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NOIDA (UTTAR PRADESH)

ACKNOWLEDGEMENT
The success and final outcome of this project required a
lot of guidance and assistance from many people and I
am extremely privileged to have got this all along the
completion of my project. All that I have done is only due
to such supervision and assistance and I would not forget
to thank them.

I would like to express my special thanks of gratitude to


my teacher Dr Harsh Kumar who gave me the golden
opportunity to do this wonderful project on the topic
TANISHQ, which also helped me in doing a lot of
Research and i came to know about so many new things I
am really thankful to them.
Secondly i would also like to thank my parents and
friends who helped me a lot in finalizing this project
within the limited time frame.
PROJECT ON

INDIAN GEMS &


JEWELLERY INDUSTRY
INTRODUCTION
The Gems and Jewellery sector plays a significant role in the
Indian economy, contributing around 7 per cent of the
country’s GDP and 15 per cent to India’s total merchandise
exports. It also employs over 4.64 million workers and is
expected to employ 8.23 million by 2022. One of the fastest
growing sectors, it is extremely export oriented and labour
intensive.
Based on its potential for growth and value addition, the
Government of India has declared the Gems and Jewellery
sector as a focus area for export promotion. The Government
has recently undertaken various measures to promote
investments and to upgrade technology and skills to promote
‘Brand India’ in the international market.
India is deemed to be the hub of the global jewellery market
because of its low costs and availability of high-skilled labour.
India is the world’s largest cutting and polishing centre for
diamonds, with the cutting and polishing industry being well
supported by government policies. Moreover, India exports 75
per cent of the world’s polished diamonds, as per statistics
from the Gems and Jewellery Export promotion Council
(GJEPC). India's Gems and Jewellery sector has been
contributing in a big way to the country's foreign exchange
earnings (FEEs). The Government of India has viewed the sector
as a thrust area for export promotion. The Indian government
presently allows 100 per cent Foreign Direct Investment (FDI) in
the sector through the automatic route.
MARKET SIZE
Gold demand in India rose to 760.40 tonnes between
January to December 2018. India's gems and jewellery
exports stood at US$ 4.99 billion between Apr 2019 –
May 2019*. During the same period, exports of cut and
polished diamonds stood at US$ 3.52 billion, thereby
contributing about 76.96 per cent of the total gems and
jewellery exports in value terms. Exports of gold coins
and medallions stood at US$ 686.51 million and silver
jewellery exports stood at US$ 765.98 million between
April 2018 - March 2019.
The gems and jewellery market in India is home to more
than 300,000 players, with the majority being small
players. Its market size is about US$ 75 billion as of 2017
and is expected to reach US$ 100 billion by 2025. It
contributes 29 per cent to the global jewellery
consumption.
India is one of the largest exporters of gems and
jewellery and the industry is considered to play a vital
role in the Indian economy as it contributes a major
chunk to the total foreign reserves of the country. The
Goods and Services Tax (GST) and monsoon will steer
India’s gold demand going forward.
INVESTMENTS/DEVELOPMENTS
The Gems and Jewellery sector is witnessing changes in
consumer preferences due to adoption of western lifestyle.
Consumers are demanding new designs and varieties in
jewellery, and branded jewellers are able to fulfil their changing
demands better than the local unorganised players. Moreover,
increase in per capita income has led to an increase in sales of
jewellery, as jewellery is a status symbol in India.
The cumulative Foreign Direct Investment (FDI) inflows in
diamond and gold ornaments in the period April 2000 – March
2019 were US$ 1.16 billion, according to Department for
Promotion of Industry and Internal Trade (DPIIT).
Some of the key investments in this industry are listed below.
Deals worth Rs 8,000 crore (US$ 1.19 billion) were made at the
Indian International Jewellery Show held in August 2018.
Companies such as PC Jewellers, PNG Jewellers, Popley and
Sons, are planning to introduce a virtual-reality (VR) experience
for their customers. The customer will have to wear a VR
headset, through which they can select any jewellery, see the
jewellery from different angles and zoom on it to view intricate
designs.
GOVERNMENT INITIATIVES
The Bureau of Indian Standards (BIS) has revised the
standard on gold hallmarking in India from January
2018. The gold jewellery hallmark will now carry a
BIS mark, purity in carat and fitness as well as the
unit’s identification and the jeweller’s identification
mark. The move is aimed at ensuring a quality check
on gold jewellery.
The Gems and Jewellery Export Promotion Council
(GJEPC) signed a Memorandum of Understanding
(MoU) with Maharashtra Industrial Development
Corporation (MIDC) to build India’s largest jewellery
park in at Ghansoli in Navi-Mumbai on a 25 acres
land with about more than 5000 jewellery units of
various sizes ranging from 500-10,000 square feet.
The overall investment of Rs 13,500 crore (US$ 2.09
billion).
Gold Monetisation Scheme enables individuals,
trusts and mutual funds to deposit gold with banks
and earn interest on the same in return.
ROAD AHEAD
In the coming years, growth in Gems and Jewellery
sector would be largely contributed by the
development of large retailers/brands. Established
brands are guiding the organised market and are
opening opportunities to grow. Increasing
penetration of organised players provides variety in
terms of products and designs. Online sales are
expected to account for 1-2 per cent of the fine
jewellery segment by 2021-22. Also, the relaxation
of restrictions of gold import is likely to provide a
fillip to the industry. The improvement in
availability along with the reintroduction of low cost
gold metal loans and likely stabilisation of gold
prices at lower levels is expected to drive volume
growth for jewellers over short to medium term.
The demand for jewellery is expected to be
significantly supported by the recent positive
developments in the industry.
Deepika Padukone
In May 2015, Tanishq enrolled Deepika
Padukone to be the brand's ambassador.
Nayanthara
Tanishq signs actress Nayanthara as its brand ambassador for South
India. Titan Ltd's jewellery brand Tanishq has signed south Indian
actress Nayanthara as its new brand ambassador to enhance the
visibility of the brand in the southern region.
INFORMATION
TYPE Subsidiary of Titan Company

INDUSTRY Jewellery

Founded 1994

Headquarters Bangalore , Karnataka


AREA SERVED Worldwide

WEBSITE www.tanishq.co.in

SWOT ANALYSIS OF TANISHQ


• STRENGTH
• WEAKNESS
• OPPORTUNITY
• THREATS

STRENGTH IN SWOT
ANALYSIS
1) The backing of Tata, Titan and TN government –
Tanishq has a strong backing of Tata Group and TN
government giving it the necessary resources
and markets to function well.
2) A trusted jewelry brand in India – It has been one of
the most trusted jewelry brands in India which brand
recall is very high. This gives Tanishq an edge over its
competitors.
3) Excellent promotional activities – There have been a
lot of advertising and promotions for the brand in terms
of TV ads, hoarding, promotional offers. Again this is
helping in maintaining the brand value of Tanishq in the
market.
4) Multiple award-winning brands – The brand has won
many awards in the past for its designs, marketing, and

retail chain categories to further strengthen its brand


value.
5) Right Product Mix – Tanishq not only has wedding
and diamond collections but also deals in simple, low-
priced, daily wear jewelry products giving it
an opportunity to reach out to the customers of every
stratum of the society.
6) Widespread geographical presence – Tanishq has a
store presence in more than 100 cities in India. This is
huge feat being a jewelry brand and it again gives an
edge over most of the competitors since a product like
jewelry is what people want to feel and buy.
7) Endorsement by famous celebrities – Amitabh
Bachchan , Jaya Bachchan, Deepika Padukone and much
more are the likes of celebrities this brand has got it
associated with for endorsement. These celebrities
have an every household reach in India which
strengthens the brand association of people of different
categories with Tanishq.

WEAKNESS IN SWOT ANALYSIS


1) Limited international presence – Tanishq has a very
limited international presence as compared to some of
the international brands in the jewelry arena.
2) The limited scope of growth due to fierce
competition – A large number of regionalized
competitors in India does not allow a fast-paced growth
in the market. Tanishq has stores in more than 100
cities but the growth rate is not as expected due to
these direct competitors.
3) Initial negative perception of the brand being for rich
only – The earlier perception that Tanishq caters only to
the rich people hurts a little. Even though they have
products for low-income groups as well now, this
negative perception needs to be removed completely.
OPPORTUNITIES IN SWOT
ANALYSIS
1) Expand globally – This is a huge opportunity for Tanishq
which will help in increasing the reach, revenues, and profits
if they can successfully expand themselves globally.
2) Improve growth rate and profitability – This is necessary
for every company in every industry but yes for Tanishq it
becomes all the more important to make sure they are
profitable in this volatile market with such dynamics and
competition.
3) Tap the growing economy – It is important to understand
the growing demands of growing economy and launch the
right products at the right time. This is where Tanishq really
focuses upon to increase their market share.
4) Indian wedding market is a big opportunity – Indian
wedding market is one of the biggest areas where every
jewelry company can see something for itself and Tanishq is
no different. This makes it significant to continuously keep
this market interested in the brand.
THREATS IN SWOT ANALYSIS
1) Escalating gold rates – Gold rates are an ever-escalating affair
which makes it difficult for a company like Tanishq to have the
consistent profit margins.

2) Dynamic fashion trends – Fashion trends are always in a change


mode which needs to be met on almost daily basis. This affects the
monetary value of the inventory of such a big organization.

3) Strong competition from both branded and traditional jewelers –


Competitors are always a threat to everyone is expanding which
makes the window of growth even smaller.

4) Gold is not seen as an investment anymore – A big population in


India which used to buy jewelry by considering it as an investment is
now moving to different options to invest. It makes the industry more
dependent on luxury and fashion targets.

5) Changes in government policies and taxes – This has been a big


problem for luxury items. Every budget sees change in some of the
other way in luxury products like jewelry which affects the
profitability of such companies in a big way.

6) Increasing rates of interest – This is again related to the changes in


financing rates which are increasing year on year making it more
difficult to reach profitability consistently.
PESTLE ANALYSIS
POLITICAL FACTORS
The political factors are very important since
they restrict the business operations of any company
or industry. The political conditions in countries as
UK and US are quite stable and the jewellery
business can easily undertake business at
International levels. However the taxation policies on
precious metals by government will discourage the
buyers.

Other political factor is excise duty which can be


increased or decreased by government on the cut
and polished gems. The industry has to take in
review the marketing and control orders of the
Council established to provide guidance regarding
trade tariffs, import duties and other trade
regulations. other factors include foreign direct
investment approvals by the government in the
industry. Operations are also influenced by the
government policies and taxation regarding the
export and import of Diamonds.
ECONOMIC FACTORS

The most common economic factor which


affects the consumer purchase is his per capita
consumption power. as it gross the customers
will purchase more jewellery which can be seen
in previous years in India. improvement in living
standards and increase in national income of
population has resulted in higher investment in
Gems and Jewellery purchasing. the custom
duties production has also brought growth to
the demand sector. new organised players are
coming in the market with increasing
penetration that will provide variety in terms of
product and designs. The Gold import
restrictions are being relaxed which will give
added benefit to industry.
SOCIAL FACTORS
People now considered diamond and gold
jewellery as luxury fashion product and love to
invest in it. the retail organisations have
introduced this idea which has been embraced
by many customers. with increasing prices of
gold over the years the people now prefer to
invest in diamond and gem instead. since
Diamond has become a status symbol so the
investment and purchase of diamond has
increased with improved standard of living. the
customer preferences change according to
trend.
Low cost gold loan are made available to
customers at lower levels has added to the
importance of jewellery. many financial
schemes have been introduced which internal
drive growth for jewellers over short to medium
term. All these social factors have given new
directions to the gem and jewellery industry
when it comes to its Business expansion.
TECHNOLOGICAL
FACTORS
Indian gem and jewellery industry has highly
skilled labour for cutting and polishing diamond
and gold however need of high and equipment
has risen for moving up in value chain.
introduction of new machinery and tools has
enabled the jewellery brands to rise above
competition. the fineness and finish of machine
cut products is unmatchable.
the industry needs to adopt the new technology
solutions which are available for inventory
management, supply chain and production
control. Quality production of Gems and
Diamonds can only be ensured through
Technology enabled environment in the
industry.
LEGAL FACTORS
Trade Facilitator plays an important role in
promotional activities of diamond display
shows, organising trade workshops and taking
care of trade delegations. it works to make
interaction better and develop more
understanding between government. the gems
Council has also established institutes for
providing training and research in various
aspects of industry.
Boosting the exports for the Gems and
Jewellery industry is also important. Various
activities are organised under the consent of
government. The participation of legal
members and exporters will display items on
various stalls and exhibition. this will help to
post sales and generate maximum revenue in
minimum time.
ENVIRONMENTAL FACTORS
The jewellery industry is addressing its social and
ethical responsibilities to the people and countries
regarding the mining and selling of products. The
industry has tackled significant issues include
health, safety and environmental issues.
the restricting the illegal exploitation of precious
commodities. the environmental factors vary
according to the location of the industry. the
processing activities and the production methods
used for cutting and polishing gem stone will surely
leave an impact on gemstone.
river dredging is unique and relies on geographical
nature of deposits. however mineralization is
usually localised and makes processing different
from one gem to another. However, processing of
gemstones does vary from one place to another.
they do occur as distinct crystal which consists of
visual characteristics and properties. for the various
environmental factors, many different equipment
are involved in which makes the process much easy.
TANISHQ’S JEWELLERY IS
EXPENSIVE

 Brand Name
 Marketing Cost
 Research & Development Cost
 Expert Designers Cost

Tanishq Jewellery is one of the most costliest in the market. Yes it is


definitely branding that is the reason for that.

Did you know? Tanishq charges four times the cost of its diamonds.

Did you know? Making charges for gold and diamonds are twice for
Tanishq than charged by anyone out there.

How do you expect their marketing costs to be covered otherwise?

With your eyes being blind folded by the looks of Mr. Bachchan and Ms.
Deepika as their brand ambassadors the former defines trust and the latter
defines a youth icon used intelligibly why would anyone question the brand
integrity.

But how does this high marketing cost add on to? Definitely to your
purchase of Jewellery. Lets take a generic view towards this answer.

Do Brands Matter in Gold or Diamond Jewellery?

A clear and precise answer is a NO!! You can argue with me here but being
in the diamond trade and understanding diamonds it would not be prudent
to pay a high premium for the same quality of diamonds that can be
bought from anyone around the world.
Lets take a look the tangibles and intangibles involved in creating a gold or
diamond jewel.

Tangibles : Gold and Diamond are the parameters that define the price.

Intangibles: The Design as it is the signature of a brand and probably


the premium pricing as the whole hue and cry is based on how expensive
a diamond jewel is.

1. Gold - Is there a need to buy branded gold? Nope. Gold is a


standard product that is simple to trade almost anywhere in the
world depending on the purity of gold so no one can get more than
the ruling price. Brands cannot sell gold higher.’
2. Diamonds - I will break these in two categories
a. Is there a need to buy branded solitaire diamond? Nope.
Solitaire Diamonds have been turned into a standard product by
certifications by leading labs like GIA, IGI or HRD. Though to
understand these certifications it maybe complex but it has become
easy to trade on these certificate standards. Though trading on
these certifications requires a certain level of understanding but
traders themselves don’t buy without certifications. So why should
you pay a premium for the trust generated by a worldwide
accepted certification standard. The Brand plays no role in
establishing this trust. For an example to find the best price for a 1
carat GIA certified Solitaire Diamond you can follow this link: What
is the price of the finest 1 carat diamond in India? and compare it
with the price from a branded seller.
b. Is there a need to buy branded diamond jewelry? Nope.
Diamond Jewelry also in its nascent stage but slowly and steadily is
being turned into a standard product by certification labs like GII,
IGI, SGL. As a Layman who does not understand the nuances of the
trade and how to price them these labs have helped secure the
end-users trust and also given them a platform where they can
compare price across sellers. The Brand again plays no role in
establishing this trust. For Best Price on Diamond Jewelry refer to
this table below. The prices are in indian rupees per carat. (1 INR =
0.015 USD)

How to read the table - F-G color with VVS-VS clarity will cost you Rs.
38,000 ($566) per carat. So for example you plan to buy a 0.50 carat ring
with F-g color and VVS-VS clarity the diamonds will cost you 38,000 * 0.50
= Rs. 19,000 ($283) and the rest would be the gold and making part.

3. Design : Is there a need to pay 3 to 5 times the price for a design? You
might be the best judge to answer that. Instead, for the best designs for
diamond engagement ring, pendant, earring ,etc. you can always look on
the internet because you get a wider choice than just going in a particular
store. With the advent of Computer Aided Designing(CAD) and Computer
Aided manufacturing(CAM) any one in the industry can make any intricate
design you would want. So if you have a design in mind it can be custom
made by anyone out there.

4. Premium Pricing : The things that would define the premium pricing
charged by branded diamond players have been laid out on a platter to
you above. You can decide if it is truly worthy to pay a premium for the
brand name or not in case of diamonds.If you pay heed to the advice above
and master the above steps you can avoid the mistakes before making a
diamond jewelry purchase. Never go by the words of a particular seller as
he wants to get the money from your pocket to his.
TANISHQ’s DIVERSIFIED PRODUCT
PORTFOLIO INCLUDES:

1.RINGS

2. PENDANT
3. PENDANT EARRINGS SET

4. NOSE PINS

5. NECKLACES
6. EARRINGS

7. CHAINS

8. BRACELETS
9. BANGLES

10. GOLD COINS

11. GOLD BARS/BRICKS/BISCUITS


TANISHQ HAS SEVERAL BEAUTIFUL
COLLECTIONS TO ITS NAME LIKE:
1.INARA

2. IVA

3.ZUHUR
4. MEHEK

5. DIVYAM

6. UTTARA
7. NILOUFER

8. MISMATCH

9. ZYRA
10. AMARA

11. QUEEN OF HEARTS

12. SHUBHAM
13. FINE LINE

14. MIA

15. CARATLANE
JEWELLERY HELPS TITAN BECOME 3rd MOST
VALUABLE TATA FIRM
STRATEGIES ADOPTED
TANISHQ COMPETITION
1. DE BEERS

2. NAKSHATRA
3. DDAMAS

4. TBZ

5. RELIANCE JEWELS
CONCLUSIONS

The study covers the deep understanding of Indian gems


and jewellery industry.
It shows how effectively and efficiently this industry
operates and contribute in india. We have talked about
TANISHQ , who is playing in this at a large scale.
We have cover challenges and opportunities , future or road
ahead , government initiatives , strategies , SWOT Analysis ,
PESTEL Analysis .
The investigation discover the past , present and future
position of big players in jems and jewellery industry.
REFERENCE

 https://www.wikipedia.org/

 http://tanishq.co.in

 http://forbes.com

 https://www.investindia.gov.in/sector/gems-jewellery

 https://www.ibef.org/industry/gems-jewellery-india.aspx

 https://www.quora.com/What-is-the-future-of-the-gem-jewelry-

industry

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