To Study The Retail Jeweler'S Importance Towards Selling Branded Jewellery
To Study The Retail Jeweler'S Importance Towards Selling Branded Jewellery
To Study The Retail Jeweler'S Importance Towards Selling Branded Jewellery
ABSTRACT
The previous research done on branded and non branded jewellery markets are
1) Indian Gems and Jewellery Market - Future Prospects to 2011
2)
I. INTRODUCTION
Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery
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 jewellery 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 jewellery.
However, since the late 1990s, there was a shift in consumer tastes: women were increasingly opting for
fashionable and lightweight jewellery instead of traditional chunky jewellery. There was a rise in demand for
lightweight jewellery, especially from consumers in the 16 to 25 age group, who regarded jewellery as an
accessory and not an investment. The new millennium witnessed a definite change in consumer preferences.
Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding. Given the
opportunities the branded jewellery market offered; the number of gold retailers in the country increased
sharply. Branded players such as Tanishq, Oyzterbay, Kisna and Carbon opened outlets in various parts of the
country. Traditional jewelers also began to bring out lightweight jewellery, and some of them even launched
their in-house brands. However, the share of branded jewellery in the total jewellery market was still small
(about Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20
to 30 percent annually. The branded jewellery segment occupied only a small share of the total jewellery market
because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover,
consumers trusted only their family jewelers when buying jewellery. Consequently, the branded jewellery
players tried to change the mindset of the people and woo customers with attractive designs at affordable prices.
However branded jewellery players will continue to face lot of competition from local jewelers. In order to gain
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market share, they will have to channelize new business concepts with local retailers.
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IV. HYPOTHESIS
1)
V. RESEARCH METHODOLOGY
The data for this research project is collected through questionnaire. A structured questionnaire is 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, is used.
45 Retailers
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Source:-Primary Data
Interpretation:32% of the retailers said customers usually prefer gold jewellery, 20% of them said Biscuits, 31% of them said
coins and 17% of them said customers prefer raw form(others).
Source:-Primary Data
Interpretation:94% of the retailers feel that the pricing strategies are important and 6% of them feel pricing is not important
while deciding the MRP .
Source:-Primary Data
IX. CONCLUSION
1.
The guiding factor behind purchasing jewellery is price, purity, trust factor and design which score the
maximum. Other factors are variety, the brand image, influence of family and friends. Hence when a
customer goes to buy jewellery they do keep the price in mind followed by the purity and the trust factor.
Factors like service given by the shop or by the jeweler and the display do not have a very big impact on the
customers.
2.
As stated in the literature review that there was a shift in consumer tastes: women were increasingly opting
for fashionable and lightweight jewellery instead of traditional chunky jewellery. Is proved to be correct by
this research as respondents have selected fashion over investment while purchasing jewellery. Now
jewellery is regarded as more of an accessory and less of an investment.
3.
Branded jewellery is preferred by maximum jewellers. Hence it can be said that the population is aware and
must have tried the brands available at retail outlets.
4.
Festival seasons has experienced the maximum sale, that means traditional approach still continues in
certain aspects.
5.
The jeweler does prefer to sell branded jewellery and companies have larger scope to explore the markets
like Mumbai.
6.
Pricing strategies play vital role from retailers point of view, while coins and biscuits has larger scope in
comparison to gold jewellery.
7.
Apart from gold and diamond jewellery, gold biscuits and gold coins have better preference within consumer buying
behavior, which can be threat for Branded companies.
X. RECOMMENDATIONS.
1.
Since maximum retailers believe in stocking Branded jewellery, Companies have larger scope of selling
branded jewellery.
2.
Retailers have experienced better sales in branded jewellery, to boost the motivation of retailers, branded
companies need to concentrate more on such distribution channel through various modes of motivational
factors.
3.
Young educated generation prefers buying branded jewellery, which can be used as the weapon by
companies and start mode of educational communication to tab the other market that motivates buying
pattern of branded jewellery.
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4.
Retailers have started their own websites, which means companies have better opportunity towards
channelizing their distribution network with such retailers that will enhance the availability of thier branded
jewellery at a larger scale.
5.
Since maximum number of customers visit retail shop because of the trust factor rather than service and
other means, companies have better opportunity of selling their branded jewellery through retailers.
6.
Since retailers have started coming up with different marketing campaigns apart from general discounts on
making charges, Branded companies have better scope to implement such campaigns at larger scale in coordination with the retailers.
7.
October to December has experienced the major sales among retailers, which means it has to focus on other
quarters by means of marketing campaigns to generate the sales.
XI. BIBLIOGRAPHY
Secondary data collected from the internet. The web sites are:
1) http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm
2) http://www.flonnet.com/fl2223/stories/20051118003809800.ht
3) http://www.pressabout.com/indian-customers-showing-internet-in-branded-jewellery-24860/
4) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison
5) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians-23837-3-1.html
6) http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR041.htm
7) http://www.rncos.com/Market-Analysis-Reports/Indian-Gems-and-Jewellery-Market-Future-Prospects-to2011-IM148.htm
8) http://www.allheadlinenews.com/articles/7017272531
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