Consumer buying behaviour gold jewellery

27
Research Findings Consumer Buying Behavior: Gold Jewellery October 2012 Prepared By: 1

Transcript of Consumer buying behaviour gold jewellery

Page 1: Consumer buying behaviour   gold jewellery

Research Findings

Consumer Buying Behavior:

Gold Jewellery

October 2012

Prepared By:

1

Page 2: Consumer buying behaviour   gold jewellery

Research Background

• According to World Gold Council, India is the largest market for gold jewellery in the world,

representing a staggering 746 tones of gold in 2010

• Indian consumers are actively engaged in considering their next piece; 75% of women say they

are constantly searching for new designs. Indian market is plush with varied designs and

offerings

• As Gold prices are rising sharply, brands are targeting consumers with a limited budget. This is

apparent in their offerings, collection and marketing campaigns.

2

Page 3: Consumer buying behaviour   gold jewellery

Research Objectives

The key research objective was to find out the impact of high price on the purchase of Gold

To meet the stated objective MX approached the category customers to ask few key questions:

• Popular and most admired brands by the consumers

• Source of awareness

• Perception of gold jewellery

• Purchase behavior

- Occasions of purchase

- Most preferred merchandise

- Purchase point

- Purity they look for in gold jewellery

- Purchase considerations

• Impact of price rise on the purchase, what it entails for this festive season

Consumer feedback is presented in forthcoming slides

Page 4: Consumer buying behaviour   gold jewellery

Research Methodology

• Face to face interviews Research Technique

• Structured Questionnaire Research Tool

• Consumers who bought Jewellery in the preceding year and likely to buy soon

Target Segment

• Delhi (NCR). Mumbai, Kolkata, Hyderabad, Bangalore, Cochin, Jaipur and Pune

Research Center

• 600 respondents Sample Size

Quantitative Research technique was followed. 600 consumers were interviewed at their homes

and market places.

4

Page 5: Consumer buying behaviour   gold jewellery

Demographics

5

Page 6: Consumer buying behaviour   gold jewellery

Shop owner

Businessman with no employees

Businessman with 1-9 employees

Businessman with 10+ employees

Self employed professional

Officer/Executive-Middle/Senior

12%

9%

19%

7%

3%

39%

Demographic Profiling

Male 35%

Female 65%

Gender

18-30 yrs 32%

31-45 yrs 47%

More than 45 yrs 21%

Age

• Respondent profile was a mix of different age groups so the inputs contained a good representation of people

• Gender split was natural outcome of interactions. No specific age or gender related quota was followed

School- SSC/ HSC

Some college but not graduate

Graduate / Post graduate-General

Graduate/Post graduate-Prof

1%

1%

60%

38%

n=600 Education

Occupation

C

W

E

All respondents

belong to SEC A

A1 67%

A2 33%

SEC

Young consumers

are also into buying

gold jewellery an

emerging trend

Page 7: Consumer buying behaviour   gold jewellery

Brand Salience – Awareness

n=600

• More than 40% of the respondents mentioned Tanishq as their Top of the Mind recall

• Cent percent of the respondents are aware of Tanishq followed by Mehrason (84%), PC Jewellers (84%), Nakshatra (81%), Sanchi

(77%) & Gitanjali (63%).

*Other brands include unfamiliar names and brands with small base

7

6%

1%

8%

2%

1%

8%

4%

18%

2%

1%

1%

2%

14%

4%

2%

25%

1%

1%

26%

60%

22%

38%

14%

15%

59%

33%

24%

8%

7%

30%

P C Jewellers

Shubh and Labh

MMTC

Cartier

Forever Jewellery

Nakshatra

Vivaha

Maya

Giantti

Jos Alukkas

Gitanjali

ORRA

ASMI

Others

41%

3%

5%

8%

8%

5%

36%

32%

6%

2%

20%

5%

11%

1%

1%

2%

1%

2%

5%

23%

42%

37%

4%

30%

56%

31%

35%

13%

21%

12%

15%

11%

23%

11%

Tanishq

Sanchi

Malabar Gold

Episode

Gili

Mehrasons

Ddamas

TBZ

Oyzterbay

Carbon

Belirams

Karma

Meta Jewel Krafts

D P Zaveri & Sons

Momentz

TOM

SPONT

AIDED

Page 8: Consumer buying behaviour   gold jewellery

Brand Salience – Most Admired

n=600

• Tanishq (45%) emerged out to be the most admired brand among majority of the respondents whereas 3/10th of the respondents

also admire Gitanjali and Nakshatra.

8

45%

20%

12% 11%

4% 3% 2% 2% 1%

Tanishq Gitanjali Nakshatra RegionalBranded

Store

Asmi Gili Sangini TBZ MMTC

Page 9: Consumer buying behaviour   gold jewellery

58%

51%

46%

33%

28%

22%

13%

10%

9%

8%

7%

Newspaper

Television

Friends/Colleagues

Family/Relatives

Magazines

Websites

Banners/Posters

POS in shops

Online Social Media

Cinema/Theaters

Radio

Sources of Awareness

• Newspaper pop out to be the most important source of awareness for getting info about various Jewellery brand. Television and

WOM also plays a significant SOA.

n=600

9

Page 10: Consumer buying behaviour   gold jewellery

10

Understanding the Consumer Psyche

Page 11: Consumer buying behaviour   gold jewellery

Perception of Jewellery – As an

adornment / investment 11

• Majority of the Indians seek dual benefit of buying gold, an investment coupled with a functional adornment. The youngsters

though go for low priced, light items to be used as regular jewelry items

n=600

14%

36%

50%

As an adornment As an investment Both

Page 12: Consumer buying behaviour   gold jewellery

Type of purchase – Planned Vs. Impulsive 12

• Across cities Gold purchases are pre- planned however, there are frequent incidents of impulsive purchase also

n=600

48%

21%

27%

39% 35%

25%

32% 36% 37%

52%

79%

73%

61% 65%

75%

68% 64%

67%

Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Jaipur Pune Cochin

Impulsive Purchase Planned Purchase

Page 13: Consumer buying behaviour   gold jewellery

Purpose of Purchase

80%

61%

41%

32%

29%

28%

15%

8%

1%

For own use in household

For marriage in the family

Gifts to close friends and relatives

To safegaurd family as Gold/silver is highly liquid

For traditional values

For investment purpose

Considered as status symbol

Got religious significance

For kids

n=100

• Gold has different connotations attached to it. It is an ornament, habit, companion of difficult times, way to prosperity and carrier of

values

• Customers have a unique reason every time they buy gold

13

Page 14: Consumer buying behaviour   gold jewellery

Purchase Occasions 14

• There is no single time and occasion to buy jewellery since it is an exclusive as well as a common affair

• Though buying jewellery is integral to weddings and festivals (Where customers opt for heavier items and the purchase is

infrequent), new reasons have emerged where small and frequent purchases are made ( financial gains, birthdays, anniversaries

etc.)

n=600

95%

89%

82%

79%

35%

24%

23%

5%

2%

15%

Wedding

Akshaya Tritiya

Diwali

Bonus/sudden financial gain

Baby birth

Birthdays

Aniversary

House warming

New year

No specific reason

Page 15: Consumer buying behaviour   gold jewellery

Reasons for Buying Branded Jewellery

88%

64% 61% 57% 52% 52% 51% 42% 40% 36% 34% 30%

25% 19%

62%

8% 10%

4% 5% 4% 1%

4% 1% 0 0 0 0 0

0%

10%

20%

30%

40%

50%

60%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Purity of gold It is certified Name andreputation gives

confidence

Written lifetimeguarantee

Good sellingpolicies

Designs Finishing Provide goodexchange offers

Promotionaldiscounts

available onspecial

occasions

Wide productrange

Has a morecontemporary

look/original look

Unique offerings Ambience Better sales staff

Reasons Most Important Reason

n=600

• Jewellery being a very expensive acquisition requires assurance of quality and trouble free ownership .

• To the modern customers brands inspire confidence of purity and exchange. That is why, safety elements have received a higher

score than aesthetics and service

15

Page 16: Consumer buying behaviour   gold jewellery

Reasons for Not Buying Branded Jewellery

72%

66%

57%

46% 44% 40%

25% 20% 18%

1%

35%

16%

7% 10% 11%

15%

5%

0 0 1%

0%

10%

20%

30%

40%

50%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Lack of awarenessabout existingbrands among

buyers

Lack of awarenessabout the benefits of

branded jewellery

Hesitation to switchfrom age-old

jewellers

Added taxes Perceived highmaking/polishing

charges of brandedjewellery

Better paymentterms of local

jeweller -Creditperiod etc.

Non-availability ofpreferred designs

Non-replacement/non-feasible

replacement termsof branded outlets

Non-availability ofpreferred sizes

People do not havewhite money

Reasons for not buying Most important reason for not buying

n=600

• Customers lack enough information about jewellery brands

• There is a perception that brands charge higher making charges

• Additional cost that customers have to bear in terms of taxes is a big obstruction to growth of brands. Many local jewellers adjust

taxes by different ways

16

Page 17: Consumer buying behaviour   gold jewellery

54%

36% 32%

17%

12% 11% 8%

5% 3%

Rings Ear Rings Chains Necklace Pendants Gold Bangles Bracelets Gold Set Mangalsutra

Description of Purchases

n=600

• Across the cities the key selling items for the brand so far have been rings, ear rings and chains, increasing prices have led to low

weight gold item purchase

17

Page 18: Consumer buying behaviour   gold jewellery

Jewellery Type – City wise preference 18

Fig. in % Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Jaipur Pune

Fashion Jewellery 2 1 - - - - 4 3

Gold Jewellery Studded with Color

Gemstones 6 34 - 2 6 - 13 2

Gold Jewellery Studded with Diamonds 3 25 2 9 9 - 64 15

Plain Gold Jewellery 89 36 96 89 72 97 11 73

Pearl Gold Jewellery - - - - - 3 3 1

Platinum Jewellery 2 2 2 - 5 - 5 2

Platinum Studded Jewellery - 2 - - 5 - - 2

Silver Jewellery - - - - 2 - - 2

Synthetic Diamond Jewellery - - - - - - - -

• Consumers prefer to buy plain gold jewelry due to its high resale value

• Gold studded jewellery with color gemstones and diamonds is increasingly becoming popular

n=600

Page 19: Consumer buying behaviour   gold jewellery

Purchase Point

93%

38% 43%

14%

1%

81%

7% 4% 6% 4%

Branded Outlets Unbranded outlets Franchisee brandShowrooms

Exhibitions Online purchase

Frequent destination Preferred destination

• Branded outlets are the most visited as well as the preferred shopping format followed by franchisee brand showrooms. Few

young consumers also prefer online purchase as it gives them the option of EMI

n=600

19

Online purchase

An emerging

Trend

Page 20: Consumer buying behaviour   gold jewellery

Purity Looked For

13%

54%

32%

1%

24 Carat (100% puregold)

23 Carat (91.66% puregold)

22 Carat (83.33% puregold)

18 Carat (75% pure gold) 14 Carat (53.84% puregold)

Gold Jewellery

• More than half of the respondents looked for 22 carat purity which shows customers are quite clear on what to expect from purity

point of view.

• 32% of the respondents also look for 18 carat purity which indicates that there is a market for 18 carat gold jewellery too

• Few consumers also cited to be opting 14 carat gold due to the rising gold prices

n=600

20

Shift to 14 Carats

An emerging

Trend

Page 21: Consumer buying behaviour   gold jewellery

Rank Score*

0.93

0.82

0.76

0.59

0.46

0.33

0.33

0.27

0.26

0.23

0.19

0.19

0.16

0.12

0.09

0.05

0.03

Factors Considered while Selecting a Brand

39%

32%

31%

35%

28%

35%

20%

26%

25%

12%

23%

20%

11%

13%

5%

9%

2%

41%

38%

31%

39%

39%

36%

37%

33%

45%

28%

42%

35%

43%

31%

34%

30%

17%

Price of product

Long Life

Purity of product

Resale value

Available in wide range i.e. designs

Quality of product

Brand advertising

Warranty period

Overall good brand name

After sales service

Trustworthiness of the brand

Offer / discount available

Past experience

Is recommended by friends/ relatives/ dealers

Is the market leader

Trendy look offered by the brand

Knowledgable staff at outlet

Unaided Aided

• Price, durability, purity, resale value, availability of wide range of designs are top five factors while selecting a brand

n=600

21

* Rank score has been

calculated by multiplying 3

with % of rank 1, 2 with %

of rank 2 and 1 with % of

rank 3 and then summing

it up

Page 22: Consumer buying behaviour   gold jewellery

Resale / Exchange of Old Jewellery 22

• Consumers avoid selling/exchanging their old jewellery for buying new one

• In most cases resale is considered only when in financial crises

n=600

In %

89%

6% 4% 1%

None Once in 6 months Once in 3 months Once in 2 months

Page 23: Consumer buying behaviour   gold jewellery

Effect of price rise on purchase 23

• One in two consumers cite that they are affected by price rise and hence defer purchase on the said account, however 43% still go

for the desired possession!

n=600

50%

43%

7%

Yes No Can't Say

Page 24: Consumer buying behaviour   gold jewellery

Effect of high price on gold purchase this Diwali 24

• The consumers term the festivities especially Diwali/ Durga Puja (in its various manifestations) as the most auspicious time to

shop hence deny the purchase to be impacted by rising prices. Though many voice that a pre determined budget guides their

actions!

n=600

14%

76%

10%

Yes No Can't Say

Page 25: Consumer buying behaviour   gold jewellery

In the nutshell

• Tanishq register Cent percent awareness followed by Mehrason, PC Jewellers,

Nakshatra, Sanchi & Gitanjali.

• Further, Tanishq is the most admired brand among majority across centers. Gitanjali,

Nakshatra and regional branded stores are also popular among the consumers

• The rising prices and the younger generation entering the category Consumer class looks

for small products. Rings, earrings, pendants, necklaces, bracelets, chains and bangles

as preferences.

• Few young consumers also prefer online purchase as it facilitates them with EMI option

• Consumers prefer to buy plain gold jewellery for its high resale value.

• Branded outlets are the most preferred point of purchase for buying gold jewellery

• Price, durability, purity, resale value, availability of wide range of designs are top five

factors while selecting a brand among consumers

• Majority looked for 22 carat gold purity whereas a significant 32% also emphasize for 18

carat purity which indicates that there is a market for 18 carat gold jewellery too

• Few consumers also cited to be opting 14 carat gold due to the rising gold price and

limited budget

• Resale or exchange of gold jewellery rarely happens

• Consumers are affected by rising prices and defer purchases however the festivities

prove exception to the rule

25

Page 26: Consumer buying behaviour   gold jewellery

Key Emerging Trends

• Consumers of Gold jewellery are getting younger need for aesthetically rich design

to attract this young consumers

• Apart from bridal category consumers are increasingly purchasing gold jewellery on

personal occasions such as birthdays and anniversaries Need for daily wearable

products

• Increasing popularity of online options Websites and online offering should be

focused

26

Page 27: Consumer buying behaviour   gold jewellery

THANK YOU

27