1.Source: CBI Market Information Database www.cbi.eu Contact marketinfo@cbi.eu Publication date 30.11.2011 Performing a competitor analysis for jewellery Look at your competition and learn from them. Your competitors are the existing suppliers of your potential consumers. Try to identify your main competitors in your priority countries. What are their strengths and weaknesses? Which strategic moves are they likely to make in response to the opportunities and threats presented by the market? Why conduct a competitor analysis? Understanding your competitors is an essential pre-requisite to exporting. Understanding the strengths and weaknesses of your current and potential competitors helps you to appreciate your own strengths and weaknesses, as well as your own best opportunities and greatest threats. Many companies only undertake this analysis on an ad hoc or unstructured basis. It is recommended that a proper systematic competitor analysis is carried out, rather than relying on informal assumptions, impressions and instincts. A competitor analysis can provide an understanding of your competitors current strategies, but more importantly provide an insight into their likely future strategy. It will also help you develop your own strategy that gives you a competitive advantage. You can also estimate how competitors will respond to your future new product or pricing activity. How do you conduct a competitor analysis? Where are they from? Remember that competitors can come from anywhere. They not only include those domestic companies in your selected countries, but also those from other developing countries, including your own country, and from other (Eastern) EU countries. How many competitors? You may think that having many competitors may make your task more difficult. That would depend. The quality of your competition (how well established are they with customers, how close are their relationships with key trade customers etc) is more important than the number of competitors. Who are they? A list of names and addresses is not sufficient. You need to find out whether they are owned by another parent company and a whole list of other information on each actual and potential competitor including: What is their profile and marketing strategy? For example, what are the companys size, turnover, organisational structure, consumer profiles, jewellery collection (USP), brand strategy, market share, are they generalists or specialists, their price level, profitability, distribution channels used and promotion strategy. What threats do they pose? For example, do they possess technical skills, special styling or design ability, can they offer jewellery at low price levels? Do they have advantages in production capacity, (natural) resources or use of particular (recycled) materials?

2. Performing a competitor analysis for jewellery Source: CBI Market Information Database www.cbi.eu Contact marketinfo@cbi.eu Publication date 30.11.2011 What are their company objectives? For example, in case of a developing country, are they helping producers in their country in a sustainable way? What is their vision or philosophy? What are their export marketing objectives? Are they likely to diversify into other markets or other product groups, or are they likely to be thinking about taking over other competitors to increase their market presence? What strategies are they pursuing and how successful are they? For example, are they pursuing long-term or short-term goals? Are they more interested in market share or technological leadership, or just short-term financial gain? What are their strengths and weaknesses? How is each competitor likely to respond to your own business actions? How do you find the information? There are many ways to find information on competitors. The most thorough investigation will consist of using a combination of sources. Published data includes information you can find through the trade directories, companys annual report and brochures, trade press releases and articles or analyst reports. Field data includes information on the competitor company that requires more investigation, such as looking for their price lists, catalogues, advertising campaigns or promotional activity. Opportunistic data requires most planning and organisation, much of which is 'anecdotal', coming from discussions with suppliers, customers or previous management of competitors. This will include discussions at trade shows, sales meetings, conferences, discussions with shared distributors, previous employees and social contacts with competitors. An example of a competitor analysis in the jewellery sector This is an illustration of how to carry out a competitor analysis, using an imaginary company called Beads Eye Concepts BEC wants to target pre-teens and teens in the Spanish and Portuguese markets as offering good prospects for lucky charm jewellery. They primarily would target those girls and boys who are attracted to adventure or to wildlife in Africa but still want to be protected. Beads eye bracelets are a popular gift items and are meant to ward off all evil eyes from its wearer. Some people believe that it protects against negative energies, such as anger, hatred, fear, jealousy and other such evil energies. BEC found out that celebrities such as Cameron Diaz, Brad Pitt, Sharon Stone, Richard Gere, Madonna, Britney Spears and Demi Moore wear evil eye bracelets or an evil eye necklace. Beads Eye Concepts (BEC) specialises in jewellery with eye beads and is based in Angola. They have 2 own workshops for silver and copper jewellery and source most of their eye beads from Mauretania. They have one designer who creates jewellery collections that use different combinations of eye beads, silver (charms), copper, terracotta beads, shelves and recycled material. Most of their jewellery consists of neckwear, bracelets and hair accessories that are assembled by women in 20 villages in the area of the Kongo people (meaning hunter). An important objective of BEC is to create sustainable opportunities for women in the Atlantic Coast area of Angola. Now that their production capacity and export marketing know-how has improved, they look for an expansion into the EU market. 3. Performing a competitor analysis for jewellery Source: CBI Market Information Database www.cbi.eu Contact marketinfo@cbi.eu Publication date 30.11.2011 The competitor analysis process would take the following steps: Determine your research objective. This would be to find out who your main competitors are in the Spanish market, what their market share is and how they operate. Classify your competitors. Each competitor is different. Your competitors will not only be manufacturers or exporters of silver jewellery from Angola, they will also be exporters of silver jewellery from other developing countries, other EU countries or domestic Spanish producers. You may already be aware that many eye beads are made in Mauretania and Mali as well as in Greece and Turkey that have a long-established reputation in eye bead production and are closer to the EU market. Your competitors could also be manufacturers or exporters targeting Spanish teens with jewellery collections made of silver, titanium, copper or plain metal with glass beads, troll beads (replaceable beads from Denmark), Swarovski crystals or with semi-precious stones. Find the information. BEC needs to carry out a combination of desk and field research. CBI market research reports on jewellery may show the leading supplying countries, names of leading manufacturers in Spain and leading retailers. Using Eurostat statistics, analysis of leading importers shows that 25-30% of all silver jewellery imports are intra-EU, and the majority come from Thailand, India and China. While Mexico, Indonesia, Turkey, Mauritius, Sri Lanka and Nepal were other important developing country suppliers. Spain also imported some silver jewellery from Niger. While the majority of imitation jewellery with parts of glass comes from Austria with China, India, Thailand being the main developing country suppliers, and to a lesser extent, Morocco, Philippines, Tunisia and Indonesia. Analysis of Spanish production shows a considerable amount of production of silver jewellery with (semi-) precious stones and costume jewellery. However, as Spain was badly affected by the recession, there is a trend towards production of innovative silver jewellery with lower cost alternatives for stones such as colourful beads. After identifying the source countries, further investigation is required to find out the names of the leading competitor manufacturers from those countries. Approach the leading sources. As you are interested in the Spanish market, you need to identify the main players on the market. Key sources include: The leading trade shows are the Iberjoya and Bisutex http://www.iberjoya.es and http://www.ifema.es which take place twice a year in January and September. Both shows produce a catalogue that identifies exhibitors by type of product. The leading Spanish manufacturers offering jewellery at an affordable price: Luxenter (http://www.luxenter.com) that makes jewellery with stones using material from Africa. Or, Majorica (http://www.majorica.com) being a leading manufacturer of costume jewellery. Other important Spanish brands are Tous, Belen Bajo and Lola Casademunt. Other useful links to potential competitors are Fashion from Spain - http://www.fashionfromspain.com which includes a directory of jewellery companies. This site also gives examples of joint developments of jewellery collections with stones between Spanish fashion designers e.g. Angel Schlesser and jewellers e.g. Le Cado. The Association of Spanish Jewellers and Watchmakers at http://www.iberjoya.es or the Spanish jewellery exporters Association at http://www.joyex.com, which features good links to other organisations. The main Spanish jewellery trade press http://www.grupoduplex.com with the magazines Arte y Joya and Jewellery Duplex, which for example includes an article about the latest colours in stones and beads. Look at websites of the main Spanish retailer El Corte Ingls, International accessory 4. Performing a competitor analysis for jewellery Source: CBI Market Information Database www.cbi.eu Contact marketinfo@cbi.eu Publication date 30.11.2011 chains such as Claires, Accessorize, Bijoux Brigitte, Swarovski, Agatha as well as online sellers Joyeria Virtual (http://www.joyeriavirtual.net), Bolsos y Accesorios (http://lilianaesquivia.com/bolsos/index.html) and Equipaje BCN (http://www.equipajebcn.com). You may be interested in niche competitors. For example, in the fair trade segment, Alternativa3 http://www.alternativa3.com is an organisation that imports and distributes several products, including jewellery, within Spain from groups of artisans and producers in developing countries. It features a list of its suppliers. Look at Spanish consumer magazines (jewellery, fashion, glamour, leisure, music) targeted at teens and try to identify competitors. Also check the most important fashion magazines such as Punt&Moda, Elle Espagna, Cosmopolitan, Marie Claire Espagna, Revista Atelier etc.. Analyse your list of competitors. Being an exporter from Beads Eyes Concepts you have contacted the main sources. Next, try to make a shortlist of your main competitors and compile as much relevant information about them as possible. See CBIs manual Your guide to market research - Your Research Practice (Part 2) and Export Marketing Planner for more information. You can do this by: Looking at their websites, sending off for their brochures. Finding out about them from industry sources (industry associations ) or via trade fairs. What other material do they use in their bracelets or neckwear (e.g. silver, copper, fibres, leather etc...), which design, patterns, symbols or style do they use? Who is their main target group? Trying to work out their sales plans by analysing beaded bracelets ranges, pricing and distribution strategy (via importer, direct to e.g. El Corte Ingls, or via online clothing sellers). How do they compare with your own plans? Think about how to differentiate with your eye-bead bracelet designs from the competition: evoking sympathy, ethic patterns from Angola or funky design? How are bead-eye bracelets promoted to Spanish consumers, for example is it related to a special event? How often promotions are done for jewellery in general? Any seasonal pattern? Trying to anticipate how they might react to your market entry (would they decrease their prices? Would they increase their range? Would they broaden their distribution? A possible result for Beads Eye Concepts could be that the Spanish beaded jewellery market is dominated by companies from China, Turkey, North African countries or EU countries (e.g. Denmark) offering wide ranges of colourful beaded printed jewellery at retail prices between 10 and 50. Main channels are the accessory chains and El Corte Ingls. Internet sales of jewellery is growing fast. Competitors mainly target younger consumers who regard price, design and fashion colours most important. There are a few other Angolan companies operating in Spain but they sell also fashion accessories. So, Beads Eye Concepts could focus on middle-aged people in Spain or travellers who still regard the protection element to be more important than price. They can be reached direct by Internet sellers. Partnership For many exporters managing partnerships has been essential to successfully entering export markets. Individual producers and exporters often lack the economies of scale to sell products directly to retailers in the EU in order to compete with well-established competitors that have already established networks. 5. Performing a competitor analysis for jewellery Source: CBI Market Information Database www.cbi.eu Contact marketinfo@cbi.eu Publication date 30.11.2011 Within many DCs there are agencies promoting export cooperation between different producers and/or exporters. As a producer wishing to export to the EU it is important to evaluate possible cooperation, seek new partners and to use existing support organisations, for example joining forces with other Angolan jewellery or fashion accessory makers. The importance of partnerships. To improve your potential transaction size To improve your bargaining power To extend your product range To minimise risk and improve service To reduce costs for shipping, storage, quality control, presence in foreign markets via shared endeavours To benefit from shared promotion, product development and other innovation To share knowledge on issues such as certification of special legislation (see example above). This survey was compiled by Searce in cooperation with Mart Krijger Disclaimer CBI market information tool: http://www.cbi.eu/disclaimer 6. Volume : 3 | Issue : 4 | April 2014 ISSN - 2250-1991 29 | PARIPEX - INDIAN JOURNAL OF RESEARCH Research Paper A Study on Consumer Awareness About Gold Jewellery in Tamil Nadu Commerce P. ANBUMANI Ph.D Research Scholar, Department of Commerce, Annamalai University, Annamalai Nagar -608002, Chidambaram, Tamil Nadu. DR.V.SUNDAR Associate Professor, Department of Commerce, Annamalai Uni- versity, Annamalai Nagar 608002, Chidambaram, Tamil Nadu. KEYWORDS Gold jewellery, Consumer Awareness, Karat, Karat Meter, Hallmark, Branded Jewellery, BIS ABSTRACT Indian Jewellery market is the largest market in the world next to China. Indian consumers are buying gold jewellery mainly for the wedding ceremony. Indian wedding generates 50 percent of the world annual gold demand. Over the next two decades, 15million weddings to be arranged. Therefore, there is a high demand for gold jewellery in India. Consumers are buying gold jewellery for all occasion. But, it is important to know whether, they are fully aware about gold purity/ neness, market price of gold, making charges, wastages charges, and neness/ hallmark certicate issued by Bureau of Indian Standards. Many buyers are still buying gold jewellery from non-branded stores, and not insisting purchase bill for their transactions. Many gold jewellers are not ready to buy back the gold jewellery sold buy them. This shows a lack of awareness among the consumers of gold jewellery in India. Hence, the purpose of the article is to analyze the consumers awareness about gold jewellery in the select districts of Tamil Nadu. Introduction China and India is the largest market for gold jewellery in the world. Approximately 3000 tones of gold produced in the world, of which approximately 750-800 tonnes of gold have been imported by India every year. However, the government of India has been taking steps to reduce the current account decit and control the import the gold, but current account decit and import of gold are not reducing. In the gold mar- ket, around 80 percent of the gold import, used for gold jewellery fabrication, and 15 percent for investment demand, barely 5 percent is for industrial use. Jewellery industry is a great industry; it is giving directly em- ployment to 2.5 million and contributed to INR 99,000 crore as value addition to the economy. The gems and jewellery industry is one of the highest contributors to Indian econo- my, highest contributor to export(INR 227,000 crore 2012- 2013).[1] Further, many branded and non- branded jewellery stores are targeting the jewellery consumers and selling jewel- lery worth crores and crores of Indian rupee every year. Indians are fond of gold jewellery from the ancient period. Out of the total sales every year 20 percent have been pur- chased by northern states, 15 percent by eastern states, 30 percent by western states, and the maximum 35 percent by Kerala, Karnataka, Andhra Pradesh and Tamil Nadu, states which are actively buying gold jewellery every day. Major con- tribution in sales by southern states of India. Consumers are buying gold jewellery mainly for wedding. Apart from this, across the country regional festivals are celebrated with gold: in south Akshaya Trithiya, Pongal, Onam and Ugadi, in the east Durga Puja, in the west Gudi Pavda, in the north(1) Baisa- ki and Karva Chauth. Gifting gold is deeply ingrained part of marriage rituals in Indian society. Weddings in India generate approximately 50 percent of annual gold demand, and over the next two decades 15 million marriages are to be celebrat- ed. There are many jewellery stores in India. The jewellery stores are selling gold jewellery in different karat. Karat means, noti- fying the purity/ neness of gold.( not carat: carat is relating to diamond as measuring of weight). Pure is gold is 100 per- cent gold and is called as 24 karat gold or 24k gold. This 24K gold is so soft, and it cannot be used for any jewellery making purpose. Hence making it bit hard some other metals such as, copper, silver or cadmium etc., to be added to it. Based on adding other metals of gold purity of gold changes from 24K , 22K,18K, or 14K. Below table shows the details of the same. Table 1: Purity/ neness of Gold 24K gold 100% pure + 0% other metals 23K gold 95.8% pure +4.2 % other metals 22K gold 91.6% pure + 8.4% other metals 21K gold 87.5%pure +12.5% other metals 18K gold 75% pure + 25% other metals 17K gold 70.8%pure +29.2% other metals 14K gold 58.5% pure+ 41.5% other metals 12K gold 50% pure+50% other metals 9K gold 37.5% pure +62.5% other metals Source: www.bis.org.in Further, the purity of gold is certied by Bureau of Indian Standards(BIS). This is called hallmark of BIS. If the jewellery bears the hallmark symbol over it, it shows the purity of gold. Hence, purity of gold is important for the buyers of gold jew- ellery when they buy. Further, neness/ purity is a major de- terminant in the price xation of gold. The price of the gold jewellery is xed in the following manner. Actual weight of gold and its purity(K) ..Rs.XXX Add: Wastage charges (8% to 25%)....Rs.XXX Add: Making charges (labour charge).Rs.XXX Add: Value Added TaxRs.XXX Selling price of gold Ornament Rs.XXXX The above details show the cost of making and selling price. However, in practice, not all jewellery stores, but many stores not following ethics in their business. The purpose of the re- search article is to analyze the awareness of the buyers about gold jewellery, whether they aware of all these this before 7. Volume : 3 | Issue : 4 | April 2014 ISSN - 2250-1991 30 | PARIPEX - INDIAN JOURNAL OF RESEARCH buying jewellery or not. Based on the above the researcher decided to undertake the study. Statement of the Problem The Consumer movement is as old as commerce and trade in India. But consumer awareness is not improved even after many years. According to the report prepared by CUTS, inter- national, only 20 percent of the consumers know about the Consumer Protection Act, and who has heard about consumer rights is just 42 percent only. Right to information is one of the rights of the consumers according to the law. Therefore, all necessary information to be given to the consumer about the goods and services they acquire. All necessary information to be provided for all products hence, jewellery has exception. The necessary information like, right purity of gold, hallmark symbol, correct weight, correct color, the correct percentage of wastage, and making charges. But many of the buyers are unaware of karat, wastage, making charges, whether it is branded or non-branded. It is not an excuse, hence; it is the responsibility of the buyers of gold jewellery, to make neces- sary enquiry about the purity of the gold, right weight, mak- ing charges, wastage, color of gold, hallmark, makers mark, either stone value has been deducted while buying stone studded gold jewellery from the original gold value or not. Further, some jewelers are not ready to buy the jewellery sold by them to the consumers. All these are the subject matter warranting enquiry, and this has prompted the researcher to carry out a micro level study on awareness about gold jewel- lery in Tamil Nadu. Objective of the Study The objective of the present research paper is to examine the consumer awareness about gold jewellery in the select districts of Tamil Nadu. Data Source The data source for the study is primarily based on the pri- mary data collected from 600 respondents from the select dis- tricts of Tamil Nadu. Sampling technique and Methodology Simple random sampling method has been adopted for the study. Since the population universe is very large, this meth- od has been used. In the rst stage twelve districts of Tamil Nadu, viz., Chennai, Coimbatore, Erode, Madurai, Nagapa- ttinam, Ramanathapuram, Salem, Thanjavur, Tiruchirappalli, Dindigul, Tirunelveli and Thiruvarur districts have been select- ed at random. Out of these 12 districts, fty respondents have been chosen at random from each district, (1250=600) and a pre-tested interview schedule has been administered to the respondents, and their responses recorded. Analysis and Discussion The main aim of the study is to ascertain the awareness of consumer towards gold jewellery in the study area. The re- searcher used both optional and bipolar type of questions to ascertain the awareness level of gold jewellery buyers. In this context, the researcher used simple percentage analysis to de- scribe and measure the awareness level of gold jewellery buy- ers. Table 2 Factors responsible for buying gold jewellery S.No Particulars Variables Frequency Percentage 1 Type of gold jewellery wish to buy Man made Machine made 399 201 66.5 33.5 2 Awareness on man - made gold jewellery More weight Limited design Price comparatively less Luck of hand 131 96 65 107 32.8 24.1 16.3 26.8 3 Awareness on machine made gold jewellery Less weight Conrm pure quality More design Status 41 57 94 09 20.4 28.4 46.8 4.5 4 Frequency of advertisement watched Once Twice Thrice Many times 57 37 31 475 9.5 6.2 5.2 79.2 5 Commercial advertisement in gold jewellery shops Lalitha jewellery Kalyan jewellery Jos alukkas Joy alukkas Thangamayil Khazana jewellery 63 300 144 29 20 44 10.5 50.0 24.0 4.8 3.3 7.3 Source: Primary Data The above table shows the factors responsible for gold jew- ellery. It is prepared by using simple percentage analysis, and prepared to nd the factors responsible for buying gold jew- ellery. The sample size of the study is 600, of which 66.5 per- cent of respondents belong to; man made gold jewellery and remaining percentage machine made gold jewellery. 32.8 percent of the respondents in the man made gold jewellery is aware of more weight; 46.8 percent of the respondents in the machine made gold jewellery is aware of more design. It is generally dependent on the wealth of the consumers and further found that 79.2 percent of the respondents has seen gold jewellery advertisement in many times and 50.0 percent of the respondents in the kalyan jewellery advertisement of gold jewellery has created consumer awareness. 1.2 Features Considered for Buying Gold Jewellery On 11th April 2000, the BIS launched its hallmarking scheme. The primary objectives of the scheme were consumer protec- tion, to enhance exports, to improve the quality, and purity of gold jewellery produced and to monitor any loss to the econ- omy due to the improper karat. Hallmarking involves Bureau of International Standards (BIS) symbol or logo, the symbol of hallmark bears, hallmarking center, code of purity in percent- age, code of marking year and symbol of jeweller. The fol- lowing frequency distribution presents the most preferred fea- tures considered for buying gold jewellery by the consumers. Table 3 Features Considered for Buying Gold Jewellery Features Considered for Buying Gold Jewellery Yes No Total BIS Hallmark year 22kt (916) Jewellery Mart Stamp Hallmark 303 (50.5%) 170(28.33%) 459(76.5%) 247(41.17%) 170(28.33%) 297 (49.5%) 430 (71.67%) 141 (23.5%) 353 (58.83%) 430 (71.62%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) Source: Primary Data From the above table it is found that, 76.5 percent of the respondents considered buying gold jewellery for 22kt (916) followed by 50.5 percent of the respondents for Bureau of In- dian Standards (BIS). It is further found that, 41.17 percent of the respondents considered for jewellery mart stamp, 28.33 percent of the respondents considered buying gold jewellery for hallmark (H). Similarly, same percentage of the respond- ents (28.33 percent) stated that they aware of hallmark year also. The researcher segmented the question in two types. The rst type, the researcher completely describe the percentage con- tribution of different options in the awareness domain. The bi- 8. Volume : 3 | Issue : 4 | April 2014 ISSN - 2250-1991 31 | PARIPEX - INDIAN JOURNAL OF RESEARCH REFERENCES 1. ATkearney (2013). All that glitters is gold: India jewellery review 2013. Author. Retrieved from http://www.cci.com/spdocument/20332/India-Jewellery-Review-2013.pdf pg.8 | 2. India Jewellery Market | Indian Gold Designs | World Gold Council. (n.d.). Retrieved from http://www.gold.org/jewellery/india-market_br | 3. www.bemoneyaware. com/blog/gold-basics/Understandingof gold: Purity,Color, Hallmark | 4. Leon G.Schiffman, Leslie Lazar Kanuk. (2008). Consumer behaviour, (9th Ed.). Prentice hall of India, private limited, New Delhi. | 5. Roger D. Blackwell, Paul W.Miniard, James F.Engel. (2005). Consumer behaviour, (9th Ed.). Vikas publishing house Pvt. Ltd., Jangpura, New Delhi. | 6. Balanaga Gurunathan K, Muniraj S. (2012). Impact of customer awareness and buyer behaviour on buying jewellery products with special references to Tamil Nadu state. European Journal of Social Sciences, 29(3), 337-342. | 7. Nega Jain. (2013). A comparative study of Indian womens perception towards branded & non branded jewellery in Jaipur city. Applied Research and Development Institute Journal, 7(7), 59-64. polar type of questions are separately considered for the neat presentation and convenience. Table 4 Awareness about Gold jewellery S.No Variables Yes No Total 1 2 3 4 5 6 7 8 Checking of purity/ neness Aware of karatmeter Aware of market rate Aware of price xation of gold jewellery Insisting purchase receipt Purchase through online shopping Awareness on consumer movement Lodged a complaint regarding gold jewellery in consumer court. 527 (87.8 %) 347 (57.8 %) 501 (83.5%) 367 (61.2%) 500 (83.3%) 64 (10.7%) 331 (55.2%) 38 (6.3%) 73 (12.2 %) 253(42.2 %) 99 (16.5%) 233 (38.8%) 100 (16.7%) 536 (89.3%) 269 (44.8%) 562 (93.7%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) 600 (100%) Source: Primary Data From the above table, it is found that the consumer and their awareness level are more in the case of gold jewellery charac- teristics. It is revealed that 87.8 percent of consumer of gold jewellery checks the purity of both items in the pair. 57.8 percent of the respondents are aware of karatmeter . The researcher found that majority of the respondents (83.5 per- cent) knew and aware of the market rate of gold jewellery. Most of the respondents eagerly wait to know the market rate because the gold rate is xed twice a day and strongly inuenced by supply and demand. 61.2 percent are known the price xation of gold jewellery. The gold jewellery price is same in all over the world, but the making charges and wast- ages are different from place to place and from the shop to shop. It is opined that the 83.3 percent of the respondents insisted and received the receipt from jewellery shop. 10.7 percent of the respondents like to buy gold jewellery through online shopping. The researcher observed that the youth, like corporate employees like to buy through online shopping be- cause they do not nd time and not ready to spend hours for shopping, so they conveniently do online shopping. In the sample respondents, 55.2 percent were aware of the consum- er movement and rights regarding gold jewellery. Most of the consumers were aware almost conned to urban areas. 6.3 percent of the respondents lodged complaint has expressed an opinion that they believe in the consumer grievance redres- sal system. Findings and conclusion The researcher empirically identied that the most of the con- sumers are aware of the gold jewellery. 66.5 percent of the consumers wish to buy man made gold jewellery. The rea- son for buying man made gold jewellery is primarily for more weight and more design for machine made gold jew- ellery. The consumers watched many times in gold jewellery advertisements and also kalyan jewellery shop commercial ad- vertisement has created consumer awareness on gold jewel- lery. The ndings of the research reports that 76.5 percent of the respondents considered and aware of buying gold jewel- lery for 22kt (916). The ndings of the research revealed that 87.8 percent of consumers of gold jewellery check the quality of both items in the pair. 10.7 percent of the respondents like to buy gold jewellery through online shopping and 6.3 per- cent of the respondents gave lodged complaints. It is further ascertained that the consumer awareness of gold jewellery for karat meter, aware of the market rate, price xation, receiv- ing receipt and consumer movement and rights is considerably satisfactory. However, the level of awareness about gold jewel- lery must be increased in the minds of consumers. Therefore, the consumer councils, forums, and the Government of India should take necessary steps to improve the awareness in the minds of consumers, and this will certainly help the consumers of gold jewellery. 9. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International List of Contents and Tables PERSONAL GOODS IN SWEDEN......................................................................................................1 Executive Summary.....................................................................................................................................................1 Sales of Personal Goods Unaffected by Global Crisis .................................................................................................1 Sales in More Sectors Driven by Well-known Brands ..................................................................................................1 Swedish Personal Goods Market Remains Conservative .............................................................................................1 Traditional Retailers Turning Into Fashion Stores.......................................................................................................1 Well-known Brands Driving Future Sales.....................................................................................................................1 Key Trends and Developments...................................................................................................................................1 was There A Global Economic Crisis? .........................................................................................................................2 Well-known Brands All More Important.......................................................................................................................2 Swedish Personal Goods Market Becoming Polarised.................................................................................................3 Modern Technology Affecting Some Markets ...............................................................................................................4 Fashion Causes Rapid Changes....................................................................................................................................5 Market Data .................................................................................................................................................................5 Table 1 Sales of Personal Goods by Category: Value 2004-2009 ....................................................5 Table 2 Sales of Personal Goods by Category: % Value Growth 2004-2009...................................6 Table 3 Personal Goods Company Shares 2005-2009.......................................................................6 Table 4 Personal Goods Brand Shares 2006-2009 ............................................................................6 Table 5 Sales of Personal Goods by Distribution Format: % Analysis 2004-2009..........................7 Table 6 Sales of Personal Goods by Sector and Distribution Format: % Analysis 2009 .......................................................................................................................................8 Table 7 Forecast Sales of Personal Goods by Category: Value 2009-2014......................................8 Table 8 Forecast Sales of Personal Goods by Category: % Value Growth 2009-2014....................8 Definitions.....................................................................................................................................................................8 Summary 1 Research Sources...................................................................................................................9 LOCAL COMPANY PROFILES - SWEDEN ......................................................................................10 Ballograf Ab ...............................................................................................................................................................10 Strategic Direction.......................................................................................................................................................10 Key Facts......................................................................................................................................................................10 Summary 2 Ballograf AB: Key Facts.....................................................................................................10 Summary 3 Ballograf AB: Operational Indicators.................................................................................10 Company Background..................................................................................................................................................10 Production....................................................................................................................................................................11 Competitive Positioning...............................................................................................................................................11 Summary 4 Ballograf AB: Competitive Position 2009..........................................................................11 Burde Frlagsaktiebolag...........................................................................................................................................11 Strategic Direction.......................................................................................................................................................11 Key Facts......................................................................................................................................................................11 Summary 5 Burde Frlagsaktiebolag: Key Facts...................................................................................11 Summary 6 Burde Frlagsaktiebolag: Operational Indicators...............................................................12 Company Background..................................................................................................................................................12 Production....................................................................................................................................................................12 Summary 7 Burde Frlagsaktiebolag: Production Statistics 2009.........................................................12 10. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Competitive Positioning...............................................................................................................................................12 Summary 8 Burde Frlagsaktiebolag: Competitive Position 2009........................................................13 Iduna Ab .....................................................................................................................................................................13 Strategic Direction.......................................................................................................................................................13 Key Facts......................................................................................................................................................................13 Summary 9 Iduna AB: Key Facts...........................................................................................................13 Summary 10 Iduna AB: Operational Indicators.......................................................................................13 Company Background..................................................................................................................................................14 Production....................................................................................................................................................................14 Competitive Positioning...............................................................................................................................................14 Summary 11 Iduna AB: Competitive Position 2009................................................................................14 Kin Ab .........................................................................................................................................................................15 Strategic Direction.......................................................................................................................................................15 Key Facts......................................................................................................................................................................15 Summary 12 KIN AB: Key Facts.............................................................................................................15 Summary 13 KIN AB: Operational Indicators.........................................................................................15 Company Background..................................................................................................................................................15 Production....................................................................................................................................................................16 Competitive Positioning...............................................................................................................................................16 Summary 14 KIN AB: Competitive Position 2009..................................................................................16 Venue Retail Group Ab.............................................................................................................................................16 Strategic Direction.......................................................................................................................................................16 Key Facts......................................................................................................................................................................17 Summary 15 Venue Retail Group AB: Key Facts....................................................................................17 Summary 16 Venue Retail Group AB: Operational Indicators................................................................17 Company Background..................................................................................................................................................17 Production....................................................................................................................................................................18 Competitive Positioning...............................................................................................................................................18 Summary 17 Venue Retail Group AB: Competitive Position 2009 ........................................................18 JEWELLERY IN SWEDEN ................................................................................................................19 Headlines.....................................................................................................................................................................19 Trends .........................................................................................................................................................................19 Competitive Landscape.............................................................................................................................................20 Prospects .....................................................................................................................................................................21 New Product Developments.........................................................................................................................................21 Summary 18 New Product Launches 2009 ..............................................................................................21 Category Data.............................................................................................................................................................21 Table 9 Sales of Jewellery by Category: Value 2004-2009 ............................................................21 Table 10 Sales of Jewellery by Category: % Value Growth 2004-2009...........................................22 Table 11 Sales of Jewellery by Type: % Value Breakdown 2004-2009...........................................22 Table 12 Jewellery Company Shares 2005-2009...............................................................................22 Table 13 Jewellery Brand Shares 2006-2009 ....................................................................................22 Table 14 Costume Jewellery Company Shares 2005-2009 ...............................................................23 Table 15 Costume Jewellery Brand Shares 2006-2009.....................................................................23 Table 16 Real Jewellery Company Shares 2005-2009 ......................................................................23 Table 17 Real Jewellery Brand Shares 2006-2009............................................................................24 11. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Table 18 Sales of Jewellery by Distribution Format: % Analysis 2004-2009 ..................................24 Table 19 Forecast Sales of Jewellery by Category: Value 2009-2014..............................................24 Table 20 Forecast Sales of Jewellery by Category: % Value Growth 2009-2014............................25 12. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International PERSONAL GOODS IN SWEDEN EXECUTIVE SUMMARY Sales of Personal Goods Unaffected by Global Crisis Sales on the Swedish market in personal goods grew strongly over the review period, despite the onset of the global economic crisis in 2008. The only sector that was slightly affected by the global economic crisis was personal stationery, whose sales declined briefly in 2008 before recovering in 2009. Two factors seem to have been protecting the Swedish market in personal goods. First, it is small overall, and Swedes appear to be consuming no more than their basic needs. Second, increased interest in well-known brands has fuelled sales. Sales in More Sectors Driven by Well-known Brands Some sectors of the Swedish market in personal goods, such as jewellery and watches, underwent strong structural changes during the review period on account of an increasing interest in well-known international brands. Consumers now place their trust in the well-known international brands, as they once did in the craftsmanship of independent goldsmiths and watchmakers. More sectors of the Swedish market in personal goods are being driven by this increasing interest in fashion and design. Well-known brands have become symbols of credibility, lifestyle, values and a certain level of quality, and they must be able to meet the consumers expectations. Swedish Personal Goods Market Remains Conservative There are wide differences in the competitive environments of the different subsectors of the Swedish market in personal goods. Some sectors, such as jewellery and handbags, have become increasingly fragmented as more well-known international brands compete for consumers attention. Others, such as writing instruments and luggage, are concentrated on a few strong brand owners. New product development has been rather limited in all sectors of the Swedish market in personal goods, and there have been few innovations. The most common features of new product development have been a concentration on trendy exterior design, together with the introduction of eco-friendly materials in some sectors, such as pens. Traditional Retailers Turning Into Fashion Stores Well-known Brands Driving Future Sales KEY TRENDS AND DEVELOPMENTS Content removed from sample Content removed from sample 13. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International was There A Global Economic Crisis? Current impact Outlook Future impact Well-known Brands All More Important Current impact Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample 14. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Outlook Future impact Swedish Personal Goods Market Becoming Polarised Current impact Outlook Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample 15. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Future impact Modern Technology Affecting Some Markets Current impact Outlook Future impact Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample 16. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Fashion Causes Rapid Changes Current impact Outlook Future impact MARKET DATA Table 1 Sales of Personal Goods by Category: Value 2004-2009 SEK million 2004 2005 2006 2007 2008 2009 Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods , , , , , , Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Content removed from sample Content removed from sample Content removed from sample Content removed from sample Content removed from sample Data removed from sample 17. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Table 2 Sales of Personal Goods by Category: % Value Growth 2004-2009 % current value growth 2008/09 2004-09 CAGR 2004/09 TOTAL Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 3 Personal Goods Company Shares 2005-2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 4 Personal Goods Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Data removed from sample Data removed from sample 18. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 5 Sales of Personal Goods by Distribution Format: % Analysis 2004-2009 % retail value rsp 2004 2005 2006 2007 2008 2009 Store-Based Retailing Grocery Retailers Non-Grocery Retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Leisure and personal goods retailers Mixed Retailers Other store-based retailing Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 100.0 100.0 100.0 100.0 100.0 100.0 Data removed from sample Data removed from sample 19. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 6 Sales of Personal Goods by Sector and Distribution Format: % Analysis 2009 % retail value rsp J PS TG W WI Store-Based Retailing Grocery Retailers Non-Grocery Retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Leisure and personal goods retailers Mixed Retailers Other store-based retailing Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 100.0 100.0 100.0 100.0 100.0 Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Key: J = Jewellery; PS = Personal Stationery; TG = Travel Goods; W = Watches; WI = Writing Instruments Table 7 Forecast Sales of Personal Goods by Category: Value 2009-2014 SEK million 2009 2010 2011 2012 2013 2014 Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods , , , , , , Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 8 Forecast Sales of Personal Goods by Category: % Value Growth 2009-2014 % constant value growth 2009-14 CAGR 2009/14 TOTAL Jewellery Personal Stationery Travel Goods Watches Writing Instruments Personal Goods Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates DEFINITIONS Data removed from sample Data removed from sample Data removed from sample 20. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International JEWELLERY IN SWEDEN HEADLINES Over the period 20042009, the sales value of jewellery in Sweden decreased by 8.2% (at a CAGR of - 1.7%), from SEK 4.2 to SEK 3.8 billion. In 2009, however, the sales value increased by 1.3% from the SEK 3.8 billion recorded in 2008. The Swedish jewellery market is currently undergoing large structural changes as it is increasingly driven by well-known international brands. Jewellery is more than ever a fashion accessory. Real jewellery is the larger subsector of the Swedish market, with sales of SEK 3.3 billion in 2009. Nevertheless, only costume jewellery displayed positive growth, rising by a total of 2.7% during 2004 2009. In 2009, the leading brand owners on the Swedish jewellery market were the Swedish retailer Iduna AB (15.6%), together with the manufacturers Schalins Ringar AB (6.9%), Efva Attling Stockholm AB (4.7%) and Nslund & Jonsson Import AB (4.7%). Over the forecast period, the Swedish jewellery market is expected to grow by 9.9% (at a CAGR of 1.9%) to reach SEK 4.2 billion in 2014. TRENDS The most important factor influencing the Swedish jewellery market is a strong structural change. In recent years, well-known international brands have become increasingly important to Swedish consumers in general. This is apparent in almost all markets, including clothing, furniture and consumer electronics, where well-known designers are attracting considerable attention. Jewellery retailers report that consumers previously put their trust in their skills as goldsmiths, but today they believe in brands. Consumers expect that a well-known international brand, such as Calvin Klein, will maintain a certain level of quality. The quality need not be exceptional and the product need not be exclusive, but the product must meet consumers expectations, because the brand has become the symbol of a certain lifestyle and values. As brands are more important than craftsmanship to the modern Swedish consumer of jewellery, sales on the Swedish market have fluctuated strongly over the review period. This is because many retailers and domestic jewellery producers are still living in the past and waiting for this new and whimsical movement to pass, so they can again focus on what is important to them their own skills in the trade once order is re-established. Many Swedish retailers and jewellery producers have failed to notice that they are dealing with new groups of consumers. Previously, men bought upper-end jewellery pieces as gifts for women, but today many women buy their own jewellery. Women are not necessarily interested in the upper-end products the retailers like to sell, which represent their own skill in the trade, since they may prefer buy something simple they fancy for the moment. An illustration of the new trend is the Rock brand by Sweden sitas, created by the Swedish TV celebrity Laila Bagge and the designer sa Ltbom. This is a line of silver jewellery in the form of, for example, skulls. Goldsmiths regard this as an abomination, while critics, the media and consumers love the brand. This development also illustrates that the distinction between real and costume jewellery is increasingly blurred. The global economic crisis in 2008 does not seem to have had a large effect on the Swedish jewellery market. Rather, because of the structural changes there have been strong ups and downs over the review period. In the last few years, the market has been growing slowly with decreasing growth rates, and it appears to be stabilising as the major retailers learn to deal with the new market conditions. Most Swedish jewellery retailers offer a wide assortment of neckwear and rings. Rings represented 35%, neckwear 30%, earrings 20% and wristwear the remaining 15% of the total value sales of jewellery in 2009. 21. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Rings and earrings appear to be gaining in popularity relative to neck- and wristwear, and sales of rings are currently believed to be driven by anticipation of the royal wedding in Sweden in 2010. The faster-growing subsector of the Swedish jewellery market is costume jewellery, which is currently growing slightly faster than real jewellery, although the distinction between these two subsectors is increasingly blurred as a result of the current trend towards the growth of strong and well-known brands. Today it is perfectly acceptable for a consumer to buy low-end neckwear made from silver and leather, or even rubber, if the designer or the brand is well known. COMPETITIVE LANDSCAPE The strongest player on the Swedish jewellery market is the Iduna Group, which owns the three largest retail chains: Guldfynd, Hallbergs Guld and Albrekts Guld. Its own brands Albrekts Guld, Mood, Posh, Q Frn Guldfynd, and I me my. held a combined market share of 15.6% in 2009. Content removed from sample Content removed from sample 22. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Jewellery , , , , , , Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 10 Sales of Jewellery by Category: % Value Growth 2004-2009 % current value growth 2008/09 2004-09 CAGR 2004/09 TOTAL Costume Jewellery Real Jewellery Jewellery Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 11 Sales of Jewellery by Type: % Value Breakdown 2004-2009 % retail value rsp 2004 2005 2006 2007 2008 2009 Earrings Neckwear Rings Wristwear Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 12 Jewellery Company Shares 2005-2009 % retail value rsp Company 2005 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 13 Jewellery Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Data removed from sample Data removed from sample Data removed from sample Data removed from sample Data removed from sample 23. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 14 Costume Jewellery Company Shares 2005-2009 % retail value rsp Company 2005 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 15 Costume Jewellery Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 16 Real Jewellery Company Shares 2005-2009 % retail value rsp Company 2005 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Data removed from sample Data removed from sample Data removed from sample Data removed from sample 24. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Table 17 Real Jewellery Brand Shares 2006-2009 % retail value rsp Brand Company 2006 2007 2008 2009 Total 100.0 100.0 100.0 100.0 Source: Trade associations, trade press, company research, trade interviews, Euromonitor estimates Table 18 Sales of Jewellery by Distribution Format: % Analysis 2004-2009 % retail value rsp 2004 2005 2006 2007 2008 2009 Store-Based Retailing Grocery Retailers Non-Grocery Retailers Electronics and Appliance Specialist Retailers Health and Beauty Retailers Leisure and personal goods retailers Mixed Retailers Other store-based retailing Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor estimates Table 19 Forecast Sales of Jewellery by Category: Value 2009-2014 SEK million 2009 2010 2011 2012 2013 2014 Costume Jewellery Real Jewellery Jewellery , , , , , , Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Data removed from sample Data removed from sample Data removed from sample 25. www.euromonitor.com Sample Report for Illustration ONLY Euromonitor International Table 20 Forecast Sales of Jewellery by Category: % Value Growth 2009-2014 % constant value growth 2009-14 CAGR 2009/14 TOTAL Costume Jewellery Real Jewellery Jewellery Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor estimates Data removed from sample 26. 1 Julie Boadilla JEWELLERY INDUSTRY GUIDE Updated January 2014 Small Business Help Craft and Art (Small Business Help) [(B) SBH 745.5068] Covers all aspects of setting up and maintaining a craft business. Start and Run Your Own Shop (Small Business Help) [(B) SBH 658.87] Aimed at the aspiring retailer with limited means. Antiques and Fine Art Dealer BOP199 (COBRA, 2013) [available onsite via electronic sources] Provides information about starting up as an antiques and fine art dealer. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with. Clock and Watch and Repair Service MBP435 (COBRA, 2013) [available onsite via electronic sources] Provides information about starting up a clock and watch repair service. It describes the skills required, the training available, current market trends, and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. Clothing and Accessories Retail SYN041 (Cobra, 2012) [available onsite via electronic sources] An overview of the current performance, trends and key factors affecting the UK clothing and accessories retail industry including jewellery. Fashion Accessories Retailer BOP109 (COBRA, 2012) [available onsite via electronic sources] Provides information about starting up as a fashion accessories retailer. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. 27. 2 Julie Boadilla Jewellery BOP106 (Cobra, 2012) [available onsite via electronic sources] Provides information about starting up as a jewellery. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. Jewellery Maker BOP008 (COBRA, 2012) [available onsite via electronic sources] Provides information about starting up as a jewellery maker. It describes the skills required, the training available, the current market trends and some of the key trading issues. It also identifies some of the main legislation that must be complied with and provides sources of further information. New Age Shop MBP298 (COBRA, 2011) [available onsite via electronic sources]Provides brief information on trading issues connected with new age shops (retailers of products and gifts associated with a broad range of new age beliefs and philosophies). Selling Your Crafts online with Etsy, eBay and Pinterest (Small Business Help, 2012) [(B) SBH 745.50688 BUS] A step by step guide for succeeding in the worlds biggest online, crafts market places. Gives tips and advice on everything from creating listings to getting a fair price, processing payments to providing outstanding service. Setting up a successful Jewellery Business (Small Business Help, 2011) [(B) SBH 739.27068 BUS] This book is for anyone who designs, makes and sells jewellery. Either directly to the public or through shops and galleries. This book will also give you the tools you need to help you price, promote and sell your work. Market Research & Statistics Consumer Attitudes Towards Luxury Brands UK (Mintel, 2011) [available onsite via electronic sources] Analysis of sector and trends including many tables showing responses to questions on buying and usage behaviour. Consumer Expenditure on Jewellery, Silverware, Watches and Clocks (Euromonitor Passport, 2012) [available onsite via electronic sources] Brief data for numerous individual countries and regions. Corporate and promotional giftware Market Report (Key Note, 2013) [A-Z sequence by title] (also available online via electronic sources) Extensive analysis of sector including sales, competitors, future trends, SWOT analysis, buying behaviour, current issues and the global market. Fashion accessories - UK ( Mintel, 2012) [available onsite via electronic sources] Includes costume jewellery. Analysis of sector and trends, including tables showing responses to questions on buying and usage behaviour. GFMS: Gold survey 2012 (GFMS) [(B) MKT 338.2741021 BUS] Provides data on gold prices, investment, mine supply, supply from above ground stock, gold bullion trade and fabrication demand. Giftware (Key Note, 2011) [A-Z sequence by title] (also available online via electronic sources) Extensive analysis of sector including sales, competitors, future trends, SWOT analysis, buying behaviour, current issues and the global market. 28. 3 Julie Boadilla Global Airport Retailing: Market Size, Retailer Strategies and Competitor Performance (Verdict, 2012) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Global Jewellery Retailing: Market Size, Retailer Strategies and Competitor Performance (Verdict, 2010) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Global Luxury Retailing: Market Size, Brand Strategies and Competitor Performance (Verdict, 2011) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Index of Jewellery, Silverware, Watches and Clocks, Travel Goods Prices (Euromonitor Passport, 2013) [available onsite via electronic sources] Covers numerous individual countries and regions to show variation in prices for the sector. Figures from 2006. International Retail Spend in the UK (Verdict, 2013) [available onsite via electronic sources] Outlines global and regional expenditure, individual retailers' performance and key strategic issues. Jewellery industry: Financial Survey Report (Key Note, 2012) [A-Z sequence by title] Brief financial data for medium-sized and smaller UK companies. Jewellery trade: Business Ratio Report (Key Note, 2011) [A-Z sequence by title] (also available online via electronic sources) Detailed financial data for leading UK companies followed by ranked lists for financial performance, number of employees, sales per employee, etc. Jewellery and Watches Market Report (Key Note, 2013) [A-Z sequence by title] (also available online via electronic sources) Extensive analysis of sector including sales, competitors, future trends, SWOT analysis, buying behaviour, current issues and the global market. Jewellery in The United Kingdom (Euromonitor Passport, 2013) [available onsite via electronic sources] Individual reports on numerous countries. Includes analysis, sector trends and forecasts, sales share from, usually, 2008, by sub sector, company and by brand, and share by distribution format such as grocery outlets or the Internet. UK report includes new product launches and company and brand share by sub sector such as costume jewellery. Luxury Jewellery and Timepieces in the United Kingdom (Euromonitor Passport, 2013) [available onsite via electronic sources] Individual reports on numerous countries. Includes analysis, sector trends and forecasts, sales share from, usually, 2006, by sub sector, company and by brand, and share by distribution format such as grocery outlets or the Internet. Platinum (Johnson Matthey PLC, 1985 onwards) [ZC.9.b.41] (Humanities, must be ordered on Explore the British Library) Annual review of platinum, palladium and rhodium markets (to some extent ruthenium and iridium). Statistics on demand by industry, regions etc. Includes prices, and new applications. Watches country reports (Euromonitor Passport, 2013) [available onsite via electronic sources] Individual reports on numerous countries. Includes analysis, sector trends and forecasts, sales share from, usually, 2008 by sub sector, company and by brand, and share by distribution format such as 29. 4 Julie Boadilla grocery outlets or the Internet. UK report includes new product launches and company and brand share by sub sector such as sports or casual formats. Watches and Jewellery UK (Mintel, 2012) [available onsite via electronic sources] Analysis of sector, trends and purchasing patterns, including many tables showing responses to questions on buying and usage behaviour. World Silver Survey (The Silver Institute, 2012) [(B) MKT 338.4766923 BUS] Covers market analysis, summary and outlook, silver prices, Investment, mine supply, supply from above ground stock, silver bullion trade and fabrication demand. Worldwide Jewelry Stores Industry (Barnes Reports, 2012) [available onsite via Business Source Complete]Covers trends in industry establishments, sales, employment , size of firm industry estimates, and industry ratios for 2009-2013. Trade Magazines Basel Magazine (CRU Publishing Ltd, monthly, 1999 onwards) [ZK.9.b.13909] (Humanities, must be ordered on Explore the British Library). Covering diamonds, watches, designers, luxury goods, market reports and trade show reviews Crafts - the magazine for contemporary craft (Crafts council, 1973 onwards) [ P.423/209] (Humanities, must be ordered on Explore the British Library). Gems & Jewellery (Gemmological Association, 2005 onwards) [General Reference Collection ZK.9.b.23145] (Humanities, must be ordered on Explore the British Library) This journal is published quarterly, earlier title was Gem & jewellery news. Covering gems, precious stones and the jewellery trade. Gift focus magazine (Kline Davis Ltd) [(P) 381.4567-E(1)Bus] Bi-monthly journal for giftware industry. Product and company profiles, trade shows and news, including jewellery. Gifts Today (Lema Publishing Ltd, 1997 onwards), [ZK.9.b.10592] (Humanities, must be ordered on Explore the British Library). This journal offers leisure, distribution, and consumer goods (including jewellery and giftware). GR - Giftware Review [(B) 745.094105-E(1)Bus] The last 4 years only held for this publication. News of products in the giftware sector including jewellery. Harrington & Hallworth (H&H) (Network Jewellery Magazines, 2008 onwards) [General Reference Collection, ZC.9.b.8841](Humanities, must be ordered on Explore the British Library). Annual publication on the jewellery and watch industry. Jewellery Focus (Mulberry Publications, 2008 onwards) [General Reference Collection ZK.9.b.26500] (Humanities, must be ordered on Explore the British Library). A glossy monthly publication including articles, reviews, exhibitions and news. Luxury Product and Service Briefing (Atlantic Publishing Ltd., 1995 onwards) [(P) AL 90-E (64) BUS] Information on the luxury goods industries including jewellery. Progressive jewellery (Max Publishing), [(P) 381.573927094105 -E (1) BUS] The last 4 years only held for this publication. 30. 5 Julie Boadilla Trade magazine for retailers, wholesalers and importers. Includes company and retailer profiles, bestsellers, product finder, new product and people news. SA Jewellery News (Johannesburg: Diamond News and SA jeweller, 2000 onwards, monthly) [(P) TN76-E (11)] Contains information on the jewellery and diamond industry in South Africa. Directories The British Jeweller Yearbook (Retail Jeweller, 2008) [(B) DIR 338.47739270941 BUS] Includes information on various aspects of the jewellery trade as well as details of forthcoming trade fairs, and company listing and commodity indices. Indicateur de LHorlogerie (ISH Indicateur Suisse SA, 2011) [P.621/296] (Humanities, must be ordered on Explore the British Library). Watch and clock directory including styles, movements, fashion, gem, mechanical, quartz and sports watches. Also includes larger wall clocks. JCK (Jewellers Circular Keystone), Directory and Guide (Reed Business Information, 2008) [(B) DIR 381.45739270294 BUS] US directory including sections on diamonds, pearls and gemstones. Includes suppliers of finished jewellery, watches and clocks. Also some company information. Retail Jewellers Buyers Guide (Retail Jeweller 2009) [(B) DIR 381.457392702541 BUS] A listing guide for sourcing raw materials, tools, equipment, etc. Also lists finished jewellery products and services for retail jewellers. Internet Sources Association for Contemporary Jewellery The Association for Contemporary Jewellery is devoted to the promotion, representation, understanding and development of contemporary jewellery in the United Kingdom and abroad. www.acj.org.uk The British Jewellers Association The national trade association promoting the growth and prosperity of UK jewellery and silverware suppliers. With over 600 member companies, BJA represents manufacturers, bullion suppliers, casting houses, diamond and gem dealers, designer jewellers and silversmiths, equipment suppliers and wholesalers. www.bja.org.uk British Allied Trades Federation, BATF Represents trade associations which represent the design, manufacture and supply of jewellery, giftware, travel goods and accessories www.bjgf.org.uk The British Watch and Clock Makers Guild Guild Council composed of practical experts who provide help for members with information and solving various problems such as those concerning obsolete parts, Insurance, starting a business etc. www.bwcmg.org 31. 6 Julie Boadilla The Crafts Council Glossy review of important contemporary crafts people, reviews of exhibitions, details of craft galleries, services for craft and decorative arts practitioners, specialist courses etc. Covers textiles, ceramics, sculpture, metalwork, jewellery, lighting, furniture, applied arts etc. www.craftscouncil.org.uk The Jewellery Distributors Association of the United Kingdom Trade body supporting those who wholesale, distribute, import and export precious and fashion jewellery, accessories, watches, clocks and other items to the jewellery and allied trades. www.jda.org.uk The London Bullion Market Association The trade association that represents Londons wholesale over-the-counter market for gold and silver. The ongoing work of the Association encompasses many areas, among them refining standards. www.lbma.org.uk Major Jewellery Associations Lists the major Jewellery Associations around the world. info.goldavenue.com/Info_site/in_jewe/in_je_majo.htm The National Association of Goldsmiths (N.A.G.) Represents jewellery retailers. www.jewellers-online.org Responsible Jewellery Council Promotes responsible business practices throughout the diamond and gold jewellery supply chain. www.responsiblejewellery.com The World Jewellery Confederation Encourages harmonisation and international cooperation, and protecting consumer confidence in the industry. www.cibjo.org Note: Every effort has been taken to ensure the accuracy of the information contained in this document, however some recently acquired items may have been added to the collection since this document was last updated. Please ask for help at the enquiry desk or check Explore the British Library for more details. Images by becca_and_rich, , Nikita, Glass Elements under a Creative Commons license 32. CONSUMER MARKETS The global gems and jewellery industry Vision 2015: Transforming for Growth A GJEPCKPMG report 33. The gems and jewellery industry is extremely global in nature-given the geographic dispersion of the value chain - from mining of gold, diamonds, and platinum in Africa, Canada, Australia, and Russia to polishing and jewellery manufacturing in India, China, and Turkey, and retailing in the U.S., European Union, Japan, and the emerging markets of China and India. As one of the most traditional industries, it has witnessed sweeping changes since the beginning of this millennium. Supply sources have become fragmented, raw material prices have shot up, and consumers have become more demanding and less loyal than ever before. Regulators are cautious and consumer activism is on the rise. These pressures have driven changes that are more intense and lasting than any witnessed in the previous 50 years. In the absence of a comprehensive global view of the current and likely future state of the industry, players indulge in selective future gazing. Given the leadership role of Gem and Jewellery Export Promotion Council (GJEPC) of India in the development of the industry, it was considered appropriate to initiate a study to take stock of the current challenges and predict a future for the industry. KPMG, a global network of professional services firms, which has done extensive work in the industry joined in and over the last six months, teams from both organisations conducted a study of the global industry. The study focusess on understanding the current size and scale of the value chain, identifying trends that will have an impact on the future, predicting the likely state of the industry by 2015, recommending initiatives, and developing a roadmap for various players given the expected changes in the environment. Apart from interviews with major industry leaders to gather insights, the study used quantitative modelling techniques to estimate changes in the size and structure of the industry. The report is limited to the precious jewellery segment of the industry, covering the entire jewellery value chain and its three main elements diamonds, gold, and platinum, which constitute 95 per cent of the industry in terms of value. Silver, coloured gemstones, and palladium have been covered partially. 1 Executive summary 34. Industry size, segments, and historical growth The size of the global gems and jewellery industry is estimated at 146 billion U.S. dollars (USD) at retail prices in 2005. The industry has grown at an average Compounded Annual Growth Rate (CAGR) of 5.2 per cent since 2000. Diamond-studded jewellery is the largest segment of this industry (2005 sales estimated at USD 69 billion); it has grown at a CAGR of 5 per cent over the last five years. The plain gold jewellery segment is a close second with total retail sales of USD 60.7 billion in 2005. Over the last five years, this segment has grown the fastest (at a CAGR of 5.5 per cent), a direct result of the rise in gold prices (CAGR of close to 13 per cent since 2001). 2 CAGR (2000-2005) 5.2%146 136 124 118 111113 0 40 80 120 160 200 2000 2001 2002 2003 2004 2005 USDbillion Figure 1: Global jewellery sales (2000-2005), USD billion Source: KPMG analysis Plain gold jewellery 41.6% Others 5.0% Plain platinum jewellery 6.2% Diamond Jewellery 47.2% Figure 2: Retail mix of various jewellery segments (2005) Source: KPMG analysis Growth in industry segments Market share of various jewellery segments 35. 3 Sale of jewellery is concentrated in eight key world markets, which corner more than three fourth of the worlds sales. The U.S. is the world's largest market for jewellery and accounted for an estimated 31 per cent of world jewellery sales in 2005. India and China are the emerging centres of jewellery consumption and have steadily increased their share of the pie to 8.3 per cent and 8.9 per cent, respectively (2005) Value addition at the two ends of the value chain is the highest, with intermediate segments adding relatively lower value (29 per cent in diamond cutting and polishing and 32 per cent in jewellery manufacturing). Key trends and likely scenarios Various socio-economic and political forces are driving the pace of change in the gems and jewellery industry. These forces have given rise to a number of visible trends (described in Figure 5) in each segment of the jewellery value chain: Sourcing: This segment has witnessed an increased fragmentation of rough diamond supply, emergence of new mines, local beneficiation movement in mining countries and a bull-run in precious metal prices. Competition and overcapacity in polishing and high debt levels have placed intense financial pressure on most players in traditional processing centres. Jewellery fabrication: Accelerating fashion cycles, relative factor costs between manufacturing and consuming nations, and volatile metal prices have fuelled a drive towards moving fabrication to low cost countries. India 8.3% Japan 8.3% Turkey 2.9% Middle East 8.9%UK 3.1% US 30.8% Rest of the World 23.7% China 8.9% Italy 5.0% Figure 3: Geographic share of the global jewellery consumption (2005) Source: KPMG analysis 146 67.2 20.6 12.7 40.6 17.6 0.7 (2.4) 4.4 1.7 0.5 0 20 40 60 80 100 120 140 160 USD billion Figure 4: The global gems and jewellery value chain (2005) Source: KPMG analysis Eight key world markets Diamond rough production Diamond mine sales Diamond rough trade CPD output Jewellery retail World jewellery sales Polished diamond inventory Polished diamond trade Precious metals Jewellery fabrication/wholesale Polished diamond at wholesale prices The global gems and jewellery value chain (2005) 36. 4 Jewellery retail: Increasing consumer sophistication, dwindling investment- driven purchases, and competition from other luxury goods are influencing the quantum and pattern of jewellery consumption in markets across the world. Stagnation in key jewellery markets and retail organisation in emerging markets are continuously altering the geographic distribution of jewellery consumption. Increased consumer consciousness about issues around origin/source of product' and 'labour conditions in manufacturing countries' adds to the complexity. Diamond mining Coloured gemstone mining Gold mining Platinum mining Recovery of silver Jewellery design & fabrication Jewellery retail SOURCES OF PRECIOUS STONES AND METALS JEWELLERY FABRICATION JEWELLERY RETAIL Local beneficiation in African countries Gold price bull run Steady supply of diamonds emergence of new mines, mining companies Declining market share of large diamond marketing companies Diamond supply controlled by few having high bargaining power Traditional centres finding rough procurement difficult Increasing rough prices Technological developments reducing labour and skill intensity Changing retail channels Competition and overcapacity in traditional centres High debt levels in traditional centresHigh and volatile platinum prices Israel and Belgium losing market share High cost of financing stock due to volatile prices Shrinking margins Stagnating demand in the U.S. the largest market Aggressive marketing to boost demand Creation of store and product brands Competition from other luxury items increasing Jewellery s declining value proposition Increasing consumer sophistication Consumer demand for quality, hallmarking gaining importance Emerging consumption centres linked with economic growth Shortening fashion cycles Intense competition in the export markets Bullion trading Ore processing & scrap recovery Gemstone processing Figure 5: Snapshot of key trends impacting the industry Source: KPMG research 37. 5 KPMG used the scenario analysis method for forecasting and modelling the impact of each of these trends on the future of the industry. Based on trends distilled from an analysis of current events and expectations of industry experts, eight scenarios were identified as likely to cause a significant disruption to the industry equilibrium. The eight key scenarios that are likely to impact the industry are: 1. Mining countries encourage local beneficiation and capture a share of the polishing industry. 2. Supply sources get fragmented and rough supply increases. 3. Consolidation occurs across the jewellery value chain. 4. Existing centres of the industry lose out in favour of new ones. 5. Substitutes such as synthetic diamonds and non-precious metals capture a share of the precious jewellery market. 6. Demand for plain gold jewellery declines. 7. Large emerging retail markets such as China and India organise and consolidate. 8. Jewellery loses out to competing luxury goods. The effect of all the scenarios was estimated by building an economic model and evaluating sensitivity of industry size and structure to the forces of change first independently, to each scenario, and later, collectively with assigned probabilities. Future of the global jewellery industry Based on the collective impact of the eight scenarios identified, projections were made about the most likely industry end state. What follows are seven key conclusions about the size, state, and structure of the industry in 2010 and 2015. Global jewellery sales growth will be sluggish, and will see emergence of new markets Global jewellery sales will grow at 4.6 per cent year-on-year to touch USD 185 billion in 2010 and USD 230 billion in 2015. Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together, accounting for about 82 per cent. Diamond jewellery will be the slowest growing segment at a CAGR of 3.3 per cent. Growth in the industry will be slow as compared to that expected in other luxury goods categories such as watches, perfumes, etc. For example, luxury apparel, a USD 100 billion market today, is expected to grow at 10-15 per cent over the next seven years1 . CAGR (2000-2005) 4.6% 146 185 230 0 40 80 120 160 200 240 280 2005 2010 2015 USDbillion Figure 6: Projected global jewellery sales (2010, 2015), USD billion Sluggish world jewellery sales 1 Source: Global market review of luxury apparel - forecasts to 2012, Just - Style (2006) 38. 6 China and India together will emerge as a market equivalent to the U.S.market by 2015. The Middle East will surface as another large market, accounting for close to 9 per cent of the global jewellery sales in 2015. Jewellery fabrication will feel the pressure of sluggish demand and will move to new centres Global jewellery fabrication output will grow at a CAGR of 5.1 per cent to reach USD 95 billion by 2015. China and India will be the new centres for the fabrication of studded jewellery, as the U.S.'s share will decline. Turkey will take over a significant share of the gold jewellery fabrication market from Italy. Value addition in diamond processing stage of the pipeline will increase significantly Cutting and polishing of diamond (CPD) centres will be the primary beneficiaries of the fall in rough prices and value addition in polishing will increase from 29.3 per cent in 2005 to 34.1 per cent in 2015. They will also benefit from an increased flow of diamond rough through the trade channel (a low margin route), which would imply that rough prices being paid by CPD players will see a downward trend. The jewellery pipeline will see consolidation Shrinking margins and increasing debt levels in the industry will force the diamond industry to consolidate. This consolidation will have the maximum impact on the diamond-processing segment of the value chain. Smaller players will be acquired or will go out of business, and the following will emerge: Handful of large integrated gems and jewellery players High volume polishers Niche polishers Others 5% Plain Palladium jewellery 6% Plain platinum jewellery 7% Plain gold jewellery 41% Diamond jewellery 41% Middle East 9% UK 2% US 26% RoW 28% China 13% India 12% Italy 3% Japan 4% Turkey 3% Figure 7: Projected share of various jewellery segments (2015) Source: KPMG analysis Figure 8: Projected share of key markets for jewellery consumption (2015) Source: KPMG analysis Projected share of industry segments and key consumption markets 39. 7 Mass jewellery fabricators Niche jewellery fabricators Several retail formats The structure of the diamond-processing industry will change considerably This segment of the value chain will see changes in rough allocation to countries, emergence of strong players, and weaker ones exiting the market. India's share of the processing pie will drop from 57 per cent today to around 49 per cent (in value terms) by 2015. China will emerge as a strong player with 21.3 per cent of the diamond processing share. By 2015, around 9 per cent of the world's diamonds, in volume terms, will be processed locally by mining countries, with Angola, Namibia, and Botsw