Consumer buying behaviour gold jewellery
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Transcript of Consumer buying behaviour gold jewellery
Research Findings
Consumer Buying Behavior:
Gold Jewellery
October 2012
Prepared By:
1
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
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
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
Demographics
5
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
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
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
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
10
Understanding the Consumer Psyche
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
THANK YOU
27