Market Size Fourth largest consumer market in the world Jewellery Market Size: Rs75,000 crores Diamond jewellery: Rs10,000 crores Largest market in terms of volume of gold India accounts for more than 22% of the total

gold used for jewellery purposes Growth

Gold jewellery Market Growth: 8-10% Diamond jewellery Market:18%-20%

2006 data

The Indian jewellery market is one of

the largest in the world, with a market size

of $13 billion. It is second only to the US market of $ 40 billion and is followed by

China at $11 billion. The gold jewellery market is growing at 15 per cent per

annum and the diamond jewellery market at 27 per cent per annum.

Future of the Indian Jewellery Market: · India’s growing importance in the global jewellery market is only expected to increase in the future with total estimated jewellery sales of US$ 21 billion by 2010 and US$ 37 billion by 2015. · Diamond jewellery consumption in India is also estimated to jump by 78 per cent in 2010. · Branded jewellery is likely to be the fastest-growing segment in domestic sales. The sector is expected to grow at 40 per cent annually to touch US$ 2.2 billion by 2010. · Indian diamond jewellery industry is the third largest consumer of polished diamonds after USA and Japan. Diamond jewellery consumption is likely to jump to nearly 80 per cent in 2010 and over 95 per cent between 2010 and 2015. · Various government incentives coupled with private sector initiatives are projected to drive the sales of Indian gems and jewellery sector at a CAGR of around 14% from 2007-08 to 2010-11. · The organized gems and jewellery sector is anticipated to grow rapidly in

near future, accounting for nearly 8% of the total gems and jewellery market by 2009-10.

Various factors like cheap labor cost, better designs and manufacturing

practices, are making the country an attractive destination for cutting and

polishing of diamonds.

The main occasions to buy are still marriage and festivals Entering to international market is becoming tough. Although guarantee of the retailer is important in

ascertaining quality, hallmarking is gaining acceptance Gold as a share of wallet is decreasing in the younger

generation. Traditional jewellery is still the dominant design pattern while contemporary styles are emerging fast

In the past choice of stores used to be 1-2 stores, but customers now look at 4-5 stores for range and choice of jewellery

Customers in the high value category are becoming more informed because of exposure to media and fashion trends

Entering to international market is becoming tough.

QUESTION AND ANSWERS

Design Differentiation becoming the USP

Traditional industry relied on Karigar skills

Now, More emphasis laid on formal design training in jewelry category especially by the organized players

Design Training in NIFT, SNDT,GIA, JDTI

Players like Tanishq, Ganjam, TBZ have specialized Design Studios which have won laurels at international forums as well

India`s share in diamond jewellery is only 3% The elite segment is more brand conscious. DTC sight holder

Hallmarking - Standardization in Material quality is fast becoming a

pre requisite especially for Gold jewelry In case of diamonds, Increased awareness of diamond quality ( 4

Cs) Special EOU in hubs like Mumbai (SEEPZ) which supply to stores

across the world but face stiff competition from Hong Kong and

China Platinum has few manufacturers in the country in comparison to

Gold and Diamonds

Creating Newer opportunities to buy jewelry Festivals like Akshay Tritiya, Occasions like Mothers Day,

RakshaBandhan, Valentines Day etc Fashion campaigns in vogue. Creating a desire in the International customer to buy jewelry for

its design value/for accesorisation/ to make a statement about her personality.

Retail Seduce the consumer in the retail space as competition is

not only within jewelry category but categories like electronics, wellness services and luxury items

• Evolve a distinct retail identity – in terms of product, store look and customer experience

Trend of the speciality Jewellery markets/ malls Increasing traditional players renovating/refurbishing store

spacesConcept of strong retail brand in jewellery industry gaining strength

Areas Success factors

Marketing

and

Brand building

Capabilities

• Identification of valuable target

segment and effective positioning

• Communication of differentiating factors

• Consistent communication

• Strong customer relationship management

New Product

Development

• Strong design capabilities

• Strong manufacturing support

• Strong product planning process

• Strong IT integration

Areas Success factor

Distribution

Management

• Strong retail management capabilities

• Strong franchisee management capabilities

• New avenues, e-tailing, mail order catalogue

• Strong IT integration

Supply -Chain

Management

• Efficient sourcing and procurement

• Efficient production & inventory management

• Efficient logistics management

Service Quality • Store staff reliability, responsiveness,

assurances, empathy

http://www.everythingmining.com/Platinum%20Jewelry.htm

In India platinum is also known as white gold. As in India consumption of gold is more then platinum.

In India gold is purchased traditionally

In Europe every product is sold. Liquidity of platinum is low. Europe more focuses on modern

product with special design.