RESEARCH REPORT ON

CONSUMER BUYING BEHAVIOUR TOWARDS BRANDED AND NON

BRANDED JEWELLERY

(SATGURU SANSKARI SARRAF)

SUBMITTED BY:
PARUL AGARWAL
B.COM. (HONS.)
ENROLLMENT NO-A7004613016
Under guidance of:
Mr. Dharmendra Pandey
Assistant Professor
ABS, AUUP Lucknow
(SUMMER INTERNSHIP REPORT IN PARTIAL FULFILMENT OF THE AWARD OF FULL
TIME B.Com Hons 2013-2016)
B.COM HONS (2013-16)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

STUDENTS CERTIFICATE

Certified that report is prepared based on the SUMMER INTERNSHIP undertaken

by me on the topic CONSUMER BUYING BEHAVIOUR TOWARDS BRANDED AND
NON-BRANDED JEWELLERY under the guidance of Mr. Dharmendra Pandey,
Assistant professor, ABS in partial fulfillment of the requirement for award of
degree of B.Com (H) from Amity University, Uttar Pradesh.

PARUL AGARWAL

Mr. Dharmendra Pandey

Prof. V.P. Sahi

(Student name)
(Director ABS)

(Faculty Guide )

FACULTY CERTIFICATE

Forwarded here with a summer internship report on Consumer Buying

Behavior Towards Branded And Non-Branded Jewellery submitted by
Parul Agarwal,
Enrollment Number A7004613016,
Student of B.com (H)
V Semester (2013-2016)
This project work is partial fulfillment of the requirement for the degree of B.Com
(H) from Amity University Lucknow campus, Uttar Pradesh.

Mr. Dharmendra Pandey

Assistant Prof.
Amity university,
ABS
Lucknow Campus

ACKNOWLEDGEMENT

It is my privilege to express my gratitude and respect to those who guided and

inspired me in the completion of this project.
I am deeply indebted to my project guide of the AMITY BUSINESS SCHOOL for
giving me this opportunity to undergo my project in his esteemed organization and for his
timely suggestions and valuable guidance.
I also want to give thanks to Mr. Dharmendra Pandey my faculty guide. He constantly
encouraged me and showed me the right path from day one till the completion of my
project.
I am also thankful to Mr. Hrishikesh Agarwal my external faculty, for helping me to
proceed in conducting the survey and complete it on time.
I am grateful to the Director, Faculties, administrative staff and the librarian of Amity
Business School for providing me all the support required for successful completion of
my project.

Parul Agarwal

TABLE OF CONTENTS
Objective of study
Description problem
Significance of study
Executive summary
Introduction
Company profile
Review of Literature:
Research Methodology
Data Collection, Analysis,
Results findings
Questionnaire
Conclusions
Recommendation
Bibliography

OBJECTIVE OF STUDY
The objective of study the consumer buying behavior towards branded and non
branded jewellery is to find out:

A) To compare between the consumers preference among the branded and non branded
jewellery.
B) To know consumers perception towards jewellery.
C) Brand awareness of various brands in the market.
D) To have an idea about the parameters the consumers consider while buying jewellery.

DESCRIPTION PROBLEM
The scope of study is limited due to following reasons:

Time constraint: since the time span of studying was only 6 weeks, and in depth study
and analysis will become a little difficult
Sample size: the sample size of the study is only 100 people 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 due to the sample size being
small.
Awareness: the sample taken and the conclusion drawn can be led to only one side if
there is lack of awareness about branded jewellery.

SIGNIFICANCE OF STUDY
The gems and jewellery industry occupies an important position in the Indian
economy and is one of the fastest growing industry in the country.
Hence the research conducted would help industry and academia to:

Understand the customer preference while purchasing jewellery.

How much impact does a brand/retailer has on their purchase decision.
Does price play an important role in guiding their purchase decision.
Are the various promotional strategies adopted to combat competition.

Executive Summary

Society is a diversified in all aspects. We see this among consumers, marketers, producers
and even among consumer behavior from theoretical aspects.
The study of consumer behavior enables marketer to predict a consumer behavior in the
market; it also produces understanding of the role that consumption has in the lives of
individuals.

Consumer behavior is defined as a behavior that consumers display while searching for
purchase, using, evaluation and disposal of products, services and ideas that they to
satisfy their needs. The study o f consumer behavior is concerned not only with what
consumers buy, but also with what they buy it, when, from where and how they buy it and
how often they buy it. It is concerned with learning the specific meanings that products
hold for consumers. Consumer research takes place at every phase of the consumption
process; before the purchase, during the purchase and after purchases.
Consumer behavior is the study of how people buy, what they buy, when they buy and
why they buy. It attempts to understand the buyer decision processes/buyer decision
making process, both individually and in groups. It studies characteristics of individual
consumers such as demographics, psychographics, and behavioral variables in an attempt
to understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in general.
What we buy, how we buy, where and when we buy, in how much quantity we buy
depends on our perception, self concept, social and cultural background and our age and
family cycle, our attitudes, beliefs, values motivation, personality, social class and many
other factors that are both internal and external to us.
Consumer behavior is interdisciplinary; i.e. it is based on concepts and theories about
people that have been developed by scientist in such diverse disciplines as psychology,
sociology, social psychology, cultural anthropology and economics. Consumer research is
the methodology used to study consumer behavior.
The study of consumer behavior is the study of ho individuals make decision to spend
their available resources on consumption elated items. It includes the study of what, why,
when and form where they buy etc.
Consumer behavior is a relatively new field of study emerged in late 1960s with no
history or body of research of its own unlike branches of economics. Many early theories
concerning consumer behavior were based on economic theory on the notion that
individuals act to maximize their benefits in the purchase of goods and services.
There are number of reasons why the study of consumer behavior developed as a separate
marketing discipline. As sum as the marketing researchers began to study the buying

behavior of customers, they realized that, despite a something me too approach to

fashions, many consumer rebelled at using the identical products everyone else used. The
primary purpose or studying as part of a marketing curriculum is to understand why and
how consumers make their purchase decisions. These insights enable marketer to design
more effective marketing strategies.
Consumer behavior has become an integral part of strategic market planning. The belief
that ethics and responsibility should also be integral components of every marketing
concept, which calls on marketer to fulfill the needs of their target market in ways that
improve society as a whole.

INTRODUCTION
India has a historic relationship with Jewellery. Many kings, emperors and dynasties
featuring countless wars, conquests and political upheavals have ruled the Indian subcontinent. Different dynasties ruled different parts of India with different monetary systems.
Jewellery acted as a common medium of exchange or store of value across the monetary
systems of different kingdoms across the sub-continent especially gold. Hence wealth could
still be preserved in spite of wars and political turbulence. Gold also helped preserve wealth
through natural calamities and disasters and for centuries was the only means of saving in
rural India, land being the other main asset of economic value. This has largely helped
formulate, or evolve, the Indian sentiment and fanatical passion for gold, which holds true

even today. India is estimated to hold more than 11,000 tonnes of gold. Apart from its
historical religious significance, Jewellery is valued as an important savings and investment
vehicle in India. Even in present times, Jewellery remains the Indian brides `Streedhan, the
wealth she takes with her when she marries and which remains hers. Gold jewellery is the
preferred jewellery worn by women in India irrespective of their religious beliefs. In
marriages, gold jewellery is the gift preferred by the near relatives of the bride and the groom.
Jewellery is very popular among farmers, with an upsurge in gold sales after a good
agricultural season. Buying of gold is an important part of every stage of an Indian citizens
life at birth, marriage, construction of home, festivals, religious ceremonies, setting up of
new business, and death. As India makes rapid progress in the retail arena, the Indian
Jewellery market is undergoing a gradual metamorphosis from unorganised to organised
formats. The jewellery business in India is estimated to be at Rs 50,000 crore. According to
the independent estimation studies conducted by World Gold Council and McKinsey, out of
the overall market share, the share of organised jewellery market is less than Rs 1,000crore.
This accounts to about 2-3 per cent of the total market share. But given that this is a relatively
new segment of the market, it is poised to grow. Jewellery retailing is moving from a
storehouse of value to a precious fashion accessory. Plain gold is gradually easing its
stranglehold on the Indian consumer psyche to give way to diamonds, platinum and coloured
gemstones. The way jewellery was worn before is undergoing a tremendous change. The
young Indian woman who is the prime market for the organised retailers differ from the
traditional jewellery customer in many ways as enumerated below
.She is well educated and more in tune with international trends
Increase in working women with high disposable incomes
Greater mobility
Less constrained by traditions.

All these reasons and more ensure that the modern Indian woman is looking for jewellery
from a perspective different from the past. In addition, organised retailing offers quality
products, follows standardised practices and uniform pricing strategy.Organised retail formats
work on transparent policies that are not necessarily available at the traditional jewellery
shops. Today, goods and services offered by any retailer are strongly driven by their identified
Target Group . There are several examples of retailers who are drawing in consumers either
across a wide swath or a segment of socio-economic classification, clearly defined by them.
This has been the first step towards organized jewellery retailing in India. In a short span of
time, organised retailers have successfully implemented a change in the buying pattern of the
Indian consumer.In addition, branded players require focused advertising and astute
salesmanship to compete with traditional jewelers. Besides the major brands- Tanishq,
Carbon,Oyzterbay, Gili and Trend smith - several regional players have opened branches to
leverage the trust and reputation that they have built up over the years.

WHAT IS JEWELLERY
Jewelry (or jewellry) is an adornment, usually made of precious metals and/or set with gems
(whether real or fake). Some examples include necklaces, rings, bracelets, and so on.
Jewelry is any personal adornment such is necklaces, bracelets, earrings, gold, silver, etc.
Jewellery is any decorative object worn on your clothes or body which is usually made from
valuable metals, such as gold and silver, and precious stones. They are mostly worn for
decoration and have essential for value.
HISTORY OF GOLD
The story of gold is as rich and complex as the metal itself.

In 3600 BC, the first smelting of gold was undertaken. Egyptian goldsmiths carry out the first
melting or fusing of ores in order to separate the metals inside. They use blowpipes made
from fire-resistant clay to heat the smelting furnace.
Wars have been fought for it; love has been declared with it. Ancient Egyptian hieroglyphs
portray gold as the brilliance of the sun; modern astronomers use mirrors coated with gold to
capture images of the heavens.
By 325 BC the Greeks had mined for gold from Gibraltar to Asia Minor. In 1300 the world's
first hallmarking system, scrutinizing and guaranteeing the quality of precious metal, is
established at Goldsmith's Hall in London - where London's Assay Office is still located
today.
In 1717 Britain moves onto a de facto pure gold standard, as the government links the
currency to gold at a fixed rate (establishing a mint price of 77 shillings, ten and a half
pennies per ounce of gold). In 1848 AD James Marshall found flakes of gold whilst building
a saw mill near Sacramento and so triggered the gold rush in California.
By 1900 all major countries other than China switch to the gold standard, linking their
currencies to gold. The practice of bimetallism is abandoned. However in 1971 President
Nixon of USA "closes gold window", suspending US dollar convertibility to gold. The world
enters its present day system of floating exchange rates. In 2004 with the launch of Gold
Shares, the market is transformed by an innovative, secure and easy way to access the gold
market. Six years later SPDR exceeds $55bn in assets under management.
In the second quarter of the year 2009, central banks collectively become net purchasers of
gold for the first time in two decades. This reflects a combination of slowing sales from
European banks and growing purchases by emerging market countries.
In 2010, gold price sustains record highs. Fiat currencies are undermined by inflation fears
and successive financial crises. The London pm fix achieves 35 separate successive highs in
the year to date.
Held securely in national vaults as a reserve asset, gold has an irrefutable logic; released from
the tombs of pharaohs and emperors alike, gold has an undeniable magic.
Bullion coins and small bars offer private investors an attractive way of investing in relatively
small amounts of gold. In many countries - including the whole of the European Union - gold
purchased for investment purposes is exempt from Value Added Tax.

Company profile
Establishment of the company
It is founded in the year 2002, by Hrishikesh Agarwal who is the owner of the company. He
was into the business of jewellery from last 13 years. He worked with well-known firms as a
manager in the wholesale unit and also has a experience in the retail sector.
As he was into the jewellery field and had a good knowledge in the field, he established his
own company named Satguru Sanskari Sarraf . His vast idea and knowledge gives him an
idea to start his own business as he knows what is the current market conditions and demand
of the customer in Indian market.

What business we are into-

Satguru sarraf is into the retail business of real gold and diamond jewellery.
We make wide variety of jewellery in gold like antique finish, with semi -precious stones,
kundan and uncut work, filigree work, hand-made jeweler etc .All the gold work are done
into 22kt we do not compromise in purity.
In diamond we have studded jewellery with the combination of precious stones like ruby,
sapphire and emerald etc, different collections like affordable diamonds, for working women,
High value sets. We also provide the certificate of authencity for our diamond jewellery. Our
cerifiacte are certified by GIA. We certify our jewellery before the mounting or before the
setting of diamond.

VISION
To be a top Gold and Diamond jewelry sellers in Indian retail market. To be a world-class,
innovative, progressive organization and to build Indias most desirable jewelry.
MISSION
To develop, produce and sell high quality jewellery and accessories to help our customer to
get the maximum value for money .To create beauty for both of our customers by innovating
beautiful, ethnic and traditional yet unique design jewelry based on a customer-centric
approach,
and
to
contribute
to
the
community.
GOALSIt is for you. Our goal is to make branded jewelry affordable to all Indian women with the
surety of being 100% pure.

Types of jewellery the organisation makes-

We make gold and diamond jewelry.

In gold jewelry we make antique finish jewelry, bridal jewelry, custom jewelry, filigree work
jewelry, kundan and Un-cut jewelery in gold.
In diamond we have a wide variety of collections like light weight jewelry, different kind of
design, studded jewellery with attractive design and setting etc.

Changing scenario in Indian marketPreviously gold is the most preferable metal people buy for investing and for giving in the
marriage of their daughter. Gold was only metal what is in demand all the craft man ship with
the use of pure gold only. But today, the scenario has been changed by the modern way or by
the adopting the modern practice now people are more educated and more aware of diamonds
with the help of various search engine through the use of internet and from the help of
government to some extent. They are buying diamond as an investment today people are
buying diamond jewellery as they are more valuable and even more precious in nature.
Choice has been changes due to the change in taste and preference of the people. Diamond
are more preferred, also India is hub for polishing and cutting of diamond.
In ancient time jewellery are purchased for investment purpose and for giving in the
marriage, people buy gold for investment so that in their future it help them to liquidate in
money when they are in need of money, gold been a precious metal have a value for money.
Gold bars were purchased so that they can be used like a good investment. Today due to

changing scenario people are buying gold and diamond jewellery as a fashionable accessory
or as a trendy ornaments.
As in ancient times there are kings who wear the jewellery which is more of kundan and hand
made, most of the design are very traditional type with heavy weight of gold. Today people
preferred to wear light and modern jewllery with more of fashionable design, as heavy weight
cannot be wear in day to day life.
In ancient time jeweler only have a sale in their store at the time of special occasions and at a
festival season only as it was the time people tend to buy/consume more ornaments. As this is
the peak season were the consumption of gold increases this some were also hits the selling
part in the retail industry, but due to todays changing world and due to the wide variety of
jewellery are offered by the jewelers to their clients more and more ornaments sells out
people started wearing gold in their day to day life due to modern design which is more
fashionable and light in weight, small ear-rings and finger-rings are preferred to give as a
birthday gift, due to this there is continuous demand of gold occurs and also sells are in a
moving positions for the jewellers.

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, Kisna 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.

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
350,000retailers, 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
-caratgold 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 theIndian branded gold jewellery market during the 1990s and 2000-01 included
Inter gold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).

BRANDED DEALERS
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 manufacturerto 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 trend setter. 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-caratjewellery
range was expanded to include 22 and 24-carat ornaments as well. When Tanishq was

launched, it sold most of its products through multi brand 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. 2.66billion in 2000-01,
Tanishq had a 0.66 percent share of the total jewellery market and a27 percent share of the
branded jewellery market. The market of tanishq jewellery is growing since long time.

GILI
Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In1999, 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 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. 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 collection was promoted at college campuses
with banners, pamphlets and a few advertisement stargeted 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
Valentines Day. This collection consisting of tiny, heart-shaped diamond jewellery was well
received by teens. Specialpackaging, catchy advertising and extensive press coverage
contributed to the successof 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, the company is 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.

NAKSHATRA
A diamond is a symbol of power and beauty a creation that captures the essence of natures
magical process through millions of years. The Indian jewellery market has been transformed
in much the same way by Nakshatra. In less than a decade after launch, the brand has
appropriated the physical values of the diamond its quality,brilliance and clarity and made
a deep impact on the Indian psyche. So stunning has this impact been that within one year of
its debut Nakshatra had registered a 93% top-of mind recall surpassing every other diamond
jewellery brand by a long margin(Source: Global Tracking Study conducted by Research
International, January 2003).This recall has also been reflected in the volumes Nakshatra had
achieved. Between2005and 2007 the brand grew eleven times. It has impacted the jewellery
trade in otherways, too. More than 70% of jewellery retail outlets have reported that
Nakshatra has not only played a key role in generating overall diamond jewellery sales it has
also helped them increase their own sales of floral jewellery to people who had come asking
for Nakshatra. The effort to promote Nakshatra has gained recognition from more thanjust the
retail trade. In 2003, the Nakshatra Utsav won the Best Trade Promotions award at the
McDowells Signature All India Promo Awards. In 2007 the brand was given the Retail

Jeweller Award for the Best TV Campaign of the Year. The in-house design team at Nakshatra
with its wide repertoire of innovative designs, fresh ideas and novel concepts also won
multiple honours including the CK New Delhi Gold Souk Design Award in 2006, the IIGJA
ward in 2007 and the Tahitian Pearl Awards in 2005 and 2007.

CONSUMER BUYING BEHAVIOUR WHILE

BUYING JEWELLERY

While buying a product, consumer displays different kinds of behaviors towards different
kinds of products from a tube of toothpaste to a new car. More complex decisions usually
involve more buying participants and more buyer deliberation. While buying an expensive
product for jewellery, which satisfies a consumers self esteem needs (according to the
Maslows hierarchy of needs) a consumer displays complex buying behavior. Consumers
undertake complex buying behavior when they are highly involved in a purchase and
perceive significant differences among brands. Consumers may be highly involved when the
product is expensive, risky, purchased infrequently, and highly self expressive. This buyer
will pass through a learning process, first developing belief about the product, then attitudes,
and then making a thoughtful purchase choice. Marketers of high involvement products must
understand the information gathering and evaluation behaviour of high involvement
consumer; they need to help buyers learn about the product- class attributes and their relative
importance.

Indian Customers Showing Interest in Branded

Jewellery

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 worlds 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 Indias 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 worlds 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.

LITERATURE REVIEW

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-caratgold. 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. Over80% of
the jewelers sold gold jewellery ranging from 13.5 carats to 18 caratsas22-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,
sold18-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 Inter gold Gem Ltd., Oyzterbay, Carbon and Tribhovandas
Bhimji Zaveri (tbz)

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 favoured 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 to25 age group, who regarded jewel
lery as an accessory and not an investment. The new millennium witnessed a definite change
in consumer preferences. According to Samrat Zaveri, CEO of Trend Smith, "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 theshifting
need,
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 retailing platform with global and national
reach. All these led to the proliferation of branded jewellery players.

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 in2004.

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

DIFFERENCE BETWEEN BRANDED AND

NON BRANDED JEWELLERYBRANDED
Name

and

NON BRANDED
reputation

gives

confidence to the customer.

a Customer can tailor make jew ellery

according to their preferences.

It cones with a written lifetime No written lifetime guarantee, trust

guarantee considering the emotional is purely based on consumer.
quotient of the consumer.

Excellent
policies

quality,good
and

jew ellery.

backup

selling Minimum

services

efforts

for packaging,finishing,sales
advertisements.

in
and

low

Has a more contemporary stylish Is usually bulky and traditional.

and

classic

outlook,which

easily

segments itself among traditional

ones.
Available at multiple outlets.

Available

only

in

traditional

jew ellery outlets.

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.

TYPE OF RESEARCH: Exploratory research

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

.COLLECTION OF DATA
a) Secondary Data: It was collected from internal sources. The secondary data was collected
from the articles, newspapers, journals and 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 instruments- questionnaires.

SAMPLE PROFILE
Sample size: 100 people
Sample technique: simple random sampling technique

ANALYSIS OF THE DATA COLLECTED

After analysis the data collected , I have come a conclusion that the jewellery market in
India is changing rapidly and the buying behaviour of people is changing accordingly.

The respondents under the study were highly co-operative and we came out with wonderful results
about their perception and the behaviour.

The results show that the price of gold plays an important role in the purchasing procedure.

The rising prices of gold are one of the main factors that affect the purchase for a middle class
family. On the contrary, it is not a problem for the business class; they are indifferent in buying
jewellery irrespective of the prices, designs and the brand.

The consumers buying behaviour 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 jewelers.

People also look for the convenience while visiting the store and this is the reason why some
people today also visit non-branded jewellery shops for making purchases as they easily
approachable, reliable, prices are negotiable and also they have a long term
relationship with them.

One of the findings of the study also indicates the seasonal buying behaviour of the jewellery.
Respondents stated that they make most of the purchases when there is any special occasion
like marriage, anniversaries, festivals, birthday gifts, etc.

Fall in the prices of gold and silver also affect the seasonal buying behaviour of the
consumers.

QUESTIONNAIRE
Name:

Telephone number:

Age:

1) Factors that guide you while purchasing jewellery?

Design
Price
Purity

2)
3)
4)
5)
6)
7)
8)

Brand Image

Variety
Display
Promotions and offers
Service
Family and friends influence
Are you aware of the various jewellery brands available in the market?
Yes
No
Tick against the brands that you are aware about in the jewellery market
Kisna
Tanishq
Zaveri bazar
Bafna
You buy jewellery for
Investment
Fashion
Occasions
Festivals
Which jewellery do you prefer?
Branded
Family Jeweler
Have you bought any branded jewellery?
Yes
No
Do you buy jewellery for gifting purpose?
Yes
No
Where do you prefer to buy the jewellery from (for gifting)?
Branded
Family Jeweler

9) Given below are few characteristics of traditional family jewelers (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 Jewelers

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 Jewelers

Number of points

Wide range of products under one roof

Shopping experience
Trendy and fashionable jewellery
Price

CONCLUSION

We have concluded from the above study that the individuals are moving towards brands
rather than local retailers. Most of the population buys jewellery frequently and the reason
why people people going for more of branded jewellery is the certification of the jewellery. It
is not that people are ignoring local retailers large number of total population still demands
local jewelers and the reason is the reliability of the retailers. People generally dont compare
the prices between the branded showroom and the local dealers. From the about the data we
have concluded that almost half of the population is satisfied with their retaliers and doesnt
want to change.

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 Kisna,
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 3/4 th 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.

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.

RECOMMENDATION
From the above analysis we have come to the conclusion that the local retailers should adopt
the certification for the jewellery they are offering to the consumers. They should also
provide wide range of the product they are offering so that they can capture larger share in the

market. Branded retailers should focus on reducing the cost and try to develop the trust factor
with the consumers so that it will help them to increase there sales.

BIBLIOGRAPHY

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-jewellery24860/
5) http://www.scribd.com/doc/19901085/Jewellery-Companies-Comparison
6) http://www.commodityonline.com/news/Branded-gold-jewellery-shops-lure-Indians23837-3-1.html
7) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=266902
8) http://www.Gold ornamentsworld.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-MarketFuture-Prospects-to-2011-IM148.htm
12) http://www.allheadlinenews.com/articles/7017272531
Newspapers:
1) The Times of India
2) The Economic Times