FOREVERMARK DESIGNER COLLECTIONS DEBUT AT 69th ANNUAL GOLDEN GLOBE AWARDS

Designer Collections debut featuring Forevermark Diamonds to celebrate the start of the Awards Season

Post By : IJ News Service On 25 January 2012 3:15 PM
{{A small History of a Not-so-small Industry:}} Once upon a time, the jewellery retail sector was a completely family jeweler - dominated business. Starting from the erstwhile royalty of Maharajahs and Nawabs, who had their royal jewellers, to the zamindars and the middle class of yore, the system was simple it was a craft handed down from father to son. Most villages had only a single jeweller who was the sole operator of his trade. Gradually, with industrialization and advances in technology, the number of jewellers increased, but the family jeweller domination remained. From these humble roots, many of these “family jewellers” metamorphosed into larger stores - TBZ, Notandas, Anmol, Danabhai, Popley, Ghanasingh, Ganjam, to name a few. They were and are still family-run. Expansion and modernization happened as technology advanced, but the industry was still controlled mostly by jewellery stores.
%%A couple of decades ago, several factors contributed to an upheaval in the business. Exposure to international travel and the internet combined to make the customer more astute and awareness levels about trends and quality in jewellery increased. The market opened up to increase availability of raw material and the economic boom meant that spending power increased with a significant rise in urban disposable incomes. This made the jewellery market doubly lucrative - so much so that several gold and gemstone exporters and manufacturers ventured into making fine jewellery. For them, expansion was logical, because they already had the infrastructure, technical know-how and materials in place. Competition increased and the dynamics of the jewellery sector changed tremendously, heralding the expansion phase in the jewellery business. The entry of professionally-managed brands like Gili (Gitanjali Group, 1994), Tanishq (Tata Group, 1995), Sangini (JV of Sanghavi Exports and Gitanjali Group, 2004), Ishi's (Suashish Diamonds, 2003) Scintillating (Dhanraj Dhadda Group, 2003), Orra (Rosy Blue Group, 2004), Shubh, Laabh(Rajesh Exports, 2006) amongst many others characterized the expansion phase. These brands promised great quality at affordable prices and the best designs both traditional and contemporary. %% In addition to the above-mentioned brands, large corporates too have hopped on to the bandwagon. Reliance Retail ventured into jewellery in 2007. The first Reliance Jewels store was inaugurated in Bangalore over 6,000 ft2. spread over 3 storeys. The second in Hyderabad is even bigger at 8,000 ft2 and 4 storeys. 12 more stores are in the offing in Andhra Pradesh alone. Major expansion plans include 300 more stores all over the country in the near future. %%
%% Directly competing with these big corporates is the firmly-entrenched Gitanjali Group - one of the biggest in the country, with a very high propensity to acquire smaller manufacturers. It has several brands Gili, D'damas, Asmi, Nakshatra in its kitty to cover different market segments and price ranges. After launching Gili in 1994, Gitanjali formed a strategic alliance with DAMAS in the Middle East for retailing jewellery through duty free shops and retail outlets in UAE in 1998. It also brought the D'damas range of jewellery to India. The Nakshatra brand was launched in the UAE in association with Damas in 2002 followed by D'damas diamonds in 2003. Gitanjali also took over Asmi, a DTC brand. The company went public in 2005. By introducing major international brands like Stefan Hafner, Greggio, Olri, Dogale, Morellato, Bezel, Nina Ricci, Miss Sixty into India through the Gitanjali Lifestyle Ltd. company's up-market branded jewellery salon, Giantti, it has also become the first-mover in an extraordinarily low-volume but very high-value niche market. It has launched four retail formats - Gitanjali Signature, Gitanjali Exclusives and Gitanjali Jewels and acquired Samuels, a 100-store retail chain in the US and the Rogers Group, one of the oldest family run jewellery chains in the USA. It also has a majority stake in TriStar Worldwide LLC, manufacturer and global distributor of Canada brands diamonds and diamond jewellery.
%% Tanishq too is very much in the reckoning for top positioning in the sector. Retail sales of 1,200 crore last year are expected to rise to 2000 crore this year. A completely Indian enterprise, its USP lies in the localized front end and back end. A 1,35,000 ft2 factory at Hosur, with modern, technologically advanced equipment, ensures complete product purity while also complying with labour and environmental standards. It was amongst the frontrunners in introducing professional retailing in the unorganized sector. With 91 stores in 64 cities countrywide and innovations like the Karat meter, a non-destructive method to test gold purity, it is amongst the biggest brands in the country. %%While Tanishq and Gitanjali have been in the business for more than a decade, Rajesh Exports is a relatively new entrant in the branded jewellery segment. They have been in the jewellery export business since 1985. The company is publicly listed since 1995 and boasts a state-of-the-art manufacturing facility in Bangalore. After achieving sales of US$ 1.5 billion, they entered the branded jewellery segment by acquiring Oyzterbay in 2006 followed by the launch of retail arms Shubh and Laabh in 2007.
%% {{Family Jewellery Stores Keep Pace with the Change:}} The competition may be stiff, but the big, older stores have adapted very well to the change. Anmol Jewellers, launched by brothers Ishu and Sunil Datwani in 1986, located at Turner Road in posh Bandra, expanded from a tiny store in 1986 to six stores in a row, which have now been converted into a single two-storeyed signature store. More recently, they established a store in Gold Souk, Gurgaon and have other expansion plans too. Ganjam Jewellers established in 1889, have transitioned well from adorning royalty to winning international acclaim. With several firsts to its credit, the pioneering store is an apt example of how to keep up with the changing times. Notandas & Sons, set up by Kishen Jagwani, started with a small store in Zaveri Bazaar in Mumbai, over a 100 years ago. The success of the store led to the establishment of another store in Bandra in 1983 and a recent one in Gold Souk, Gurgaon. To keep up with changing times, Notandas roped in celebrity jewellery designer Maheep Kapoor. Its award winning jewellery has been exhibited internationally. Expansion plans for the 30 million dollar company include setting up stores in several other metros in India as well as a store in Dubai. Tribhovandas Bhimji Zaveri too started small in an 8x8 tin shed in Zaveri Bazaar by Bhimji Zaveri. His son, Tribhovandas was the pioneer, who recognized the business's potential and set up a large showroom which has since then expanded into a four-storeyed one. Ghanasingh & Sons started in a small way as a trade of loose diamonds in 1908. Moving on to the import of rough diamonds and then into sale of cut and polished diamonds, the business soon ventured into jewellery manufacturing. From designing for royalty, to doing the jewellery for the Femina Miss India contestants, they too have successfully evolved from a traditional jewellery business to a modern one with an international presence, having launched a jewellery collection Dainty in 2004. Danabhai & Sons started around 75 years ago and has come a long way from Zaveri Bazaar to an outlet in the Mumbai suburbs to the spacious up-market 15,000 ft. Pallazio store.%% In addition to expansion, there are several other ways in which the older stores are dealing with the changes:
%% {{Customer Mindset :}} Says Ishu Datwani, Partner, Anmol Jewellers, “The customer has certainly become more discerning in the past 22 years of our business. Quality and finish of the final product matter much more now - not just the front, but even the back and the invisible areas are as important. Consumers understand this and are willing to pay a premium for the same. More clients buy platinum and gemstone jewellery, changing the earlier emphasis on gold jewellery. The final purchase depends on the budget, the reason and the customer's choice - the same customer will buy casual stuff for regular wear and heavy stuff when she is getting married.” Sanjay Jagwani, Partner, Notandas, states, “The customer is buying trendy jewellery with a variety in the combinations of gemstones and at the same time is very much aware about quality of the purchase.” Umesh Ganjam, Director, Ganjam Jewellery, explains, “The customer is very clearly knowledgeable about quality and understands and demands certifications. There is a shift from very heavy gold jewellery to well-made jewellery with high quality and good design. Platinum is a very popular metal for jewellery, while gold remains an all-time favorite.” The kinds of customers buying jewellery have also changed. While Anmol Jewellers caters mainly to the elite, upper-middle class and NRI clients, Umesh offers an interesting insight” The desire to own a unique or signature piece does not exist just among the upper echelons of society but is also permeating the middle and upper middle class.” Mahesh Hemdev, Director, Ghanasingh & Sons, points out, “The customer wants something new and different all the time.” Kiran Dixit, Marketing Manager with TBZ-The Original, says, “Though the younger people prefer light, trendy jewellery for daily use, for weddings, they also want heavy, chunky jewellery. Earlier upper-middle class or high society was only buying jewellery, but now with heavy promotion by DTC for diamonds and WGC for gold, the middle-class and lower middle class are also buying jewellery. Gold is most popular even now while a select few customers buy platinum.” Ashok Minawala, Director, Danabhai & Sons reiterates this view, “Designs and quality have become a very important part of customer buying today. Every customer today is well aware of the new trends and quality standards such as diamond certification and Hallmarking. In designs, Indo-Western trends are dominant. “
{{Jewellery-Investment and Accessory:}} What was earlier considered more as an investment, now also has an aesthetic value. Ishu explains, “The older generation preferred to look at jewellery as an investment but the younger generation opts for the looks rather than the investment.” Kiran agrees, “The younger generation look at jewellery as a style accessory, rather than an investment.” Umesh believes, “The transition is happening, but will take a little time. But segmentation is definitely there, where the consideration for buying jewellery also involves aesthetic value.” Even as diamond and gold rates rise, jewellery is still a very good investment option”, says Sanjay. Here, Mahesh puts in a word for solitaires,”Solitaires are a very popular choice for investment, though jewellery is looked upon for aesthetic value more now.”
%%{{Rising Costs :}} One aspect to jewellery that has seen a great change is the rising cost of production. Of course, the high price of well-manufactured jewellery includes many factors explains Ishu. ”Gold is at its highest price ever. Craftsmanship charges have skyrocketed because of increasing cost of living.” The customer, however, does not seem to care. As Umesh says, “Earlier the cost of material was the predominant component of jewellery pricing; now the trend is less sensitive to the cost. The more the premium on the article the more the preference customers seem to give it.” Sanjay opines, “Today all types of pricing is available for all types of jewellery - medium and high priced casual, semi formal and heavy bridal jewellery is available, offering options to everyone. Though cost has increased, quality too is better because of certified gold and diamonds.” says Mahesh. At TBZ, the policy on costing is clear - “It is inevitable that with a rise in price of material, finished product price also increases. But our company policy is that of fair business practices and we price our jewellery accordingly.” explains Kiran.%% {{Store Design:}} Anmol Jewellers recently changed its logo and the store design from a straight line modern look to a softer and visually appealing classic baroque design. As Ashok says, “Store design has evolved a lot over the years with innovations in designs, store layout, furniture and lighting. At Danabhai, we have a special corner like a bridal corner for brides who can sit with their family comfortably in a special ambience with complete privacy.” Umesh emphasizes the importance of store design,” We display our jewellery in vertical showcases that highlight jewellery individually. Precise lighting is used to enhance the cuts and the brilliance of the gems. The store is spacious to allow for freedom of movement at a leisurely pace, where customers can make informed purchase decisions.” At Ghanasingh, the look has changed from classic to contemporary. Kiran elaborates on the TBZ store interiors - “The interiors and the ambience should be customer-friendly and comfortable. In accordance with evolving customer tastes, we have changed from a royal touch with plush, big chairs and big counter displays to a trendier one with smaller seating arrangements and softly lighted displays.”
%%{{Internet & Technology Power :}} The internet is a powerful tool to keep up with the competition. At Anmol Jewellers, CRM software and regular promotional emails is a staple. Umesh begs to differ, “While we have a website, the “touch and feel” of the product is critical. Building relationships is done better face to face. So, technology has only a supportive role in selling jewellery.” TBZ is very aggressive about technology. “Computerization and effective software systems have been implemented to handle the heavy, daily transactions. The existing company website is being revamped to ensure better jewellery display and increased customer database. Media and PR agencies have been hired to allow better customer reach.” Danabhai has a privilege cards (platinum, gold & silver) for its esteemed clients who get regular updates on novelties, promotion and seasonal offers via sms, email and mailers.%%
%%{{Growing Competition :}} In the face of competition from both Indian stores and brands and from the just-in international brands, stores realize that quality and pricing play a crucial part in retaining customer loyalty and increasing customer base. However, they are well-equipped to handle the toughest competition. Kiran says, “Value addition in terms of purity, trust, ethical practices, 100% buy back guarantee, innovative designs, wide product variety, customer centric marketing activities all contribute to attracting and retaining customers, no matter what the competition.” Ishu too is unperturbed by competition,” We cater to a niche segment and our creative and trendy designs are well-known. Also, our personal touch and dedicated, sincere and knowledgeable staff sets us apart from the competition. Umesh explains,” Competition will always exist in any industry and if anything, spurs us on to greater heights of design and craftsmanship. The relationship between a customer and jeweller is very different from that of other products and services. It is based on a relationship of integrity and trust and often goes back to generations. High standards of quality and craftsmanship, attention to detail, innovative designs, and personal attention to customers are important to build and sustain relationships with customers. Mahesh Hemdev says, “Sponsoring and hosting events is a good way of maintaining an international presence. Moreover, generations-old customer trust is not easily shaken by even the best international brands. As Sanjay Jagwani sums up, “Competition is always healthy; you tend to work harder so that you can move ahead of your competitor.” %%{{The Whys, Wherefores of Branded Jewellery:}} The jewellery sector was completely dominated by jewellery stores when Mehul Choksi, Chairman of the Gitanjali Group launched Gili in 1994. It was quite a risky proposition to get consumers to understand the advantages of branded jewellery over unbranded ones. Similarly, the Tata group launched Tanishq in 1995. Both companies faced the challenge of developing an extremely nascent market at that time. However, their foray into the retail jewellery segment paved the way for other brands. Today, a plethora of brands have a presence in the market, but why are they here? What differentiates one brand from another? And what is it that sets them apart from jewellery stores? How are these brands coping with competition?
%%{{Why Are They Here?}} The simplest explanation, which also in all probability applies to most brands, comes from Bannerjee, CEO, Ishi's Jewellery, a division of Suashish Diamonds Pvt. Ltd. He says, “Interesting findings came up in our extensive pre-launch market survey. We realized that the Indian youth is increasingly brand conscious and wants high-quality, affordable, trendy and fashionable jewellery. This and other factors like changing lifestyle orientation, rising disposable income, globalization and evolving needs and aspirations of the youth encouraged the Suashish Group's foray into the branded diamond jewellery segment in India and the Middle- East.” Nehal Dhadda, Director, Scintillating Jewellery, a division of the Dhanraj Dhadda group explains, “We launched Scintillating to take advantage of the lucrative forward integration of the diamond industry. Also, meeting the high aspirations of consumers by providing products of consistent quality was a challenge really worth taking.”
%%Bijou Kurien, President and Chief Executive, Reliance Lifestyle, recognizes the huge opportunity in the jewellery sector too. ”Through a wide range of designs and competitive prices, we want to offer the customer the best shopping experience possible.”%% {{Keeping Up With Competition :}} Competitive pricing is the buzz word for branded jewellery. Nehal offers a logical explanation to the reason why brands can often save on costs and hence be competitive in their pricing, “One of the key advantages that Scintillating Jewellery has over jewellery stores is the low raw material cost, since these are sourced from the parent company. A large B2B network helps in a country-wide reach. We also provide independent hallmarking and certification. Strong social connections, goodwill and trust built over five decades of dedication and hard work are helping us retain our customer base, no matter what the competition. Beside, we innovate constantly - customers looking for different types of jewellery can also purchase pieces like Hathphool, belt buckles, saree pins, diamond studded gajras, kurta buttons, kilangi etc.”
%%Says Mehul Choksi, “The brands under the Gitanjali umbrella cover every price point, providing jewellery for everyone. Spanning the entire value chain from trading to processing and manufacturing to branding and retail allows us to offer better value to the customers. Gitanjali Gems has used prominent Bollywood celebrities like Amitabh Bacchhan, Aishwarya Rai, Kajol, Ajay Devgan, Perizad Zorabian, Upen Patel, Amrita Arora, Raima Sen to endorse their brands like Nakshatra, D'damas Solitaire, Asmi, Sangini et al. Re-invention is the name of the game. The industry is fragmented around clusters based on the availability of the raw materials diamonds or gold leading to region-centric competition. Success depends on product differentiation and for this we have invested hugely in research, development, training and empowerment. The training institute at the Hyderabad SEZ, 25 patents for new diamond cuts and the development of the Rajiv Gems Park in Shamshabad are together expected to give us an annual turnover of Rs. 5,000 crore and provide employment to 50, 000 workers” %%
At Sangini, as Mehul Modh, COO, Spectrum Jewellery Pvt. Ltd marketers of the brand Sangini Diamonds, a joint venture between Sanghavi Exports and Gitanjali Group, says, “Diamonds are sourced from the joint venture companies, Gitanjali Group and Sanghvi Exports, both DTC Sightholders. Combined with our in-house production facility, cost of manufacturing and raw materials reduces drastically. Being tech-savvy is extremely important our e-commerce portal www.sanginishopping.com and other leading portals like Rediff Shopping, Homeshop18, Ebay, Indiatimes, Trijewels, Indiaplaza et al ensure a strong web presence. Our trade partners can view our stock and place orders online through special software.” %%Orra is both tech and media savvy to keep ahead of the competition. “We use television, print, cinema, hoardings, radio, internet, sms and direct mailers to ensure customer loyalty. Our international heritage is our USP. The “Heritage Wall” traces our history since 1888 and depicts our presence across the value chain and operations globally. The microscope at every store where the customer can actually see the piece of jewellery and/or loose stones facilitates consumer understanding of the 4 Cs of diamonds and establishes authority for Orra. The pricing is displayed in a discreet way to avoid intimidating customers. The counter designs facilitate easy customer movement. Each product category is displayed with the concept and collection explanation. Lifetime servicing policy, free cleaning and an innovative buyback and upgrade policy also help retain customers. The celebrity wall shows the brand's association with celebrities and events and has a positive rub-off on the consumer's psyche”. %%Ishi's too has its own set of ways of dealing with competition. Says Bannerjee, “In-house diamond procurement and the manufacturing process of casting reduce costs significantly. Stringent quality control points at all manufacturing stages and a final product inspection ensures the best quality. Latest CAD/CAM technology provides perfect design replication, with absolute precision in the finish and quality of the product as compared to the end product of a typical traditional jeweller. Constantly innovating, we were the first to introduce laser engraved diamond jewellery on Mothers Day. Customers can customize a product in combinations of white, yellow or pink gold with different finishes - high gloss, satin finish, matt Finish and so on. We are uniquely positioned as a brand for light-weight, daily-wear diamond jewellery with trendy designs ideal for gifting and regular buying. The Ishi's world's most expensive series of products the tie, kamarbandh, armband have successfully generated huge brand awareness.” %%Reliance Jewels has recently forayed into jewellery, but Bijou is unfazed by the existing players hold over the market. “We have over 15,000 designs on display. Coupled with high quality and competitive pricing, it is natural that soon customers would prefer Reliance over other stores. In gold jewellery, the range comprises Kolkata filigree, Jaipur kundan, Andhra temple, Amritsar jadau et al. In diamond, designs to suit all occasions and all budgets are available from party wear to daily wear. Our stores will have one floor dedicated exclusively for bridal sets, with a private viewing room for added comfort. The 100% knowledgeable staff, customized jewellery designing service and warm and friendly ambience would add to the shopping experience. The certifications of course offer complete quality and purity to the customer.”
%%{{The Way Ahead :}} It's optimism all the way for stores, brands and corporates too. Ishu says that five years down the line, Anmol Jewellers will be on top with an international presence. Umesh says, “We will continue on the same path creating jewellery that is visually exciting and captivating and establish the brand as an international one.” Sanjay aims to have Notandas with a “chain of stores in India and abroad.” Mahesh believes Ghanasingh & Sons will reach new horizons with the help of their customers trust and confidence and their own dedicated efforts.” Danabhai has come a long way since its inception and hopes to do even better in the future. For TBZ, Kiran states,” The market is fragmented and TBZ with its customer-centric marketing activities is well-equipped to reach for greater heights in the future.” %%Mehul Choksi sees the Gitanjali Group amongst the world leaders in jewellery retail. Nehal Dhadda is a little more precise. He says,” Scintillating jewellery is aiming for 2% of the total market estimated to be 3000 crore organized jewellery retail market.” Mehul Modh wants to take the Sangini brand to every corner of the country by developing retailers, distributors, shop-in-shops, kiosks and exclusive outlets.” Vijay Jain sees Orra as the most preferred diamond destination for people across the country. Bannerjee is extremely focused too,” Through a compelling brand, relevant product design and new distribution channels and on the back of profitable year on year growth Ishi's sees a growth in sales from US$5mn in 2007 to US $40mn by 2012.” %%Reliance Jewels aims to capture 10% of the market a lofty aim indeed!.
%%{{No Business Like Jewellery !}} The buoyancy and the confidence is high and why shouldn't it…the market is gigantic, the future is promising…and as the past has already shown for those who dare, there is no business like the jewellery business!

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