INTRODUCTION

Recent times have seen larger brands witnessing an upward swing mainly due to factors such as increasing consumer sophistication, diminishing investment-driven purchases, alternative retail channels and competition from other luxury products. Responding to the changing trends, India's small, independent jewelers are starting to organize themselves into groups of four to five players to share a common brand identity and marketing strategy. This paper is aim to study the very changing market scenario i.e. transition from unorganized sector to an organized one. Moreover this paper gives us an insight into consumer buying behavior when it comes to jewellery. The paper also studies how the branded players are changing the perceptions and attitudes of Indian customers towards jewellery. The analysis showed that consumers are moderately aware of the branded players who have forayed into the jewellery market and would like to purchase branded jewellery in the near future and still large proportion of consumers regard jewellery as an investment. The consumers buying behavior also shows a shift from content to design in jewellery i.e. fashionable jewellery is the rage nowadays and acquires a status symbol in their minds. Branded jewellery players will continue to face lot of competition from local jewellers. The gems and jewellery industry has an important role in the Indian economy. While a predominant portion of gold jewellery manufactured in India is for domestic consumption, a predominant portion of rough, uncut diamonds processed in the form of either polished diamonds or finished diamond jewellery is exported. With an estimated consumption of 722 tonnes during calendar year or CY2005 (including jewellery consumption of 587 tonnes), India is the largest consumer of gold in the world. Recent times have seen larger brands witnessing an upward swing mainly due to factors such as increasing consumer sophistication, diminishing investment-driven purchases, alternative retail channels and competition from other luxury products. Responding to the changing trends, India's small, independent jewelers are starting to organize themselves into groups of four to five players to share a common brand identity and marketing strategy.

In order to gain marketshare, branded players 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. 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. Branded jewellery in India As India makes rapid progress in the retail arena, the jewellery market is undergoing a gradual metamorphosis from a 'storehouse of value' to a fashion accessory bazaar. Plain gold has now given way to diamonds, platinum and colored gemstones. Growth in the diamond industry has been remarkable. According to industry estimates, the gem industry is growing at 20 per cent annually and currently stands at US$ 3.6 billion. India is also a big export hub for processing diamonds and other precious stones. The two major segments of the sector in India are gold jewellery and diamonds. India is the worlds largest gold jewellery market by volume accounting for around 590 tonnes of consumption demand in 2005. Traditionally gold is 22 carat. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond as well as gemstone studded jewellery. Gold jewellery and colored gem segments account for about 15 per cent and 5 per cent, respectively of India's gems and jewellery export in value terms. The largest cutting and polishing centre of diamonds in the world both in terms of quantity and value, the Indian gems and jewellery sector contributed to about 15 per cent of India's total merchandise exports during 2005-06. And in 2006-07, it accounted for 13.7 per cent of the country's total merchandise exports.

In terms of carat, India's share in this sector is about 80 per cent of the world market. India produces 60 per cent of the world's polished diamond market by value, 82 per cent by carats and 95 per cent by number of pieces. According to the Gems and Jewellery Export Promotion Council (GJEPC), the total exports of the industry for the fiscal year 2006-07 were US$ 17,101.77 million as against US$16,646.04 million in 2005-06, showing a growth rate of 2.74 per cent over the previous fiscal year. The current fiscal witnessed an impressive growth of 10.86 per cent. India's 300,000 traditional jewellers commonly referred to as the unorganized sector dominate the country's jewellery retail landscape with a 96 per cent market-share, while large brands or organized retail form only 4 per cent of the overall market. But in recent times larger brands have been witnessing an upward swing mainly due to factors such as increasing consumer sophistication, diminishing investment-driven purchases, alternative retail channels and competition from other luxury products. Responding to the changing trends, India's small, independent jewelers are starting to organize themselves into groups of four to five players to share a common brand identity and marketing strategy. Major Players in the marketMajor players for branded jewellery in the market are ASMI, EROS, TANISHQ, SOLITIARE, SIGNATURE, GILI, AGNI, KIAH etc. Of late, some of the world's biggest names in the jewellery and luxury items such as watches and cuff-links are making inquiries to set up shop in India. Multi-national jewellery brands such as Tiffany, Cartier, Zales and Harry Winston are all said to be interested in coming here following the Government's decision to allow foreign direct investment of up to 51 per cent in single brand retail stores. Most of these stores have been sourcing cut and polished diamond and gold items from Indian firms. Now they are making inquiries for possible tie-ups in India.

Simultaneously, domestic players are also drawing aggressive plans Shrenuj & Company Ltd has acquired 84.6 per cent stake in the US-based jewellery distributor Simon Golub & Sons Inc for US$ 22.7 million. Kerala-based jeweller Malabar Gold will spend US$ 48 million over the next year in order to expand its presence in southern India as well as abroad. Gitanjali Gems Ltd, a Mumbai-based jeweller, has incorporated a wholly-owned subsidiary in Dubai, Gitanjali Ventures DMCC, whose main activity is trading in diamonds, precious stones, diamond jewellery and pearls. Also, the Gitanjali Group has announced its foray into the luxury retail market through a new entity Luxury Connexions'. The company will invest US$ 24.5 million over three years to set up luxury malls in eight leading cities across the country.

Two new special economic zones (SEZs) for gems and jewellery are to come up at Goregaon and Dhulia, both in Maharashtra. Also, the state-run Minerals and Metals Trading Corp. (MMTC), plans to establish a gems and jewellery special economic zone (SEZ) in partnership with a private company. Key factors influencing the jewellery retail scenario in India : Diamond jewellery now is not restricted to just occasions like marriage but extends to all modern day occasions like Valentines day, Mothers day, Fathers day, Karva Chauth etc. All brands are targeting on the emotional bonds of human relationships and promoting the same accordingly, thus giving retailing jewellery in India a major boost. There is a marked shift in the consumers preferences and aspirations from gold jewellery to diamond jewellery which is fuelled by media hype and exposure to lifestyle and luxury products.

With more women working in todays scenario the positioning of diamond jewellery as 9 to 5 wearable jewellery has increased emphasis on this segment. This is further fueled by the fact that with the number of double income households increasing this has resulted in more disposable incomes being available. With more and more players being introduced in the branded jewellery segment there is an onslaught of schemes and promotions on diamond jewellery round the year, which gives retail a great push. Each brand offers value added services like certification of gold and diamonds, life time return /buy back schemes, zero interest installments schemes which have made the diamond jewellery more affordable than its perceived traditional image of being expensive, thereby increasing consumption. To further strengthen the retail segment, most brands are getting into departmentalstores, hypermarkets, supermarkets and specialty stores. Western style malls have begun appearing in metros and smaller cities alike, introducing the Indian consumer to a shopping experience like never before. Besides the franchise route the counters in most malls is another route that most of the brands are getting into which helps create a better reach of the product. The opening of a number of exclusive franchise outlets, not only can provide the entire range of jewellery under one roof but create an ambience to give consumers a total shopping experience. Consumers are moving slowly away from contemporary jewelry to designer wear. They have also become very quality conscious. The Indian consumer is well traveled, and is exposed to the international shopping experience, and not only commands the same, but receives it too in India. Jewellery buying is no longer confined to seasonal cycles of marriages, and Diwali and Christmas: anytime is a fine time, and jewellery can be bought as much to express an emotion, as to proclaim the financial status of the wearer. Men from metros are also donning jewellery, over and above the traditional wedding rings and chains.

Brand appealBranded 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 [read 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 access 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. One of the reasons branded jewellery is doing well is that now anyone can walk into a mall, window shop and decide 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 jewellers 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 growth in diamond jewellery has been particularly remarkable. According to Diamond Trading Company (DTC), the sales and marketing arm of the De Beers Group, "the demand for diamonds has never been stronger". India is one of the fastest growing markets in the world. The diamond market in India is over $1.4 million. India is still largely a gold-dominated market, DTC says. But as these brands sell diamonds at prices that range from as low as Rs.1,500 a piece, diamonds have become relatively affordable. "Research conducted world-wide shows that nothing is more desirable than a diamond. Almost 94 out of 100 women polled want the real thing," according to DTC. What helps the growth of diamonds is that gold or platinum is not seen as competition. The stone complements the metal or the other way round. The growth in the market for diamond jewellery brands in India is actually in direct response to DTC's Supplier of Choice strategy, which aims to grow consumer demand for diamond jewellery in the context of the expanding competitive luxury goods sector. DTC's Supplier of Choice encourages clients to operate efficient and value-added distribution channels. "It plans to stimulate advertising and marketing investment to the levels that a luxury product like diamond jewellery deserves," according to DTC. As a pioneer in the industry, DTC says it is encouraging the development of multiple competing diamond jewellery brands for the benefit of the entire industry. "DTC believes that strong brands are an essential ingredient in the transformation of the market for diamonds. As in any industry, multiple competing brands create category excitement and bring new consumers to the market. This is especially true of luxury goods. Extremely value-conscious consumers are willing to pay a premium for brands only if the brand appeal is high." "Investing in diamond jewellery also makes sound financial sense," says Cherie Tandon Saldanha, DTC India's marketing director. Of course diamonds are also rare, unique and eternal so there are a lot of emotions associated with buying or gifting a diamond. Some of the challenges the industry faces are: tough competition from the luxury goods segment, educating consumers on this type of jewellery, and fragmentation of the market. According to DTC, developing and establishing successful brands takes a long time. Branded diamond jewellery, though in its nascent stage in India, has shown encouraging signs but it still competes with other luxury goods. To build a market for diamonds, it is imperative that quality spending is generated in the category through advertising and marketing. There should also be an effort to transform trade to the standards required for selling diamonds. The biggest challenge perhaps is in educating the consumer. Consumers need to understand the four Cs - Cut, Carat, Colour 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.GOLD JEWELLERY MARKET IN INDIA "There is definitely a market for branded jewellery especially if something is aimed at the younger generation, which wants to buy fashionable real jewellery. This is the right time to get into the market, as it has just started to take off." -Devika Gidwani, Director of Diamond Information Centre, India THE GOLD RUSHIn 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 jewellers 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 jewellers 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 jewellers 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.

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 19922 , 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 DeBeers3, Tiffany4 and Cartiers5 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 style6. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. (Refer Table I for carat calculation) As Hallmarking7 was not very common in India, under-caratage was prevalent. According to a survey done by the Bureau of Indian Standards (BIS)8, 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.KARAT CALCULATION24 Carat 100 percent pure gold22 Carat 91.66 percent pure gold20 Carat 83.33 percent pure gold18 Carat 75 percent pure gold2 Carat 8.33 percent pure gold1 Carat 4.166 percent pure goldThe 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 Ravissant9. 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).

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 (Refer Table II).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 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 27Oyzterbay 1.7Gili 1.4Carbon 1.4

GOLD JEWELLERY BECOMES FASHION ACCESSORYTill 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 jeweller was the hallmark of the gold jewellery trade in India. A jeweller or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith in his jeweller. Additionally, the local jeweller 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." 10In 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. In 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 retailing platform with global and national reach. All these led to the proliferation of branded jewellery players.STRATEGIES FOR WOOING CUSTOMERS TANISHQIn 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 marketshare, Tanishq formulated a strategy for luring people away from traditional neighborhood jewellers. 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 jewellers 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. (Refer Exhibit I for Tanishq's design). 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. To stay ahead of competition from local jewellers, Tanishq decided to focus on quality control. In 1999, it introduced caratmeters which showed the purity of gold. In fact, Tanishq's USP was the purity of its gold. Accordingly, the company's ad campaigns emphasised the purity aspect of all Tanishq ornaments. (Refer Exhibit II for Tanishq's Ad Campaign)In November 2002, Tanishq introduced a new collection of jewellery called 'Lightweights.' The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices starting at Rs 1,100. It also launched Lightweight Diamonds, with prices starting at Rs 3,000.Tanishq focused not only on urban markets, but small town markets as well. Real estate was less expensive in the small towns than in large urban centres. Besides, competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. According to Kurian, the best returns on investment came from small towns.

CARBONCarbon's focus had always been to move jewellery from the vault to the dressing table and bring the selling of jewellery out of heavily guarded jewellery stores. This was achieved by persuading a few lifestyle stores to add branded jewellery to their vast array of products. Besides selling from lifestyle stores, Carbon also sold its products as gift items over the internet.Like Tanishq, Carbon laid emphasis on design. Most of its designs were contributed by students at the National Institute of Fashion Technology (NIFT) through the diploma programme which the company sponsored. In addition, Peakok's team of six designers, (headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the U.K., Germany and India) turned out around 180 to 200 styles in a year, with 75 designs per style. At any point in time, there were around 600 designs of Carbon on sale, and on an average, 300 to 400 pieces per design were sold. In 2002, Carbon launched its 'Sun Sign' collection, which was based on the symbols of the Zodiac. This collection was a set of 12 pendants designed in a blend of 18 carat white and yellow gold (Refer Exhibit III).While 18 carat gold was commonly used in Carbon products, some of the designs also used white gold, titanium and steel. Diamond was the preferred precious stone, but other colored stones were also used. Comprising items of everyday use, (rings, chains, bracelets, ear studs, tie-pins and cuff links) Carbon items were an impulse purchases. (Refer Exhibit IV) The brand had no offtake cycles in the year, like the marriage season, unlike traditional jewellery. The creation, manufacture and marketing of Carbon was different from the making and selling of traditional jewellery. Said Rao, "We are attempting here to eliminate the low productivity, quality inconsistencies and high precious metal loss associated with traditional jewellery making. We have instituted modern manufacturing practices such as self- contained small groups in the assembly area, self-inspection by the operators, the Japanese Kaizen approach to improvements in operational practices and the like. We have brought down our manufacturing loss of gold to 6.8 per cent. The average in the traditional Indian jewellery shop is as high as 22 per cent, while the world average is only 2 per cent." As the profile of the average customer likely to purchase a Carbon item was a well-paid urban professional, 24 to 38 years old, having a credit card, it was decided that Carbon should not be placed in the usual jewellery shops but made available at `shop-in-shop' outlets in large lifestyle stores (such as Shoppers Stop, Ebony, Globus, The Bombay Store, Lifestyle and Taj Khazana) and some premium boutiques (such as the Helvetica in Chennai). Said Rao, "We are looking at cross-promoting Carbon jewellery with other branded lifestyle products such as perfumes, clothing and cosmetics." Carbon products were priced between Rs. 2,750 and Rs. 20,000 per piece. While the cost of traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform.

STRATEGIES FOR WOOING CUSTOMERSOYZTERBAYOyzterbay, with its tag line "Jewellery for the Living", had become synonymous with the entire gamut of occasions where modern young women would like to wear stylish and affordable jewellery. Oyzterbay's collection comprised over 1200 designs in 18, 22 and 24 carat gold and sterling silver, with natural colored gemstones. The price of the jewellery ranged between Rs. 500 and Rs.30000. The initial focus of Oyzterbay was to give a lifestyle value to jewellery instead of the traditional investment value. In the second year of its launch, Oyzterbay emphasised on marketing and advertising strategies to give the necessary thrust for growth. In order to transform itself from a youth brand to a brand for all occasions, Oyzterbay launched media campaigns in August 2002 highlighting the new look. The new communication strategy focused on addressing the 18 to 34 age group instead of the earlier 18 to 24 age group. The new campaign focused on positioning Oyzterbay as jewellery for office wear, evening wear or even a fitness session. (Refer Exhibit V) The broadening of focus to include an older segment was the result of market research which showed that the brand appealed to middle-aged working women and affluent housewives. The investment in the new campaign was Rs 50 million. Where Oyzterbay scored over others was its simple and refreshing designs and affordability, making it distinct from the usual gold jewellery stocked in standard jewellery showrooms and contemporary jewellery offered by traditional jewellery houses trying to cater to the trend. Priyadarshi Mohapatra, Marketing Manager, Oyzterbay, said "We began by selecting a completely different reach - everyday jewellery for the working woman and jewellery for the youth. We felt that jewellery should be brought out of the locker. So we positioned (it) to accessorize the dress of the young, college-going crowd, which otherwise sported junk jewellery. The second segment was the working woman for whom we sought to build a wardrobe of jewellery by making it affordable, so that she could pick up pieces regularly." Oyzterbay later extended the same brand values to diamonds too, the idea being to target a niche market. Oyzterbay refurbished its collection every few months, keeping in mind international trends. By so doing, they were able to offer exclusive products to clients. As part of the Oyzterbay Summer 2002 collection, it offered pendants, earrings, finger rings, bracelets, neckwear, and chains with natural gemstones set in white gold, as white gold was evolving as a fashion statement across the world. Although Ozyterbay was known for its jewellery in gold and sterling silver embellished with natural gemstones, it decided to launch 'Your First Diamond', a complete range of diamond jewellery set in white, pink, and yellow gold. The price of the collection started from Rs. 500 with the most expensive piece not exceeding Rs. 12,000. GILI Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. The company's products were also made available through a mail-order catalogue. In 1997, Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In 1999, the Gili Gold range was introduced. This range included rings, pendants, earrings, necklaces and bangles made of 24-carat gold. All Gili products came with a guarantee of diamond and gold quality. When research conducted in February 2000 showed that there was a big gap between the Rs. 1000 and Rs. 10000 price segment and keeping in view the teenage population, and the kind of pocket money they had, Gili brought out a collection targeting teens. In 2000, Gili launched its 'diamond heart collection' targeted at teenagers and priced between Rs 500 and Rs.2500. The collection was promoted at college campuses with banners, pamphlets and a few advertisements targeted at teens. Gili soon realized that just pushing its product was not enough; it also had to customize its products for special occasions. Following this, it launched a Diamond Heart Collection specially designed for Valentine's Day. This collection consisting of tiny, heart-shaped diamond jewellery was well received by teens (Refer Exhibit VI). Special packaging, catchy advertising and extensive press coverage contributed to the success of the collection. Gili also made special promotional offers during festive seasons like Christmas and Diwali.

Having captured the low price point market of Rs.2000 to Rs.10,000, in 2000, the company focused on penetrating the premium market of customized jewellery. For this, Gitanjali jewels opened a jewellery salon, Gianti, to provide customized jewellery to clients in India.

TRENDSMITHTrendsmith specialized in premium, exclusive and modern looking jewellery distinct from TBZ's traditional designs. The brand's USP was that every piece of jewellery was exclusive and unique. There were different collections for babies, teenagers and weddings. Trendsmith stores had a comfortable ambience and a clutter free display of products. According to Samrat Zaveri, Managing Director, Trendsmith "is a store for those with little time and big pockets." The stores also provided space for other premium jewellery and accessory brands such as Aashi, Blue Fire, Solange, Nakshatra, Aura 22, Mimansa, Brilliant and Moksh. The prices for these pieces of jewellery started from Rs. 10,000. The range comprised finger rings, pendants, bangles, bracelets and neckpieces. Trendsmith laid emphasis on affordable, fashionable jewellery. It changed its collection every season. Trendsmith also had a design studio where customers could design their own jewellery. The company advertised in women's fashion and lifestyle magazines since the readers of such magazines formed 80 percent of its clientele. To remain in the public eye, Trendsmith planned to host events whenever it launched a new collection. The company intended to spend Rs 30 - 40 million annually, on such events.

ALL THAT GLITTERS IS NOT GOLDBranded jewellery players will continue to face lot of competition from local jewellers. In order to gain marketshare, 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. 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 jewellers. 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. This is going to add to the competition in the branded jewellery market.Most of the branded jewellery players in India focused on yellow gold; only a few of them experimented with the pink and white forms of gold. Some of the players also used diamonds and platinum, which appear to have a good future in the Indian jewellery market. (Refer Exhibit VIII for information on the diamond and platinum markets in India).

PLATINUM JEWELLERY MARKET IN INDIABetween 1998 and 2002, demand for platinum jewellery grew faster than for any other jewellery in key global jewellery markets. Worldwide, the metal's rich white luster made it the preferred choice for premium designers and fashion conscious consumers. The year 1999 saw a 19% growth in the consumption of platinum by the global jewellery industry. The Platinum Guild International (PGI), established in 1975 by the leading producer of platinum Rustenburg Platinum Mines (located in the Bushveld complex of South Africa), is the jewellery-marketing arm of the worldwide platinum industry. PGI introduced platinum in the Indian market in 2000. In the same year, PGI teamed up with leading Indian designers, jewellery manufacturers, and retailers to bring an exclusive range of platinum jewellery to India. PGI has a select few dealers. Through these dealers, PGI educates the general public about platinum, the white metal often considered out of reach, befitting only royalty. Platinum is far denser and more durable than gold and hence is synonymous with prestige, pride and class. Each individual piece of platinum jewellery comes with a guarantee card from PGI giving its description, identification number, weight and retailers name.Today, PGI sees the combination of the growing economy and the strong jewellery culture in India providing a potential market for platinum. Post-liberalization of the Indian economy, Indian consumers began to get in tune with evolving trends in jewellery across the world. Over time, PGI expects India to become a significant player in the platinum jewellery market.

RESEARCH METHODOLOGY

TITLE OF THE STUDYConsumer Perception towards branded jewelleryRESEARCH METHODOLOGYMethodology : The study is based on primary data collected from market as well as through online survey techniques. The research technique adopted was a questionnaire method. The non random sampling technique i.e. convenience sampling method was adopted to collect information from around 140 people selected at random from various age groups and income brackets. After this we did the editing and coding of the responses received by these customers and found that only 100 customers responses were useful for our study. Thus the other 40 responses were eliminated from further analysis. The central statistical techniques like mean, median and mode are used to find out the common perception or general liking of the consumers towards branded jewelry. In order to analyze the factors affecting the consumer behavior towards branded jewelry we have used multiple linear regression equations. Also to find the impact of different seasons on the purchase of a branded jewelry, we have tried to analyze the time period during which the jewelry is preferred more by the customers. OBJECTIVES OF THE STUDYThe objective is to find out: To compare between the consumer preference among the branded and non branded jewellery. To know consumer perception towards jewellery. Brand awareness of various brands in the jewelery market. To have an idea about the parameters the consumers consider while buying jewellery.

Analysis

Through our analysis and observation techniques of the customers responses we find that following are the major factors which influence customers to buy a branded jewelry.

1. Risk in approaching the branded stores rather than old family jewelers

Jewelry market has recently become an organized sector. Many new brands have entered the market giving tough competition to the unorganized sectors and especially to old family jewelers. Through the responses received we can conclude that the customer is aware about the new brands launched in the market. They believe that its worth buying from these branded shops once in a while probably because of the quality and to a certain extent price of the jewelry. The changing scenario of peoples perception towards branded jewelry is shown in graph 1.

Graph 1: Depicting customers perception to move towards branded jewelry stores

2. Media influence on customers preference towards branded jewelry

We tried to depict if media plays any role in changing the perception of the Indian buyers to buy branded jewelry at any point of time (Graph 2). We find through our survey that Television plays the key role in creating awareness and educating customers on different brands available in the market. Almost 58% of the respondents show that they are severely motivated by television media, followed by newspapers (39%), internet (17%), friends and relatives (14%), billboards (11%), radio (10%). Thus we can conclude that television is the prime factor which helps customers recall the brand while actually being in the market and thus their purchases at times are motivated by this clear winner of media advertisement.

Graph 2: Share of various Media influence to promote branded jewellery

,

3. Seasonality implications towards branded jewellery From our analysis we can state that demand of jewellery is highly influenced by the seasonal variations (Graph 3). The fourth quarter of the year is most powerful period during which maximum of jewellery is bought by the consumers. This may because during this period various festivals like Diwali, Christmas, Eid take place and consumers find it most favourable to give branded jewellery as a token of gift. The second strongest quarter from our analysis is found to be the first

quarter of the year probably due to the Chinese New Year, the Indian wedding season and, to a lesser extent, Valentines day. The second and third quarters are usually seasonally low with a relative absence of major gold giving occasions.

Graph 3: Seasonality impact towards branded jewellery

4. Influence of resale value, availability and status while purchasing jewellery

On detailed analysis of the data collected we come to know that the decision to purchase jewellery is dependent on resale value ( Average Likert Scale value = 3.679). This shows that most of the people in India still considers jewellery as an investment. Another strong influence is the availability of the outlets which complies that people prefer to buy jewellery from the stores which are in their vicinity ( Average Likert Scale Value = 3.10). On questioning people about the status symbol, the data reveals that it has a strong influence on peoples decision to buy jewellery ( Average Likert Scale value = 3.86).

Thus, based on the data it can be fairly concluded that factors like resale value, availability and status have a strong influence on peoples decision making process.

5. Few factors which might get ignored but play a significant role

According to the data collected in the survey we conclude that pleasant environment while shopping is important from consumers point of view ( Average likert scale value = 4.32 ). Price , as everywhere has been the most significant factor to check upon. Thus, the dealers should have competitive prices and should only offer that much consumer service and satisfaction where they find it difficult to sell at par with the market in terms of price.

Some pictorial representations of important data collected are

A) Tanishq B) Asmi C) Nakshatra D) Aura E) Agni F) Gili G) Solitaire H) DeBeers I) DDamas

J) Sangini K) Other

Conclusion

In India, brands are required as no one shop alone can do advertising due to lack of

resources. Today, there are more than 50 brands in the Indian market. For brands the right approach is to have a continual revitalization of the brand and its position within the market. Branding commands a premium price but it has to be justified. The consumers buying behavior shows a shift from content to design in jewellery i.e. fashionable jewellery is the rage nowadays and acquires a status symbol in their minds.Branded jewellery players will continue to face lot of competition from local jewellers.

With companies like Bulgari and Guccis bold communication, keen competition within the jewellery sector is increasing. Luxury brands have entered the jewellery market with clear strategies to reach the final consumer. The distribution by luxury brands is also very

good. Competition now is for jewellery as an accessory rather than as a jewel. For those who want to venture into branding and retailing in India, the 7 Es of brand marketing strategy are recommended for the new jewellery retail environment.

References

1. Buchanan, Norma, Branded Jewelry Grow Into a Viable Market Publication: National Jeweler ,Wednesday, December 4 1996 2. 2. Choksi,Mehul Chairman & CEO, Gitanjali Group, Branding and marketing in new jewellery retail environment 3. Gogna , Amul ,The Indian Gems and Jewellery Sector. 4. Nigam, Vineet, National Diamond Strategy; Diamond retail Assistant General Manager, ICRA, Executive Director, ICRA 5. Bhatt, Harish COO Tanishq, Growing the branded jewellery market: An Indian Experience

6. http://www.icmr.icfai/casestudies/

7. www.financialexpress.com/news/Gems-and-jewellery-industry-keen-to-build-brand-equity

8. www.jewellery.indianetzone.com/1/branded_jewellery.htm

9. www.emeraldinsight.com/10.1108/02580540210793428

10. www.gold.org / value / market intelligence / supply & demand / jewellery 11. www.gjepc.org/gjepc

12. Jewellery.indianetzone.com/1/branded_jewellery. 13. www.allbusiness.com/retail-trade/apparel