A PROJECT REPORT ON

A COMPARATIVE STUDY ON THE CONSUMERS

PREFERENCE TOWARDS BRANDED JEWELLERY OVER
NON BRANDED JEWELLERY IN MUMBAI.

SUBMITTED BY
CHETAN N NAKTE
(MARKETING)
ROLL NO B-07
Batch 2011 - 2013

UNDER THE GUIDANCE OF

DR. AMIT AGGRAWAL
CORE FACULTY - MARKETING

UNIVERSITY OF MUMBAI
KOHINOOR BUSINESS SCHOOL,
KURLA, MUMBAI.
1

DECLARATION
I hereby declare that the project report entitled A COMPARATIVE STUDY ON THE
CONSUMERS PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON
BRANDED JEWELLERY IN MUMBAI carried out at S.P.JEWELLERS is my work
submitted in partial fulfillment of the requirement for Degree of MASTER OF MANAGEMENT
STUDIES (MMS), UNIVERSITY OF MUMBAI from KOHINOOR BUSINESS SCHOOL,
KURLA, MUMBAI and not submitted for the award of any degree, diploma, fellowship or any
similar titles or prizes.

Date:

Signature: _______________

Place: Mumbai

Student Name: ___________

CERTIFICATE
This is to certify that the project entitled A COMPARATIVE STUDY ON THE
CONSUMERS PREFERENCE TOWARDS BRANDED JEWELLERY OVER NON
BRANDED JEWELLERY IN MUMBAI is successfully completed by Chetan N Nakte
during the second year of her course, in partial fulfillment of the Masters Degree in Management
Studies, under the University of Mumbai, through KOHINOOR BUSINESS SCHOOL,
Kurla, Mumbai-400070.

Date:
Place: Mumbai

Dr.Amit Aggrawal

ACKNOWLEDGEMENT
It is my privilege to express my gratitude and respect to those who guided and inspired
me in the completion of this project.
I am deeply indebted to my project guide of the Kohinoor Business School Dr.Amit
Aggrawal for giving me this opportunity to undergo my project in his esteemed organization
and for his timely suggestions and valuable guidance.
I also want to give thanks to Mr. Namdev G Nakte He constantly encouraged me and
showed me the right path from day one till the completion of my project.
I am also thankful to Mr. Dattaram Pujari for helping me to proceed in conducting the
survey and complete it on time.
I am grateful to the Director, Faculties, administrative staff and the librarian of Kohinoor
Business School for providing me all the support required for successful completion of my
project.

Chetan N Nakte

INDEX
CHAPTE
R NO
1

3
4
5
6

CHAPTER NAME
INTRODUCTION
EXECUTIVE SUMMERY
RESEARCH OBJECTIVES
RESEARCH DESIGN AND METHODOLOGY
SIGNIFICANCE OF THE STUDY
JUSTIFICATION OF THE STUDY
BACKGROUND OF TOPIC
INDUSTRY INTRODUCTION
THE EMERGENCE OF BRANDED GOLD
JEWELLERY
GOLD JEWELLERY MARKET IN INDIA
GOLD JEWELLERY BECOMES FASHION
ACCESSORY
STRATEGIES FOR WOOING CUSTOMERS
BRAND APPEAL
INDIAN CUSTOMERS SHOWING INTEREST IN

PAGE
NO
1
3
4
6
7
8
9
10
13
14
15
17

BRANDED JEWELLERY
TRADITIONAL V/S BRANDED JEWELERS
ORGANIZED V/S TRADITIONAL RETAIL
CHANGES IN GEMS & JEWELLERY RETAIL

18
19
20

PROFILE OF THE ORGANISATION

S.P.JEWELLERS

22

ANALYSIS OF DATA
ANALYSIS AND FINDINGS

23

CONCLUSION
CONCLUSION

34

APPENDICES
QUESTIONNAIRE
BIBLIOGRAPHY

36
38

Executive Summery
Society is a diversified in all aspects. We see this among consumers, marketers, producers
and even among consumer behavior from theoretical aspects.
The study of consumer behavior enables marketer to predict a consumer behavior in the
market; it also produces under standing of the role that consumption has in the lives of
individuals.

Consumer behavior is defined as a behavior that consumers display while searching for
purchase, using, evaluation and disposal of products, services and ideas that they to satisfy
their needs. The study o f consumer behavior is concerned not only with what consumers
buy, but also with what they buy it, when, from where and how they buy it and how often
they buy it. It is concerned with learning the specific meanings that products hold for
consumers. Consumer research takes place at every phase of the consumption process; before
the purchase, during the purchase and after purchases.
Consumer behavior is the study of how people buy, what they buy, when they buy and why
they buy. It attempts to understand the buyer decision processes/buyer decision making
process, both individually and in groups. It studies characteristics of individual consumers
such as demographics, psychographics, and behavioral variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.
What we buy, how we buy, where and when we buy, in how much quantity we buy depends
on our perception, self concept, social and cultural background and our age and family cycle,
our attitudes, beliefs, values motivation, personality, social class and many other factors that
are both internal and external to us.
Consumer behavior is interdisciplinary; i.e. it is based on concepts and theories about people
that have been developed by scientist in such diverse disciplines as psychology, sociology,
social psychology, cultural anthropology and economics. Consumer research is the
methodology used to study consumer behavior.
The study of consumer behavior is the study of ho individuals make decision to spend their
available resources on consumption elated items. It includes the study of what, why, when
and form where they buy etc.
Consumer behavior is a relatively new field of study emerged in late 1960s with no history or
body of research of its own unlike branches of economics. Many early theories concerning
consumer behavior were based on economic theory on the notion that individuals act to
maximize their benefits in the purchase of goods and services.
There are number of reasons why the study of consumer behavior developed as a separate
marketing discipline. As sum as the marketing researchers began to study the buying
7

behavior of customers, they realized that, despite a something me too approach to fashions,
many consumer rebelled at using the identical products everyone else used. The primary
purpose or studying as part of a marketing curriculum is to understand why and how
consumers make their purchase decisions. These insights enable marketer to design more
effective marketing strategies.
Consumer behavior has become an integral part of strategic market planning. The belief that
ethics and responsibility should also be integral components of every marketing concept,
which calls on marketer to fulfill the needs of their target market in ways that improve
society as a whole.

Objective of study
The objective to study the A comparative study on the consumers preference towards
branded jewellery over non branded jewellery in Mumbai. 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
8

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
SAMPLE SIZE
100 respondent

10

The primary data would be collected from

1) The population of MUMBAI city
The secondary data would be collected from:
1) Books
2) Magazines/ Project report
3) Internet
4) Articles
The questionnaires response format for the population would be close ended questions. With a
mix of question types varying from ranking, multiple choice to checklist questions. The attitude
of the respondents would be measured by itemized category scales, pictorial scale.
Hypothesis
The null hypothesis would be: 50% of the consumer prefers buying branded jewellery.
The alternative hypothesis would be: More than 50% of the consumer prefers buying non
branded jewellery.

11

Significance of the study

The gems and jewellery 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 jewellery
2) How much impact does a brand have on their purchase decision
3) Does price play an important role in guiding their purchase decision

12

Justification of the study

The previous research done on branded and non branded jewellery markets are
1) Indian Gems and Jewellery Market - Future Prospects to 2011
2) The impact of recession on the jewellery industry
3) The growth of the Branded jewellery market in India
No study has been done to find out the preference of consumers between branded and non
branded jewelers. The study would also help to find out the consumer preference and their
buying behavior towards branded and non branded jewelers, this would help both the
retailers to know what are the consumer preference and what strategies should they adapt to
grab the market.

13

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.

14

However branded jewellery 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, Kisna and
Trendsmith - several regional players have opened branches to leverage the trust and reputation
that they have built up over the years.

The emergence of branded gold jewellery

In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of
jewellery. Instead of being regarded as only an investment option, jewellery was being prized for
its aesthetic appeal. In other words, the focus seemed to have shifted from content to design.
Trendy, affordable and lightweight jewellery soon gained familiarity. 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.
15

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.

16

Gold Jewellery Market in India

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 Gold ornaments 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 jewellery outlets in India increased greatly due to the abolition
of the Gold Control Act. This led to a highly fragmented and unorganized jewellery 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 jewellery. The bulk of the jewellery purchased in
India was designed in the traditional Indian style.
Jewellery 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 jewellery advertised in India as 22-carat was of a lesser
quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as 22carat gold jewellery.
The late 1990s saw a number of branded jewellery players entering the Indian market. Titan sold
gold jewellery under the brand name Tanishq, while S.P.Jewellers Jewels, a Mumbai-based
jewellery exporter, sold 18-carat gold jewellery under the brand name Kisna. S.P.Jewellers
Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda.
Su-Raj (India) Ltd. launched its collection of Gold ornaments and 22 -carat gold jewellery in
1997.
The Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India,
launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered India in 1997 in a
franchise agreement with Ravissant. Other players who entered the Indian branded gold

17

jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay, Carbon
and Tribhovandas Bhimji Zaveri (TBZ).
Kisna: In 1994, Kisna Jewellery was established as a distinct brand by S.P.Jewellers Jewels, soon
after the abolition of the Gold Control Act by the Indian government. Kisna offered a wide range
of 18-carat plain gold and Gold ornaments-studded jewellery, 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, Kisna had a 0.03 percent share of the 400 billion
jewellery market in India and a 1.4 percent share of the branded jewellery 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
jewellery 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 jewellery division under the
Tanishq brand.
Among the branded jewellery players in the Indian market, Tanishq is considered to be a
trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewellery. Realizing that
such jewellery did not sell well in the domestic market, the 18-carat jewellery 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 jewellery 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 jewellery market and a 27 percent share of the
branded jewellery market.
Carbon: In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was
incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian
consumer's relationship with gold jewellery would grow beyond an investment need towards a
lifestyle and personality statement. In 1996, within the Peakok fold a new brand of 18-carat goldbased jewellery called Carbon was launched.
18

In 2000-01, with sales of Rs. 0.14 billion, carbon had a 0.03 percent share of the jewellery
market and a 1.4 percent share of the branded jewellery 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 jewellery industry in India and aspires to be the
largest branded jewellery 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 jewellery market and a 1.7 percent share of the branded
jewellery market
Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the jewellery
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 jewellery from
well-known export jewellery manufacturers and designers from Mumbai and Delhi.
BRANDED GOLD JEWELLERY MARKET (MAJOR PLAYERS)
Brand

Market share (2000-01) in %)

Tanishq

27.0

Oyzterbay

1.7

Kisna

1.4

Carbon

1.4

Source: ICFAI Centre for Management Research.

19

Gold Jewellery Becomes Fashion Accessory

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. According to Samrat Zaveri, CEO of
Trendsmith, "Research shows that the Indian jewellery sector is in the transition phase with
consumers' desire for possession of jewellery 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 jewellery 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 jewellery as an investment
to regarding it as aesthetically appealing ornaments. The focus had shifted from content to
design.
The younger generation was looking at trendy, contemporary jewellery and clearly avoiding
heavy, traditional gold jewellery.
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.
Strategies for Wooing Customers
20

Tanishq
In the late 1990s, players in the branded gold jewellery market formulated strategies for wooing
customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the
challenges were many. As the jewellery market was highly fragmented, lacked branding, and
allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brandbuilding strategy: cultivate trust by educating customers about the unethical practices in the
business and change the perception of jewellery as a high-priced purchase. Said Kurian, "We are
changing the attitudes of customers from blind trust to informed trust."
To increase its market share, Tanishq formulated a strategy for luring people away from
traditional neighborhood 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 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.
Source:http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm

21

Brand appeal
Branded jewellery 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 jewellery market.
WITH the retail industry in India burgeoning, several companies have made inroads into the
traditional jewellery industry, selling the product that was never really "marketed" in "brand"
new ways. So much so that branded jewellery 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. Jewellery is now marketed for every occasion; even Valentine's Day
calls for "a special something [Gold ornaments] for a special someone".
In spite of pessimism about the marketability of branded jewellery 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 S.P.Jewellers Group, branded jewellery has witnessed more than 50 per cent
growth in the last three years. The Gold ornaments branded jewellery, 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 jewellery accounts for less than 10 per cent of the Rs.40,000-crore jewellery
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 jewellery 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 jewellery are the numerous malls opening 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 to designer
wear, fashion accessories and globally branded products. "Why not have accesses to them?" asks
Rima Khan, a brand executive. "Of course jewellery is harder to brand but it has done well given
the tough competition," she says.
One of the reasons branded jewellery 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
22

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 jewellery is that you can get a piece of jewellery with a Gold ornaments for as
little as Rs.1,500. And as branded is equated with quality, you are assured of a good product.
"Suddenly jewellery 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 jewellery
is a very personal thing and we need to understand what we are buying," says Seema Thakur, an
attendant in a jewellery 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 spend Rs.1,000 on two music CDs,
why not spend for that special person in your life."
The branded jewellery industry is still in its infancy, but increasing growth rates show that in a
short time it will corner a significant chunk of the market. Perhaps the best compliment to the
branded segment is that old jewellery showrooms have also begun to design jewellery lines
under a brand name.

23

Indian Customers Showing Interest in Branded Jewellery

As per our recently published research report Indian Gems and Jewellery Market Future
Prospects to 2011, gems and jewellery 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 jewellery market will
grow at a CAGR of around 14% during 2009-2012.
India possesses worlds most competitive gems and jewellery market due to its low cost of
production and availability of skilled labor. As per our new research report Indian Gems and
Jewellery 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 jewellery 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
jewellery sector is expected to grow at a CAGR of around 14% from 2009 to 2012. At present,
the Indian gems and jewellery market is dominated by the unorganized sector; however, the trend
is set to change in near future with the branded jewellery 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 jewellery 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 jewellery which is more reliable in terms of quality
and design.

24

Traditional v/s Branded jewelers

Gems and Jewellery 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
Gold ornaments 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 jewellery 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 jewellery
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 jewellery 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
jewellery stores as jewellery 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 jewellery industry boasts a strength of over 3 lakh jewellery retailers across
the length and breadth of this country. 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.

25

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 Gold ornaments 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 jewellery
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 jewellery stores as jewellery is
mainly sold on trust. While explaining his point of view, he adds, To the credit of traditional
jewellery 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 jewellery sale takes place in malls.
Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to
jewellery 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 jewellery
shopping and eventually purchase from known reputed jewelers.
26

Changes in Gems & Jewellery 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 Gold ornaments jewellery 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 jewellery 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 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
27

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 Gold ornamentss. They like to buy from reputed players like example Tanishq,
S.P.Jewellers, 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.

28

Company Profile
S.P. JEWELLERS
Founded as a single company cutting and polishing Gold ornaments for the jewellery trade at
Mumbai, in 1995, the S.P.Jewellers became, many times over, a pioneer among major Gold
ornaments and jewellery houses.
First major Gold ornaments and jewellery house to be launched and run by modern entrepreneurs
rather than dynastic jewellers. An authorised DTC Sightholder and loyal customer and a
modern multinational business run on innovative insights.
At the forefront of the global breakthrough in Gold ornaments jewellery design and production
brought about by Indias ability to cut Gold ornamentss considered unworkable for jewellery till
then. Has the distinction of producing the worlds smallest heart shaped Gold ornaments (0.03
carat), and developing some 25 patented facet patterns.
Besides changing the face of manufacture, broke the mould of traditional jewellery marketing: it
abandoned jewellery trade convention by launching multiple brands for multiple markets and
price segments.
Business model now integrates all operations, from rough Gold ornaments sourcing, cutting,
polishing and distribution, and jewellery manufacture, to jewellery branding and retail, as well as
global lifestyle brands, in India and abroad.
Offers jewellery in diverse styles: traditional, international classic, and casual. For consumers of
all age groups, tastes and budgets. With a growing hamper of brands, some already global, and
each targeted to specific consumer and market segments.

Analysis and Findings

29

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.
Hence the first question was to find out the factors that guide a customer while purchasing
jewellery 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
1) Factors that guide you while purchasing jewellery?

Design

Price

Purity

Image

Variety

Display

85

92

87

65

67

Promotion
and Offers
10

Family
Service

and

Friends
12

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

30

100
90
80
70
60
50
40
30
20
10
0

85
65

10

87

92

67

12

Question two dealt with the awareness of various brands of jewellery available in the market.
This question would help find out the percentage of the respondents who are aware about
branded jewellery.

31

2) Are you aware of the various jewellery brands available in the market?
Yes
95

No
5

5%

Yes
No

95%

From the above result it can be observed that there is 95% awareness about branded jewellery.
Out of the 95 respondents there is not a single respondent who is not aware about branded
jewellery.

32

3) Tick against the brands that you are aware about in the jewellery market
The third question was 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 Kisna, Tanishq,
Ddamas, Oyzterbay, and Trendsmith. These are the prominent brands for gold jewellery there are
many other players but the research is limited to gold jewellery.
Brands

Kisna

Tanishq

70

80

Zaveri
bazar

Bafna

No of
Respondents

100

100

120

100

80

60

East

40

20

0
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

From the above table and figure inference can be drawn that brands like Kisna, Tanishq are
known but the traditional MUMBAI outlets of Zaveri bazar and Bafna our preferred
The fourth question was to find out the reason why the respondent purchases jewellery that is the
reason for purchasing. Is it purchased as an investment option or on occasions, festivals or as a
fashion statement?

33

4) You buy jewellery for

Investme

Fashio

Occasio

Festiva

nt

ns

ls

34

39

11

16

No of
Responde
nts

No of Respondents
Investment
Fashion
Occasions
Festivals

16
34

11

39

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

5) Which jewellery do you prefer?

34

Preference

Branded

Family

Jewellery Jeweler

No of
Respondent

69

31

Family Jeweler; 31

Branded Jewellery; 69

From the above table it can be observed that 69 respondents prefer branded jewellery and 31
respondents prefer family jewelers. This makes branded jewellery more popular among the
respondents.

35

6) Have you bought any branded jewellery?

Branded Jewellery

Bought

Not bought

No of Respondents

78

22

No of Respondents purchasing branded jewellery

Not bought; 22%

Bought; 78%

Out of the 100 respondents 78 have bought branded jewellery and 22 have not bought branded
jewellery. However even if these 22 respondents have not bought branded jewellery they are
aware of branded jewellery being sold and also know the brands by their names. Since the
sample consist of females and males the next set of question deals with whether jewellery is
bought for gifting purpose

36

7) Do you buy jewellery for gifting purpose?

Buy jewellery
for gifting
No of
Respondents

Yes

No

30

70

No of Respondents
30%

Yes
No

70%

30 respondents of the 100 buy jewellery for gifting purpose among these 30 12 are men. 70% of
the respondents do not buy jewellery for gifting purpose.

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

37

No of Respondents

Branded

Family jeweler

14

16

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

Percentage of Respondents

Branded; 46%
Family jeweler; 54%

38

9) Given below are few characteristics of traditional family jewelers (or local jewellery
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

Trustworthy

660

895

Good
Investment
775

Price
870

Traditional
design
745

Number of points
Convenient
17%

19%

Trustworthy
Good Investment

23%

22%

Price
Traditional design

20%

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 jewellery 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.

39

10)If you purchase branded jewellery 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).
Wide range
Characteristics of

of products

Shopping

branded jewellery

under one

experience

Trendy and
fashionable
jewellery

roof
Number of points

663

Price

590

727

673

Number of points
25%

27%

Wide range of products

under one roof

25%

Shopping experience
Trendy and fashionable
jewellery

22%

Price

Respondents rate trendy and fashionable jewellery highest when it comes to branded jewellery. 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 jewellery he may not be looking for the
experience but wanting good trendy jewellery which is priced appropriately.

40

Conclusion
The conclusions that can be drawn from the study are:
1. The guiding factor behind purchasing jewellery 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 jewellery is the service and display. Hence when a
customer goes to buy jewellery 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 jewellery 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 Kisna, 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 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.
4. Branded jewellery 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 jewellery is bought for gifting purpose the population still wants to buy it from
their family jewelers.
6. When it comes to family jewelers the level of satisfaction that the population has on a
scale of 1 to 10 is a little more than 7. These jewelers are also popular because of the trust
that they have with their customers and also because they charge reasonable prices. These
family jewelers are also popular for traditional designs hence when a customer is
specifically looking out for traditional jewellery they approach these jewelers. The
jewellery bought from these jewelers is considered to be pure and a good investment.
7. The level of satisfaction that the population has towards branded jewellery is a little
higher than 8. These branded jewelers have become popular for latest and trendy
jewellery. Also the prices that the branded jewelers charge is justified and they provide a
wide range of products under one roof.
41

8. The level of satisfaction that the population has for branded jewellery is higher then that
for non branded jewellery making branded jewellery more popular.
9. The consumers prefer buying branded jewellery over non branded jewellery. This has
also been proved by using the sign test.
Hence to conclude branded jewellery is preferred over non branded jewellery.

QUESTIONNAIRE
Name:
Telephone number:

Age:
42

10) Factors that guide you while purchasing jewellery?

Design
Price
Purity

Brand Image

Variety
Display
Promotions and offers
Service
Family and friends influence
11) Are you aware of the various jewellery brands available in the market?
Yes
No
12) Tick against the brands that you are aware about in the jewellery market
Kisna
Tanishq
Zaveri bazar
Bafna
13) You buy jewellery for
Investment
Fashion
Occasions
Festivals
14) Which jewellery do you prefer?
Branded
Family Jeweler
15) Have you bought any branded jewellery?
Yes
No
16) Do you buy jewellery for gifting purpose?
Yes
No
17) Where do you prefer to buy the jewellery from (for gifting)?
Branded
Family Jeweler

43

18) Given below are few characteristics of traditional family jewelers (or local jewellery
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
Trustworthy
Good Investment
Price
Traditional design
19) If you purchase branded jewellery 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).
Characteristics of Branded Jewelers
Wide range of products under one roof
Shopping experience
Trendy and fashionable jewellery
Price

44

Number of points

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.htm
3) Source: http://www.rncos.com/Report/IM148.htm
4) http://www.pressabout.com/indian-customers-showing-internet-in-branded-jewellery24860/
5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison
6) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians23837-3-1.html
7) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902
8) http://www.Gold ornamentsworld.net/contentview.aspx?item=2465
9) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html
10) http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/BSTR041.htm
11) http://www.rncos.com/Market-Analysis-Reports/Indian-Gems-and-Jewellery-MarketFuture-Prospects-to-2011-IM148.htm
12) http://www.allheadlinenews.com/articles/7017272531
Newspapers:
1) The Times of India
2) The Economic Times

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