Group 7-jewellery Industry

PRIYA

RAMYA RITCHA ANDREY PRIYANKA

RITIKA

• The gems and jewellery sector can be categorised Gemstones - Diamonds and coloured stones (precious, semi-precious and synthetic) Jewellery - Plain Gold, Studded, Silver, Costume Pearls

Global Market for C A G R gems and jewellery US$ 85 billion

5-10 per cent

Gold 80%

Others

SECTORS OF INDIAN JEWELLERY INDUSTRY Indian Jewelry market in 2007 was valued at 70,000 cr. INR (Business Standard)

India Gems & Jewellery Industry – Highlights • Jewellery market size – US$ 13 billion • Diamond jewellery – US$ 1.2 billion • Gold jewellery market growth year on year – 15% • Diamond jewellery market growth – 27%

INDUSTRIAL PROFILE •

• •

Key findings:CAGR around 14% from 2007-08 to 2010-11

It is anticipated to grow at a rate of 8% by 2009-10. INDIA remains world’s largest gold consumer.

OVERVIEW: SIZE: • domestic sales US$ 10 billion. • 4% of the global sales in gems and jewellery market. • Exports of over US$ 17 billion in 2006-07, which is 14% of Indian exports. POLICY: • 100% FDI is permitted in gems and jewellery sector. OPPORTUNITY: • India is the diamond polishing capital of the world specially the states of Gujarat and Maharashtra. POTENTIAL: • •

Highly skilled yet low cost labor. Several design centres and training institutes are being set-up.

PURPOSE OF PURCHASE

JOY ALUKKAS World’s favourite jeweller

HISTORY • Alukkas Jewellery was founded by the Late Sri Varghese J Alukka in Thrissur, Kerala in 1956. • Mr Joy Alukkas started in UAE in 1987. • Became separate legal entity in 2001.

COMPANY PROFILE • Expertise in contemporary, ethno-contemporary and traditional jewellery. • Joy alukkas is the only jeweller to be conferred the ISO 9001 and 14001 in the UAE. • Consumers’ Choice Award 2008. • Winner of the Retail Me Best Retailer of the Year (Middle East) Award . • 70 jewellery showrooms around the world. • World’s biggest jewellery showroom located in Chennai. • Enjoys a trust of 10 million customers with a work force of 3000 around the world.

VISION AND MISSION • Vision: To become a global brand by ornamenting the world.  • Mission: To improve and enrich lives everywhere by offering extraordinary lifestyle solutions backed by incomparable value-additions, adhering to globally approved processes and norms and creating a successful value- chain for our associates

OBJECTIVES • Plans to open 100 new showrooms by 2010, making it Asia’s largest chain of jewellery showrooms. • By the end of the decade, Joy Alukkas is poised to be the World’s No. 1 jewellery chain.     

VARIOUS BRANDS DIAMONDS

GOLD

PEARLS

PRECIOUS GEMS

PLACE • They have branches in India, Middle East and Europe.

POSITIONING AND PRICING Affordable and adorable Ornamenting your emotions Starts at attractive prices

PROMOTION • Kerala quest was be conducted live to an audience in nine cities worldwide, the launch on 23rd January 2009 in Dubai. • The Joy Alukkas Global Souk offers fun, excitement and a shopping experience. • Oman Air welcomes Joy Alukkas as its newest partner in the Sindbad Frequent Flyer Programme .

PROMOTION • Entry into hypermarket - Lulu Hypermarket, Sohar. • Announced a mega initiative for its valued customers to win 10 BMW sedans across the Middle East and India. • Entered the realm of themed malls with Wedding Centres .

“We make precious metals available and useful for people”

Company profile ► JSC Krastsvetmet ranks among the world leaders of precious metals industry. ► Turning precious metals into products useful for people ► 98.5% is Krastsvetmet’s share in the Russian market of platinum metals processing ► Russian Leading Golden Jewelry Manufacturer ► Quality Management System was certified for the quality standards ISO 9001:2000

Mission statement and visionary ► Mission- Our goal is to be a model business and management for Russian companies. The shareholder's profits and employees' incomes, mutually beneficial collaboration with our suppliers and satisfying the customers current needs – all these tasks are equally important for us. ► Vision: To become leading jewelry company in the Eastern Europe and Asia

Promotion ► Mass media ( advertisement in newspaper, TV, etc… ► Jewelry exhibitions ► Charity ► Sponsor of a lot of Russian football teams.

Product Wide ranged choice of jewelry and products from precious metals : ► Diamonds ► Platinum ► Gold ► Silver ► Jewelry with coloured precious stones ► Gentlemens articles ► Souveniers and Interior ► Children gifts ► tableserving articles tradition ► Table-serving articles classic

Place ► Russia and CIS (Krasnoyarsk, Minsk, Moscow, St. Petersburg) ► Available to buy on-line ► B2C commerce. ►“Instant delivery “ to any region

Price ► Target audience: upper class ► Minimum : 5000 RS ► Maximum : unlimited

Policy of the company The policy of JSC Krastsvetmet in quality is satisfying expectations of the following parties concerned: ► consumers – for quality, assortment and the deadline of the rendered services and produced output; ► shareholders – for making stable profit; the company’s employees – for being provided with social guarantees, work motivation and training system development; ► social environment – for timely taxes disbursement and ecological and industrial risks decrease

Positioning ► They position their product as a symbol of a status in society, creating product which emphasize your position in society

► Developed customer care

TATA JEWELLERY

(Jewellery is not a product but a piece of art, and shopping for jewellery is an exalting experience)

TATA GROUP Tata Industries has interests in steel, automobiles, information technology, communication, power, tea and hotels. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to over 80 nations. Tata Jewellery comprises of- Tanishq and Gold Plus.

TANISHQ • • • •

•

Ta-Tata and nishk-gold coin. Started in 1995. Vision: To be the most desirable brand for Indian women. Mission: We will continuously create wealth for all our stakeholders, by transferring the jewellery business and by being gold standard in jewellery design, shopping experience and ethical practices. Jacob Kurien – CEO.

Products-Brands: For women: 1)Colors of Royalty. 2)Moham 3)Wedding Collection 4)Zoya 5)Diamond Collection.

For Men: Cuff-links, Bracelets, chains and kadas

Place • Tanishq has 104 stores in 71 Indian cities. •Also present in the Middle East and in the United States.

Promotion-Marketing Strategies 1)Customer Schemes-Durga Pooja, Akshaya Tritiya. 2) Category Melas-Limited Period Offers. 3)Karat Meter Testing-Jewellery Servicing. 4)Television Advertising-Asin. 5)Movie Advertising-Jodha Akbar, Paheli.

Gold Plus •L.Natarajan is the head of the company. •Mass Market Jewellery Brand.

Product: •Gold Wedding jewellery market. •Traditional Designs.

Place: • Semi-urban and rural areas.

Target customer and pricing •People interested in investing in the metal rather than buying for immediate usedaughters wedding. •Exchange of gold at just 2%.

Promotion-Marketing Strategies: 1)Chit funds. 2)Direct Approach to Marketing. 3) Hoardings, FM Radio.

COMPANY PROFILE • Gitanjali Group was established in 1966 and is one of the earliest diamond houses in India. • It’s a $900 million multinational group, is a Public Listed Company. • Gitanjali's unique business model encompasses a wide range of activities like rough diamond sourcing, diamond manufacturing and distribution, jewellery manufacturing, jewellery branding and jewellery, lifestyle and watch retailing at the domestic and international level. • The Group has its business spread across the globe including countries like USA, UK, Middle East, Thailand, Belgium, China, Japan, Italy and South East Asia.

MISSION & VISION • Mission: The very basis of our existence, our mission is to successfully develop, produce and sell high quality jewellery, lifestyle products and accessories worldwide and help our customers in getting the maximum value for money in process Vision: • >> To become the world's leading company in diamond manufacturing and retailing of branded jewellery, lifestyle products and accessories. >> To have a strong, globally diversified infrastructure for manufacturing and marketing diamond and diamond jewellery.

GITANJALI’S FIRSTS • Introducing the concept of affordable branded diamond studded jewellery in India • Offering jewellery in Superstores, Department Stores and other such retail outlets at MRP • Offering the same quality, designs and prices throughout India with a certification of authenticity for the same from renowned diamond grading laboratory • Producing the smallest heart shaped diamond (0.03 carat)

BUSINESS MAP GITANJALI GEMS Diamond & Jewellery

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 

Diamond Processing 5 State-of-the-art manufacturing jewelle and processing units 4 decades of experience amongst best in India Sufficient production for internal distribution network and external use

Lifestyle

Manufacturi ng & Wholesaling

Infrastruc ture

Retail Pioneers of branded

-ry in India Brands rated Strong Sales and

PRESENCE ACROSS THE VALUE CHAIN

Diamond

Diamond Distribution

Shopping Experience

Polishing

Rough Distribution

Direct from

Jewellery Manufacturing

Jewelery

Jewellery Retailing

Branding

THE ACQUISITION GIANT • Aim -To be the global retailer • The Path Chosen-International Acquisitions and Domestic Consolidations Some Examples:  Samuels  Lucera  Rogers  Nakshatra  Trinity

BRANDS AND SEGMENTATION ASMI

The Enhancing Enigma Entire product range including bridal jewellery The Fire Within Premier work wear collection The Art Of Beauty International quality designs combined with Indian values Easy Elegance Diamond jewellery at reasonable prices Partners For Life Brand focus on couples The Wedding Collection Jewellery for Weddings Unique International Allure High end Jewellery Brand

Giantt i

BRAND RECALL (Acc. To TNS Survey)

PLACES Domestic Presence Global presence • • • • • • • • • • • • • • •

Ahemdabad Bangalore Baroda Chennai Delhi Goa Guwahati Hyderabad Jammu Jamshedpur Kolkatta Mumbai Nagpur Pune Shimla

• • • • • • •

More than 175 stores in U.S.A. Stores in China Middle East Thailand Japan Italy UK

MARKETING STRATEGIES  Immense Retailing  Extensive advertising video  Association with Sports: • 3-year contract to create jewellery for Wimbledon Tennis Championship • Gitanjali behind Kolkata Riders-2008  exploring a whole new sphere of e-tailing..expect to capture 35 per cent of the total online jewellery sales in India by 2010. By 2010,targets 3-5 per cent of its total sales to come through ecommerce.

MULTI CHANNEL DISTRIBUTION Sales through Retail Store Sales to Departmental stores Sales Through exclusive owned or managed and Exclusive Distribution NETWORK Distributor Network By the group Networks Exclusive distributor � Large network for each brand to jewellery sell to jewellery retailers stores, across the country shopping malls � Once delivered, the and distributor assumes the responsibility of selling the department stores product � Commission paid depends � Shoppers on the brand and sale value Stop of the final product � Globus

� Westside � Gold Souk � Directly serviced by the

� The retail operations of the group are classified into three different formats: � Retail Stores owned by the group � Shop in shop outlets in department stores � Franchisee stores

RELIANCE JEWELS

RELIANCE INDUSTRIES •India's largest private sector company with a turnover of $28 billion as on March,2006. •out of every 4 investors in India one is a reliance shareholder •Reliance industries features worlds most respective companies on 269th position •The company expects its E&P efforts to gross around Rs 10,000 crore in revenues. •The company has strong cash flow of around Rs 7,500 crore Competitors: Bharat Petroleum Indian Oil Tata Group RELIANCE RETAIL •With a 27% share of world GDP, retail is a significant contributor to overall economic activity •The Indian retail industry is pegged at $ 300 billion and growing at over

G

•Reliance Retail is a wholly owned subsidiary of $27.23-billion Reliance Industries Ltd. •It will invest Rs.250 billion by 2010-11. •RRL has also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance Autozone) and also an initiative in the health and wellness business through ‘Reliance Wellness’.   •RRL established key joint ventures with international partners in apparel, optical and office products businesses.

•RIL wins Annual FICCI Awards 2007-08 for Excellence in Science & Technology & Technological Innovation

T •Reliance Retail made a foray into the branded jewellery space with their new venture tentatively titled Reliance Jewel-which was promoted by Mukesh Ambani. •Opened its first store in Bangalore on November 15, that offered gold, diamond, platinum and silver jewellery. •Reliance is the second corporate after the Tatas to enter the Rs 70,000 crore Indian jewellery industry, which is dominated by almost 3 lakh traditional family jewellers. •TARGET: Reuters reports that Reliance Jewels has targeted to capture a 10% market share in India’s jewellery market within five years •Media reports said that by 2010, they plan to overtake Tata’s Tanishq, the largest organised player in this market at present.

MAJOR MARKETING STRATEGIES •“We aim at opening 300 'Reliance Jewels' outlets across the country during the next three years beginning with the major metroes" said Ashok Kaul, Business Head and Vice President, Jewellery. •INFRASTRUCTURE: The company opened its first jewellery specialty store at Bangalore with an investment of about Rs.120 million. The store is spread over 6,000 sq ft and showcases over 10,000 designs. •March 2008, Set up with an investment of Rs 25 crore, the Hyderabad store is spread across 8,000 sq.ft having over 15,000 designs of exquisitely crafted jewellery from across the country. •Planning to open stores across 12 locations in Andhra Pradesh in the next three years, places like Vijayawada, Vishakhapatnam, Nellore, Warangal besides Hyderabad, envisaging a total investment of Rs 180 crore in the next three years. •The third "Reliance Jewels" retail store, was been launched in Ludhiana, north India. This is the first Reliance jewels in the northern Indian region. STRATEGIC ALLIANCES : Tie-ups with gems and jewellery manufacturers and

•Reliance has ambitious expansion plans of opening over 200 multi-storey stores across metros and mini-metros • Offers COMPETITIVE PRICING. "As an introductory offer, Reliance plans to waive making charges, since gold prices have just hit an all-time high,” •JEWELLERY ASSORTMENT AND DEMAND: •Still, greater demand for hallmarked jewellery, a need for a good shopping environment, coupled with its brand name, may help draw customers to Reliance's stores, Kaul said. •Reliance Retail is investing Rs 25,000 crore in its retail foray with WGC-World Gold Council to boost retail demand of gold in India. PUBLICITY: “it has always been the endeavour of Reliance to provide the consumers with a wide range of high quality products at competitive prices” “Reliance Jewels is another milestone in our effort of bringing a unique shopping experience with assured purity of gold and certification of diamonds.

MAJOR BRANDS The Hyderabad outlet offers •Kolkota filigree, •Rajkot minakari jewelry, •kundan from Jaipur, •temple jewelry from Kerala, •and jadau from Amritsar in 100 percent BIS Hallmarked gold jewelry. •Its diamond jewelry ranges from daily wear to party wear and and is certified by an international certification laboratory. •We’re sourcing jewellery from regional kaarigars across the country as well as design houses, so our collection will cater to all occasions. •Since we’re launching in the wedding season, we expect more demand for bridal collections initially,” said K Sunil Chandran, chief executive, customer operations(this is for the 1st Bangalore store).

ROSY BLUE More than diamonds

• The Group forayed into the international jewellery business in 1888. • Have units across 15 countries headquartered in Antwerp, Belgium. • Rosy Blue is sight holder and core customer of DTC, BHP, Rio Tinto Diamonds and Alrosa. • It has design centres in New York, Antwerp, Hongkong, Tokyo and Mumbai. • Rosy Blue's successful jewellery manufacturing and distribution business is the final link completing the chain from earth to high street. • Mission Statement: To become the global leader in creating and fulfilling consumer desire for diamonds.

BRANDS OF ROSY BLUE ROSIBLU ORRA ASTA

ROSIBLU Diamonds transform you brand Rosy Blue's • Rosiblu is the flagship jewellery high-end jewellery division in the USA. • The design inspiration for the ROSIBLU collection is modern, sophisticated, everyday luxurious living. • ROSIBLU creations are sophisticated, modern and feminine and offer designs of exquisite luxury to be worn everyday.

ASTA • Rosy Blue signed an agreement with Sky Jewellery as the major's retail partner for the Asta brand. Sky Jewellery holds the rights to represent Asta across the United Arab Emirates and Qatar. • Designed to meet the tastes of a range of women from Arab and Asian communities to Western expatriates. • Made of simple and dainty diamonds, is available in 18-karat white and yellow gold.

ORRA Own a piece of eternity

• The only jewellery company in India which has tie-ups with the three leading jewellery organizations namely, DTC ,PGI & WGC. • Orra: epitomizes the person it was created for her spirit, her grace and the invisible glow that surrounds her. • Set in the international store format, ORRA has 35 exclusive diamond boutiques across India. • They have attempted to differentiate our product offerings and create new product concepts.

SOME OF THEIR COLLECTIONS • • • • • •

Bridal Collection Solitaire Collection Platinum Couples Collection Mughal Collection Spiritual Collection Career Carats

Pricing • The Orra range has been priced at Rs 5,000 at the entry level and up to Rs 10 lakhs for the high-end jewellery. • Orra had a scheme to sell gold at a fixed price. • Segmentation: due to its premiere pricing it generally aims the elite group. • Targeting: traditionally like all jewellery brands orra also targeted the female population but above de age group of 20. • Positioning: exclusive diamond outlet.

PROMOTION • Used commercial ads to recapture the brand's heritage since Orra has been around for 116 years and it was essential to portray its rich tradition. • Retail strategy- Positioned as an ‘Only Diamonds Store,’ it aims at bringing to the consumers the finest diamond jewellery in a world-class retail setting. • Rosy blue was associated with IIFA 2006. • ORRA has had a long and successful association with the Hollywood and Bollywood.

• BCCI commemorates Sachin Tendulkar for his feat of achieving 12000 runs, with a trophy designed by ORRA.

• BCCI appointed ORRA to create a trophy to honour Anil Kumble for his commendable record of 600 test wickets.

PLACE • Orra operates in various parts of the world including Asia, USA, Middle East and Europe. • They cater to their customers through retail outlets and online transactions. • They also have various tie-ups with other jewellery outlets to market their brand.

SOURCE ROSY BLUE OF DIFFEREN CE

GITANJALI TANISH JOY RELIANC Q ALUKKAS E JEWELS

7200 SALES TURNOVER (in Crores)

4832

3520

3350

800

Upper TARGET CUSTOMER Middle

Middle &above

Upper middle &above

Middle &above

Middle &above

MARKETING Events STRATEGY

AdvertisingCustomer Theme Press Schemes based releases advertising

&above

THANK YOU!!!