It happens RustomjeeBusinessSchool

Indian gold jewellery

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Motivation For International Market•Demand for Indian design

•Market rate fluctuates(limitation in domestic market)

•Uniqueness

•Changing trend

•Investment + fashion

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Indian Retail Jewellery Overview

Yesterday TodayUnbranded Branded

Silver & Gold jewellery Gold & Diamond

jewellery

Investment Investment + Fashion

Traditional design Fashionable & innovative

design

Marriage & festival is

peak season

Wear ability and gifts

Jewellery sold on

commodity basis with

labor charges

Jewellery being sold on a

per piece basisRustomjeeBusinessSchool

Source: official website of Gujarat ,as on 17/12/08.www.vibrantgujarat.com/detailed-sector-profiles/gems-jewellery.pdf

& KPMG ANALYSISRustomjeeBusinessSchool

Gems And Jewellery Gems and Jewellery is an important

emerging sector in the Economy. Ranked among the fastest growing sectors, it is also a leading sector for foreign exchange generation.

Major Segments The sector comprises of two major segmentsGoldComprises around 80% of the Indian jewellery

market, balance comprising fabricated studded jewellery (Diamonds and Gemstones).

High levels of manufacturing and domestic consumption.

DiamondsWorld's largest cutting and polishing Industry

for diamonds.Well supported by the banking sector and

government policies.Export potential for polished diamonds /

finished diamond jewellery.

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Gems & Jewellery Industry

•One of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 percent.

•The current market size of the Indian Gem & Jewellery Industry is US$ 25 Billion.

•Total export of gems & jewellery in the year April-March,2010 was 29081.11 with a 2.36% growth rate & 16.27% share in the total export.

•The domestic market was guessed to be approximately USD16.1 billion in financial year 2009.

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Cont…

•Consumes nearly 800 tones of gold that accounts for 20 percent of world gold consumption, of which nearly 600 tones go into making jewellery.

•India's strength lies in the 2 million highly skilled workforces in the country in the gem & jewellery sector, out of which 1 million are exclusively engaged in export production.

•The Gem & Jewellery Industry has started showing positive signs of revival and growth.

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Major Exporters in India• Raghunandan Prasad & Sons • S. Zaveri & Sons Jewellers • Jagdish & Sons • Riby Gems And Fashion Jewelry • Bn Ghosh & Co. • Maruti Jewellers• Millenium Star• Silver Stone• Shri Radhey Chain• Dd Jewellers

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Rising Demand of Gold

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Decesion To Enter International Market

As a supplier (NAZAKAT)

B2B

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Swot Analysis

Strength:

•Traditionally highly skill design.

•Skilled jewelry designer.

•Uniqueness and variety of design.

•Indigenous availibity of raw material.

Weakness:

•No established brand.

•Lower margin.

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Swot Cont…Opportunity:

•High population of Indian available

abroad.

•Changing trend to traditional wear.

•Indian culture.

•Availability of many branded shop.Threats:

•High chance of getting imitated

•Substitution

•Gold rate and market rate fluctuate. RustomjeeBusinessSchool

Which Countries To Enter?

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Most Preferred United States UAE Hong Kong

Japan Singapore

Germany

Selective New Zealand

Australia Nigeria

Selective Nepal

Sri Lanka

Brazil Turkey

Less Preferred

Pakistan Afghanistan

China Bangladesh

Israel Lebanon

High

Opportunity

Low

Low Risk High RustomjeeBusinessSchool

Most Preffered

•Cultural interests.

•Attraction for traditional attire.

•Large no of potential consumer.

•Changing trend.

•High Demand of Indian Jewellery

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Less Preffered

•Trade restriction.

•Political issues.

•Religion compliant.

•Unfavorable environment.

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Selective With High Opportunity•Less Charm of Gold

Jewellery

•Low Population

•More use of Imitation

Jewellery

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Market Identification And Targeting

Waterfall ApproachGroup 1-

USA - Sterling Jewellers, Signet

Jewellers, Morellato.Uae - Pure Gold, Liali,

Treasure.Japan - Vendome Aoyama,

Mikimoto, Shinko Studio.Singapore – Arizma,

Ansari Gems, Ametrine Jewellery.

Group 2 –China - D Gold, Adeka Jewellers, Jacky Gems

JewelleryPakistan – ARY Jewellers,

AFZAL Jewellers, Hanif Jewels, Damas JewellersAfghanistan – Karimi Gold Jewellery, Zarina

Jewellery, Aayenda Jewellery.

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Entry Mode

•Indirect export: Export trading

companies (ETCs)

•Joint venture with Branded retail

outlet and boutique.

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Distribution Channel Decision

Manufacturer

Agent (intermediate

ries)Retailer

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Market Promotion Decision

•Online: Through a website.www.jewelleryshop.com.Vouchers.Special gift hampers.

•Campaign: for 6months.(24 carrot,22 carrot)On purchase of ½ kg –making charges slash down to 50%.On purchase of 1 kg and above – NO making charges Rustomjee

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Market Promotion Cont…

• Participation in Exhibitions of international market : Of ethnic Indian wear jewellery.(REED Exhibition)Garderobe – RussiaIJK – JapanLuxury –united statesIjk –london

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Presented By

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Jagdish Chauhan

Kanchan Yadav

Jai Sahrma

Neha Naqvi