Sudha Raghuraman is a Carnatic vocalist who buys gold and diamond jewellery every quarter. Since childhood, the jewellery has been bought from a johri who visits her house every two-three months with his precious metals tucked into a bag, as did his father and grandfather. Last month, Sudha bought a ruby necklace but not from the family ‘jewellery man’. The purchase was made at the Tanishq store in Noida. “I now prefer branded jewellery, because of the huge variety of designs and trusted quality,” explains the singer.
Sudha is not the only person switching allegiances. According to a CRISIL report, the trend of opting for branded jewellery is catching up even in tier II and III cities, besides the metros. Rajeev Jain, chairman of the Gems and Jewellery Export Promotion Council, says the total jewellery market in India is worth `100,000 crore; with the organized and branded jewellery segment accounting for 20 per cent.
The big players in the branded jewellery market believe this is just the beginning and that India’s branded jewellery future is shining. “Last year we saw a growth of 15 per cent for our branded jewellery,” says Joy Alukkas, chairman of the Kerala-based Joyalukkas Group. Amit Bumb, director of Avenue Montaigne, says, “the branded market is growing at 20 per cent per annum.”
So what’s triggered the change? There appear to be four key reasons. One, the advent of a young buyer with an itch and ability to spend. Two, the desire for jewellery that is affordable and wearable on a regular basis. Three, a demand for contemporary designs, and fourth, a reluctance to deal with jewellers who are not upfront about quality and hidden costs. “People are looking for something unique and different from what is available with the family jeweller,” says Tarang Arora, designer and head of international operations at Jaipur-based Amrapali. Adds designer Monica Kapur of Gurgaon-based Aum: “Clients, especially the young ones, look for jewellery that is both affordable and wearable.” This is really where the brands score—by mass producing their wares, they are in a position to provide variety in design at every price. The BIS Gold hallmarking used by the brands helps. “Today’s consumer is more discerning and, with a higher disposable income, can meet both her personal and family aspirations,” says Mehul Choksi, chairman and managing director of Gitanjali Group.
The two biggest players on the brand wagon are Tanishq and Gitanjali (which owns brands like Nakshatra, Gili, Asmi, Sangini and D’Damas). The Tata-owned Tanishq says it has a 6 per cent market share. Gitanjali claims to be a $2-billion company, with a 5 per cent share of the branded market.
Sandeep Kulhalli, vice-president, retail and marketing, Tanishq, describes his customers as “educated, design- and experience-seeking, middle to upper middle class with an urban profile”. For Sheetal Group’s Kiah brand, the target customers are young women professionals who want diamonds in their jewellery portfolio. Kiah COO Gautam Gulati explains: “Our clients, aged 25-plus, do not wait for an occasion to buy diamond jewellery.” That’s where the Kerala-based Joyalukkas differs. “Our customers purchase jewellery based on the occasion or a need for purchase,” says its chairman. Adds Choksi: “Every woman is different. With age, aspirations also change, which is why we have multiple brands to cater to those aspirations.”
It’s not just women buyers though. “Men have warmed up to the metal as well,” says Vaishali Banerjee, country manager, Platinum Guild International (India), which sells chains, bracelets, cuff links and wedding bands for men. According to a Euromonitor International study, India will soon overtake the US to become the third-largest men’s luxury jewellery market in the world. The study estimates that India’s male jewellery market stands at around Rs 954 crore in sales, and will grow by 36.4 per cent by the end of 2012.
Looking at the surging demand for branded baubles, global brands such as Cartier and Chopard have also launched operations in India. But, as the Kotak Wealth Management report shows, given the limited range on display, the lack of custom-made designs and reluctance of Indians to pay a premium for designer jewellery, their impact on the market has so far been muted.
The Indian players meanwhile are going all out to consolidate their market share with a clear-cut brand image supported by strong marketing campaigns. Tanishq uses the ‘trust’ factor as a Tata company to brand and sell its products. “We use a karat meter in our stores to demonstrate our purity, which few other jeweller do,” says Kulhalli. It also offers special schemes for working women.
Kiah, meanwhile, promises “differentiated designs, an excellent finish and transparent dealings” while Gili, like Tanishq’s sub-brand Mia, is positioned as a brand for working women. Arora of Amrapali cites “artistic jewellery” as his USP.
“The Tara experience is the same across all metros, mini-metros and even the smaller towns,” says Vikram Raizada, executive director–marketing, retail and business development, Tara Jewels. Tanishq has located its exclusive stores in prime retail area and on high streets, leading to strong brand visibility. “We are also active in the mainstream media like TV, print, outdoor and radio,” says Kulhalli. For its part, Alukkas has a central plan to manage his company’s brand image and positioning but tailors the marketing and tactical activities to suit each showroom.
And then, of course, there are the filmstars who work as envoys. , who has Shahrukh Khan, Kareena Kapoor, Aishwarya Rai and Katrina Kaif as brand ambassadors, says, “Film stars represent the aspirations of individuals and hence help our brands.” Kulhalli is more conservative and says the use of ambassadors depends on the brand and the need for endorsement. “We, at Tanishq, have not felt the need for a brand ambassador in a conventional sense,” he says, and quickly adds that Amitabh and Jaya Bachchan were used in Tanishq diamond TVCs only to articulate the brand message regarding the quality and purity of the stones and to put out an interesting gifting idea for Diwali.
