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MARKET OF BRANDEDJEWELLERY IN INDIA

Presented by:-Nikita Arora

GURU JAMHESHWARUNIVERSITY OFSCIENCE ANDTECHNOLOGY, HISSAR

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Introduction In the late 1990s, the focus seemed to have shifted

from content to design in the indian jewellery market Branded players entered into the market:

Tanishq Gili Oyzterbay Carbon

Traditional jewellers also began to bring out lightweight jewellery

But the share of the branded jewellery in the total jewellery was still small in 2002, about Rs 10 billion of the Rs 400 billion per annum of the total jewellerymarket

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Gold Jewellery Market in India The abolition of Gold Control Act in 1992,

allowed large export houses to import goldfreely

In 1993, gold and diamond mining wereopened up for private investors

In 1997, overseas bank and bullion supplierswere allowed to import gold into India

This allowed the entry of foreign players likeDeBeers, Tiffany and Cartiers into the Indianmarket

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Majors Players in the MarketGILI

In 1994, GILI jewellery was established

as a distinct brand by Gitanjali jewels Offered a wide range of 18-carat plain

gold and diamond-studded jewellery

With sales of Rs 0.14 billion for the

year 2007-08, GILI had a 0.03 percentshare of the 400 billion jewellerymarket in India and a 1.4 percentshare in the branded jewellery market

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Majors Players in the MarketTanishq

In 1995, Titan changed its name from µTitan WatchesLtd.¶ to µTitan Industries Ltd.¶ 

In the same year, it also started its jewellery division

under the TANISHQ brand TANISHQ began with 18-carat jewellery but later on

expanded to include 22 and 24-carat jewelleryornaments as well

In 1998, TANISHQ decided to set up its own chain of retail showrooms and by 2002, TANISHQ retailed its jewellery through 53 exclusive stores across 41 cities

TANISHQ had a 0.66 percent share of the total jewellerymarket in 2007-08 and a 27 percent share of thebranded jewellery market

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Majors Players in the MarketCARBON

In 1996, within the Peakok fold a newbrand of 18-carat gold-based jewellery

called CARBON was launched In 2002-03 with sales of Rs 0.14 billion,

CARBON had a 0.03 percent share of the jewellery market and 1.4 percent share of the branded jewellery market

The brand is available in 23 citiescountrywide It started exporting in the year 2008

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Majors Players in the MarketOYZTERBAY

It was founded bt Vasant Nangia and histeam in july 2000 and began operation in

march 2001 By nov 2002, company had 41 outlets

across the country

With the sales of Rs 0.17 billion 2000-01,

OYZTERBAY had a 0.04 percent share of the Rs 400 billion jewellery market and 1.7percent share of the branded jewellerymarket

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Majors Players in the MarketTRENDSMITH

Mumbai based Tribhovandas Bhimji

Zaveri opened its new concept store µTRENDSMITH¶ in Mumbai in dec 2001

TRENDSMITH offered eight lines of exclusive designer jewellery

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Market Share at a GlanceBRAND

TANISHQOYZTERBAY

GILI

CARBON

MARKET SHARE

(2004-05) in %

271.7

1.4

1.4

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What led to the proliferation of the

Branded Jewellery Players?? The Indian market was witnessing an

accelerated shift from viewing jewellery asan investment to regarding it as

aesthetically appealing ornaments. Thefocus had shifted from content to design

The younger generation was looking attrendy, contemporary jewellery andavoiding heavy traditional jewellery

The Indian consumer was willing toexperiment with new designs

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Strategy for Attracting CustomersTANISHQ

To increase its market share, TANISHQ formulated astrategy for luring people:

provide a point of differentiation

Project TANISHQ as a unimpeachable mark of trust

TANISHQ set up a seven member-in house designteam and also outsourced designs from freelancedesigners

TANISHQ decided to focus on quality control: it introduced caratmeters which showed the purity of 

gold

It focused on small town markets In nov 2002, TANISHQ introduced a new collection

of jewellery called µ Lightweights¶ 

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Strategy for Attracting CustomersCARBON

Always focused on moving jewellery fromvault to dressing table

Besides selling from stores, it sold itsproducts as gifts items over the internet

Like TANISHQ, it also laid emphasis on

design In 2002, CARBON launched its µSun Sign¶ 

collection based on the symbols of zodiac

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Strategy for Attracting CustomersOYZTERBAY: Jewellery For The Living

The initial focus- to give a lifestyle value to jewelleryinstead of the traditional investment value

Emphasized on marketing and advertising strategiesto give the necessary thrust for growth

OYZTERBAY launched media campaigns

The new campaign focused on positioningOYZTERBAY as jewellery for office wear and eveningwear

They offered exclusive products to its clients byrefurbishing its collection every few months, keepingin mind international trends

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Strategy for Attracting CustomersGILI

The company¶s products were madeavailable through a mail-order catalogue

All GILI products came with a guarantee of diamond and gold quality In 2000, GILI launched its µDiamond Heart

Collection¶ targeted at teenagers andpriced between Rs 500 and Rs 2500

Special packaging, catchy advertising andextensive press coverage contributed to thesuccess of the collection

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Government Support In 2004-05, the government lowered

import duty on platinum from US $ 13.82per 10 gm to US$ 5.03 and exemptedrough coloured precious gems stones fromcustoms duty

Rough, semi-precious stones are alreadyexempt, a move aimed at furtherpromoting the exports of studded jewelleryand platinum jewellery

Import of gold of 8 carat and less allowed In May 2007, the government abolished

import duty on polished diamonds

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Drivers and ChallengesDRIVERS

Mass appeal andgrowing income of households

Low cost andabundance of skilledlabour

Growing use of high-end technology

Changing consumersperceptions andpreferences

CHALLENGES

Rising gold prices

Competition fromunorganised players

Dependence on rawmaterial import

Emerging threat fromother countries

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Market Trends The Indian jewellery market is the second largest in

the world, with a market size of $13 billion

India¶s share in the diamond sector is about 80% of the world market

Jewellery industry is the 3rd largest export orientedindustry in the country

It provides employment to 1.3 million people directlyor indirectly

India is the 3rd largest consumer of diamonds after

USA and Japan Branded jewellery sector is fastest growing sector at

40% annually

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Market CharacteristicsMARKET:

Nascent market

There are very few players in the market who are mainly large

corporates Many international brands marketing their products in

partnership with Indian companies

Product Need to keep up with changing fashions and trends in

the industry Wide product range is essential to cater to the needs of 

different customer segment

Indians inclined towards 22 carat jewellery

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Market CharacteristicsREACH

Extensive reach required. Sales direct aswell as through large retail outlets

Need to ensure presence in major goldconsuming centres

PRICES

Branded jewellery associated with high

prices Right pricing is essential to attract and

retain customers

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THANK YOU