gems and jewellery sector in india

1

IN-DEPTH STUDY ON INDIAN GEMS AND JEWELLERY SECTOR

Aishwarya KelkarPGDM

2

Gems and Jewellery

• India is one of the eight key world markets, the others being the USA, UK, Middle East, Turkey, Japan, Italy and China.

• The largest consumer of gold in the world.• Gold dominates the Indian jewellery with a

market share of 80 %.• India has emerged as the largest cutting and

polishing industry for diamonds in the world.

3

Gems and Jewellery

• Southern India is poised to be the biggest and the fastest growing jewellery market in the whole country.

• Gold fell below $1,500 per ounce on Friday, a drop of more than 20% from its record 2011 highs, putting it in bear market territory for the first time since last May.

4

• Gems and jewellery exports may grow by 15% in FY14: GJEPC

• Gems and jewellery constitute 17% of India's total exports and the sector employs 1.5 million people.

• Major markets for the country's gems and jewellery : Europe, the US, the UAE and Hong Kong

Source : Business Standard,12/04/2013

5

Kashmiri Jewellery

Thewa JewelleryKundan Jewellery

Temple JewelleryMeenakari Jewellery

Navratna Jewellery

6

Objectives of the Study

• To study the Industry with National and international aspects.

• To study the future growth aspects of the Gems and Jewellery Sector.

• To study the gap model of the services in the Gems and Jewellery Sector.

7

Segments of Gems & Jewellery Sector

GEMSTONES

PEARLS

GEMS & JEWELLERY

SECTOR

JEWELLERY

Source: D& B Research ,CII

8

Gems & Jewellery Sector

DIAMOND

LUXURY JEWELLERYCOLOURED GEMSTONES

GOLD

9

CLICK-AND-BRICK MODEL

Gems & Jewellery Sector

16

Profile of the people employed in the Gems & Jewellery Sector

Senior Management

Shop Heads/Supervisors

Operators

Operators

Shop Heads/Supervisors

Operators

Large size units:MBA's/EngineersSmall size units:

Persons with 10-15 years of experience in the industry

Personnel certified from IDI,GII/persons with 7-8 yrs experience in the industry

Freshers,Personnel certified from IDI,GII/persons with 3-4 yrs experience in the industry

17

Key Success Factors

• Movement from unbranded to branded jewellery and increase in fashion dictated buying

• Hallmarking and Certification

• Increased use of technology

• Transformation from family owned businesses to professionally managed businesses

18

Key Risk Factors

• Limited Standardisation

• Possible Long-Term Threat from China

• Threat from Polishing in Producing Nations

19

Service Gap in the Gems and Jewellery Sector

• Procurement

• Assortment and Planning

• Cutting and Polishing

• Grading

• Trading(Domestic/Export)