Limited Preview : for reference only knowFine jewelry segmentyour customers My dissertation (a 3-month research project at Studio ADIG in 2008 Project Brief : Spot the changing face of fine jewelry segment, understand the mindset of the customers in this area and develop some strategies based on this study.

Project Scope : This project studies an overview of the changing face of fine jewelry segment in context to the changing lifestyle of the consumer. The project focuses primarily on the consumer, his preferences in terms of both product and service, his buying behavior and also covers some aspects of the changing retail environment from unorganized family jeweler shops to organized jewelry retail brands.

Research Methodology : The research methodology includes extensive customer research specifically in all jewelry retail formats across the city of Bangalore, web research in related areas, telephonic interviews and literature references.

Research techniques used- Laddering, Zaltman Metaphor Elicitation Technique, Ethnography & Aspiration Mapping The journey of the project :

Secondary research Primary research

1. Introduction : 4. The Indian consumer :

1.1 Jewelry in Indian context 4.1 Sample size 1.2 Features of Indian jewelry trade 4.2 Jewelry Shopping experience map 1.3 Jewelry craft in India 4.3 Purchase behavior : customer buying behavior purchase reasons purchase occasions 4.4 Design preferences 2. Jewelry types : 4.5 Needs & aspirations 4.6 The changing perception of jewelry 2.1 Kinds & categories of jewelry 4.7 consumer key statements 2.2 Design source & inspirations 2.3 Regional jewelry 2.4 Urban & rural jewelry 5. Strategic interventions based on the study : 2.5 The basics – gold & diamond 5.1 Insights for jewelry retail & store experience 5.2 Idealistic jewelry shopping experience map 5.3 study inference 3. Jewelry retail scenario :

3.1 The jewelry market – organized & unorganized 3.2 Gold control act 1962 & hallmarking 3.3 Phases of organized retailing in an economy 3.4 Indian retail – the changing scenario 3.5 Traits of an Indian consumer 3.6 Govt. of India initiative in promoting gold trade 3.7 The jewelry retail case studies: a. traditional goldsmith – Bhima Jewellers b. jewelry brands – Tanishq Traditional goldsmith & brands – SWOT analysis 1.2 Features of Indian jewelry trade

Families run businesses are getting rapidly organized to meet with emerging challenges

Processes 95% of small diamonds for global consumption

Industry growing at the rate of 35% since last 10 -12 years

One of the biggest marketing networks worldwide

Undisputed world leader in handcrafted jewelry

Diamond / Emerald cutting is synonym to us

High quality skills & manufacturing capacity

Biggest consumer of Jewelry in the world !

Celebrity endorsement – a regular feature

New brands launched almost regularly

One fifth of total Indian export basket 3.7 Jewelry Retail – case studies : a. traditional goldsmith – Bhima Jewellers

Bhima Jewellers was founded in the year 1925 in Alleppey, by Shri. K.Bhima Bhattar. Today the name Bhima is associated with trust combined with quality and purity. Today Bhima has retail outlets at Cochin, , Bangalore, , Calicut & Kottayam.

Bhima jewellery has a large collection of Bridal jewelry, Diamond jewelry, Gents jewelry, Children's jewelry, Traditional jewelry and Gemstone jewelry among many other unique collections.

Core competencies : the wide range of region specific traditional designs Bhima jewellery, jaya Nagar, Bangalore The deciding factor when it comes to buying jewellery is design - design plays the vital role and patrons, more often than not, go over their pre-set budget if the pieces catch their fancy. The designs range from ethnic Travancore jewelry to modern Kolkata jewelry and lightweight Coimbatore jewelry. Traditional jewelry from Rajkot, Rajasthan and Delhi and studded items from Kharwar and Nellore are also available. Bhima also houses a collection of gemstones such as pearl, coral, emerald, yellow sapphire and cat's eye.

Gold buy back policy : 100% with context to the daily gold rate

Attractive financial schemes & monthly deposits : available

Customer service : a good regional customer service with flexible management approachability

Retail design : good with a personal touch to the customer

Retail format : stand alone store

“ I like going to Bhima because of they have a lot of variety & traditional designs. Moreover my parents have been visiting them since long & they know us”

- f/30/married/unworking 3.7 Jewelry Retail – case studies : b. jewelry brands - Tanishq

Tanishq, Kormangala, Bangalore Tanishq (or love of the body) is the jewellery arm of the TATA Group , India’s largest business house. Commenced operations in 1996, it is now India’s largest brand of jewellery with 91 stores in 64 cities . For three years running it has been voted India’s most admired brand of jewelry by independent agencies.

Among the branded jewellery players in the Indian market, Tanishq is considered to be a trendsetter. Tanishq began with 18-carat jewellery . Realizing that such jewellery did not sell well in the domestic market, the 18-carat jewellery range was expanded to include 22 and 24 -carat ornaments as well.

Core competencies : brand values of TATA group , contemporary elegant designs with fusion of Indian motifs & light weight diamond jewelry

The introduction of ‘karatmeters’ at its outlets is a key innovation that has developed tremendous equity for the brand. Its each product comes with a certificate of stated purity & trust. Tanishq retail boutiques are the temple for the brand and are used as a platform for celebration, be it the launch of a new collection, a new marketing promotion or festival at different times of the year at different parts of the country being region specific. Celebrity endorsement has been a regular practice.

Gold buy back policy : 5% depreciation in Tanishq designs & 8% on non Tanishq in context to the daily gold rate Tanishq, Jaya Nagar, Bangalore

Attractive financial schemes & monthly deposits : available

Customer service : a good nationalized customer service

Retail design : excellent with regular store promotions & celebration

Retail format : stand alone store

“I would prefer going to Tanishq because of its good designs & high quality. They provide you a certificate as well and you have many financial schemes to choose from!

- f/48/married/unworking 3.7 The jewelry retail Traditional goldsmith & brands – SWOT analysis

Traditional goldsmith

Brands 4. Research - The Indian consumer

4.1 Sample size

4.2 Jewelry Shopping experience map

4.3 Purchase behavior : customer buying behavior purchase reasons purchase occasions

4.4 Design preferences

4.5 Needs & aspirations

4.6 The changing perception of jewelry

4.7 customer key statements 4.1 Sample size

9% 10% age 50-59 7% age 50-59 27% male age 40-49

46% 55% 36% age 20-29 30-39 age 20-29 73% female 37% age 30-39

Research group pie (sample size : 49 people; location : Bangalore)

44% 39% unmarried unemployed 56% Male 25% Female 75% Male 11% employed 61% married Female 89% Male 41% Male 29% Female 59% Female 71% 4.3 Purchase behavior : purchase reasons

Jewelry has been used for a number of reasons :

Protection (in the form of amulets and magical wards)

Functional use (such as clasps, pins, and buckles)

Symbolism (to show membership or status)

Currency ( wealth display and storage ) events Gift purpose ( as a token of love ) Personal lifestyle / Artistic display ( as décor ) investment trends

gifting purpose The new trend towards the increase in jewelry buying for gifting purpose is clearly seen.

festivities

wedding occasions

The percentage represents the no. of customers making a jewelry purchase for specific reason against the total no. of purchase reasons that were disclosed by the customers during the study. 4.7 consumer key statements

“I can’t afford platinum so I would go for white gold”

- f/26/unmarried/unworking

“I prefer light weight and voluminous jewelry in bright shades.”

- f/38/married/unworking

“I cannot wear gold in feet because I cannot disrespect goddess Lakshmi.”

- f/25/unmarried/working

“You should tell the range, show the jewelry, and be specific in caratage.”

- f/55/married/unworking

“When you buy clothes, you are conscious about brands. It is not the same in jewelry.”

- f/32/unmarried/working

“In my youth I used to buy a lot of costume jewelry but its no more the same after I got married”

- f/34/married/working

“Gold is an easy option to get money in emergency but when you talk of pure investment, I would definitely go for plots.”

- m/32/unmarried/working 5. Strategic interventions based on the study :

5.1 Insights for jewelry retail & store experience

5.2 Idealistic jewelry shopping experience map

5.3 study inference 5.1 Insights for jewelry retail

3. Segment the market in terms of ‘purchase occasions’ :

Gold is auspicious in India. It symbolizes goddess of wealth. Create new occasions. Do it through frequent thematic display changes. look at segmentation from a new, consumer-driven perspective. Figure out why the consumer buys jewelry. Where does she wear it? The advantage of looking at the consumer this way is that you have new marketing approaches not possible from the previous commodity perspective. Exploit and celebrate occasions to buy jewelry. Tell customers that its time to buy jewelry.

4. A need to offer a unique value proposition to the customer :

a. A strong ‘value for money’ model There should be perceived needs and financial viability. Monthly deposit schemes and installment payment schemes are feasible examples.

b. A unique customer experience The sales team must be given special training to promote brands when customers are in the decision making process. Consumers today demand special attention and care and look for a smart sales person with better understanding skills.

Customers should have a good post purchase view to become a regular customer. Having a dedicated ‘customer care cell’ is not a bad idea! 5.1 Insights for jewelry store experience

1. Try to avoid barriers to your product display

Encourage a continuation of the product display. Do not have too many windows in continuation in the store with vertical and horizontal panels running through different products displayed separately & adjacent to one another as it creates confusion and many designs remain unattended. An elaborate background with a big window displaying products differently but in continuation is a better option. Ensure a customer-friendly and comfortable distance to the customer to notice the intricate designs of the individual jewelry display on the wall from over the counter.

2. Educate the customer through displays

Designing unique displays for your handcrafted jewelry can be as much fun as designing the jewelry itself! Have thematic displays. Tap the opportunity when the customer is in the store. Have a strong in-store communication. Arouse interest and create desire in the customer through well-designed and self-sustaining displays. Flush information and educate your customer about yourself and give him a logical reason to opt for you. Creating awareness helps! Indians love to see displays in sets. 5.1 Insights for jewelry store experience

5. Have a sitting/waiting area in your store with a relaxing experience

Jewelry buying is a time taking phenomena. Create a refreshing experience for your customers in the store rather than a tiring event. Have magazines, catalogues etc for the customer at his disposal. Jewelry buying is not a lonely event so you need to take care & provide a platform for those accompanying your customer. Discussion is an important part of the jewelry buying process.

6. Create an ‘identity experience’ through enhanced packaging

Personal creative identity is developed by problem solving, fluency of visual language, craft skills and an appreciation of the historic, social and cultural context of jewelry. Use packaging as a tool to tell the customer about yourself, location of store branches across the city etc to add to a memorable experience. Be with your customer, and tell him/her a lot about yourself even after the customer has left your store, through packaging design. 5.2 Idealistic Jewelry shopping experience map ( high end store ) Feelings of the customer

Valet Service Dedicated Window Displays Security Guard opens the door with a smile : welcome sir ( comfort & security ) ( desire ) ( respect )

Aromatic lounge area : greeted by personnel : may I help you? ( personal attention )

Escorting to the relevant counter / area of display : please have a seat sir! ( expectations )

Enquiries & Display of design options ( interest arousal )

Customized refreshments ( calmness )

Educating through enhanced IT : Assistance & product selection ( assurance )

Browsing in other stores / Final purchase ( dissatisfaction / trust )

Escorted to Exit Feedback Product packaging : thank you Cashless counter : Cash/credit card payment for shopping with us! ( relationship ) ( importance ) ( celebration ) ( transparency ) 5.3 study inference

The conclusion drawn is that gold is an artifact within the Indian consumer society. Social interaction in the community is facilitated through the linking value and the role that gold represents in the culture. Gold possession is embedded in the customs and the traditions that carry significant importance to the people. Indian women are a distinct consumer segment. However, to some extent the women view gold as an investment vehicle which provides some measure of financial security for themselves and/or their daughters. In India marriage and gold go together. As pure investment, customers now prefer better yielding financial schemes and see land as a good option in a booming economy of the Indian retail business.

The study also finds that the design preferences for jewelry were largely fusion wear (a combination of regional Indian & western wear) & look for variety. A well lit & informative display / kiosk was quite yielding. The new trend towards the increase in jewelry buying for gifting purpose was clearly seen. Women are more fashion-conscious today and desire smart jewelry that can be accessorized with their wardrobe or express her individuality. Jewelry sets are much sought for. Also consumers now are more demanding and look for financial viabilities like monthly deposit schemes & quality assurance. Exchange and buy back policies stand equally important. The customer is very clearly knowledgeable about quality and understands and demands certifications. Convenience to the store / store location is another factor worth considering. Word-of-mouth plays significant role in the mindset of the customer. As the service sector is at a rise, the consumers demand special attention and care and look for a smart sales person with better understanding skills. It is time to celebrate each & every occasion with the customer with unbeatable service and retail experience. Customization is the new mantra for successful business. Not to mention that each & every minute of the customer is important today. References :

Websites & blogs

www.google.co.in www.theartofjewellery.com www.wikipedia.com www.tanishq.co.in www.bhimajewellers.com www.gold.org www.reuters.com

books & published articles

Mathur and AshaRani, A Jewelled Splendor : the tradition of Indian Jewelery, New Delhi Rupa &Co. 2000 Twenty trends for 2010: Retailing in an age of uncertainty, Retail Forward April 2003 Super Brands: An insight into 101 of India’s strongest brands, vol. 1, UK Superbrands India Pvt. Ltd The India Retail report 2007: An Images F&R Research, Delhi Images Multimedia Gérald Zaltman, How Customers Think: Essential insights into the mind of the market, Boston Harvard Business School Publications,