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PresentationOn

jewellery

industrySubmitted to :

Prof. SHIKHA SHARMA

Submitted by:

NITISH KUMAR NAKUL PANDIT

People wants to showcasing a fine elegance and sheen, the range of fashion jewellery which reflect an amalgamation of many cultures, traditions and customs.

Tradition

•Jewellery have been a part of most of the cultures of the world at some point of time or other. From its basic use as currency, it is now used as an instrument to store and display wealth. In the recent past(last 3-4 decades), this industry has shown an impressive growth world wide. The current global market for the sector is estimated at around $85bn USD and has shown a CAGR of 5-10% in the last decade.

•India's 300,000 traditional jewellers – commonly referred to as the unorganized sector – dominate the country's jewellery retail landscape with a 96 per cent market-share. Keeping in mind that only 4% of the sector is in organized hands.

INTRODUCTION

India has the largest country from RAMAYAN & MAHABHARAT times.Indians are the first to start jewelry making.India was the first country to mine diamonds.Formerly diamonds were cutting & polishing traditionally.

Nowadays diamonds are cutting & polished by adopting new technology.

Many institutes provides degree, diploma & certified courses for gem & jewelry education. For Ex. Indian Institute of Gemology etc.

Gem and jewelry export promotional council worked to promote export of gems and jewelry.

Government has also introduced many measures to promote gem and jewelry sector.

History & Current Scenario

jewellery is a type of accessory

It includes necklaces, rings, bracelets, watches, and earrings

jewellery can be made from a variety of different materials including Silver, Gold, Metal, and Wood

The name originates from the Latin word local a meaning plaything

Began with materials made from bone, teeth, and shell

Considered a symbol of wealth and artistic display

Can incorporate beads, stones, gems, and diamonds

jewellery

CONCLUSTIONThe retail jewellery industry is comprisedof five main segments:

Bridal jewellery (30%)

Fashion jewellery (22%)

Watches (18%)

Precious stones (15%)

Precious metals (15%)

Industry Overview

The retail jewellery industry is highly fragmented.

No retailer claims more than 6 percent market share.

There are nearly 50,000 stores engaged in jewellery retail.

The industry employs approximately 200,000 individuals.

Annual jewellery store sales run about $27 billion; wholesalers and manufacturers account for an additional $27 billion in sales.

Wal-Mart is the largest retailer

Continue….

Wal-MartZale CorporationSterling JewellersSears, Roebuck and CompanyFinlay's Fine jewelleryJ.C. PenneyQVCTiffany and CompanyService MerchandiseKmart

Ten Largest jewellery Retailers

The consumers were to rank the luxury jewellery designers based on 4 criteria:

(1) superior quality (2) uniqueness and exclusivity (3) social status and (4) excellent customer service

Criteria

Royal earrings, Andhra Pradesh, 1st Century BC

Byzantine wedding ring.

India is a leading player in the global gems and jewellery market

The gems and jewellery industry occupies an important position in the Indian economy.

The two major segments of the sector in India are gold jewellery and diamonds.

The Indian gems and jewellery industry is competitive in the world market due to its low cost of production and the availability of skilled labour

INDIAN JEWELLERY INDUSTRY

Indian retail jewelry overview

Organized players such as Tata with its Tanishq brand and Gitanjali a pioneerin the branded jewelry segment.

Leading Brands

Indian jewellery industry is a highly regardedindustry and earns huge profits through thejewellery exports all over the world.

The Indian jewellery sector is largely unorganizedat present.

There are over 15000 players across the countryin the gold processing industry, of which only about 80players have a turnover of over US$4.15 million (Rs. 200 million).

There are about 450,000 goldsmiths spread throughout the country.

INDIA SITUATION

Wal-Mart Stores was established in 1962 by Sam Walton.

It was registered as a corporation onOctober 31, 1969.

It became listed on New York StockExchange in 1972

WAL-MART

The world’s largest jewellry retailer

Jewellery Stores had not been affected byglobal financial crisis.

It is carrying on with its expansion activities in India as well as other world markets

Impact of financial crisis

The Indian gems & jewelry sector is expected to cross US$ 26 billion by 2012.

The consumption of the diamond jewelry is expected to touch US$ 6.41 billion in 2012.

State Run National Mining Development Corporation (NMDC) planned to produced close to 100000 carats of diamonds from the panna diamond mines in Madhya Pradesh.(2010-11).

FUTURE

1.Strong risk management focus as part of strategy.2.Investments in upgrading the technology and setting up

new units in Kolkotta and Bangalore.3.Manufacture handicraft jewellery along with branded

jewellery to cater to diverse markets.4.Long standing relationship with dealers in US, Antwerp,

Dubai etc.

STRENGTHS

SWOT ANALYSIS

1.A smaller player in size compared to the rest of the competitors such as Rajesh Exports and Gitanjali Gems and Jewellery, and therefore would not be able to enjoy the same benefits of returns to scale as the others.

2.No well established brand like other firms (e.g. Gili from Gitanjali Gems and Jewellery or Tanishq from Tata).

3.Lacked infrastructure to cater to the retail customers abroad. Company sells most of its product to the wholesalers in which case they have much of the bargaining power.

WEAKNESS

1.Gems and Jewellery to grow by 12% (as calculated by the demand forecasting).India’s share is projected to be around 1.5 to 2 percent of the global industry.

2.Tax regime to be structured to develop India as a global hub for gems and jewellery.

3.Increase in wealth leading to increase consumption is expected to boost demand for this sector.

4.Global Silver to Gold ratio is improved to 15:3 from 7:3 in 2000 in the world market; this is mainly because

of a younger generation’s preference for a white metal than gold.

5.Increase demand in Middle East and North American countries, forming the largest segment and offering the highest growth in the previous financial year.

OPPORTUNITIES

THREATS1.Emergence of China as a competitor.

2.Unusual increase in the price of gold and rough diamonds.

3.Fluctuation in currency, especially appreciation of rupee against the dollar.

4.Change in fashion trends.

5.As per the CMIE data, only 4% of the gems and jewellery sector is in the organized hands, Tanisq, Gili (subsidiary of Gitanjali Gems), Oyster bay, being the major players from whom company faces a lot of competition.

6.Substitution of gold and other banking products as a better source of investment has lead to the decline in the consumption of silver.

7.The reduction of consumption of silver in the Indian market. Witnessed a decrease of 53.1% from 1996 to 2005 in consumption.

8.Low availability of skilled labor in processing of diamonds.

9.Infrastructure bottlenecks, absence of latest technology.

10.China, Sri Lanka and Thailand's entry in small diamond segment.

Large presence of unorganized sector.

Increase in gold jewelry consumption.Increase in gold prizes.

Cheating on carat age.

Possible long term threat from China.[

Continued support from government crucial.

LIMITATION

Jewelry has become a vital element in everyone’s life.Men, women and even kids love to wear jewelryarticles all the time. Wearing jewelry is the demand ofmodern fashion. A few years back jewelry was usedonly on special occasions like weddings, engagementsand other formal parties and it was associated withthe brides and married girls only. But nowadays it isworn casually as well as formally and everyone likesto wear beautiful and elegant jewelry items. Trendyand stylish jewelry is in fashion these days. The gemsand jewelry industry has been growing rapidly andhas become one of the most profitable industries ofthe world.

CONCLUSION:

Thank You

Diamonds are a girl’s best friend!