Consumer Buying Behaviour of Diamond Jewellery- a Study for Surat
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International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-3, Issue-7, Jul.-2017 http://iraj.in CONSUMER BUYING BEHAVIOUR OF DIAMOND JEWELLERY- A STUDY FOR SURAT MANISHA PANWALA Professor, Department of Business and Industrial Management, Veer Narmad South Gujarat University, Surat, Gujarat. Abstract - Retail industry is fast changing. All facets of business are undergoing a change. The global and the local business are causing as well as adapting a change. Jewellery buying for a very long tie has had a traditional pattern of buying behaviour. There were family jewellers, and a family purchase. While the money was given by the father or husband the final decision maker was the women. All models of consumer buying behaviour has adopted to the change. The diamond jewellery buying that too on-line has a generated a curiosity, because it has a route of high tradition. The present paper examines the growth, factors and current scenario of purchasing diamond jewellery through online retail formats as well as buying behaviour from branded retailers. It is a descriptive research , survey method has been used for data collection through a structured questionnaire. The first part of the research which was a qualitative research had personal interview with experts and review of lieterature, followed by secondary data search. Some of the key findings were that Indian consumer buy precious jewellery like diamond jewelleries for fashion as well as special occasions and to have a strong attributes in maintaining social status during social function and gathering and they always buy from trusted branded outlets. Other Attributes are like store service for branded jewellers seem to be far superior to the traditional outlets and quality satisfaction is very high with branded jewellers. Working women are greater purchasers of diamond jewellery and indulge more in impulse purchase. Online currently has arelatively low reach in India. It is more like a pre-purchase tool. In India, 12per cent of women use the internet to pre-select designs or learn more about diamond jewellery. However, as internet penetration and sales of smart phones accelerate, online buying is likely to gain importance, both as a sales channel and as search tool. The changing socio-economic perspectives adds boon to the jewellery industry. I. INTRODUCTION markets continued to rise. While online sales in India, at less than one per cent of total sales, lag behind The global diamond jewellery market has seen a those in the US (at 13 per cent of total sales), growth in the last two years. Sales have increased increasing online penetration in developing markets is three per cent in 2014, exceeding US$80 BILLION likely to result in the internet becoming a more for the first time. In local currency terms, there was important factor in researching diamond jewellery growth in each of the top five diamond markets, purchases. Last year’s Diamond Insight Report also which account for 75 per cent of global demand. highlighted the competitive position of diamond Growth would have been almost five per cent had it jewellery against other luxury products, with not been for the strengthening of the US dollar categories such as electronics and fashion spend against the currencies of several of the major gaining share of advertising voice. However, in 2014 diamond consumer m markets in the latter part of growth in jewellery advertising spend started to reach 2014. Despite the US being the most mature diamond the levels seen in the fashion industry. While it’s too jewellery country, its seven per cent growth was the early to say if this trend will continue, it’s a positive strongest of any of the main regions. Growth (in local development that needs to be maintained if the currency) was also seen in developing markets, with diamond sector is to compete more effectively with six per cent growth in China and three per cent in other luxury products. India. Last year’s report highlighted three key trends that are shaping the future landscape of the diamond In 2015, while there was growth in local currency in retail sector – and these have continued. some markets, the continued strengthening of the US dollar against all major currencies, coupled with a First, consumers across the world are looking slowdown in economic growth in China, is likely to increasingly to branded diamond jewellery for lead to global diamond jewellery demand for the full product differentiation, distinctive design, year being relatively flat compared with 2014 level. authenticity and quality. This is more prevalent in the Rough diaond sales have also increased by 12%. De US – where four in five retailers stock brands – but Beers and ALROSA remained the largest sellers of developing markets are also seeing increased sales of rough diamonds in 2014, accounting for 56 per cent branded jewellery s consumers seek the greater of global sales by value between them. In volume reassurance offered by brands. Second, the number of terms, total rough diamond production actually jewellery shops in developing Asian markets decreased by three per cent to an estimated 142 increased again last year (albeit at a slower rate), million carats in 2014. The total production value was while the total number in more mature markets – more than US$19 billion, which represented an especially the US – saw an overall reduction. Third, increase of almost six per cent on 2013. De Beers and online sales in both developed and developing ALROSA remained the largest producers by both Consumer Buying Behaviour of Diamond Jewellery- A Study for Surat 57 International Journal of Management and Applied Science, ISSN: 2394-7926 Volume-3, Issue-7, Jul.-2017 http://iraj.in volume and value. Accordingly, Russia and Botswana with affluent Western consumers when compared remained the two largest producing countries by with economic segments A/B. value. While the development of new greenfield 3. Diamond jewellery is an ‘aspirational’ product in mines has been limited in recent years, three new India and is more desired than other luxury mines did begin production last year, with a further categories. The level of ownership and mine being commissioned earlier this year. In overall desirability is particularly high among the Elites terms, these new mines do not contribute significantly and Super Elites, while diamonds remain an to global production. Also, the project pipeline aspirational product for the much larger non- remains sparse, with only two large-scale projects Elite segment. currently in development – both of which are 4. The highest proportion of diamond jewellery expected to begin production in 2016. The result of purchasers is located in Tier 1 cities (nearly 60 these new mines coming online will be a moderate per cent) and in the north of India (nearly 50 per increase in diamond supply in the next few years. cent). But, towards the end of the decade, when many 5. Love is the primary motivation for half of all existing mines will begin to see declining outputs, diamond purchases. Unlike in many Western overall supply is likely to plateau. markets, very few men propose with diamonds in India and instead display their love with gifts of In the short term, given lower polished demand levels diamonds on different occasions during the in 2015, rough diamond demand has been more marriage. constrained as well. This is likely to have an impact 6. Purchasing journeys in India are normally a on overall rough diamond production this year. consultative process, in which women are the main decision makers, with the opinion of family II. INDIA’S DIAMOND CONSUMER MARKET and friends the most important factor in diamond jewellery selection. Retailers also play an India’s consumer market has achieved an important part in providing reassurance and uninterrupted growth over the last 20 years and the advice. projected growth of the iddleclass offers an opportunity which promises further growth. The ‘In IV. REVIEW OF LITERATURE: Focus’ section of this year’s Diamond Insight Report looks at India’s highly dynamic consumer diamond The review of literature here includes secondary data market. Driven by a growing economy, an emerging and key elites of the diamond industry. middle class and a culture where precious jewellery plays an intrinsic role in social occasions and family The Importance of online channels rises across the traditions, India has become one of the world’s world (de-beers-insight-report-2014-diamond- largest consumer markets for polished diamonds. jewellery-retail). Meanwhile, the jewellery retail landscape has Both emerging and developed markets saw a rise in changed dramatically over the past 15 years, with the the importance of online channels in 2013. More than number of doors selling diamond jewellery growing one in six diamond jewellery purchases in the US much faster than the average growth in all jewellery were made online in 2013, a growth of over 30 per retail doors. cent since 2011. Going online also remains the most popular way for consumers to research a purchase in III. INDIA’S DYNAMIC CONSUMER the US: almost four in 10 consumers go online for MARKET: KEY CONSUMER INSIGHT AND research purposes before buying, ahead of other OPPORTUNITIES touch-points such as jewellery stores and advertisements. Although online is not yet a 1. India is home to a highly dynamic consumer significant sales channel in China, the internet is diamond market that has grown rapidly over the already used by a quarter of acquirers for different last two decades, fuelled by a fast expanding purposes, such as to learn about fine jewellery quality economy, a widening consumer base and a and prices, to learn about brands, and to pre-select culture where precious jewellery plays an designs. The internet is used more frequently in the intrinsic role in social occasions and family diamond purchase process by single women, half of traditions.