JEWELLERY & WATCHESPRESENTED BY GROUP 2:-RAJU SHAW (04)AUSTIN FERNANDIS (11)VAIBHAV SETHIYA (19)PRERNA PANCHOLI (23)MOLLY JAISWAL (26)SANJAY GUPTA (38)

Indian Retail Jewellery Overview

• India is one of the largest Jewellery markets

• 97% of Jewellery sales are by “Family jewellers”

• Change in the demographics and increased consumerism of Indian retail market.

• Organized retail is growing at a rapid pace across all sectors.

Major Segments

Gold • Comprises around 80% of Indian Jewellery Market• 20% comprises fabricated studded jewellery• High level of manufacturing and domestic consumption

Diamonds• World’s largest cutting & polishing industry • India is the largest consumer of gold and also the largest

diamond processor .• Well supported by the banking sector and government

policies.• Export potential for polished diamonds / finished diamond

jewellery

MARKET SIZE

• Indian Jewellery market Rs. 80,000 Crore billion in the year 2005

• 8.3 per cent of world Jewellery sales.• Annual growth rate of 15%.• Largest consumer – 20% of global consumption• Organised Sector is Rs 2400 Crore• Unorganised sector• Market for branded jewellery will be worth $2.28

Billion by 2010.

• Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country.

• D’Damas India, part of one of the largest jewellery retail outlets in the world, is adding 16 new stores to its present dozen stores in India.

• Swarovski, the global crystal goods manufacturer and marketer plans to set up 30 stores by 2009, from the current 13.

• The Gitanjali Group bought 'Nakshatra', the premium brand of jewellery promoted by Diamond Trading Company (DTC)

• Mumbai-based Vardhaman Developers plans to build four more jewellery malls in the city and is already set to launch Jewel World-Mumbai’s first jewellery mall.

• Dubai-based Joy Alukkas has recently opened its largest showroom in Chennai.

• Viswa and Devji Diamonds a partnership between the Indian group and the top jewellery retailer in UAE opened its first diamond retail outlet.

• Gitanjali Gems Ltd opened its first luxury jewellery mall in Gurgaon, where a number of international brands have started their retail business.

• Gold Souk India has plans for bringing 100 Souks in 100 months

Changing Scenario

Fashion Jewellery

• It includes costume jewellery, designer jewellery, imitation jewellery.

• Costume jewellery contributes 9% to the world sales.

• Materials used in manufacturing includes semi-precious stones, beads, ivory, lac, leather, terracotta, plastic and pearl.

Market share of Jewellery segments

Key world markets for Jewellery

EXPORTS

• During 2008-09, 1.45 percent growth.

• Exported US$ 20.8 billion in 2007-08.

• Growth of 9 percent in this year.

• India accounts for 50 percent of the international market.

• Government allows 51 percent FDI in single brand retail outlet.

MAJOR PLAYERS

Gitanjali

Tanishq

Agni

Orrah

Cygnus

Business Overview• Established in 1986.

• Bought 'Nakshatra', the premium brand of jewellery promoted by Diamond Trading Company (DTC)

• Approximately 1,246 retail outlets in India and

• 143 outlets in the U.S.

• First luxury jewellery mall in Gurgaon.

• Announced its foray into the luxury retail market through a new entity ‘Luxury Connexions'.

Integrated business model

• Diamond processing• Jewellery manufacturing• Jewellery retailing in India• Branded jewellery• International jewellery retailing• Samuels and Rogers• Gems & jewellery SEZs

Retail

• Among the first branded jewellery in India

• Strong sales and distribution

• 112 distributors and 1,250 outlets.

• Gili and Nakshatra - “Superbrands” in 2004 by ICSE.

• High value acquisitions in the U.S.

Multi channel distribution network

Diversification

• Gitanjali Lifestyles to focus on manufacture and distribution of luxury and lifestyle products

• Developing 200 acres gems &jewellery SEZ in Hyderabad

• Plans to develop more SEZs focused on gems & jewellery across India

• To partner for developing real estate infrastructure.

TANISHQ TODAY – A BRIEF OVERVIEW

• Strongest and most aspirational brand in the jewellery category• Awarded most admired brand and Retailer of the year by Images Fashion• Enjoys a market share of over 40% in branded jewellery

Network• India’s only national jewellery retailer• 115 stores in 70 towns – prime high street locations• Many of these stores are run by franchisees

CustomerBase

• Over 1.5 million customers shopped at Tanishq last year

Brand

1998 2000 2002 2004 2007

Sales (Million $) 10 25 45 100 300

25

75

125

175

225

275

325

Sale

s (M

n $)

Challenges

• Shortage in supply of Raw Materials

• Changing fashion trends and increased consciousness of the consumers

• competition from other luxury goods, declining investment in the sector and increasing consumer sophistication.

• Ethical Challenges

• Local players

WATCHES

•The annual market size of the Indian Watch Market is estimated to be US $ 195 Million.

•The size of the watch market currently is estimated to be around 40 to 45 million pieces annually.

•The total investment in the ‘organized’ sector is US$ 218 million.

INTRODUCTION

•Organized sector alone contributes up to 30 percent of this figure.

•Around 20 to 25 watches are being sold for every 1000 citizens.

•The average growth in the size of the market is slated to be around 10 -15 percent per year.

•India's penetration of watches is amongst the lowest in the world.

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Indian Watch Industry – Trends

• Rapid increase in target audience• Rise of consumerism and purchasing power of

the middle class• Bulk of the demand exists in lower and middle

segments• Newer segments – jewellery segment, etc.• Rise of demand of trendy watches

28

The Watch Market in India

13%

33%43%

11%

Mass (< Rs 400)

Valued at Rs 300 crores

Grey market, Chinese, etc.

Premium (> Rs 5000)

Valued at Rs 370 crores

Swiss brands: Tissot, Omega, Rolex

Fashion brands: Fossil, Calvin Klein,

Giordano, Esprit

Mid-upper (Rs 1k-5k)

Valued at Rs 938 crores

Titan, Citizen, Timex,

Swatch, Espirit

Low-end (Rs 400-1000)

Valued at Rs 1200 crores

Sonata, HMT, Maxima

Classification by value FY’07

Volume – value matrix

Mass Lower End Mid Upper Premium

7

9.5

3.5

0

9

12

4

0

14

16.5

5.25

0.5

Chart Title

FY 98 FY 02 FY 07

Major Players

• Titan – More than 50 % of the organized market

• HMT - 10-15% due to its retail clout in urban and rural India built over four decades

• Other brands such as Timex, Maxima, Citizen and other regional brands constitute the rest

Titan Industries• Leader in the watch business in India

– >50% share of the organized watch market– Over 60 million watches sold across 30 countries

• Brands offered: Steel, Edge, Raga, Sonata, Fasttrack, Regalia, Bandhan, Sonata, Nebula, Flip

• Recently Titan has taken a drive to improve its image as a maker of contemporary style and design in wrist watches

• Titan is trying to offer international quality/style at an affordable price

Multi Channel Retailing

• Own stores (World of Titan, Time Zone and Sonata Stores

• 142 Time Zones, which are multi branded outlets operating in the watches business.

• Titan has recently started using ITC's e-Choupal channel to penetrate the rural markets

738

877 908

0

200

400

600

800

1000In

com

e in R

s. Cr.

2006-07 2007-08 2008-09

Year

Watches

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