BRANDED GOLD JEWELLERY MARKET IN INDIA
Case code- BSTR-041
Published-2002
GOLD JEWELLERY MARKET IN INDIA
GOLD JEWELLERY BECOMES FASHION ACCESSORY
STRATEGIES FOR WOOING CUSTOMERS - Tanishq and Carbon
STRATEGIES FOR WOOING CUSTOMERS - Oyzterbay, Gili, and Trendsmith
Continued from page 4
ALL THAT GLITTERS IS NOT GOLD
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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. |
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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
Exhibit VIII for information on the diamond and platinum markets in India).
EXHIBIT VIII
PLATINUM JEWELLERY MARKET IN INDIA
Between 1998 and 2002, demand for
platinum jewellery grew faster than for any other jewellery in key global
jewellery markets. Worldwide, the metal's rich white luster made it the
preferred choice for premium designers and fashion conscious consumers. The year
1999 saw a 19% growth in the consumption of platinum by the global jewellery
industry. The Platinum Guild International (PGI), established in 1975 by the
leading producer of platinum Rustenburg Platinum Mines (located in the Bushveld
complex of South Africa), is the jewellery-marketing arm of the worldwide
platinum industry. PGI introduced platinum in the Indian market in 2000. In the
same year, PGI teamed up with leading Indian designers, jewellery manufacturers,
and retailers to bring an exclusive range of platinum jewellery to India.
PGI has a select few dealers. Through these dealers, PGI educates the general
public about platinum, the white metal often considered out of reach, befitting
only royalty. Platinum is far denser and more durable than gold and hence is
synonymous with prestige, pride and class. Each individual piece of platinum
jewellery comes with a guarantee card from PGI giving its description,
identification number, weight and retailers name.
Today, PGI sees the combination of the growing economy and the strong jewellery
culture in India providing a potential market for platinum. Post-liberalization
of the Indian economy, Indian consumers began to get in tune with evolving
trends in jewellery across the world. Over time, PGI expects India to become a
significant player in the platinum jewellery market.
Source: Case Studies and Management Resources.
QUESTIONS FOR DISCUSSION
1. In the late 1990s, there was a shift in demand for jewellery from
traditional 22-karat jewellery to branded lightweight jewellery. This trend forced jewellers to go in
for
branding. Discuss why lightweight branded jewellery became popular with Indian
consumers.
2. Though the branded jewellery segment is estimated to be growing at an annual
rate of
20 to 30 percent, it is still a miniscule part of the total jewellery market.
Analyze the
structure of the gold jewellery market in India. Why do you think no single
player has
been able to corner a significant share of the market? Suggest some strategies
that
would help branded players increase their share in the jewellery market.
3. The branded jewellery market is dominated by a few players with each trying
to
differentiate its products from those of others. Tanishq has achieved a
substantial lead
in this market. Discuss the strategies adopted by Tanishq to lure customers away
from
traditional family jewellers to its stores.
4. Competition in the branded jewellery market is likely to intensify in the
future. What are
the key success factors for growth in the industry? Which of the existing
players is best
positioned to grow fast and exploit market opportunities?
ADDITIONAL READINGS & REFERENCES
1.Thakur, Punam, Shining Through, Business India, March 6,
2000.
2.Chuganee, Bhakti, Gili Goes Global, Business India, April
17, 2000.
3.Kapoor, Neha, Branded Jewellery Market Enroute to Gaining
Maturity, The Hindu
Business Line, May 5, 2000.
4.Verma, Sanjeev, Building a Brand in Jewellery, Business
India, May 29, 2000.
5.Ghoshal, Raja, Sex No Bar, A&M, May 31, 2000.
6.Kurian, Boby, Ex-Tanishq Team in Oyzterbay, The Hindu
Business Line, July 18, 2000.
7.Joseph, Mini, ICF Ventures Invests Rs 8 crore in Jewellery
Start-Up Oyzterbay,Financial Express, August 9, 2000.
8.Battle for Lust, A&M, January 15, 2001.
9.Gold Marketing: How to Make a Ritual an Impulse, Business
India, June 11, 2001.
10.Bose, Sushmita, The Midas Touch, The Strategist, July 31, 2001.
11.Sachitananda, N.N, Branded Jewellery as Fashion Accessory, The Hindu,
October 4,2001.
12.Sizzle of Sparkle, Business India, November 26, 2001.
13.Jewellery by Name, Business India, February 4, 2002.
14.Shashidhar, Ajita, A Date with Carbon, The Hindu Business Line, March
7, 2002.
15.Shashidhar, Ajita, Light on Person, Light on Purse, The Hindu
Business Line, March 7,2002.
16.Chuganee, Bhakti, Building a Brand, Business India, May 13, 2002.
17.Raghuram, Jyothi, Chic Jewellery in Sleek Designs, The Hindu, June 3,
2002.
18.Babu, Venkatesha, Can Tanishq Make Titan Tick? Business Today, July
7, 2002.
19.Oyzterbay's New Brand, The Hindu Business Line, July 29, 2002.
20.Alexis, Kavitha, Oyzterbay Looks to Reposition Itself, Financial
Express, August 30,2002.
21.Mehta, Mona, Trendsmith to Expand Outlets, Financial Express, August
30, 2002.
22.Reddy, Krithika, All Set to Roll Out Trends, The Hindu, October 9,
2002.
23.Diamonds are for Everyone, The Hindu, Metro Plus, Bangalore, October
17, 2002.
24.Trendsmith Plans 50 Outlets in Five Years, The Hindu Business Line,
October 8,2002.
25.www.gili.com
26.www.carbon18k.com
27.www.titanworld.com
28.www.tiffany.com
29.www.indbazaar.com
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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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