Branded Gold Jewellery Market in India

Gili Contd...

In 2000, Gili launched its 'diamond heart collection' targeted at teenagers and priced between Rs 500 and Rs.2500.¹⁷ 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.

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 Gold

Branded 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 Exhibits VII and VIII for information on the diamond and platinum markets in India).

Exhibits

Exhibit I: Tanishq's Design
Exhibit II: Tanishq's Ad Campaign
Exhibit III: Sun Sign Collection
Exhibit IV: Carbon Collection
Exhibit V: Ozyterbay's Ad Campaign
Exhibit VI: Gili's Diamond Heart Collection
Exhibit VII: Diamond Jewellery Market in India
Exhibit VIII: Platinum Jewellery Market in India

17] The Hindu, June 3, 2002.
18] The Hindu, June 3, 2002.
19] The Hindu, June 3, 2002.
20] The Hindu, June 3, 2002.
21] The Hindu, June 3, 2002.