Economics of Bangle Market

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : ECON040 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra


Market Structure/ Turnaround Management
Case Length : 08 Pages
Period : 2009-2010
Pub. Date : 2013
Teaching Note : Available
Organization : -
Industry : Bangles
Countries : India


Bangles are considered an integral part of the traditional wear for women and girls in India. This much coveted accessory for women is in great demand, particularly during weddings and other festive occasions. This case is about one of the major markets for bangles in India located in the Old City area of Hyderabad. Housed in the winding streets near Charminar, Laad Bazar (also known as the street of bangles) is the site for manufacturing bangles. These bangles are then retailed in big and small stores that line the road leading to Charminar.

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Laad Bazaar is especially known for its colorful "lac" bangles prepared from hard lacquer sealing wax and embedded with beautiful colored stones and sequins. Over the years, the bangle market in general and Laad Bazaar in particular has undergone a sea change in terms of demand and supply. Predominantly dependent on impoverished skilled artisans who had inherited the skills of bangle making from their ancestors, the market has witnessed surging demand in recent years. While earlier this business was dominated by a few artisans and the volume of business was carried out on a micro scale, as of 2009, it had grown into an industry having over 4000 artisans. It provided a livelihood to around 2000 families, directly or indirectly. However, as of 2009, the market also faced some tough challenges and there were many potent factors that were putting pressure on margins.


The case has the following objectives

Understand the issues and challenges related to the bangle market in India.
Analyze and understand the structure of the bangle market.
Understand the various factors affecting demand and supply of the bangle market.


  Page No.
Introduction 1
Background Note 1
Production Dynamics & Manufacturing Processes 2
Characteristics of the Bangle Market 4
Rising Demand 5
Challenges 6
Exhibits 7


Micro Economics; market structure; Competition; Competition Continuum; Monopolistic competition; Demand and supply theory; Elasticity of demand and supply

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