INDIAN JEWELLERY INDUSTRY
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. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country. The two major segments of the sector in India are gold jewellery and diamonds. Gold jewellery forms around 80 per cent of the Indian jewellery market, with the balance comprising fabricated studded jewellery that includes diamond studded as well as gemstone studded jewellery. 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. In addition, the industry has set up a worldwide distribution network, of more than 3,000offices for the promotion and marketing of Indian diamonds. The sector is expected to register a compound annual growth of (CAGR) of 13% during 2011-13, according to a report “Indian Gems and Jwellery Market Forecast 2013”. (By research firm RNCOS).
MICHAEL PORTER’S 5 FORCE MODEL FOR JEWELLERY INDUSTRY
INTER- FIRM RIVALRY- HIGH
There are two types of rivalry.
(1) Inside India & (2) Outside
•Large presence of unorganized sector. 0.2 Million Gold jewellers and over 8,000 Diamond jewellers •International rivals Such as, China
•Threat from producing nation like S.A. & Russia.
BARGAINING POWER OF SUPPLIERS – MEDIUM
In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana, Russia, DTC.
•Few Alternatives of cutting & polishing.
•Bargaining power of India is enhanced because India is largest consumer of gold jewellery.
BARGAING POWER OF BUYERS- LOW
Divided in two types
1. Domestic buyers &
2. Foreign buyers
•As investment (Demand increase)
•Bargaining power of Indian exporter is high because Majority of the world's rough diamond production is cut and polished in India
THREAT OF SUBSITUTES- LOW
Substitutes are Real assets, Stock market, & Bank deposits & Mutual fund investment and other types of jewellery like imitation Jewellery, bagasra jewellery, stone jewellery etc. •Second preferred investment behind bank deposits
•Status and standard of living increase so demand is increasing at High rate
BARRIERS TO ENTRY- LOW TO MEDIUM
* Low capital requirement
* Government subsidy
* EXIM policy & government’s rules & regulations are high * Skilled manpower is essential
* Advanced technology required.
To emerge as a jeweller of choice, in terms of quality, style and surpass all levels of customer satisfaction. Mission
To assimilate the expertise of trained personnel and state-of the art machinery, so as to nothing, but the best. Values
Are Integrity, Solidarity, Credibility and Perfection.
The Gitanjali Group which was established in 1966, and is one of the earliest diamond houses in India. By 1968, it was accorded a ‘Sight” by the Diamond Trading Company Ltd. London and Gitanjali became one of the first Sight holders in India. It has received over 50 National and Council awards from the Ministry of Commerce for outstanding exports. It is one of the leading diamond exporting companies in India. Presently, Gitanjali Group has highly modernized diamond cutting and polishing facilities in India. The group strengthens its core business of loose diamonds with international association. Internationally, business patterns of the diamond industry. The Group has positioned itself to manufacture and promote diamonds as well as studded jewellery right up to the retail level. Gitanjali Group one of the leading integrated diamond & Jewellery manufactures & Retailers in India with turnover of Rs 3467 Cores. The Company has strong brands such as:
Asmi was launched in 2002 by the...