishq, one of India's oldest
branded retail jewelery chains, owned by the Tata conglomerate. Tanishq opened first outlet in
23

1994 and now has 117 showrooms across the country. "Earlier it was difficult to convince
consumers to buy branded gold," said Kulhali. "These days they come to us expecting better
services, premium quality, exchange policy and attractive offers - like buying jewelery on a
monthly installment basis," he added. Amit Bumb, director of Avenue Montaigne, India's largest
branded jewelery retail outlet, suggests the shift towards brands reflects social changes, but also
new ways of viewing gold.
The precious metal is traditionally given to brides at the time of marriage as a store of wealth
providing financial security. "There is a shift in consumer tastes: working women in the 20 to 32
age group regard jewelery as an accessory and not just as an investment," Bumb said. "It is in
this market that the brand names work."
Some of the most famous companies in Western jewelery such as DeBeers, Tiffany and Cartier
have also moved into India since 1997 when overseas banks and bullion suppliers were allowed
to import gold. They are drawn by the enormous size of the market, rising incomes and the
fracturing relationship between buyers and traditional family jewelers. According to the
International Monetary Fund, about 15,000 tones of gold are privately held in India. Demand
remains strong despite new records being set for the price of the metal on an almost daily basis.
Premium international brand Cartier launched its plush showroom in New Delhi last year and
also operates through a strong dealer network to sell jewelery and watches in India. "We are
happy with the response from buyers in India," said a saleswoman at the Cartie store in Delhi,
who said customers were drawn to the fact the high-end brand stood out from its Indian
competitors.

A study released by the Bullion Association of India in March said that the share of branded
jewelery in the total market was growing at a pace of 20-30 per cent annually. The number of
gold retailers in the country has increased by 40pc since 2000, with 150 domestic and over 65
international established brands, the study said. Faced with the changing dynamics, traditional
jewelers are looking to jump on the "brand wagon" by investing in advertising and trying to build
a presence in the minds of consumers. Traditional jewelers like Notandas & Sons in Mumbai and
24

P C Jewelers in New Delhi have signed up Bollywood heroines as brand ambassadors and also
lend their products to contestants in beauty pageants.

Promotional strategies adopted by Branded Jewelers

Tanishq:
Among the branded jewelery players in the Indian market, Tanishq is considered to be a
trendsetter. Tanishq began with 18-carat jewelery. Realizing that such jewelery did not sell well
in the domestic market, the 18-carat jewelery range was expanded to include 22 and 24-carat
ornaments as well. When Tanishq was launched, it sold most of its products through multi brand
stores. In 1998, Tanishq decided to set up its own chain of retail showrooms to create a
distinctive brand image. As the jewelery market was highly fragmented, lacked branding, and
allowed many unethical practices to flourish, Tanishq worked hard on a twopronged brandbuilding strategy: cultivate trust by educating customers about the unethical practices in the
business and change the perception of jewelery as a high-priced purchase. Tanishqs strategy was
to create differentiation and build trust. Differentiation plays the role of primary attraction; trust
takes care of lifelong loyalty. The differentiation was created through designs. The emphasis had
to be on design because local jewelers could offer to design any pattern according to the
customer's specifications. For a national brand a generic design concept with regional variations
had to be evolved.
Oyzterbay:
Oyzterbay seeks to build a national brand in the jewelery industry in India and aspires to be the
largest branded jewelery company in the country with a chain of 100 stores. Oyzterbay has been
taken over by Rajesh Exports Limited in 2009. Rajesh Exports Limited is one of the largest gold
jewelery manufacturer and distributor in the world.
Trendsmith:
Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewelery businessb
since 1864, saw tremendous scope in the branded segment and opened its new concept store
25

'Trendsmith' in Mumbai in December 2001. Encouraged by the response towards its first store,
the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over the nation by opening as many
as 50 stores by 2006. Trendsmith offered eight lines of exclusive designer jewelery from wellknown export jewelery manufacturers and designers from Mumbai and Delhi.
Gili:
Gili offered a wide range of 18-carat plain gold and diamond-studded jewelery, designed for the
contemporary Indian woman. The designs combined both the Indian and western styles and
motifs. Some of the companies have even cleverly played on Indian customs and tradition to
advertise and establish their brands. Jewelery is now marketed for every occasion; even
Valentine's Day calls for "a special something [diamond] for a special someone". The latest
strategy adopted by leading jewelers of the world is celebration of womens week where in on
purchase of jewelery free gifts like Morellato watches, gift vouchers from VLCC are being
given. The participating companies are Ddamas, Gili, Gitanjali jewels etc... Today there are more
than 50 brands, endorsed by models, film actors, sports celebrities and other well-known faces.
Some designs of these brands are so popular that local jewelers have begun to copy them. The
recent entrant in branded jewelery market is reliance jewels. The marketing strategy that
Gitanjali jewels take up is advertising by having top celebrities as their brand ambassadors.
Tanishq comes up with customer schemes; it also provides jewelery in films to be easily
identified. Movies like Paheli and Jodha Akbar had its lead actresses wearing Tanishq jewelery.
And they also lend their products to contestants in beauty pageants. Reliance jewels marketing
strategy is press releases.

26

CHAPTER-3
REVIEW OF LITRATURE &
RESEARCH METHODOLOGY

27

REVIEW OF LITERATURE
Bianca (2010-12). "Wikileaks, Hacktivism and Brands as Political Symbols Merriam
Associates, Inc. Brand Strategies". Merriamassociates.com. Retrieved 2013-04-29. It was just
a matter of time before the kinds of people who vandalized brand symbols at world economic
summits resorted to brand cyber-vandalism. The Wikileaks hacktivists have targeted and
threatened global brands like Mastercard, Visa, Paypal, Amazon, Twitter and Shell. Gone are
the days when a brand was a simple guarantee of product quality. Brands today play a greater
political, social, and economic role. Brand power extends far beyond products and companies
to symbolize more powerful companies and larger issues.
Robert Pearce. "Beyond Name and Logo: Other Elements of Your Brand Merriam
Associates, Inc. Brand Strategies". Merriamassociates.com. Retrieved 2013-04-29. The most
basic brand elements are a name and a logo. But these alone are not enough to communicate
a rich brand identity. Your own personal identity is more than your name and your face. Your
identity includes personal data like your birthday, place of residence, where you work, and
your phone number. It also includes the sound of your laugh, the way you walk, and the taste
of your most famous recipe. As your own personal identity is multidimensional, so should be
the identity of your brand.
Tan, Donald (2010). "Success Factors In Establishing Your Brand"

Franchising and

Licensing Association. Retrieved from http://www.flasingapore.org/info_branding.php

Though awareness is an important component of branding, it is not the only component in its
success. Many models have been developed over the years to address the respective
components in building a successful brand. But while many have found their way into the
fundamental building blocks of branding, many smaller companies may find such a concept
foreign to them.
Anupindi, Dada, and Gupta (1998) and Conlon and Mortimer (2007) study variation in
consumer choice sets generated by the presence of stockouts. In Katz (2007), the variation comes
from the fact that consumers restrict their attention to a subset of products before making a
choice. This last paper is close to a large body of literature in marketing known as consideration
set literature, focused on incorporating the variation in the consumer choice set into discrete
28

choice models (Manski 1977 was the rst to introduce it). In this literature, two interpretations of
the choice set are possible. First, consumers might be unaware of the existence of some products,
and their choice set consists of all the products they are aware of. Alternatively, consumers might
face cognitive costs or constraints of having to consider a large number of 3The number of
possible choice sets increases exponentially with the number of products.
Goeree (2007) develops and estimates a model to analyze the eect of advertising on the
consumer choice set for the PC market in the United States, where the consumer choice set is
interpreted as all the products the consumer is aware of. Meanwhile, Chiang, Chib and
Narasimhan (1999) assume the second interpretation and propose an integrated brand choice
model that is capable of accounting for the heterogeneity in the choice set and in the parameters
of the brand choice model. Both papers focus on the variation in the choice set across consumers
according to consumer characteristics, and employ a static model My research considers the rst
interpretation of the choice set (all products a consumer is aware of), and the variation in the
consumer choice set comes from the knowledge of the existence of new products.
Conlon and Mortimer (2007), the dimensionality problem arises from the fact that the exact
timing of product stockouts (and therefore the choice set facing the consumer) is not observed.
This feature of the data leads them to use the EM algorithm of Dempster, Lair, and Rubin (1997).
Chiang, Chib and Narasimhan (1999) propose an estimation procedure using an approximationfree Markov chain Monte Carlo procedure. This paper proposes a way to simulate consumer
choice sets suited to deal with the dimensionality problem when the variation in the choice set
comes from being unaware of the new products.
Dixit and Norman, 1978 and Grossman and Shapiro, 1984 Both of them have been previously
studied in a static setting. In a dynamic setting, the eect of advertising on the utility has been
considered theoretically (Friedman 1983, Chintangunta 1993, or Cellini and Lambertini 2003)
and empirically (Dube, Hicks and Manchanda 2005, Ackerberg 2003 or Tan 2007). Most of them
follow Nerlove and Arrow (1962), taking goodwill (the eect of advertising on the utility) to be
a function of the stock of current and past advertising.
Doraszelski and Markovich (2007) are the rst to consider, in a theoretical 4 In the literature,
there is also a distinction made between the informative eect and the persuasive (or
prestige) eect. My reseach focuses on a dierent eect of advertising. I distinguish between
the informative eect of advertising on the choice set, when a product enters the market, and the
eect of advertising on utility. framework, the long-run eect of advertising through the
consumer choice set (which they call awareness advertising). They propose two dierent
dynamic models of advertising, the goodwill and awareness advertising models, to study the
eect of advertising on industry structure. My research contributes to this literature by
quantifying the long-run eect of advertising through the choice set when new products enter the
market.
29

Moral and Jaumandreu (2007) is the closest to this paper in this respect. Working within a
discrete choice demand framework they introduce time eect as a product characteristic to study
the demand price elasticities over product live cycle in the Spanish automobile market. Another
example for an industry with a high product turnover due to intense innovation is Bresnahan,
Stern and Trajtenberg (1997). They study the impact of being a frontier (technological) brand
in the demand price elasticities. In my paper, unlike these papers, the information diusion over
the product cycle is explicitly modeled by introducing variation in the consumer choice set in the
same demand framework.

30

RESEARCH
METHODOLOGY

31

 Research Methodology
Research is initiated by examining the secondary data to gain insight into the problem. The
primary data is evaluated on the basis of the analysis of the secondary data.
DEVELOPING THE RESEARCH PLAN
The data for this research project would be collected through questionnaire. A structured
questionnaire would be framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.
Both type of questions i.e. Open ended and closed ended, would be used.
COLLECTION OF DATA
a) Secondary Data:
It was collected from internal sources. The secondary data was collected from the articles, news
papers, management books, and the internet.
b) Primary data:
They were the main source of Primary data. The method of collection of primary data would be
direct personal interview through a structured questionnaire.
SAMPLING PLAN
Since it is not possible to study whole population, it is necessary to obtain representative samples
from the population to understand its characteristics.
1) Sampling Units: would comprise of men and women.
2) Research Instrument : Structured Questionnaire

32

SAMPLE SIZE

100 respondent

The primary data would be collected from

1) Branded jewelers and
The secondary data would be collected from:
1) Books
2) Magazines/ Project report
3) Internet
4) Articles

33

OBJECTIVES

34

OBJECTIVE OF STUDY
The objective to study the consumers preference towards branded jewelery is to find out
1) The consumers buying preferences
2) The reach of branded jewelers
3) Brand awareness of various brands in the jewelers market
4) The type of promotional strategy adopted to attract their customers
5) When do they plan their promotional strategies, implement them and the effectiveness of the
same.

35

SIGNIFICANCE OF THE STUDY

The gems and jewelery industry occupies an important position in the Indian economy and is one
of the fastest growing industries in the country.
Hence the research conducted would help me
1) Understand the consumers preference while purchasing jewelery
2) How much impact does a brand have on their purchase decision
3) Does price play an important role in guiding their purchase decision
4) The various promotional strategies adopted to combat competition
5) The impact of the promotional strategies.

36

CHAPTER-4
DATA ANALYSIS &
INTERPRETATION

37

Analysis and Findings

The objectives of the study was to understand the consumers buying preferences, the reach of
branded jewelers, brand awareness of various brands in the jewelers market, the type of
promotional strategy adopted by each to attract their customers, when do they plan their
promotional strategies, implement them and the effectiveness of the same. Hence the first
question was to find out the factors that guide a customer while purchasing jewelery which dealt
with nine attributes. The respondents where just asked to tick on the attribute that guided that
purchase decision. The result is as follows.

The diagram below shows the guiding factor of the respondents while purchasing jewelery in
an ascending manner.

38

INTERPRETATION
From the above results an observation can be drawn that out of the 100 respondents 92 of them
feel that price is a major factor that guides their purchase decision. Apart from price purity also is
considered important by 87 respondents, followed by design with 85 respondents feel it is an
important factor. Variety and image are the other important attributes that are considered while
making a purchase decision. Attributes like family and friends, promotions and offers are still not
very popular among the respondents selected for this research. The attributes like service and
display have been selected only by 2 and 5 respondents respectively showing that these are the
least important thing that guide an individual to purchase jewelery.

39

Question 2) dealt with the awareness of various brands of jewelery available in the market. This
question would help find out the percentage of the respondents who are aware a bout brand ed
jewelery.
Yes
100
Table2

No
0

100
90
80
70
60
50
40
30
20
10
0
yes

no

INTERPRETATION
From the above result it can be observed that there is 100% awareness about branded jewelery.
Out of the 100 respondents there is not a single respondent who is not aware about branded
jewelery.

40

Question 3) To find out the popularity of 5 brands. The respondents were asked to tick against
the brands that they are aware about. The 5 brands considered here are Gili, Tanishq, Ddamas,
Oyzterbay, and Trendsmith. These are the prominent brands for gold jewelery there are many
other players but the research is limited to gold jewelery.
Brands
No.OF

Gili

Tanishq

Ddamas

Oyzterbay

Trendsmith

Respondents

100

100

100

84

45

INTERPRETATION
From the above table and figure inference can be drawn that brands like Gili, Tanishq and
Ddamas are extremely popular as they have 100% awareness. Oyzterbay is popular among 84
respondents and Trendsmith that is brand of TBZ is popular with a little less then 50% of the
respondents that is 45%. Oyzterbay has a brand has been discontinued from the market however
as observed it was quiet popular among the population.
41

QUESTION 4) Why the respondent purchases jewelery that is the reason for purchasing. Is it
purchased as an investment option or on occasions, festivals oras a fashion statement?

Investment

Fashion

Occasions

Festivals

34

39

11

16

No of
Respondent
s

INTERPRETATION
34 respondents buy jewelery for investment purpose, 39 respondents look out for fashion or the
latest trends while purchasing jewelery. 11 respondents buy jewelery during occasions like
weddings, anniversary, birthdays etc. and 16 respondents buy jewelery during festivals.
42

QUESTION 5) Which inquires the respondent preference for jewelery that is it branded or
family jeweler.

Preference

Branded Jewelery

Family Jeweler

69

31

No of
Respondents

INTERPRETATION
From the above table it can be observed that 69 respondents prefer branded jewelery and 31
respondents prefer family jewelers. This makes branded jewelery more popular among the
respondents.
QUESTION-6) How many among the respondents have bought branded jewelery.?
43

Branded

Not

Jewelery
No of

Bought

bought

Respondents

78

22

INTERPRETATION
Out of the 100 respondents 78 have bought branded jewelery and 22 have not bought branded
jewelery. However even if these 22 respondents have not bought branded jewelery they are
aware of branded jewelery being sold and also know the brands by their names.

QUESTION 7). Since the sample consist of females and males the next set of question deals with
whether jewelery is bought for gifting purpose
44

If the respondents do buy jewelery for gifting purpose then where is it bought from family
jeweler or branded shops.

Buy jewelery for

Yes

No

30

70

gifting
No of Respondents
Table 7

70
60
50
40
30
20
10
0
yes

no

INTERPRETATION
30 respondents of the 100 buy jewelery for gifting purpose among these 30 12 are men. 70% of
the respondents do not buy jewelery for gifting purpose.
QUESTION 8) The next question was the jewelery purchased for gifting is branded or non
branded and the result found are as under
45

Branded

Family
jeweler

No of

14

16

Respondents
Table 8

INTERPRETATION
14 respondents out of 30 buy branded jewelery for gifting and 16 out of 30 buy jewelery from
their family jeweler for gifting. Percentage wise 46% buy branded jewelery for gifts and 54%
buy jewelery for gifting from their family jeweler.

46

QUESTION 9) Given below are few characteristics of traditional family jewelers (or local
jewelery retail stores). Please give each characteristic some points based on your assessment,
such that the points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of Family Jewelers

Number of points

Convenient

660

Trustworthy

895

Good Investment

775

Price

870

Traditional design

745

This question will help gain an insight as to which parameter of a family jeweler attracts
respondent towards them.
Since the points are given out of 10 and there are 100 respondents each parameter will be out of
1000.

Characteristics of

Convenient

Trustworthy
47

Good

Traditional

Family Jewelers

Number of points

660

895

Investment

Price

Design

775

870

745

Table 9
INTERPRETATION
The respondents were asked to give points on a scale of 1 to 10 where 10 was the highest hence
the total figures are arrived by adding the points given by all the 100 respondents. Hence if the
convenience characteristic was to be taken then it scored 660 out of the grand total of 1000.

The respondents have rated trust aspect of family jewelers high hence it has scored 895. The
respondents also feel that the price charged by the family jewelers is reasonable and hence have
given it decent points i.e. 870. While purchasing jewelery from family jewelers the respondents
consider it to be a good investment. Family jewelers are popular for traditional designs and the
respondents have given it points that add up to 745.

QUESTION 10 ) If you purchase branded jewelery then given below are a few characteristics.
Please give each characteristic some points based on your assessment, such that the points range
from 1 to 10. (1 being the lowest and 10 being the highest).

48

Characteristics of branded

Numberof points

jewelery
Wide range of products under one 663
roof
Shopping experience

590

Trendy and fashionable jewelery

727

Price

673

Since the points are out of 10 and the no of respondents who have bought branded jewelery are
78. Hence the assessment of this question is based on the points given only by these 78
respondents. Hence the total would be 780 and not 1000 here.

Characteristics
of

branded Wide range of Shopping

jewelery

products

under experience

one roof

Number

of 663

Trendy and
Fashionable

Price

jewelery

590

727

points
49

673

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

50

CHAPTER-5
HYPOTHESIS TESTING

HYPOTHESIS
Sign test
Out of the total 100 respondents 69 prefer branded jewelery over non branded jewelery and 3
prefer non branded jewelery over branded jewelery. Making it 69% who prefer branded and 31%
who prefer non branded or family jewelers.
Step 1
51

Setting up the hypothesis

Null hypothesis: Ho: P = O.5 (50 % prefer branded jewelery)
Alternate hypothesis: H1: P 0.5 (More than 50 % prefer branded jewelery)
Where, P respondents who prefer branded jewelery
No. of (+) sign = 69
And Q is respondents who do not prefer branded jewelery
No. of (-) sign = 31
Step 2
1) Calculation of P (+) & q (-):
No. of respondents who prefer branded jewelery =P (+) = 69/100 = 0.69
No. respondents who do not prefer branded jewelery =q (-) = 31/100 = 0.31
Step3
1) Standard deviation= p = pq/n = 0.5 * 0.5/100 = 0.0025 = 0.05
z = p 0.5/ p = 0.69 - 0.5/0.05 = 3.8

52

Significance level () = 5%

From the above diagram, it is seen that the null hypothesis is rejected because The z value (3.8)
lays outside the acceptance region i.e. +1.64, hence the null hypothesis that states that 50% of
respondents prefer branded jewelery is rejected and the alternate hypothesis which states that
more than 50% respondents prefer branded jewelery is accepted.

53

CHAPTER-6
FINDING, SUGGESTION, &
CONCLUSION

54

FINDINGS
1) Consumer prefers the branded jewelry instead of non branded jewelry.
2) Consumer trusted that branded jewelry provide purity in their jewelry.
3) Branded jewelers provide warrantee for a long period of time.
4) Branded jewelery is bought by more than 3/4th of the population.
5) The level of satisfaction that the population has towards branded jewelery is a higher.

55

SUGGESTION
1) Jewelry seller has to cut some prices to increase the sale.
2) Sellers should provide more purity in their products.
3) Sellers have to advertise their products in rural area also.

56

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

57

4. Branded jewelery is bought by more than 3/4th of the population. Hence it can be said that the
population is aware and has also tried these brands.
5. When jewelery is bought for gifting purpose the population still wants to buy it from their
family jewelers.
.
6. The level of satisfaction that the population has towards branded jewelery is a higher.
7. These branded jewelers have become popular for latest and trendy jewelery. Also the prices
that the branded jewelers charge is justified and they provide a wide range of products under one
roof.
8. The level of satisfaction that the population has for branded jewelery is higher.

58

CHAPTER-7
ANEXTURE & BIBLIOHYGRAPHY

59

ANEXXTURE
Name:
Telephone number:
Age:
1) Factors that guide you while purchasing jewelery?
 Design

 Price

 Promotions and offers

 Purity
 Service

 Brand Image  Variety  Display

 Family and friends influence

2) Are you aware of the various jewelery brands available in the market?
 Yes
 No

3) Tick against the brands that you are aware about in the jewelery market
 Gili  Tanishq

 Ddamas

 Oyzterbay

 Trendsmith

4) You buy jewelery for

60

 Investment

 Fashion

 Occasions

 Festivals

5) Which jewelery do you prefer?

 Branded

 Family Jeweler

6) Have you bought any branded jewelery?

 Yes

 No

7) Do you buy jewelery for gifting purpose?

 Yes

 No

8) Where do you prefer to buy the jewelery from (for gifting)?

 Branded

 Family Jeweler

9) Given below are few characteristics of traditional family jewelers (or local jewelery retail
stores). Please give each characteristic some points based on your assessment, such that the
points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of Family Jewelers

Number of points

Convenient

660

Trustworthy

895

Good Investment

775

Price

870

Traditional design

745

61

10) If you purchase branded jewelery then given below are a few characteristics. Please give
each characteristic some points based on your assessment, such that the points range from 1 to
10. (1 being the lowest and 10 being the highest).

Characteristicsof Branded Jewelers

Number of points

Wide range of products under one roof

663

Shopping experience

590

Trendy and fashionable jewelery

727

Price

673

62

 Question as per seller point of viewName of the store:

Name of the owner:
Number of years into this business:
11) Are you aware about jewelery being sold through brands?
 Yes

 No

12) Has your business been effected by the latest trend of branded jewelery?
 Yes  No
13) Have you adopted any strategy to increase your sale to fight competition?
 Yes

 No

14) Which type of strategy have you adopted?

 Discounts

 Cash back

 Zero making charges

 Gifts

 Others (please specify)

15) When do you plan such offers?

 Festivals

 Wedding seasons

 off season

16) Have your sales picked by after adapting these strategies?

 Yes

 No

17) Is there anything else (apart from the points mentioned above) that you do to attract
new customers and retaining your loyal customers please speci

63

BIBLIOGRAPHY

64

BIBLIOGRAPHY

1) http://www.scribd.com/doc/19901085/Jewelery-Companies-Comparison
2) http://www.commodityonline.com/news/Branded-gold-jewelery-shops-lure-Indians- 23837-31.html
3) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902
4) http://www.diamondworld.net/contentview.aspx?item=2465
5) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html
6) http://www.icmrindia.org/casestudies/catalogue/Business %20Strategy1/BSTR041.htm
7) http://www.rncos.com/Market-Analysis-Reports/Indian-Gems-and-Jewelery-Market- FutureProspects-to-2011-IM148.htm
8) http://www.allheadlinenews.com/articles/7017272531
Newspapers:
1) The Times of India
2) The Economic Times

65

66