BRANDED GOLD JEWELLERY MARKET IN INDIA
Case code- BSTR-041
Published-2002
GOLD JEWELLERY MARKET IN INDIA
Continued from page 1
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 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.
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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." 10
In 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: |
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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.
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The younger generation was looking at
trendy, contemporary jewellery and clearly avoiding heavy, traditional gold
jewellery.
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The consumer wanted a wider selection
at a single convenient location and expected an international shopping
experience.
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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 - Tanishq and Carbon
STRATEGIES FOR WOOING CUSTOMERS - Oyzterbay, Gili, and Trendsmith
ALL THAT GLITTERS IS NOT GOLD
[10] Business India, November 26, 2001.
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This case study is intended to be used as a basis for class discussion rather
than to illustrate either effective or ineffective handling of a management
situation. This case was compiled from published sources.
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