JEWELLERY & WATCHESPRESENTED BY GROUP 2 :RAJU SHAW ( 04 ) AUSTIN FERNANDIS ( 11 ) VAIBHAV SETHIYA ( 19 ) PRERNA PANCHOLI ( 23 ) MOLLY JAISWAL ( 26 ) SANJAY GUPTA ( 38 )
Indian Retail Jewellery Overview India is one of the largest Jewellery markets
97% of Jewellery sales are by Family jewellers
Change in the demographics and increased consumerism of Indian retail market.
Organized retail is growing at a rapid pace across all sectors.
Gold Comprises around 80% of Indian Jewellery Market 20% comprises fabricated studded jewellery High level of manufacturing and domestic consumption
Worlds largest cutting & polishing industry India is the largest consumer of gold and also the largest diamond processor . Well supported by the banking sector and government policies.
MARKET SIZE Indian Jewellery market Rs. 80,000 Crore billion in the year 2005 8.3 per cent of world Jewellery sales. Annual growth rate of 15%. Largest consumer 20% of global consumption Organised Sector is Rs 2400 Crore Unorganised sector Market for branded jewellery will be worth $2.28 Billion by 2010.
Reliance Retail is planning an aggressive entry into the jewellery retail market through its about 400 to 500 jewellery retail outlets across the country. DDamas India, part of one of the largest jewellery retail outlets in the world, is adding 16 new stores to its present dozen stores in India. Swarovski, the global crystal goods manufacturer and marketer plans to set up 30 stores by 2009, from the current 13.
The Gitanjali Group bought 'Nakshatra', the premium brand of jewellery promoted by Diamond Trading Company (DTC)
M u m b a i b a se d V a rd h a m a n D e ve l p e rs o p l n s to b u i d fo u r m o re j w e l e ry m a l s i a l e l l n th e ci a n d i a l a d y se t to l u n ch J w e l ty s re a e W o rl -M u m b a is fi j w e l e ry m a l . d rst e l l D u b a i b a se d J y A l kka s h a s re ce n tl o u y o p e n e d i l rg e st sh o w ro o m i C h e n n a i ts a n . V i a a n d D e vj i m o n d s a p a rtn e rsh i sw iD a p b e tw e e n th e I d i n g ro u p a n d th e to p n a j w e l e ry re ta i e r i U A E o p e n e d i fi e l l n ts rst d i m o n d re ta i u tl t. a lo e G i n j l e m s Ltd o p e n e d i fi l xu ry ta a iG ts rst u j w e l e ry m a l n G u rg a o n , w h e re a e l li n u m b e r o f i te rn a ti n a lb ra n d s h a ve n o sta rte d th e i re ta i u si e ss. r lb n G o l S o u k I d i h a s p l n s fo r b ri g i g d n a a n n 1 0 0 S o u ks i 1 0 0 m o n th s n
Fashion Jewellery It includes costume jewellery, designer jewellery, imitation jewellery. Costume jewellery contributes 9% to the world sales. Materials used in manufacturing includes semi-precious stones, beads, ivory, lac, leather, terracotta, plastic
Market share of Jewellery segments
Key world markets for Jewellery
EXPORTS During 2008-09, 1.45 percent growth.
Exported US$ 20.8 billion in 2007-08.
Growth of 9 percent in this year.
India accounts for 50 percent of the international market.
Government allows 51 percent FDI in single brand retail outlet.
Business Overview Established in 1986. Bought 'Nakshatra', the premium brand of jewellery promoted by Diamond Trading Company (DTC) Approximately 1,246 retail outlets in India and 143 outlets in the U.S. First luxury jewellery mall in Gurgaon. Announced its foray into the luxury retail market through a new entity Luxury Connexions'.
Integrated business model Diamond processing Jewellery manufacturing Jewellery retailing in India Branded jewellery International jewellery retailing Samuels and Rogers Gems & jewellery SEZs
Retail Among the first branded jewellery in India
Strong sales and distribution
112 distributors and 1,250 outlets.
Gili and Nakshatra - Superbrands in 2004 by ICSE.
High value acquisitions in the U.S.
Multi channel distribution network
Diversification Gitanjali Lifestyles to focus on manufacture and distribution of luxury and lifestyle products
Developing 200 acres gems &jewellery SEZ in Hyderabad
Plans to develop more SEZs focused on gems & jewellery across India
To partner for developing real estate infrastructure.
TANISHQ TODAY A BRIEF OVERVIEWStrongest and most aspirational brand in the jewellery category Awarded most admired brand and Retailer of the year by Images Fashion Enjoys a market share of over 40 % in branded jewellery
Indias only national jewellery retailer Network 115 stores in 70 towns prime high street locations Many of these stores are run by franchisees
Customer Over Base
1 . 5 million customers shopped at Tanishq last year
Shortage in supply of Raw Materials
Changing fashion trends and increased consciousness of the consumers
competition from other luxury goods, declining investment in the sector and increasing consumer sophistication.
T h e a n n u a l m a rke t si o f th e I d i n W a tch ze n a M a rke t i e sti a te d to b e U S $ 1 9 5 M i l o n . s m li T h e si o f th e w a tch m a rke t cu rre n tl i ze y s e sti a te d to b e a ro u n d 4 0 to 4 5 m i l o n p i ce s m li e a n n u a l y. l T h e to ta l i ve stm e n t i th e o rg a n i d se cto r i n n ze s U S $ 2 1 8 m ilo n . li
O rg a n i d se cto r a l n e co n tri u te s u p to 3 0 ze o b p e rce n t o f th i fi u re . s g A ro u n d 2 0 to 2 5 w a tch e s a re b e i g so l fo r n d e ve ry 1 0 0 0 ci ze n s. ti T h e a ve ra g e g ro w th i th e si o f th e m a rke t n ze i sl te d to b e a ro u n d 1 0 -1 5 p e rce n t p e r s a ye a r. I d i ' p e n e tra ti n o f w a tch e s i a m o n g st n as o s th e l w e st i th e w o rl . o n d
Indian Watch Industry Trends Rapid increase in target audience Rise of consumerism and purchasing power of the middle class Bulk of the demand exists in lower and middle segments Newer segments jewellery segment, etc. Rise of demand of trendy watches27
The Watch Market in India Premium (> Rs 5000)Valued at Rs 370 crores
Mass (< Rs 400)Valued at Rs 300 crores Grey market, Chinese, etc.
Swiss brands: Tissot, Omega, Rolex
Fashion brands: Fossil, Calvin Klein, Giordano, Esprit
Low-end (Rs 4001000)Valued at Rs 1200 crores
3 3%Mid-upper (Rs 1k-5k)Valued at Rs 938 crores
Titan, Citizen, Timex,Swatch, Espirit
Sonata, HMT, Maxima Classification by value FY07
Volume value matrix
Titan More than 50 % of the organized market HMT - 10-15% due to its retail clout in urban and rural India built over four decades Other brands such as Timex, Maxima, Citizen and other regional brands constitute the rest
Titan Industries Leader in the watch business in India >50% share of the organized watch market Over 60 million watches sold across 30 countries Brands offered: Steel, Edge, Raga, Sonata, Fasttrack, Regalia, Bandhan, Sonata, Nebula, Flip
Recently Titan has taken a drive to improve its image as a maker of contemporary style and design in wrist watches
Titan is trying to offer international quality/style
Own stores (World of Titan, Time Zone and Sonata Stores 142 Time Zones, which are multi branded outlets operating in the watches business. Titan has recently started using ITC's e-Choupal channel to penetrate the rural markets
W tch s a e 1000I ncome in Rs. Cr.
800 600 400 200 0
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