“A comparative study on the consumer’s preference

towards branded jewellery over non branded jewellery

in Nasik”

Submitted by:
1.
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5.

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 Table of Content
1 Acknowledgement 3
2 Introduction 4
3 Objective of Study 6
4 Description of the Problem 7
5 Significance of the study 8
6 Justification of the study 9
7 Research Methodology 10
8 Schedule 12
9 Literature Review 13
9.1 The emergence of Branded Gold Jewellery 13
9.2 Gold Jewellery Market in India 14
9.3 Gold Jewellery Becomes Fashion Accessory 17
9.4 Brand appeal 19
9.5 Indian Customers Showing Interest in Branded Jewellery 21
9.6 Traditional v/s Branded jewelers 23
9.7 A study on the jewellery industry 27
9.8 Trends in Jewellery 32
9.9 Indians opting for branded gold jewellery 36
10 Analysis of Literature Review 38
11 Analysis and findings 39
12 Hypothesis 49
13 Conclusion 51
14 Limitations 53
15 Reference 54
16 Appendices 55

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 ACKNOWLEDGEMENT

We, the students of Semester II from “MET Institute of Management”

pursuing our “Master in Business Administration” take great pleasure in presenting our
efforts of developing a complete project in a very satisfactory and appreciable manner.

Our efforts have been a success due to the Co-operation of the entire IOM
department without which a project of this magnitude, given restriction of time, could not
have been possible.

We owe this project to “Prof. Nilesh Berad” whose help, expert guidance and
invaluable Co-operation guided us through out the research phase.

Thanking You.

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 Introduction
Till the early 1990s, the average Indian bought jewellery for investment rather than for
adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor
investment.

Confidence in the local jeweler was the hallmark of the gold jewellery trade in India. A
jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit
faith in his jeweler. Additionally, the local jeweler catered to the local taste for traditional
jewellery.

However, since the late 1990s, there was a shift in consumer tastes: women were increasingly
opting for fashionable and lightweight jewellery instead of traditional chunky jewellery.
There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to
25 age group, who regarded jewellery as an accessory and not an investment. The new
millennium witnessed a definite change in consumer preferences.

Branded jewellery also gained acceptance forcing traditional jewelers to go in for branding.
Given the opportunities the branded jewellery market offered; the number of gold retailers in
the country increased sharply. Branded players such as Tanishq, Oyzterbay, Gili and Carbon
opened outlets in various parts of the country. Traditional jewelers also began to bring out
lightweight jewellery, and some of them even launched their in-house brands. However, the
share of branded jewellery in the total jewellery market was still small (about Rs. 10 billion
of the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to
30 percent annually. The branded jewellery segment occupied only a small share of the total
jewellery market because of the mindset of the average Indian buyer who still regarded
jewellery as an investment. Moreover, consumers trusted only their family jewelers when
buying jewellery. Consequently, the branded jewellery players tried to change the mindset of
the people and woo customers with attractive designs at affordable prices.

However branded jewellery players will continue to face lot of competition from local
jewelers. In order to gain market share, they will have to come up with designs that customers
want and win the trust and confidence of consumers by hallmarking and demonstrating the
purity of the gold used by them.

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To compete with traditional players, branded players must also find some way to differentiate
themselves. While the success of a particular brand will depend on differentiation,
affordability and quality will be a key element in sustaining a brand.

In addition, branded players require focused advertising and astute salesmanship to compete
with traditional jewelers. Besides the major brands- Tanishq, Carbon, Oyzterbay, Gili and
Trendsmith - several regional players have opened branches to leverage the trust and
reputation that they have built up over the years.

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 Objective of study

The objective to study the “A comparative study on the consumer’s preference towards
branded jewellery over non branded jewellery in Nasik.” is to find out

1) The consumer’s buying preferences

2) The reach of branded jeweler’s

3) Brand awareness of various brands in the jeweler’s market

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 Description of problem

The scope of study is limited due to the following reasons:

1) Time constraint- since the time span for the thesis is only 12 days an in depth study
and analysis will become a little difficult.

2) Sample size- the sample size of the study is only 100 which would not give a
comprehensive result. Many important samples may not be considered at all. The
conclusion of the study may not result to an accurate outcome due to the sample size
being small.

3) Bound to only Nasik city - the other limitation of the study is it is limited to only the
main city area of Nasik and ignores the samples from the smaller parts of the district.
The buying behavior of an individual varies from place to place.

4) Awareness- the sample taken and the conclusion drawn can be led to only one side if
there is lack of awareness about branded jewellery.

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 Significance of the study

The gems and jewellery industry occupies an important position in the Indian economy and is
one of the fastest growing industries in the country.

Hence the research conducted would help me

1) Understand the consumers preference while purchasing jewellery

2) How much impact does a brand have on their purchase decision

3) Does price play an important role in guiding their purchase decision

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 Justification of the study

The previous research done on branded and non branded jewellery markets are

1) Indian Gems and Jewellery Market - Future Prospects to 2011

2) The impact of recession on the jewellery industry

3) The growth of the Branded jewellery market in India

No study has been done to find out the preference of consumer’s between branded and
non branded jewelers. The study would also help to find out the consumer preference and
their buying behavior towards branded and non branded jeweler’s, this would help both
the retailers to know what are the consumer preference and what strategies should they
adapt to grab the market.

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 Research Methodology

Research is initiated by examining the secondary data to gain insight into the problem. The primary
data is evaluated on the basis of the analysis of the secondary data.

DEVELOPING THE RESEARCH PLAN

The data for this research project would be collected through questionnaire. A structured
questionnaire would be framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. Both
type of questions i.e. Open ended and closed ended, would be used.

COLLECTION OF DATA

a) Secondary Data: It was collected from internal sources. The secondary data was collected
from the articles, news papers, management books, and the internet.

b) Primary data: They were the main source of Primary data. The method of collection of
primary data would be direct personal interview through a structured questionnaire.

SAMPLING PLAN

Since it is not possible to study whole population, it is necessary to obtain representative samples
from the population to understand its characteristics.

1) Sampling Units: would comprise of men and women.

2) Research Instrument: Structured Questionnaire

SAMPLE SIZE

 100 respondent

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The primary data would be collected from

1) The population of Nasik city

The secondary data would be collected from:

1) Books

2) Magazines/ Project report

3) Internet

4) Articles

The questionnaire’s response format for the population would be close ended questions. With
a mix of question types varying from ranking, multiple choice to checklist questions. The
attitude of the respondents would be measured by itemized category scales, pictorial scale.

Hypothesis –

The null hypothesis would be: “50% of the consumer prefers buying branded jewellery.”

The alternative hypothesis would be: “More than 50% of the consumer prefers buying non
branded jewellery.”

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 Schedule

Activity Duration in days

Review of Literature 9thth – 10th February

Research Design 11thth February- 13nd February

Data Collection 14th January - 17th February

Data Analysis 18th February

Findings of Study 18th February

Report Writing 18th February

Submission and Evaluation 19th February

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 Literature Review
The emergence of branded gold jewellery:

In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of
jewellery. Instead of being regarded as only an investment option, jewellery was being prized
for its aesthetic appeal. In other words, the focus seemed to have shifted from content to
design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded
jewellery also gained acceptance forcing traditional jewelers to go in for branding.

Given the opportunities the branded jewellery market offered; the number of gold retailers in
the country increased sharply. Branded players such as Tanishq, Oyzterbay, Gili and Carbon
opened outlets in various parts of the country. Traditional jewelers also began to bring out
lightweight jewellery, and some of them even launched their in-house brands.

However, the share of branded jewellery in the total jewellery market was still small (about
Rs. 10 billion of the Rs. 400 billion per annum jewellery market in 2002), though growing at
a pace of 20 to 30 percent annually

The branded jewellery segment occupied only a small share of the total jewellery market
because of the mindset of the average Indian buyer who still regarded jewellery as an
investment. Moreover, consumers trusted only their family jewelers when buying jewellery.
Consequently, the branded jewellery players tried to change the mindset of the people and
woo customers with attractive designs at affordable prices.

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Gold Jewellery Market in India

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to
import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to
import gold freely

Exporters in export processing zones were allowed to sell 10 percent of their produce in the
domestic market. In 1993, gold and diamond mining were opened up for private investors and
foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas
banks and bullion suppliers were also allowed to import gold into India. These measures led
to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market.

In the 1990s, the number of retail jewellery outlets in India increased greatly due to the
abolition of the Gold Control Act. This led to a highly fragmented and unorganized jewellery
market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly
family-owned, single shop operations. In 2001, India had the highest demand for gold in the
world; 855 tons were consumed a year, 95% of which was used for jewellery. The bulk of the
jewellery purchased in India was designed in the traditional Indian style.

Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not very
common in India, under-carat age was prevalent. According to a survey done by the Bureau
of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat was of a lesser
quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as
22-carat gold jewellery.

The late 1990s saw a number of branded jewellery players entering the Indian market. Titan
sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based
jewellery exporter, sold 18-carat gold jewellery under the brand name Gili. Gitanjali Jewels
also started selling 24-carat gold jewellery in association with a Thai company, Pranda. Su-
Raj (India) Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997.

The Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India,
launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered India in 1997
in a franchise agreement with Ravissant. Other players who entered the Indian branded gold
jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay,
Carbon and Tribhovandas Bhimji Zaveri (TBZ). 3
Gili: In 1994, Gili Jewellery was established as a distinct brand by Gitanjali Jewels, soon
after the abolition of the Gold Control Act by the Indian government. Gili offered a wide
range of 18-carat plain gold and diamond-studded jewellery, designed for the contemporary
Indian woman. The designs combined both the Indian and western styles and motifs. With
sales of Rs.0.14 billion for the year 2000-01, Gili had a 0.03 percent share of the 400 billion
jewellery market in India and a 1.4 percent share of the branded jewellery market.

Tanishq: In 1984, Questar Investments Limited (a Tata group company) and the Tamil Nadu
Industrial Development Corporation Limited (TIDCO) jointly promoted Titan Watches
Limited (Titan). Initially involved in the watches and clocks business, Titan later ventured
into the jewellery businesses. In 1995, Titan changed its name from 'Titan Watches Ltd.' to
'Titan Industries Ltd.' in order to change its image from that of a watch manufacturer to that
of a fashion accessories manufacturer. In the same year, it also started its jewellery division
under the Tanishq brand.

Among the branded jewellery players in the Indian market, Tanishq is considered to be a
trendsetter. When it was launched in 1995, Tanishq began with 18-carat jewellery. Realizing
that such jewellery did not sell well in the domestic market, the 18-carat jewellery range was
expanded to include 22 and 24-carat ornaments as well. When Tanishq was launched, it sold
most of its products through multibrand stores. In 1998, Tanishq decided to set up its own
chain of retail showrooms to create a distinctive brand image.

By 2002, Tanishq retailed its jewellery through 53 exclusive stores across 41 cities. To meet
increasing demand, Tanishq planned to open 70 stores by the end of 2003 and offer a range of
'wearable' products with prices starting at Rs. 400. With sales of Rs. 2.66 billion in 2000-01,
Tanishq had a 0.66 percent share of the total jewellery market and a 27 percent share of the
branded jewellery market.

Carbon: In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was
incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian
consumer's relationship with gold jewellery would grow beyond an investment need towards
a lifestyle and personality statement. In 1996, within the Peakok fold a new brand of 18-carat
gold-based jewellery called Carbon was launched.

In 2000-01, with sales of Rs. 0.14 billion, carbon had a 0.03 percent share of the jewellery
market and a 1.4 percent share of the branded jewellery market. The company expected
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Carbon sales to touch Rs. 1.5 billion by 2005-06 and exports to start by 2008. The brand was
available at 40 outlets in 16 cities in 2002 and would be made available in 23 cities by 2005.

Oyzterbay: Oyzterbay was founded by Vasant Nangia and his team in July 2000. It began
operations in March 2001. By November 2002, the company had 41 outlets across the
country. Oyzterbay seeks to build a national brand in the jewellery industry in India and
aspires to be the largest branded jewellery company in the country with a chain of 100 stores
and several hundred-distribution points by 2004. With sales of Rs. 0.17 billion in 2000-01,
Oyzterbay had a 0.04 percent share of the Rs.400 billion jewellery market and a 1.7 percent
share of the branded jewellery market

Trendsmith: Mumbai-based Tribhovandas Bhimji Zaveri (TBZ), which had been in the
jewellery business since 1864, saw tremendous scope in the branded segment and opened its
new concept store 'Trendsmith' in Mumbai in December 2001. Encouraged by the response
towards its first store, the Zaveris planned to take Trendsmith (India) Pvt. Ltd. all over the
nation by opening as many as 50 stores by 2006. Trendsmith offered eight lines of exclusive
designer jewellery from well-known export jewellery manufacturers and designers from
Mumbai and Delhi.

BRANDED GOLD JEWELLERY MARKET (MAJOR PLAYERS)

Brand Market share (2000-01) in %)

Tanishq 27.0

Oyzterbay 1.7

Gili 1.4

Carbon 1.4

Source: ICFAI Centre for Management Research.

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Gold Jewellery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewellery for investment rather than for
adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor
investment. Confidence in the local jeweler was the hallmark of the gold jewellery trade in
India. A jeweler or goldsmith in a local area had a fixed and loyal clientele. The buyer had
implicit faith in his jeweler. Additionally, the local jeweler catered to the local taste for
traditional jewellery.

However, since the late 1990s, there was a shift in consumer tastes: women were increasingly
opting for fashionable and lightweight jewellery instead of traditional chunky jewellery.
There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to
25 age group, who regarded jewellery as an accessory and not an investment. The new
millennium witnessed a definite change in consumer preferences. According to Samrat
Zaveri, CEO of Trendsmith, "Research shows that the Indian jewellery sector is in the
transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and
not as a form of investment."

In October 2002, Trendsmith conducted a survey to understand the shifting needs,

motivations and aspirations of consumers in the jewellery market, and to identify new trends
and opportunities. The research study arrived at the following conclusions:

• The Indian market was witnessing an accelerated shift from viewing jewellery as an
investment to regarding it as aesthetically appealing ornaments. The focus had shifted from
content to design.
• The younger generation was looking at trendy, contemporary jewellery and clearly avoiding
heavy, traditional gold jewellery.

• The consumer wanted a wider selection at a single convenient location and expected an
international shopping experience.

• The Indian consumer was willing to experiment with new designs.

The late 1990s and early 2000s, with the increase in the number of designers from design
schools such as the National Institute of Fashion Technology (NIFT), a wide range of new
designs became available. In addition, the growing number of manufacturers needed a

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retailing platform with global and national reach. All these led to the proliferation of branded
jewellery players.

Strategies for Wooing Customers

Tanishq

In the late 1990s, players in the branded gold jewellery market formulated strategies for
wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq,
the challenges were many. As the jewellery market was highly fragmented, lacked branding,
and allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged
brand-building strategy: cultivate trust by educating customers about the unethical practices
in the business and change the perception of jewellery as a high-priced purchase. Said
Kurian, "We are changing the attitudes of customers from blind trust to informed trust."

To increase its market share, Tanishq formulated a strategy for luring people away from
traditional neighborhood jewelers. Tanishq's strategy was to create differentiation and build
trust.

According to Kurian, the first part of the strategy was "to provide a point of differentiation in
a highly commoditized category - which is the whole point of branding." The second part of
the strategy was to project Tanishq as an unimpeachable mark of trust. According to Kurian,
"If differentiation plays the role of primary attraction, trust takes care of lifelong loyalty.”

One way to create differentiation was through design. The emphasis had to be on design
because local jewelers could offer to design any pattern according to the customer's
specifications. For a national brand a generic design concept with regional variations had to
be evolved.

For this, Tanishq set up a seven member in-house design team and also outsourced designs
from freelance designers. The designers travelled the length and breadth of the country to get
feedback on Tanishq's designs and learn about customer preferences. On the basis of this
feedback, each showroom could select the designs it would carry.

Source:http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm

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Brand appeal

Branded jewellery has found a niche for itself in the tough Indian market, and its increasing
growth rates show that before long it will corner a significant share of the jewellery market.
WITH the retail industry in India burgeoning, several companies have made inroads into the
traditional jewellery industry, selling the product that was never really "marketed" in "brand"
new ways. So much so that branded jewellery is the new mantra in the market, having rapidly
acquired a niche over the past few years.

Some of the companies have even cleverly played on Indian customs and tradition to
advertise and establish their brands. Jewellery is now marketed for every occasion; even
Valentine's Day calls for "a special something [diamond] for a special someone".

In spite of pessimism about the marketability of branded jewellery in a country rooted in

buying ornaments from the traditional goldsmith, 30 brands were launched in 2004.
However, this does not take away from the fact that India is a tough market. According to
Mehul Choksi of the D'Damas and Gitanjali Group, branded jewellery has witnessed more
than 50 per cent growth in the last three years. The diamond branded jewellery, he says, is
especially impressive with the segment witnessing a 20 per cent rise annually as against 10
per cent a decade ago.

Although branded jewellery accounts for less than 10 per cent of the Rs.40,000-crore
jewellery market, a study has concluded that it is growing in popularity at a tremendous pace
of 20-30 per cent annually. Such is the potential of this industry that the consulting firm
McKinsey estimates the branded jewellery market in India to grow at the rate of 40 per cent
per annum to touch Rs.10,000 crores by 2010.

Big drivers of this kind of jewellery are the numerous malls opening across the country with
the emergence of an affluent class following the successful growth of the new economy
companies.

In the past decade, the country has seen a section of the population gaining exposure to
designer wear, fashion accessories and globally branded products. "Why not have accesses to
them?" asks Rima Khan, a brand executive. "Of course jewellery is harder to brand but it has
done well given the tough competition," she says.

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One of the reasons branded jewellery is doing well is that now anyone can walk into a mall,
window shop and decides at their own what they would like to buy. The entire culture of
shopping has changed with attentive and helpful attendants and well-displayed products.
"You no longer have the sales staff who look at you and decide whether you are worth
serving or not. Everyone is a potential customer in the new market," says Rima Khan. Yet the
most important part of branded jewellery is that you can get a piece of jewellery with a
diamond for as little as Rs.1,500. And as branded is equated with quality, you are assured of a
good product. "Suddenly jewellery has become accessible and affordable for all income
brackets."

The shift was visible in 2004 when more than 30 players entered the market. Today there are
more than 50 brands, endorsed by models, film actors, sports celebrities and other well-
known faces. Some designs of these brands are so popular that local jewelers have begun to
copy them. "While it is a compliment to the industry that people like the product, it could also
affect the company because the cost may be lower," says Rima Khan.

The biggest challenge perhaps is in educating the consumer. Consumers need to understand
the four Cs - Cut, Carat, Color and Clarity. Companies that brand their products place a lot of
emphasis on educating and therefore helping the customer make his purchase. "Buying
jewellery is a very personal thing and we need to understand what we are buying," says
Seema Thakur, an attendant in a jewellery store at a mall in Mumbai. "We have an average of
50 people on a week day and at least 100 on a weekend who walk in and look around the
shop. If you make the product look special, for instance, appeal to a young gentleman to buy
it for a loved one, he is often interested." And the big selling point is: "If you can spend
Rs.1,000 on two music CDs, why not spend for that special person in your life."

The branded jewellery industry is still in its infancy, but increasing growth rates show that in
a short time it will corner a significant chunk of the market. Perhaps the best compliment to
the branded segment is that old jewellery showrooms have also begun to design jewellery
lines under a brand name.

Source: http://www.flonnet.com/fl2223/stories/20051118003809800.htm

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Indian Customers Showing Interest in Branded Jewellery

Posted by RNCOS on October - 27 - 2009

As per our recently published research report “Indian Gems and Jewellery Market – Future
Prospects to 2011”, gems and jewellery market in India posses tremendous potential for
future growth since it has an added advantage of low production cost and highly skilled labor
that separate it from its competitors. It is projected that the overall gems and jewellery market
will grow at a CAGR of around 14% during 2009-2012.

India possesses world’s most competitive gems and jewellery market due to its low cost of
production and availability of skilled labor. As per our new research report “Indian Gems and
Jewellery Market - Future Prospects to 2011”, highly skilled and low cost manpower, along
with strong government support in the form of incentives and establishment of SEZs, has
been the major driver for the Indian gems and jewellery market. The market also plays a vital
role in the Indian economy as it is a leading foreign exchange earner and accounts for more
than 12% of India’s total exports. Currently the Indian market remains highly fragmented, but
is rapidly transforming into an organized sector.

Currently, the industry is facing a slowdown due to global economic turmoil. But due to
various government efforts and incentives coupled with private sector initiatives, the Indian
gems and jewellery sector is expected to grow at a CAGR of around 14% from 2009 to 2012.
At present, the Indian gems and jewellery market is dominated by the unorganized sector;
however, the trend is set to change in near future with the branded jewellery market growing
at an expected CAGR of more than 41% in the coming four years. As per our research report,
with its consumption pegged at nearly 20%, India remains world’s largest gold consumer and
this share is expected to grow further.

Given the fact that majority of market share is occupied by family-owned jewelers, the
domination of unorganized segment still continues on the Indian gems and jewellery market.
However, this scenario is gradually changing with the entrance of organized players who
primarily focus on customer satisfaction by giving better and finer quality products. Thus,
consumers are now moving towards branded jewellery which is more reliable in terms of
quality and design.

“With changing customers’ attitude towards branded jewellery and entrance of organized
players in the market, this segment will grow at much faster pace (annual growth of more 3
than 40%) than the overall jewellery market in coming years,” said a Research Analyst at
RNCOS.

The future outlook given in the report is based on past growth trends, current industry and
regulatory developments besides base drivers, opportunities and challenges faced by the gems
and jewellery industry in India.

Source: http://www.rncos.com/Report/IM148.htm

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Traditional v/s Branded jewelers

Introduction

Gems and Jewellery sales and marketing received a facelift with the advent of the
supermarket culture. As organized retail in India progresses to the next lap, Sadanand
Subramanian checks for Diamond World with some precious Industry players about their
preparedness and strategy to achieve maximum mileage.

As India reacts to a retail revolution, the hitherto sober gems and jewellery industry seems to
have jumped on the bandwagon with a clear plan of action. The industry has already made a
mark by capturing 3 per cent of the organized retail space thanks to the leadership shown by a
handful of companies prepared to dazzle the world. While organized retail under this segment
impressively grows at over 50 per cent annually, deliberations are on to arrive at what the
industry in general must do to keep the customer perennially delighted. The gems and
jewellery market in India is estimated to be about Rs.80,000 crores and the topmost agenda is
to adopt the right strategy to accelerate its growth keeping in mind current global dynamics.
For now the industry faces keen competition from other luxury goods such as electronic
innovations and other personal accessories. How far is it necessary for the gems and
jewellery sector to seriously consider it?

There is no doubt that things are a lot more organized in stores inside malls. They also
showcase and present products very attractively. But in my opinion, real sales take place
through traditional jewellery stores as jewellery is mainly sold on trust. Ghanshyam Dholakia

The urgency in the industry indicates rapid changes in the way goods are produced and
marketed. The evolution of new formats for sale and the massive technology and to some
extent, sizeable infrastructural developments taking place all foretell a prospect of growth
way beyond the current overall 10 per cent.

The Indian gems and jewellery industry boasts a strength of over 3 lakh jewellery retailers
across the length and breadth of this country. The huge number indicates strength in itself but
it also indicates a difficult diversity to grapple with when exploring common grounds to
formulate united approaches to tackle common concerns.

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Organized V/s Traditional Retail:

Comparisons have always been drawn between organized retail and traditional retail.
Attempts have always been made to define them. Rooting for organized retail, Navneet
Goenka, Vice- Chairman of Goenka Diamond and Jewels says, “Right now organized retail
seems to have wrested an edge over traditional retail.” Goenka argues that the indications to
this effect are seen in the manner large proportions of the society are becoming lifestyle
oriented, especially the younger generation. When considering India’s statistic of having the
highest percentage of youth in the world, this observation cannot be taken lightly. Goenka
says that the gems and jewellery sector is one of the fastest growing segments. He adds, “The
young generation today has more disposable income and they are willing to spend it on
luxuries of choice.”

Ghanshyam Dholakia, partner, Harikrisha Exports holds a different view with regard to the
tussle for supremacy over the two formats. “There is no doubt that things are a lot more
organized in stores inside malls,” he concedes. “They also showcase and present products
very attractively. But in my opinion, real sales take place through traditional jewellery stores
as jewellery is mainly sold on trust.” While explaining his point of view, he adds, “To the
credit of traditional jewellery stores they also have upgraded themselves in various ways
including the overall ambience in the last five to ten years. They are also changing
themselves in the matters of presentation and the customer approach.” Dholakia says that in
promotions and awareness creation, traditional retailers have realized its importance thereof
and have started allocating sizeable budgets for them. Consequently this section has already
started reaping the benefits of quality promotions by creating awareness about their products
and services. Dholakia is some what emphatic with regard to modern day organized retail
citadels, “In my personal opinion malls mainly serve the purpose of promotion and show of
products. I don’t think a lot of gems and jewellery sale takes place in malls.”

Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to
jewellery sales at modern shopping malls. He opines, “The sales that take place in a mall are
of a very different kind. You can call it window shopping if you like.” Shah elucidates his
point, “The young generation often resorts to some impulse buying.” He stresses that serious
buyers who are looking for high value purchases for occasions such as weddings prefer to
plan their jewellery shopping and eventually purchase from known reputed jewelers.

3
Changes in Gems & Jewellery Retail:

Whilst organized retailers are ahead when it comes to taking care of the different aspects in
the marketing and sales value chain, those in traditional retail are also changing or adapting to
the needs of the modern customer in the areas of service and customer care. They too are
improving their style of presenting and dealing with customers. “In the past, jewelers didn’t
have much modern education. Today, there are a number of MBA’s in these families and
amongst key personnel employed by them,” points out Ghanshyam Dholakia.

Retailing the Organized Way:

While complementing the planned approach by organized retail, Mahesh Gandani-Head

Retail, Hari Krishna Exports says, “We can see that times have changed and somewhere
along the way, the whole approach to marketing has also undergone transformation.”
Gandani says that for branded diamond jewellery there is much planning involved. He says
meticulous strategy is charted out, and there is systematic presentation of the product. All this
goes on even as a product portfolio is made and promotions are carried out. Gandani says
creating brand awareness in the minds of the consumers is all about adopting a few strategic
steps. “One might say the difference between traditional and organized is just doing and
doing by planning.”

Recent developments have been both a boon as well as a bane. Actually, this has spurred us
on to become innovative with our offerings to suit the market. We have actually managed to
reduce cost by adopting the strategy of reducing the volume of gold in some of our products
to make it affordable. Ashwin Shah

Speaking about organized retail, V. Muraleedharan, gems and jewellery professional and
visiting faculty at well known management institutes in Mumbai says, “The number of
foreign brands coming into India is simply amazing. Brands that were only heard of a few
years ago are today very much within anyone’s reach here. Muraleedharan goes on to
explain, “So far people who had only seen traditional offerings have started making
intelligent international comparisons with Indian products and this has brought about real
room for retail to grow a number of times.”

3
Well known brands have always insisted that when they talk about a particular grade, they are
certified. Moreover the quality standard is confirmed and authorized and remains the same in
any laboratory in the world. Muraleedharan says, “In my opinion the quality a brand
expresses, and the certification make it easy for a customer to confidently buy the product.”

The Value Proposition:

“Today everyone is looking for value for money, a new design, a new concept, something
very creative and that is the concept of retail today. It is not like yesterday where the
shopkeeper or the manufacturer used to dominate. Today, the customer is going for
customized designs; the whole concept is changing,” says Muralidharan. “The consumer is
looking for value for money, when they buy diamonds. They like to buy from reputed players
like example Tanishq, Gitanjali, Goenka, Nakshatra, Kiah and Nirvana. All of whom have
achieved very organized presence in the market today. Each one of them has a standard
quality certification internationally and that is what is going in the minds of the customer
when they talk about buying from the organized sector.”

Source: http://www.pressabout.com/indian-customers-showing-internet-in-branded-
jewellery-24860/

3
A STUDY ON THE JEWELLERY INDUSTRY

INTRODUCTION TO INDIAN JEWELLERY INDUSTRY

India is a leading player in the global gems and jewellery market. The gems and jewellery
industry occupies an important position in the Indian economy. It is a leading foreign
exchange earner, as well as one of the fastest growing industries in the country.

The two major segments of the sector in India are gold jewellery and diamonds. Gold
jewellery forms around 80 per cent of the Indian jewellery market, with the balance
comprising fabricated studded jewellery that includes diamond studded as well as gemstone
studded jewellery.

The Indian gems and jewellery industry is competitive in the world market due to its low cost
of production and the availability of skilled labor. In addition, the industry has set up a
worldwide distribution network, of more than 3,000 offices for the promotion and marketing
of Indian diamonds.

YESTERDAY TODAY

Unbranded Branded

Silver & Gold jewellery Gold & Diamond jewellery

Investment Investment + Fashion

Traditional design Fashionable & innovative design

Marriage & festival is peak Wear ability and gifts

season

3
Michael Porter’s Five Force Model for Jewellery Industry
INDUSTRY
COMPETITORS
POTENTIAL
NEW ENTRY

SUPPLI BUYE
ER RS

SUBSTITUTE
RIVARY
S
AMONG
EXISTING
Inter-Firm Rivalry -HIGH
FIRMS

• Two types of rivalry. (1) Inside India & (2) Outside India.

• Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000
Diamond jewelers

• International rivals Such as, China

• Threat from producing nation like S.A. & Russia.

Bargaining Power of Suppliers - Medium

• In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana,
Russia, DTC.

• Few Alternatives of cutting & polishing.

• Skilled labor

• Bargaining power of India is enhanced because India is largest consumer of gold

jewellery.

3
Bargaining Power of Buyers - Low

• Divided in two types 1. Domestic buyers &

2. Foreign buyers

• As investment (Demand increase)

• Bargaining power of Indian exporter is high because Majority of the world's rough
diamond production is cut and polished in India.

Threat of Substitutes: Low

• Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment
and Other types of jewellery like imitation jewellery, bagasra jewellery, stone
jewellery etc.

• Second preferred investment behind bank deposits

• Status and standard of living increase so demand is increasing at high rate.

Barriers to entry Low to Medium

• Low capital requirement

• Government subsidy

• EXIM policy & government’s rules-regulations are high

• Skilled manpower is essential

• Advanced technology required

3
3
 SOURCE OF ROSY GITANJAL TANISHQ JOY RELIANCE
DIFFERENC BLUE I ALUKKA JEWELS
E S

SALES 7200 4832 3520 3350 800

TURNOVER

(in Crores)

TARGET Upper Middle Upper Middle Middle

CUSTOMER Middle &above middle &above &above
&above &above

MARKETING Events Advertisi Custome Theme Press

STRATEGY ng r based releases
Schemes advertisi
ng

Source: http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison

3
TRENDS IN JEWELLERY

REPORT

Submitted By

(KAMALAKKANNAN G KARTHIKA DEPARTMENT OF MANAGEMENT STUDIES

SCHOOL OF MANAGEMENT PONDICHERRY UNIVERSITY)

Jewellery Industry

INDUSTRY OVERVIEW

Indian Jewellery market in 2007 was valued at 70,000 cr. INR (Business Standard).

• India’s Jewellery market size is US$ 13 billion

• Gold Jewellery market CAGR 10 -15%

• Diamond Jewellery market growth 27%

• India remains in world’s largest consumer of gold.

• Exports about $ 17 Million in 2006

Share of India's Gem and Jewellery Sector

Organized Family
Retailer Jewelers
4% 96%
About, 96% of Indian Jewellery Market is unorganized. The unorganized sector represents
300,000 traditional retailers or “Family jewelers” who are present only in one town. The
organized sector accounts to only 4 percent 3
TODAY

The industry of jewellery has flourished in the past few years due to the increased demand of
fashionable jewellery. The export and import of jewellery has also amplified. People
nowadays have a passion for jewellery which accounts for the growth of this industry all over
the world. Jewellery is used for fashion as well as decoration. In the past jewellery was used
to adorn bible monuments and other decorations were made using different pieces of valuable
jewels. A wide variety of jewellery is available; costume jewellery, fashion jewellery, body
jewellery, antique jewellery, traditional jewellery, modern jewellery and many more.

LATEST TRENDS

a) Recent fluctuations in the stock market, reduced Interest rates made investment attractive
on jewellery.

b) The gems and jewellery industry occupies an important position in the Indian economy.

c) It is a leading foreign exchange earner, as well as one of the fastest growing industries in
the country.

d) The Indian gems and jewellery industry is competitive in the world market due to its low
cost of production and the availability of skilled labor.

e) The industry has set up a worldwide distribution network, of more than 3,000 offices for
the promotion and marketing of Indian diamonds.

f) India is the diamond polishing capital of the world specially the states of Gujarat and
Maharashtra.

g) 100% FDI is permitted in gems and jewellery sector.

h) The growth of Branded Jewellery is eminent in the coming days.

3
Till now, Indian households in villages used to buy gold from their nearby jeweler who used
to be an acquaintance also in most circumstances because the shop owners used to know
almost everybody in the village. But, things are changing fast in India with the onset of
reforms. Now, Indians, the biggest buyers of yellow metal in the world, are increasingly
aware of the quality of gold and they now started looking for the branded jewellery.

This change in trend in India’s urban and rural areas has lured several big names in global
jewellery trade like Cartier to India. Branded gold, diamond and silver jewellery showrooms
are opening up across Indian cities and village towns.

Till now, Indians used to buy gold from the traditional jewellery shop owner whom they
trust.
But, with GenNext Indians having enough disposable income want a change from that and
they are opting for brightly lit showrooms with marble floors, glass display cases and
professional salespeople, preferably at a company whose brand name implies social status
and wealth.

Tata’s Tanishq opened their first outlet in 1994 and now has 117 showrooms across the
country. Avenue Montaigne, India’s largest branded jewellery retail outlet, suggests the shift
towards brands reflects social changes, but also new ways of viewing gold. In India, the
precious metal is traditionally given to brides at the time of marriage as a store of wealth
providing financial security.

Some of the most famous companies in Western jewellery such as DeBeers, Tiffany and
Cartier have also moved into India since 1997 when overseas banks and bullion suppliers
were allowed to import gold. They are drawn by the enormous size of the market, rising
incomes and the fracturing relationship between buyers and traditional family jewelers.
About 15,000 tones of gold are privately held in India. Demand remains strong despite new
records being set for the price of the metal on an almost daily basis.

3
Premium international brand Cartier launched their plush showroom in New Delhi in 2008
and also operates through a strong dealer network to sell their jewellery and watches in India.
Share of branded jewellery in India’s total market was growing at a pace of 20-30 per cent
annually.

The number of gold retailers in the country has increased by 40 per cent since the year 2000,
with 150 domestic and over 65 international established brands. Reliance has opened 14
jewellery stores in 13 Indian cities since 2007 and has announced that it will launch
showrooms in various other cities and towns across the country.

Source: http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians-
23837-3-1.html

3
Indians opting for branded gold jewellery
Posted on » Sunday, December 20, 2009

NEW DELHI: Indians, the world's biggest buyers of gold, are increasingly opting for branded
jewellery, attracting franchisers and foreign groups like Cartier at the expense of traditional
retailers.

Traditionally, most Indians would go to their small family jewelers and sit down on cotton
mattresses with the jeweler and pick out some items.

The process worked on trust built up in some cases over generations between buyer and
jeweler, who would mostly offer products from artisanal designers and producers from his
area.

Nowadays, young Indians are opting for brightly lit showrooms with marble floors, glass
display cases and professional salespeople - preferably at a company whose brand name
implies social status and wealth.

"There is a tectonic shift in the business now. If you want your gold jewellery business to
survive - brand it and advertise," said Sandeep Kulhali, vice-president of Tanishq, one of
India's oldest branded retail jewellery chains, owned by the Tata conglomerate.

Tanishq opened first outlet in 1994 and now has 117 showrooms across the country.

"Earlier it was difficult to convince consumers to buy branded gold," said Kulhali.

"These days they come to us expecting better services, premium quality, exchange policy and
attractive offers - like buying jewellery on a monthly installment basis," he added.

Amit Bumb, director of Avenue Montaigne, India's largest branded jewellery retail outlet,
suggests the shift towards brands reflects social changes, but also new ways of viewing gold.

The precious metal is traditionally given to brides at the time of marriage as a store of wealth
providing financial security.

"There is a shift in consumer tastes: working women in the 20 to 32 age group regard
jewellery as an accessory and not just as an investment," Bumb said. "It is in this market that
the brand names work."

3
Some of the most famous companies in Western jewellery such as DeBeers, Tiffany and
Cartier have also moved into India since 1997 when overseas banks and bullion suppliers
were allowed to import gold.

They are drawn by the enormous size of the market, rising incomes and the fracturing
relationship between buyers and traditional family jewelers.

According to the International Monetary Fund, about 15,000 tones of gold are privately held
in India. Demand remains strong despite new records being set for the price of the metal on
an almost daily basis.

Premium international brand Cartier launched its plush showroom in New Delhi last year and
also operates through a strong dealer network to sell jewellery and watches in India.

"We are happy with the response from buyers in India," said a saleswoman at the Cartier
store in Delhi, who said customers were drawn to the fact the high-end brand stood out from
its Indian competitors.

A study released by the Bullion Association of India in March said that the share of branded
jewellery in the total market was growing at a pace of 20-30 per cent annually. The number
of gold retailers in the country has increased by 40pc since 2000, with 150 domestic and over
65 international established brands, the study said.

Faced with the changing dynamics, traditional jewelers are looking to jump on the "brand
wagon" by investing in advertising and trying to build a presence in the minds of consumers.

Traditional jewelers like Notandas & Sons in Mumbai and P C Jewelers in New Delhi have
signed up Bollywood heroines as brand ambassadors and also lend their products to
contestants in beauty pageants.

Source: http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902

3
 Analysis of Literature Review
To draw a conclusion from the above literature review one can observe that there is immense
scope for the growth of branded jewellery.
 In spite of the economic slowdown experts believe that it will grow at a CAGR of
25%. There are also statements like the industry does not cover the entire population
making a scope for further growth.
 The review also brings light to the fact that the Indian consumers are price sensitive
and hence the branded jewelers cannot charge exuberant prices for the same.
 The jewelers have to offer designs that are more Indian in their culture rather than
aping the west this can be proved by the e.g. of Tanishq and should also be affordable.
 Since the thesis focuses on a comparative study of the popularity of branded v/s non
branded jewellery the review helps understand the growth of the retail industry which
have leased branded jewellery stores and also the popularity of traditional goldsmith
 The number of foreign entrants also pose a challenge to the traditional jewelers and
hence we can see that these jewelers also come up with strategies to retain their
customers these practices were not prevalent in the market previously.
 The branded jewelers on the other hand have to adapt strategies to win the trust of
their customers and attract new customers.
 A few research reports also help us gauge the changing trends in the jewellery market
and the popularity of diamonds.

3
 Analysis and Findings

The objectives of the study was to understand the consumer’s buying preferences, the reach
of branded jeweler’s, brand awareness of various brands in the jeweler’s market.

Hence the first question was to find out the factors that guide a customer while purchasing
jewellery which dealt with nine attributes. The respondents where just asked to tick on the
attribute that guided that purchase decision. The result is as follows

Family
Promotion
Design Price Purity Image Variety Display
and Offers
Service and
Friends

85 92 87 65 67 5 10 2 12
Table 1

From the above results an observation can be drawn that out of the 100 respondents 92 of
them feel that price is a major factor that guides their purchase decision. Apart from price
purity also is considered important by 87 respondents, followed by design with 85
respondents feel it is an important factor. Variety and image are the other important attributes
that are considered while making a purchase decision. Attributes like family and friends,
promotions and offers are still not very popular among the respondents selected for this
research. The attributes like service and display have been selected only by 2 and 5
respondents respectively showing that these are the least important thing that guide an
individual to purchase jewellery.

The diagram below shows the guiding factor of the respondents while purchasing jewellery in
an ascending manner.

3
Figure 1

Question two dealt with the awareness of various brands of jewellery available in the market.
This question would help find out the percentage of the respondents who are aware about
branded jewellery.

Yes No
100 0
Table 2

From the above result it can be observed that there is 100% awareness about branded
jewellery. Out of the 100 respondents there is not a single respondent who is not aware about
branded jewellery.

3
The third question was to find out the popularity of 5 brands. The respondents were asked to
tick against the brands that they are aware about. The 5 brands considered here are Gili,
Tanishq, Ddamas, Oyzterbay, and Trendsmith. These are the prominent brands for gold
jewellery there are many other players but the research is limited to gold jewellery.

Brands Gili Tanishq Takle Bafna

No of
Respondents 70 80 100 100
’
Table 3

120

100

80

60 East
40

20

0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Figure 2

From the above table and figure inference can be drawn that brands like Gili, Tanishq are
known but the traditional Nasik outlets of Takle and Bafna our preferred

3
The fourth question was to find out the reason why the respondent purchases jewellery that is
the reason for purchasing. Is it purchased as an investment option or on occasions, festivals or
as a fashion statement?

Investment Fashion Occasions Festivals

No of
34 39 11 16
Respondents
Table 4

34 respondents buy jewellery for investment purpose, 39 respondents look out for fashion or
the latest trends while purchasing jewellery. 11 respondents buy jewellery during occasions
like weddings, anniversary, birthday’s etc. and 16 respondents buy jewellery during festivals.

Figure 3

3
The fifth question is a direct question which inquires the respondent preference for jewellery
that is it branded or family jeweler.

Branded Family
Preference
Jewellery Jeweler
No of
69 31
Respondents
Table 5

From the above table it can be observed that 69 respondents prefer branded jewellery and 31
respondents prefer family jewelers. This makes branded jewellery more popular among the
respondents.

Figure 4

3
The sixth question further probes into finding out how many among the respondents have
bought branded jewellery.

Branded Not
Bought
Jewellery bought

No of
78 22
Respondents
Table 6

Figure 5

Out of the 100 respondents 78 have bought branded jewellery and 22 have not bought
branded jewellery. However even if these 22 respondents have not bought branded jewellery
they are aware of branded jewellery being sold and also know the brands by their names.

3
Since the sample consist of females and males the next set of question deals with whether
jewellery is bought for gifting purpose

If the respondents do buy jewellery for gifting purpose then where is it bought from family
jeweler or branded shops.

Buy jewellery
Yes No
for gifting
No of
30 70
Respondents
Table 7

30 respondents of the 100 buy jewellery for gifting purpose among these 30 12 are men. 70%
of the respondents do not buy jewellery for gifting purpose.

The next question was the jewellery purchased for gifting is branded or non branded and the
result found are as under

Family
Branded
jeweler

No of
14 16
Respondents
Table 8

14 respondents out of 30 buy branded jewellery for gifting and 16 out of 30 buy jewellery
from their family jeweler for gifting. Percentage wise 46% buy branded jewellery for gifts
and 54% buy jewellery for gifting from their family jeweler.

Figure 6
3
The ninth question was

Given below are few characteristics of traditional family jeweler’s (or local jewellery
retail stores). Please give each characteristic some points based on your assessment,
such that the points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of Family Jeweler’s Number of points

Convenient
Trustworthy
Good Investment
Price
Traditional design

This question will help gain an insight as to which parameter of a family jeweler attracts
respondent towards them.

Since the points are given out of 10 and there are 100 respondents each parameter will be out
of 1000.

Characteristics of Good Traditional

Convenient Trustworthy Price
Family Jeweler’s Investment design

Number of points 660 895 775 870 745

Table 9

The respondents were asked to give points on a scale of 1 to 10 where 10 was the highest
hence the total figures are arrived by adding the points given by all the 100 respondents.
Hence if the ‘convenience’ characteristic was to be taken then it scored 660 out of the grand
total of 1000.

The respondents have rated trust aspect of family jewelers high hence it has scored 895. The
respondents also feel that the price charged by the family jewelers is reasonable and hence
have given it decent point’s i.e. 870. While purchasing jewellery from family jewelers the
respondents consider it to be a good investment. Family jewelers are popular for traditional
designs and the respondents have given it points that add up to 745.

3
The 10th question was

If you purchase branded jewellery then given below are a few characteristics. Please
give each characteristic some points based on your assessment, such that the points
range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of branded jewellery Number of points

Wide range of products under one roof

Shopping experience
Trendy and fashionable jewellery
Price

Since the points are out of 10 and the no of respondents who have bought branded jewellery
are 78. Hence the assessment of this question is based on the points given only by these 78
respondents. Hence the total would be 780 and not 1000 here.

Wide range
Trendy and
Characteristics of of products Shopping
fashionable Price
branded jewellery under one experience
jewellery
roof

Number of points 663 590 727 673

Table 10

Respondents rate trendy and fashionable jewellery highest when it comes to branded
jewellery. It scores 727 out of 780. Price also according to the respondents is justified hence
it scores 673. Shopping experience wise branded showroom scores least among the other
characteristics. This could also be because when a customer goes to buy jewellery he may not
be looking for the experience but wanting good trendy jewellery which is priced
appropriately.

3
The eleventh question was to find the level of satisfaction on a scale of 1 to 10 for family
jewelers. Since the points are given out of 10 and there are 100 respondents the level of
satisfaction will be out of 1000.

Level of
Family jeweler
satisfaction

No of respondents 765
Table 11

The level of satisfaction that the respondents have is 765. Hence if the average were to be
removed it would be between 7 and 8.

The last question was to find the level of satisfaction for branded jewellery on a scale of 1 to
10. Here again the rating is out of 780 because only those respondents who have bought
branded jewellery are being considered.

Branded Level of
jewellery satisfaction

No of
693
respondents
Table 12

The level of satisfaction on the whole for branded jewellery is 693 and if the mean were to be
removed then it would be between 8 and 9 hence the level of satisfaction that the respondents
have towards branded jewellery is higher then that towards family jewelers.

3
 Hypothesis

Sign test

Out of the total 100 respondents 69 prefer branded jewellery over non branded jewellery and
3 prefer non branded jewellery over branded jewellery. Making it 69% who prefer branded
and 31% who prefer non branded or family jewelers.

Step 1

Setting up the hypothesis

Null hypothesis: Ho: P = O.5 (50 % prefer branded jewellery)

Alternate hypothesis: H1: P ≥0.5 (More than 50 % prefer branded jewellery)

Where, P respondents who prefer branded jewellery

No. of (+) sign = 69

And Q is respondents who do not prefer branded jewellery

No. of (-) sign = 31

Step 2

1) Calculation of P (+) & q (-):

No. of respondents who prefer branded jewellery =P (+) = 69/100 = 0.69

No. respondents who do not prefer branded jewellery =q (-) = 31/100 = 0.31

Step 3

1) Standard deviation= σp = √ pq/n = √ 0.5 * 0.5/100 = √ 0.0025 = 0.05

z = p – 0.5/ σp = 0.69 - 0.5/0.05 = 3.8

3
Significance level (α) = 5%

From the above diagram, it is seen that the null hypothesis is rejected because

The z value (3.8) lays outside the acceptance region i.e. +1.64, hence the null hypothesis that
states that 50% of respondents prefer branded jewellery is rejected and the alternate
hypothesis which states that more than 50% respondents prefer branded jewellery is accepted.

3
 Conclusion
The conclusions that can be drawn from the study are:

1. The guiding factor behind purchasing jewellery is price, purity and design which
score the maximum. Other factors are variety, the brand image, influence of family
and friends. The least guiding factor for purchasing jewellery is the service and
display. Hence when a customer goes to buy jewellery they do keep the price in mind
followed by the purity and the design. Factors like service given the shop or by the
jeweler and the display do not have a very big impact on the customers.

2. Branded jewellery is extremely popular since it has 100% awareness. This may be due
to the wide spread publicity taken up by the various brands. Brands like Gili, Ddamas,
and Tanishq are again the most popular brands. Trendsmith is a brand by
Tribhovandas Bhimji Zaveri (TBZ) which is not very popular.

3. As stated in the literature review that ‘there was a shift in consumer tastes: women
were increasingly opting for fashionable and lightweight jewellery instead of
traditional chunky jewellery.’ Is proved to be correct by this research as respondents
have selected fashion over investment while purchasing jewellery. Now jewellery is
regarded as more of an accessory and less of an investment.

4. Branded jewellery is bought by more than 3/4th of the population. Hence it can be said
that the population is aware and has also tried these brands.

5. When jewellery is bought for gifting purpose the population still wants to buy it from
their family jewelers.

6. When it comes to family jewelers the level of satisfaction that the population has on a
scale of 1 to 10 is a little more than 7. These jewelers are also popular because of the
trust that they have with their customers and also because they charge reasonable
prices. These family jewelers are also popular for traditional designs hence when a
customer is specifically looking out for traditional jewellery they approach these
jewelers. The jewellery bought from these jewelers is considered to be pure and a
good investment.
3
7. The level of satisfaction that the population has towards branded jewellery is a little
higher than 8. These branded jewelers have become popular for latest and trendy
jewellery. Also the prices that the branded jewelers charge is justified and they
provide a wide range of products under one roof.

8. The level of satisfaction that the population has for branded jewellery is higher then
that for non branded jewellery making branded jewellery more popular.

9. The consumers prefer buying branded jewellery over non branded jewellery. This has
also been proved by using the sign test.

Hence to conclude branded jewellery is preferred over non branded

jewellery.

3
 Limitations
The limitations faced during the research and after the data collection were

1) Time constraint- since the time span for the thesis was only three months an in depth
study and analysis became a little difficult.

2) Sample size- the sample size of the study is only 100 which do not give a
comprehensive result. The conclusion of the study may not have resulted to an
accurate outcome due to the sample size being small.

3) Bound to only Nasik city - the other limitation of the study is it is limited to only the
main city area of Nasik and ignores the samples from the smaller parts of the district.
The buying behavior of an individual varies from place to place.

4) Questions left blank- certain question have been left blank which does not allow an
accurate analysis.

5) Biasness- among the 100 respondents few of them were brand loyal and few of them
were the ones who had still stuck to their traditional jewelers hence to an extent there
was biasness involved in the study.

3
 References
Secondary data collected from the internet. The web sites are:

1) http://www.icmrindia.org/free%20resources/casestudies/branded-gold-jewellery1.htm

2) http://www.flonnet.com/fl2223/stories/20051118003809800.htm

3) Source: http://www.rncos.com/Report/IM148.htm

4) http://www.pressabout.com/indian-customers-showing-internet-in-branded-jewellery-
24860/

5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison

6) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians-
23837-3-1.html

7) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902

8) http://www.diamondworld.net/contentview.aspx?item=2465

9) http://travelersindia.com/archive/v5n2/v5n2-indian_jewelry.html

10) http://www.icmrindia.org/casestudies/catalogue/Business
%20Strategy1/BSTR041.htm
11) http://www.rncos.com/Market-Analysis-Reports/Indian-Gems-and-Jewellery-Market-
Future-Prospects-to-2011-IM148.htm

12) http://www.allheadlinenews.com/articles/7017272531

Newspapers:

1) The Times of India

2) The Economic Times

3
 Management Thesis
A comparative study on the consumer’s preference towards branded jewellery over non
branded jewellery in Nasik

QUESTIONNAIRE NO. ___

RESPONDENT NO. ___

Hello, I am ____________________. I am a First year student of management pursuing my MBA from MET
institute of Management at BKC Adgaon Nasik. As a part of my curriculum I have to undertake a survey on the
given topic. All the information that we collect is strictly for study purpose and will be dealt with at most
confidentiality. This survey would take only 10 mins of your time.

Name:

Telephone number: Age:

1) Factors that guide you while purchasing jewellery?

Design Price Purity Brand Image

Variety Display Promotions and offers

Service Family and friends influence

2) Are you aware of the various jewellery brands available in the market?

Yes No

3) Tick against the brands that you are aware about in the jewellery market

Gili Tanishq Takle Bafna

4) You buy jewellery for…

Investment Fashion Occasions Festivals

5) Which jewellery do you prefer?

Branded Family Jeweler

6) Have you bought any branded jewellery?

3
 Yes No

7) Do you buy jewellery for gifting purpose?

Yes No

8) Where do you prefer to buy the jewellery from (for gifting)?

Branded Family Jeweler

3
9) Given below are few characteristics of traditional family jeweler’s (or local jewellery
retail stores). Please give each characteristic some points based on your assessment,
such that the points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of Family Jeweler’s Number of points

Convenient
Trustworthy
Good Investment
Price
Traditional design

10) If you purchase branded jewellery then given below are a few characteristics.
Please give each characteristic some points based on your assessment, such that the
points range from 1 to 10. (1 being the lowest and 10 being the highest).

Characteristics of Branded Jeweler’s Number of points

Wide range of products under one roof

Shopping experience
Trendy and fashionable jewellery
Price

11) Given below is a scale that indicates points from 10 to 1, you have to indicate a point
that describes your satisfaction on the overall satisfaction on jewellery purchased
from family jewelers (local jewellery retailer). 10 being the best

10 9 8 7 6 5 4 3 2 1

12) Given below is a scale that indicates points from 10 to 1, you have to indicate a point
that describes your satisfaction on the overall experience of store and the branded
jewellery that they offer. 10 being the best

10 9 8 7 6 5 4 3 2 1 3
Thank you.