Consumer preference over branded jewellery and non branded jwellery

1
Project L FfI b a. blo s j. rat. co m

Project f o r ba. bt og o t. corn
SYNOPSIS FOR DISSERTATION SUBMITTED TOWARDS THE
PARTIAL FULFILLMENT OF POST GRADUATE E DEGREE IN
INTERNATIONAL BUSINESS
CONSUMER PREFERENCE OVER
BRANDED JEWELLERY AND N ON-
BRANDED JWELLERY
SUBMITTED BY:
2

AMITY INTERNATIONAL
BUSINESS SCHOOL,
NO1D
A
AMITY UNIVERSITY
UTTAR PRADESH
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Prof ect f o r ba. bt og o t. corn
TABLE OF CONTENTS
Chapter No. Subject Page No.
Introduction._ ..................
Research Methodology
Primary Objective(s).........................................
Hypothesis ........................................................
Research D e s i g n _ _ ....................................
Sample i n.................................................
Data ..................................................................
Critical Review of.................................................
Literature. ...hector Profile .................................
~ n lusi n..............................................................
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INTRODUCTION
India has a historic relationship with Jeweller-y.
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 g
old.
Apart from its historical religious significance, Jeweller
is valued as an important
savings and investment vehicle in India. Even in present times. Jewellery remains the
Indian bride's ' trecdhan ', the wealth she takes with her when she marries and which
remains hers. Gold j ewell cry is the preferred jewellery wore 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 at birth. marriae,
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
jcwcller v business in India is estimated to be at Rs 50.000 crorc. 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
Project L Fflr b a . b/o s j. ()Leon' 5

crorc. 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
casing its stranglehold on the Indian consumer psyche to give way to diamonds, platinum
and coloured gemstones. The wa~4F
jewellery was worn before is undergoing a tremendous
change. Traditional designs arc yielding to modem jewellery. heavy gold is giving way to
light and simple designs. Consumers are more quality conscious than ever before. The
jeweller' 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
stratcgisc 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 jeweller
customer in many w a s 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 l these reasons and more ensure that the modern Indian woman is looking for jewellery
from a perspective different from the past. I n addition, organised retailing offers quality
products, follows standardised practices and uniform pricing strategy, Organised retail
formats work on transparent policies that are not necessarily available at the traditional
jewellery shops. Today, goods and services offered by any retailer are strongly driven by
their identified Target Group (TG). There arc several examples of retailers who arc
drawing
in consumers either across a wide swathe or a seg
ment of socio-economic
classification, clearly defined by them. This has been the first step towards organised
jeweller' retailing in India. I n a short span of time, organised retailers have successfully
implemented a change in the buying pattern of the Indian consumer. This is evident from
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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.
L SEARCH METHODOLOGY
Statement of objectives
1. To compare between Branded and Non-Branded Jewellery.
To know Consumer perception towards Jewellery .
To know the Major Players of i ewell erv industry.
To have an idea about p
arameters 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 surve Fs 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
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e/o s j. rat. coin 7

consumer perception for branded jewellery and non-branded jewellery and their
preferences over i t . I t is good for examining consumer behaviour in the current trends of
jeyell erg
' sector.
TYPE OF RESEARCH:
E P L C T C } I
QUALITATIVE
SAMPLING FRAME:
I OI MA
DELHI REGIONS SUCH AS LAJPAT NAGALSOUTH EXTENSION,NEW
FRIENDS COLOI i I ET ETC
Data Collection
The research study will be accomplished through in-depth review and analysis of
secondary information available in the published fomL which includes data from
textbook, journals, management reports seminar papers etc. The electronic data
and results of surve F s 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.
Primar F data was basicall F collected by conducting survey through a
questionnaire (Sample siie=5O-1 OU) and area of conducting survey was New
Delhi AND NCR. The research design was exploratory and descriptive.
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CRITICAL REVIEW OF LITER%TURE
Gems and Jer
eller-'
The Gems Jeweller' Industry is one of the fastest g
rowing
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 ab out 1 1 percent in the five-
year period preceding 2006-07. It also contributes over 1.5 per cent of India's total
exports and provides employment to 1.3 million people directly and indirectly.
The two major segments of the sector in India are gold jewellery and diamonds. Gold
jeweller ' 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 00 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
jeweller
market, estimated to be L F 13.5 billion in fiscal 2 0 0 6 - 0 7 , 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 LASS 3 billion credit to the Indian diamond industry. In addition,
India is expected to have a diamond bourse soon.
India A than ta e
India is the worlds 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, 1 1 out of 12 stones (diamonds) set in jewellery
arc cut and polished in India. Processing is done on rough diamonds in full range of sizes
and qualities, including stones larger than 10 carats.
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Prof ect for ba. bt og o t. corn
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.
E j . Torts
After making its mark in the world diamond processing industry, India is well on its way
to becoming the leading global gems and jewellery hub. India's gems and jewellery
industry is now on a high growth trajectory.
Exports from the industry fetched USS l 7.1 billion in 2006-07 against USS 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 USS 10.90 billion, while gold jeweller y
exports fetched USS 5.21 billion last year. Coloured gemstone exports yielded USS
246.48 million last fiscal, against U 23235 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 USS 9.4 billion, as compared to USS L4 billion in the corresponding period of
2006, according to the Gems and Jewellery Export Promotion Council (GJ EP C) ,
The growth in diamond exports was 28 per cent, in j sw
ell ery 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
Kon . Belg
ium 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.
Cons um j (ion
Projec(L rnI b a. b/o s j. (0. co m
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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. Jeweller
demand
increased to 387 tonnes from 227 tonnes during the period.
Also, gold consumption during the first six months of 2007 grew by 70 per cent to 528
tonnes compared to 307 tonnes in the same period last year. India's total gold
consumption in 2006 was slightly over 700 tonnes. While jewellery accounted for around
73 per cent of gold demand_ investments in the forms of coins and bars accounted for the
rest.
According to the World Gold Council (W(;[')_ 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.
warovski, 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 l 3 .
· Damas India, part of one of the largest jeweller F 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 USS 27.8 million.
· Goldman Sachs and UBS Securities have acquired 6.28 per cent in Shrenuj Co
at around U 2.07 million and USS 2 million, respectively.
· Gemology Headquarters International (GHI ), a US-based gemological grading
and research laboratory, has opened its first Indian branch at Opera House,
umbai.
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· Reliance Retail is planning an aggressive entry into the jewellery retail market
through its about 400 to 500 je •
w
eller ' retail outlets across the country.
Looking Ahead
The booming economy along with the rapid increase in income levels is estimated to
further accelerate the g
rowth of this industry. According
to a KPMG study, India's
growing importance in the global jewellery market is only expected to increase in the
future with total estimated jewellery sales of U 21 billion by 2010 and U 37 billion
by 2015. Diamond jewellery consumption in India is also estimated to jump by 78 per
cent in 2010.
STRUCTU OF JEWELRY IN INDIA
· Plain gold Jewellery
Studded J c cll ery
· Silver J ewel lery
· Costume Jewellery
As was stated earlier, India is the lamest 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 jeweller
y 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 arc 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
12

even 1-karat is not favoured, as the mindset does not accept low purity gold
13

jeweller
. v, 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, 1 karat has become acceptable.
SECTOR PROFILE
BRANDED JEWELLERY V/S NON-BRANDED JEWELLERY
: ' :, f :,
TRADITIONAL JEWELLERY/ NO N-
BH BRANDED JEWELLERY
Name and reputation attached to any item
gives
a degree of confidence to the consumer,
Traditional J e yell er y will also be around
where
by consumers tailor-make their jewelry
according to their preferences.
Branded Jewellery comes .
with a Nvritten
lifetime guarantee, keeping in mind the
emotional quotient of the consumer.
There is no'vritten lifetime guarantee. Trust is
purely based on individual's trust in his
jeweller.
Excellent quality, quality of finish_ packaging.
sales force and selling policies and backup
, service for their je eller .
Minimum efforts in packaging_ finishing_ sales
and low advertising,
Gives value for money, good quality good
service, and variety of products and has a good
advertising continue to do so.
i m a m ' buying is largely done on 'trust'. A lot
of people who have been buying from their
family jeweler for years marketing campaign.
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Manufactured in modern factories with
different departments, ca h devoted to one
aspect of the manufacturing process. Branded
, jewellery generally comes only in safe styles.
A one-off item painstakingly crafted by a single
person. Traditional jewellery can be
handcrafted in several styles,
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C an be bought at any ti rm~e of the year. could
also be impulsive buying.
I s bought fo r specific occasions like marriage_
festivals etc.
I tanufacturcd by the lost Nvax casting process
which is more machine based.
I tanufacturcd by the "Babus" or the cottaLc
industr y kind of manufacturers.
Run by experienced and new breed Run by traditional je w
ellers,
manufactures that have prior marketing
background from their business in the export
markets.
Has a more conterm porary, stylish and classic
outlook_ which easily segments itself among
the traditional ones_
I s usually traditional_ bulky and ornate.
Most branded jewellery is diamond-studded
jewellery,
Traditional jewellery is primarily gold.
Most diamond jewelry is certified for gold and
diamond content and is sold at an MRP without
a break up of the gold and diamond content.
Need not necessarily be certified and comes
with a complete break up of the gold and
diamond content_ including
making
and
wastage charges.
A mark up for the department store /jeweller
and a basic markup to cover brand building
costs.
Is devoid of all these 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.
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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
jewell erv but then it offers a quality and assurance of purity that is reliable and
guaranteed. However, all said and done, if all l 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 banded jewellery would be in the range of - 10%.
Brands offers the consumer distinctive values. This is true in ever T 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.
17

FAMOUS
INDIAN ,l
EWEL ER
BRANDS
Giving glitter
a name
Read made and
branded jewellery
arc
becoming
increasingly
popular,
especially
among
the young
.
But there are also
some
who continue to
trust only the
g
ood
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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 chang
e in the
tradition of jewellery-making and buying
trends in the last two decades, with
read made jewellery becoming increasingly
popular. The past few years have also seen
the arrival of branded pure gold, diamond
l 19

and platinum jewellery at the market. while the recently introduced brands project their
quality and designer value, the older jewellers `all 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 i n c t 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 n m markets,
adopting new retail formats and hiring jewellery designers to improve their product
rang
e. However, one of the reasons behind indig
enous brand launches could be the desire
to g et ready for the foreign bands 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 arc the order of the day.
These could rang
e 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 jeweller' players will close shop and what can we say, _may may the fittest
sur v
ivel The demand for branded jewellery is growing in India following the
international trends.
Nakshatra - Puwer'ul 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 vhole 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%.
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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 jeweller y
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
D T ' s other brand Asmi on the other hand is an offering
for the modem
Indian Woman. Launched in the year 200 2i 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 eleg
ant
curve studded with tiny diamonds hig
hlig
hting
a sing
le diamond as its core.
Sangini - For Special Milestones
ITC's brand San2ini is an offering
for the married seg
ment of the market. I t 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 San6ni Diamond Jeweller
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 targ
ets
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
Iai certification.
21

Tanishq Purity Personified
Tanishq is market leader in India's nascent but rapidly growing market for branded
jewellery, Within eight wears of its launch in l 9W Tanishq has built a nationwide
network of 67 exclusive jeweller
- 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
jeweller' in the organised branded sector. Tanishq awarded the coveted I F -Images
"Most admire brand" award for m o years consecutively. Last world chose to thaturc
three Indian brandsi transformed the branded space for a woman in Iru was one of these
three chosen brands. = m e t e r stores offer consumers the most reliable n~ori-destructive
way of determining the purity of gold.
Dili y Superbrand
tai tare ali 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. Thee believe in creating
brands for everyone, throug
h all the rang
es.
Recently was awarded the status of a " uperbrand' 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 LI Ps is
their commitment level with respect to consumers.
Intergold ORRA
Intergold is part of the l osyblue 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 DTI,
. The Group has been the largest j ewell cr y exporter for twelve
years consecutively. Intergold is the only jeweller
v company in India which has tie ups
with the three leading jewellery organizations namely, DT C PGI fir'(;[,
. Currently
Intergold has 24 stand-alone stores across 15 cities. Intergold showrooms are spread
across the co untrv from I umbai. Delhi, Chandigarh, Hyderabad, Chennai, C oimbatore,a t i . w
I aj ot, Baroda, Surat, Ahmedabad, Mumbal, Goa, Pondicherr ', Pune, Bangalore, and
Kolkata. Recently I nterGol d ran campaigns of changing its brand name to Orra after
22

which they realized that this was a wrong step on their part so they planned to keep the
m o as separate brand identities.
D"lamas -Adding a Hint of Glamour
D.damas is one of the major brands from the a itanjal i group. On the lines of international
trends, where brand ambassadors are roped in to help design the product itself. jewell cry
firm. D'damas, roped in Hollywood stars to help design jewellery under the name 'UFA
dal itterati 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 G empl us Jewellery and Damas. which
claims to be the largest retailing jewellery brand chain in the Vest 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 Nvith an onboard computer Nvith 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 g
oing
on is launch in semi metros and towns of India Phase IV
would be International launch. The LJP of Adorn is easy availability, choice
affordability,
Isiah - From a Beautiful Place
A sight holder with DTI', Sheetal Manufactunng Co ( M C ) has the status of being the
w
orld'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 DTI' categ
ory and has also become a Star Trading
House, a recog
nition
awarded to them by the Government of India. The first retail brand will be "MAW an
Australian aboriginal term. Nvhich means from a beautiful place "
23

Oyzterbay - Jewellery for the Living
yzterba 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. yzterbay'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.
Desig
n is the sole factor that led to the birth of Carbon, the brand. The Carbon desig
n
studio regards material and technology as a tool or means of expressing the intangible
fashion and lifestyle needs of consumers.
A ;ni - Anmol... Alp hi lei taraha
Agni is a brainchild of the House of boors, 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.
Project L FfI b a . b/o s j. ()Leon' 1

As pioneers of the branded gold jeweller' 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 MR P regulation.
Platinum Cuild International - Promoting Brand Platinum
Platinum is the most precious metal used for branded jewellerv
, 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 in ividuals. There is very little platinum on this earth and
it is found in very few places around the world Its densi t and weight make it more
durable, than other jewellery metals. In addition to its strength and density, platinum has
another remarkable quality -pli abil i t . The Platinum Guild International worldwide under
the Pt logo promotes platinum jewel] er y.
Cygnus - Diamonds for an
Cyg
nus is a brand of 18K gold and diamond jewellery in the domestic market. Priced in
the rang
e of 1 s . 1 , 0 0 0 - 3 0 . 0 0 0 , Cyg
nus is being
retailed at lifestyle stores, traditional
jewellers and exclusive franchise outlets. The brand is promoted by fp
s, l , 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 Jeweller T
Ishi's (which means the Goddess of Wealth) includes a range of diamond
jewellerv
for the Indian and West Asian markets, with an accent on fusion
design, incorporating traditional designs with modem designs. I t is part of
the Suashish Group, which is one of the largest manufacturing site holders
of De Beers. Ishi's is currently available throug
h its sig
nature 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 Nears,
P r o j e c t s f i w m b a . b / o s j . ( 0 . c o n 25

Bulaire - Champagne Diamond Jewellery
P r o j e c t s f i w m b a . b / o s j . ( 0 . c o n 26

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
j e e l l ert stores. The company hopes it will make sales of 1.1 million within a year from
the jewellery,
Siu
nitv -Trendsetters in Cubic Zirconia
Signity is a world-leading brand of Swarovski and Golay specializing in precision-cut
g
enuine and created g
emstones, Si2nitv 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 gemologi cal l aborator-y
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 i s . 3 i 000
onwards. Nirvana uses `Invisible-setting'
Fax-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 warrants' exchange proposition,
Trendsmith - Bold and Unconventional
Trendsmith, a TB -promoted chain of jewellery retail stores
holds
the distinction of hosting
the lamest 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 T B -I irmal Zaveri, a.
Project L FfI b a. b/o s j. rat. con 27

jeweller' business. The Trendsmi th style of jewellery is renowned for being bold and
unconventional.
Sveni -Creating Ripples
Brand Svcni from the company Shrenuj created ripples in the market and is doing very
well The brand comprises solitaire rings, carringsi pendants and bangles in gold and
platinum. Svcni 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 rin s, 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.
I ntagent - Jewellery beyond Imagination
The jewellery manufactured by Imagcm is a'work of art. It is vibrant and made as per
International Standards. Imagcm is all about expressions and dreams. Imagcm is
jewellery beyond imagination' with tic right mix of classic, contemporary and modern
designs. Imagcm creations are suited to all preferences from classic to contemporary,
causal to bridal wear. I t 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 jewellers
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 Q "oro - Rising Star on the Indian Horizon
Projects rm b a. b/o s j. rat. con 28

So2oi'D'Om is the brand name of Italindi. It is
Italian jewellery on the
name Italindi that is being imported from Italy-the
hub of jewels and
fashion So2ni D'Oro or in other words "g
olden
dreams" is exactly what the
brand name suL2ests - that one Nvould want to own
for its sheer beauty and
technicality. The jewellery collections arc
extremely innovative bold and
29

unconventional. All pieces of jewellery at Sogni
DDro arc either handcrafted or machine
30

made that are legally imported from Italy to India. It is manufactured and procured from
all major jewellers who arc from famous jewellery towns of Italy namely Vicenza and
Arezzo.
Project L F f I b a. b/o s j. rat. co n

Hammer Plus - Branding Spirituality
Hammer Plus Jw
cllery as a brand believes
in creatinL 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 jeweller-' but also
adding band value to its products.
Each brand of Hammer Plus has its individual
characteristics, a distinct
identity and an image of its own targ
eted 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 g
ive 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,
Ekkarii, Tamorri allaya,
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_ toweari to give and to
receive. Today the creations are both
fashion/trend inspired as veil 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.
C ientnte - 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

satisfaction. The C iemmc collection includes , unique designs .. generated along concept
lines, featuring rings, pendants, caningsbracclcts, and many more,
Vanshi - One for Every one
Vanshi Diamond Jewellery is catering to all range of customers. It is positioned as "One
for everyone." Vanshi Diamond Jcwcllcr v is recognized as "Value for Money"
apart
from that Vanshi Diamond Jeweller T is well known for its unique designs. It is different
from all other brands in terms of designs, crafsmanship, purity etc.
T TE IES FOR WOOING CUSTOMER'
T.4 NI
In the late I ))t)Ls, p/aye's in the branded go / / e 'eler y market )rmu fated L 't)• tegi s or
wooing customers. According to Jacob urian (K1.? ian). .'hi ' j ratio (Vice,' of
Tanishq, the challenges were many, As the jewellery market was highly.fragmented,
lacked branding, and allowed many unethical practicep
to _ to urish, Tanishq v r k e hha'
on a two-pronged brand-building L't)ak- ' ..• cultivate trust by educating customers about
the unethical practices in the business and change the j. rrej. tion o .je •i.
•'L'ller ` as a
high-
priced purchase. Said Kurian, "We are changing the attitudes of customers from blind
trust to i)?/e')rmed 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 Iuri an, the ti rst part of the strategy was "to provide a point of
differentiation in a highly commoditizcd catcgor r - 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 Iuri ani "If differentiation plays the role of primary attraction,
trust takes care of lifelong
loyalty,"
One wa F to create dif±rentiation v
as through design. The emphasis had to be on design

because local jewellers could over to design any pattern according to the customers

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 desig
n team and also outsourced desig
ns from freelance desig
ners.
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
caratmetcrs, which showed the purity of gold. I n 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 l a r e
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
I uri an, 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 jeweller
out of heavily guarded jewellcr y stores. This was
achieved by persuading a few l ifestl e 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 (NWT) through the diploma programme, which the company
sponsored, contributed most of its designs. In addition, Feakak's team of six designers,
(headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the

U , I „ 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 2001 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 111).
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 cufflinks) Farb on 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 creati one 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 I ai=en 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 3 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 I hazana 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 cosmeti cs." Carbon products
were priced bemeen R s . 1750 and Rs. 20 000 per piece. While the cost of traditional
jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform.
OY BAY

yzterba F , with its tag line "Jewellery for the Living
", had become synonymous with the
entire g
amut of occasions 'where modern young
women would like to wear stylish and
affordable j e el ler-y, 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 R s.30000.
The initial focus of yzterba F was to give a lifestyle value to jewellery instead of the
traditional investment value. I n the second year of its launch, Ovzterb ay emphasised on
marketing and advertising strategies to give the necessary thrust for growth,. I n order to
transform itself from a youth brand to a brand for all occasions, Ovzterbav 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. (Rekr 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 ()yztcrbay scored over others vas its simple and refreshing designs and
affordability, making it distinct from the usual gold jewellery stocked in standard
jewell ert showrooms and contemporary jewellery offered by traditional j ev
ell cry houses
trying to cater to the trend. Priyadarshi I4ohapatra, Marketing Manager, (}yzterbav, said
" ' e 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
whore we sought to build a Nwardrobe of jewellery by making it affordable, so that she
could pick up pieces regularly." yzterbay later extended the same band values to
diamonds too, the idea being
to targ
et a niche market.
(Jyzterbay 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
yzterbay Summer 2002 collection, it offered pendants, earrings, finger rings, bracelets,

neckwear, and chains with natural g
emstones set in white g
old. as white g
old was
evolving
as a fashion statement across thevorld,
Although Ozyterbay was known for its jewellery in gold and sterling silver embellished
w
ith 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. 11000,
[L[
ili distributed its je w
ellcry priced between Rs. 500 and Rs.. 40,000 through lifest 'le 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 catalog
ue. In 1 9 9 7 1 Gill launched a collection of traditional Indian ornaments made
of 18-carat g
old. I n 1 9 9 9. the Gili Gold rang
e was introduced. This rang
e included rims,
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,
launched its 'diamond heart collection' targeted at teenagers and priced between Rs
500 and R s.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 Ids, 2000 to f s.10,000, in 2000, the
company focused on penetrating the premium market of customized jewellery. For this,

( i tan j ali jewels opened a jewellery salon, G i anti, to provide customized jewellery to
clients in India.

RECOMMENDATIONS

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 betw
een
Branded and Non-Branded J ewell er , to know Consumer perception towards
Jeweller, to know the Major Players of Jewell erv 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 jeweller F
brands. India is growin2 at a very fast pace and j ewell erv sector is one which is
registered to achieve 65 `f• M international market by 2010. The j ewel lerv 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 Gill 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 hig
hly
s a t i f i n 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
k o m e t e r 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 USS 21 billion by 2010 and USS 37

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

I L I P H
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Consumer preference over branded jewellery and non branded jwellery

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Consumer preference over branded jewellery and non branded jwellery