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A

CONCEPTUAL AND PERCEPTUAL

STUDY OF

ONLINE JEWELLERY PURCHASED IN HYDERABAD

IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF BACHELOR OF


COMMERCE (HONS.)

SUBMITTED BY

DHARNISH AGARWAL

(1100-13-407-026)

UNDER THE SUPERVISION OF

K.SRIKANTH

(FACULTY, IIMC)

SUBMITTED TO

OSMANIA UNIVERSITY

INDIAN INSTITUTE OF MANAGEMENT AND COMMERCE

6-1-91, Adjacent to Telephone Bhavan, Khairatabad, Hyderabad 500 004

(2013 2016)
DECLARATION

I hereby declare that the project titled A CONCEPTUAL AND PERCEPRUAL STUDY OF

ONLINE JEWELLERY PURCHASED IN HYDERABAD submitted by me to Indian Institute of

Management and Commerce (IIMC) in partial fulfilment of the requirement for the award of the degree of

B.Com (Honours) is a record of bonafide project work carried out by me under the guidance of Mr.

Srikanth sir. I further declare that the work reported has been carried out by me and has not been

submitted to any other university or institution.

Dharnish Agarwal

Date:

Place: Hyderabad

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CERTIFICATE

This is certify that DHARNISH AGARWAL bearing the hall ticket number 110013407026 has

satisfactorily completed the project work A CONCEPTUAL AND PERCEPRUAL STUDY OF

ONLINE JEWELLERY PURCHASED IN HYDERABAD under my guidance in partial fulfilment

of the award of degree of B.COM (HONS.) during the period of 2013-2016. The results embodied in this

report have not been submitted to any other university or institution for the award of any

degree/diploma/certificate.

Project Supervisor

(Mr. K. Srikanth)

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ABSTRACT

The gems and jewellery sector has been one of the fastest-growing sectors in India in the past few years.
The sector has gained global popularity because of its talented craftsmen, its superior practices in cutting
and polishing fine diamonds and precious stones, and its cost-efficiencies. The sector has been vital to the
Indian economy as well; during 2008-09, the sector accounted for around 13% of the countrys total
exports. The domestic gems and jewellery industry had a market size of INR 251,000 Cr in 2013, with a
potential to grow to INR 500,000530,000 Cr by 2018, expected to grow at a Compound Annual Growth
Rate (CAGR) of over 15 percent per annum.

Until the early 1990s, an average Indian purchased jewellery for investment rather than for adornment as
gold was expensive and yielded good returns. The traditional jewellers ruled the market as the consumers
trusted them; in fact, the confidence of consumers in the traditional seller was the hallmark of the gold
jewellery trade in India. These traditional retailers had a small but a fixed and loyal customer base.
However, since the late 1990s, there has been a change in consumer tastes and preferences with women
increasingly opting for fashionable and light weight jewellery instead of heavy traditional jewellery.
There was an increase in the demand for light weight jewellery, especially from the customers in the 16-
25 age group, who regarded jewellery as an adornment and not an investment. One of the biggest trends
in the Indian jewellery industry has been due to the e-commerce and affordable jewellery. The changing
consumer trends have led to the growth of the online jewellery sector in India. With more and more
consumers opting for light weight and fashionable jewellery, the online jewellery market has increased its
horizons to a vast extent. Industry experts estimate the growth rate of online jewellery market to close to
30%. Though the online jewellery market is booming, it is really difficult for online retailers to expand
and grow not only domestically but also internationally due to strict legislations and customer perceptions
and sentiments.

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My study focuses on the online jewellery segment of the jewellery market in Hyderabad and the
consumers perception of online jewellery in Hyderabad. Apart from the above, this report gives an
insight of the jewellery industry. To this end 75 respondents belonging to Hyderabad city who purchase
jewellery have been surveyed. The study reveals that majority of the respondents are aware about online
jewellery but still hesitate to purchase jewellery online. The main reason found behind the consumers not
purchasing jewellery online was the fear of wrong product delivered and product getting damaged during
transit. However some of the remedies to these problems have also been found online retailers can open
their own chain of stores or tie up with offline retailers to integrate the customers online-offline
experience.

ACKNOWLEDGEMENT
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It is not possible to prepare a project report without the assistance and encouragement of other people.
This one is certainly no exception.

On the very outset of the report, I would like to extend my heartfelt obligation and gratitude towards all
the people who have helped me in this endeavour. Without their active guidance, help, cooperation and
encouragement, I would not make headway in the project.

I am ineffably indebted to Mr. K. Srikanth sir, faculty at IIMC, for continuous guidance and
encouragement to accomplish this project. I extend my gratitude to Mr. K. Raghuveer sir, Principal of
IIMC and Mrs. M. Satyasudha maam, Vice Principal of IIMC for giving me this opportunity.

I also acknowledge, with a deep sense of gratitude and reverence, my gratitude towards my parents and
members of family, who have always supported me. Any omission in this brief acknowledgement does
not mean lack of gratitude.

Dharnish Agarwal

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TABLE OF CONTENTS
Page
S.No. Title No.

1 List of tables vii

2 List of figures viii

3 Chapter I - Introduction 1

4 Chapter II - Research Methodology 26

i) Need & Importance of the study 27

ii) Scope of the study 28

iii) Objectives of the study 28

iv) Data Collection Methodology of the study 29

v) Sample size 29

vi) Sampling Technique 29

vii) Limitations of the study 30

5 Chapter III - Review Literature 31

6 Chapter IV - Industry Profile 34

7 Chapter V - Data Analysis and Interpretation 45

8 Chapter VI - Findings, Suggestions and Conclusion 65

9 Chapter VII - Bibliography & References

10 Chapter VIII - Annexures

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LIST OF TABLES

S No. Table No. Table Name Page No.


1 5.1 Distribution of age group 45

2 5.2 Distribution based on gender 46

3 5.3 Distribution based on marital status 47

4 5.4 Distribution based on income 48

5 5.5 Purchasing jewellery 49

6 5.6 Last jewellery purchase 50

7 5.7 Preferred place 51

8 5.8 Factors considered before purchase 52

9 5.9 Awareness 53

10 5.10 Source of information 54

11 5.11 Purchase jewellery online 55

12 5.12 Reasons for online purchase 56

13 5.13 Difficulties faced online 57

14 5.14 Amount spent on purchase of jewellery online 58

15 5.15 Availability of designs 59

16 5.16 Factors influencing online jewellery purchase 60

17 5.17 Convenience of COD option 61

18 5.18 Preferred online retailer 62

19 5.19 Physical verification 63

20 5.20 Importance of trust factor 64

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LIST OF FIGURES

S No. Figure No. Figure Name Page No.


1 1.1 Segments of jewellery sector 3

2 1.2 Indian retail market 5

3 1.3 Indian household expenses 10

4 4.1 Revenue history of last 12 months 37

5 4.2 Funding history of Caratlane 37

6 4.3 Revenue history of Bluestone over last 12 months 39

7 4.4 Funding history of Bluestone over the last 2 years 39

8 5.1 Distribution of age group 45

9 5.2 Distribution based on gender 46

10 5.3 Distribution based on marital status 47

11 5.4 Distribution based on income 48

12 5.5 Purchasing jewellery 49

13 5.6 Last jewellery purchase 50

14 5.7 Preferred place 51

15 5.8 Factors considered before purchase 52

16 5.9 Awareness 53

17 5.10 Source of information 54

18 5.11 Purchase jewellery online 55

19 5.12 Reasons for online purchase 56

20 5.13 Difficulties faced online 57

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S No. Figure No. Figure Name Page No.

21 5.14 Amount spent on purchase of jewellery online 58

22 5.15 Availability of designs 59

23 5.16 Factors influencing online jewellery purchase 60

24 5.17 Convenience of COD option 61

25 5.18 Preferred online retailer 62

26 5.19 Physical verification 63

27 5.20 Importance of trust factor 64

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CHAPTER I
INTRODUCTION
CHAPTER I - INTRODUCTION

JEWELLERY

Jewels were always a part of human culture. Even from the times when humans first started
using clothes and tools from any kind of materials that were available- stones, animal skins,
feathers, plants, bones, shells, wood, and natural made semi-precious materials such as obsidian.
As time passed, advancing technologies enabled artisans to start converting metals and precious
stones into works of art that influenced many cultures and modern jewellery styles. However, the
purpose of wearing jewellery always remained the same they enabled the wearer to showcase
wealth, rank, political and religious affiliation. This made jewellery to become timeless and a
target for constant development and refinement.

First pieces of jewellery started being made during the same time when our African ancestors
started differentiating themselves by wearing clothes and creating tools. Simple decorative pieces
made from animal skins and hairs did not survive the tooth of time, but the oldest surviving
prehistoric piece of jewellery (decorative sea shells) from over 110.000 years ago give solid
proof that modern human race used jewellery even before they exited Africa and spread across
entire world.

India too has been an important contributor in the field of jewellery. Ever since the birth of
Indian civilization some 8 thousand years ago, their population liked to adore themselves in
various decorative items. History of Indian jewellery is as old as the history of the country itself.
Around 5000 years ago, the desire to adorn themselves that aroused in people, lead to the origin
of jewellery. Among many civilizations who practiced the art of jewel making, India managed to
separate itself as one of the most innovative and consistent places where art forms received
uninterrupted and continuous development over 5000 years. As time slowly went on and new
technologies for extracting and processing of raw materials became available, crude bracelets,
anklets, amulets made from shells and clay became changed with more durable materials.
Empowered by almost endless supplies of precious materials such as gold, silver, copper, ivory,

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CHAPTER I - INTRODUCTION

coral, ruby, sapphire, agate, and diamond (India was the first to discovered a way to mine it),
they were able to produce jewellery which implemented both their own and foreign styles. It was
around 5000 years ago that art of jewellery finally started spreading and ever since then India
became one of the highest producers of jewellery in the world.

Use of jewellery in India was always incorporated in daily life. People embraced tradition of
decorating themselves for various public or religious occasions, rulers and kings tried to portray
themselves as gods and wore attire that was almost entirely covered by gems and gold. One of
the most prized jewels in all of India was the Navaratna amulet, which was worn by Maharajas.
It had nine precious gems in its structure (diamond, pearl, ruby, sapphire, emerald, topaz, cat's
eye, coral, and hyacinth). The range of jewellery in India varies from religious to purely aesthetic
types. It is crafted not only for humans, but also for the Gods, ceremonial elephants and horses. It
also varies based on regional and cultural differences. While in Tamil Nadu, designs in solid
jewellery prevailed; Kerala was inspired by nature; and the Meenakari and Kundan styles were
influenced by the Mughal dynasty. Assamese jewellery is influenced by local flora and fauna,
Manipuri jewellery-makers make use of items like shells, animal claws, teeth and precious and
semi-precious stones. These huge varieties of ornaments bear testimony to the excellent skill of
the jewellers and craftspeople of the country. Indian jewellery in Gold, diamonds, silver, sterling
silver, precious stones, copper and semi-precious stones is a rage all over the world.

Development of the modern jewellery is depended roughly on three ancient civilizations


Egyptian, Indian and the Chinese civilizations. Though there were many other civilizations like
the Greek civilization, Roman civilization, American civilization, etc, that had an impact on the
modern jewellery, the Egyptian, Indian and Chinese civilizations were the oldest and the major
influences on the modern jewellery.

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CHAPTER I - INTRODUCTION

JEWELLERY SECTOR (INCLUDES GEMS, JEWELLERY AND


PEARLS)

The gems and jewellery sector has been one of the fastest-growing sectors in India in the past
few years. The sector has gained global popularity because of its talented craftsmen, its superior
practices in cutting and polishing fine diamonds and precious stones, and its cost-efficiencies.
The sector has been vital to the Indian economy as well; during 2008-09, the sector accounted
for around 13% of the countrys total exports.

The gems and jewellery sector in India is engaged in sourcing, manufacturing, and processing,
which involves cutting, polishing and selling precious gemstones and metals such as diamonds,
other precious stones, gold, silver and platinum.

Figure 1.1 Segments of Jewellery sector

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CHAPTER I - INTRODUCTION

The gems and jewellery industry plays an important part in the Indian economy. In addition to
boasting a large gems and jewellery market, India has a unique situation in terms of both demand
and supply. The domestic gems and jewellery industry had a market size of INR 251,000 Cr in
2013, with a potential to grow to INR 500,000530,000 Cr by 2018, expected to grow at a
Compound Annual Growth Rate (CAGR) of over 15 percent per annum.

The overall gross exports of Gems & Jewellery in FY2014-15 was US$ 39.9 billion
(Rs 2, 43,886 crore), which reflected a growth of 0.43 per cent in Rs term over FY2013-14. The
overall gross imports of Gems & Jewellery in FY2014-15 was US$ 31.5 billion (Rs 1, 92,075
crore), which reflected a growth of 2.65 per cent in Rs term) over FY2013-14. The cumulative
Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the period April
2000-September 2015 were US$ 750.87 million, according to Department of Industrial Policy
and Promotion (DIPP).

During April-November 2015, India imported 80.5 million carats of rough diamonds worth US$
8.65 billion and overall imported US$ 15.02 billion worth of gems and jewellery. During the
same period India exported 22.52 million carats of polished diamonds worth US$ 13.586 billion
and had total net exports worth US$ 21.46 billion, thus continuing to be a net earner of foreign
exchange in the gems and jewellery sector. With an 8 per cent share in polished diamonds, India
has become the world's third largest diamond consumer.

The gems and jewellery industry is crucial to the Indian economy given its role in large-scale
employment generation, foreign exchange earnings through exports, and value addition. The
industry provides direct employment to roughly 2.5 million people and has the potential to
generate employment of 0.71.5 million over the next five years. This is comparable to the 2.1
million employments provided by IT services and is 2.5 times that provided by basic iron and
steel manufacturing and automotive manufacturing. In 20122013, the industry drove jewellery

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CHAPTER I - INTRODUCTION

exports to the tune of INR 227,000 Cr, outperforming textiles and apparel exports by 25%. The
industry also drove value addition of more than INR 99,000 Cr, which is comparable to several
large industries such as apparel manufacturing.

INDIAN JEWELLERY MARKET SIZE AND STRUCTURE

Figure 1.2 Indian Retail Market

Indian jewellery market is one of the largest in the world. The domestic market is estimated to be
at US$ 30 billion. It is one of the fastest growing segments in the Indian economy with the
consumption of gold and jewellery products in India increasing rapidly over the years at the rate
of 10-15 per cent per annum. According to a recent study, India and China are now emerging as
the leading consumer of gold and jewellery. According to estimates, these two combined will

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CHAPTER I - INTRODUCTION

account for more than 30% of global diamond market in 2015. Indian industry has the advantage
of the best skilled manpower for designing and producing high volumes of exquisite jewellery at
low labor costs. The Indian Jewellery market is still heavily dominated by the unorganized
sector. However, branded jewellery is becoming very popular with the market for branded
jewellery growing at 30% with a total market share of 12-15%.

The demand in India can be segmented into consumption and investment. Unlike most other
countries, investment demand for gold is important in India and accounts for about 45 percent of
total market demand. Around 57 percent of the investment demand comes from bars and coins,
while the rest comes from jewellery. The high investment demand is driven by a lack of
alternative financial institutions for a large section of society, a perceived capacity to hedge
against inflation, ability to invest smaller value in gold, high returns in gold over the past 12
years and ease of investing unaccounted money in gold. Also, while the volume demand for gold
as jewellery has remained more or less constant over 2005 to 2013, the volume demand for gold
bars and coins have grown at a CAGR of around 13 percent in the same period.

From a supply side, the value chain consists of imports, mining, refining, trading, manufacturing,
and retailing. This includes a mix of players catering to both consumption and investment
demand. The Indian gems and jewellery industry is fragmented, with local players constituting
about 80 percent of the overall market. The variances in consumer preferences in designs,
quality, and material across different regions have historically presented a challenge for national
and organized players to create design-led differentiation. The share of organized players in the
industry is growing, specifically that of regional players. However, there is a risk of reversal in
this trend due to increasing regulatory restrictions on gold imports and the price differential
between the official and unofficial supply of gold in the market. The supply side is also
characterized by several local and independent stores in rural areas that play the role of financing
entity, providing customers an investment option and lending money against gold.

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CHAPTER I - INTRODUCTION

The industry faces several challenges impacting consumption and the investment demand side of
the market. While challenges in talent and skill development, research and technology adoption,
and limited financing options are core to players catering to the consumption demand for
jewellery, an increasing investment demand with limited supply infrastructure affects the
investment side of the market. High import dependence and regulatory curbs impact both
consumption and investment demand of the market. Following are the problems faced by the
Indian jewellery industry:

High import dependence and limited recycling ;


Overregulated consumption industry and under-developed investment industry ;
Large investment demand and associated supply infrastructure ;
Dominance of the unorganized sector ;
Limited financing options ;
Lack of skilled labour ; and
Limited research and technology adoption.

However there have also been certain developments and investments in recent time which have
helped the Indian jewellery industry cope with the above problems:

Major mining companies such as Rio Tinto, De Beers and Alrosa have decided to participate
in the Indian Diamond Trading Centre (IDTC) which has been set up to eliminate the
middlemen in diamond trade and allow Indian manufacturers to deal directly with miners.
India Bullion and Jewellers Association (IBJA) has signed an pact with the Bombay Stock
Exchange (BSE) for setting up Indias first bullion exchange through a Special Purpose
Vehicle (SPV), wherein IBJA and its constituents will hold 70 per cent and BSE will hold 30
per cent stake.
Global luxury brand Montblanc International has entered into a joint venture with Indias
largest watch maker Titan Co Ltd and plans to start the retail operations in India by opening
five Montblanc boutiques in Mumbai, Delhi, Hyderabad and Pune.

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CHAPTER I - INTRODUCTION

Jewellery major Joyalukkas plans to invest Rs 1,500 crore (US$ 225.28 million) on setting up
20 stores in India and 10 overseas. The new stores, which will come up almost in a years
time, will add to the Thrissur-headquartered company's existing 95 outlets.
London-headquartered Gemfields, a multi-national firm specialising in colour gemstones
mining and marketing, is planning to acquire colour gemstone mines in Odisha and
Jharkhand, and participate in the exploration of the Kashmir sapphire mines in Jammu &
Kashmir.
The India arm of US private equity (PE) firm Warburg Pincus picked up a minority stake in
Kerala-based Kalyan Jewellers for Rs 1,200 crore (US$ 180.22 million). The jeweller plans
to use the proceeds to fund its retail and manufacturing expansion plans.
Creador, a PE firm focused on long-term investments in growth-oriented businesses in
Indonesia, India, Malaysia and Singapore, invested Rs 135 crore (US$ 20.28 million) for a
minority stake in PC Jeweller Limited.
Indian exports will now receive concessional duty treatment in the US as it has renewed the
Generalized System of Preferences retrospectively from August 1, 2013 December 31,
2017.

Bengaluru based Rajesh Exports Ltd acquired Switzerland based Valcambi SA in an all-cash
deal for US$ 400 million through its Singapore subsidiary.
IndusInd Bank acquired the diamond and jewellery financing division of RBS in India.
IndusInd Bank expects the diamond business in India to grow and currently has a smaller
portfolio worth Rs 1,500 crore (US$ 225.28 million).

The Reserve Bank of India has announced norms for gold monetization scheme, which allows
individuals, trusts and mutual funds to deposit gold with banks in return for interest, to help
reduce gold imports and alleviate pressure on trade balance.

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CHAPTER I - INTRODUCTION

The Reserve Bank of India (RBI) has liberalized gold import norms. With this, star and premier
export houses can import the commodity, while banks and nominated agencies can offer gold for
domestic use as loans to bullion traders and jewellers. Also, India has signed a Memorandum of
Understanding (MoU) with Russia to source data on diamond trade between the two countries.
India is the top global processor of diamonds, while Russia is the largest rough diamond
producer. The Government of India is planning to establish a special zone with tax benefits for
diamond import and trading in Mumbai, in an effort to develop the city as a rival to Antwerp and
Dubai, which are currently the top trading hubs for diamond.

Due to shortage of skilled manpower, the Gems and Jewellery Skill Council of India is planning
to train over four million people till 2022. The council aims to train, skill and enhance 4.07
million people by 2022. The council will tie-up with the existing training institutes including
Gemological Institute of America (GIA) and Indian Gemological Institute (IGI), along with
setting up of new institutes in major diamond cutting and processing centers, Gems & Jewellery
Export Promotion Council (GJEPC) said in a statement here.

In September 2015, the Government of India approved the gold monetization plan in the form of
revamped Gold Deposit Scheme (GDS) and the Gold Metal Loan (GML) Scheme to mobilize
tonnes of gold stored in households and temples across the country. The Union Cabinet also
approved the introduction of Sovereign Gold Bond Scheme, under which gold bonds
denominated in grams of gold will be issued to individuals by the Reserve Bank of India (RBI),
in consultation with Ministry of Finance.

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CHAPTER I - INTRODUCTION

INDIAN SCENARIO

Figure 1.3 Indian household expenses

India and jewellery, jewellery and Indian women - the terms are linked inherently. At the time of
wedding as well as numerous other occasions, a woman is gifted jewellery by her parents and
relatives. Although the gift is meant to give her security in contingency, ornamentation is an
obvious purpose. All the cities across the length and width of India have shops of jewellers -
some traditional and some modern jewellers, catering to the need of all kinds. Not that the
affluent class people wear ornaments, there are low cost jewellery items in ample, which cater
the demand of low income group as well. India houses various kinds of jewellery arts, ranging
from Meenakari and Kundan to stone and bead work. The craft of cutting and polishing precious
and semi-precious stones and giving them glamorous face is something artistic. Emeralds, rubies,
garnets, amethysts, corals, sapphires, and turquoises are among the stones which are used for the

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enhancement of gold and silver jewellery. Gold jewellery is the most popular among South
Indian women. In southern part of India, gold is considered auspicious and a status symbol.
Talking about the art on gold jewellery, Kundan is something that comes into our mind. It is a
Mughal-inspired art of setting precious stones like diamonds, rubies, and emeralds in gold and
silver jewellery. In Meenakari, enameling is done to protect gold and floral pattern coloured in
red, blue and green attracts the attention. Silver jewellery is not far behind in popularity,
particularly because of its affordability, making it popular among low income group people.
Jhumka, hansli, chokar, nath and bracelets made of silver are quite popular among women in
India. In short, the range of jewellery in India is wide as well as varied. Be it gold, silver of
diamond, you will find everything in the country.

In India, gold jewellery is a store of value, a symbol of wealth and status and a fundamental part
of many rituals. In the countrys rural population, a deep affinity for gold goes hand in hand with
practical considerations of the portability and security of jewellery as an investment. This, in
part, explains how Indias appetite for gold defies market conditions: despite a 400 per cent rise
in the rupee gold price over the last decade, gold demand from Indian consumers continues to
grow. Gold is considered to be auspicious, particularly in Hindu and Jain cultures. The ancient
law-giver Manu decreed that gold ornaments should be worn for important ceremonies and
occasions. Across the country, regional festivals are celebrated with gold: in the south, Akshaya

Tritiya, Pongal, Onam and Ugadi; in the east, Durga Puja; in the west, Gudi Pavda; in the north,
Baisakhi and Karva Chauth. Gold is central to more personal life events too. Gifting gold is a
deeply ingrained part of marriage rituals in Indian societyweddings generate approximately 50
per cent of annual gold demand. Families begin saving soon after the birth of a girl, and the
Stridhan, or gift of gold to the bride, gives her financial security once she is married.

Until the early 1990s, an average Indian purchased jewellery for investment rather than for
adornment as gold was expensive and yielded good returns. Jewellery made of pure gold or 22-

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karat gold was a more favourable choice as compared to jewellery made of 18-karat gold which
was considered to be a poor investment as the gold content was less in it. The traditional
jewellers ruled the market as the consumers trusted them; in fact, the confidence of consumers in
the traditional seller was the hallmark of the gold jewellery trade in India. These traditional
retailers had a small but a fixed and loyal customer base. However, since the late 1990s, there
has been a change in consumer tastes and preferences with women increasingly opting for
fashionable and light weight jewellery instead of heavy traditional jewellery. There was an
increase in the demand for light weight jewellery, especially from the customers in the 16-25 age
group, who regarded jewellery as an adornment and not an investment.

This was the time when branded jewellery gained importance and this forced the traditional
jewellers to go for branding. Due to the change in consumer trends and given the opportunities
the branded jewellery offered, a number of gold retailers increased sharply. However, the share
of branded jewellery in the total jewellery market was still very small (about only Rs. 10 billion
of the 400 billion jewellery market in 2002), though growing at a pace of 20 to 30 percent
annually. The reason for branded jewellery segment occupying only a small share of the total
jewellery market was the mindset of the average Indian buyer who still regarded jewellery as an
investment. Consequently, the branded jewellery players tried to change the mindset of the
people and woo customers with attractive designs at affordable prices. In order to gain market
share, they will have to come up with designs that customers want and win the trust and
confidence of consumers by hallmarking and demonstrating the purity of the gold used by them.

One of the biggest trends in the Indian jewellery industry has been due to the e-commerce and
affordable jewellery. Websites like Bluestone, Carat Lane, Diamondere and Jewels kart have
over 80% of their collection dedicated to the affordable jewellery segment. The online medium
has also made it possible to set up stores without investing in the physical infrastructure required
for retail. Industry experts estimate the growth rate of online jewellery market to close to 30%.
The challenge in this segment still is to convince buyers to spend large amounts of money online
and overcome trust issues. Although there is still a long way to go before Indian consumer starts

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embracing the concept of buying jewellery online, the growth opportunity is huge and its a new
segment for jewellery retailer to explore and take advantage of.

ONLINE JEWELLERY MARKET

The changing consumer trends have led to the growth of the online jewellery sector in India.
With more and more consumers opting for light weight and fashionable jewellery, the online
jewellery market has increased its horizons to a vast extent. In a country like India, where
purchasing jewellery always meant a visit to the trusted family retailer, no one thought
something so expensive and precious would be sold and purchased online. The online jewellery
market has emerged as one of the fastest growing industries in India. This industry has been
majorly driven by factors such as growing base of internet users, rising awareness among the
users and lower prices of online jewellery. It has been observed that now majority of the Indian
population is quite familiar with the internet and its widespread uses. Due to the convenience
provided by online jewellery, customers can compare the jewellery offered by different
companies easily. Asian online jewellery market has displayed a CAGR of 62.2% during the
period 2011-2014.

In India, the market has evolved over the years, with metropolitan cities such as Delhi/NCR,
Mumbai, Chennai, Pune and Bangalore driving growth in the Indian market. Customers are
intrigued by lucrative prices of online jewellery. Additionally, major players are offering
certificates of authenticity in the Indian market in order to build customer confidence. Young
Indians falling in the age group 24-35 years are driving the demand for online jewellery in the
country. The competition in Indian online jewellery market has remained concentrated among
few major players though there are more than 20 e-commerce companies operating in this
domain. Owing to the nascent size of the market, the players have been hesitant to make an entry
into the market but several offline vendors have started selling their inventory through
marketplace business model. The market for Indian online jewellery market is dominated by
Carat Lane.

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The scenario is slightly different in China as demand for online jewellery is increasing rapidly in
lower tier cities in China. However, security concerns with respect to purchasing goods online
continue to pull back the consumers from purchasing jewellery online. The average ticket size
for online jewellery is significantly lower online relative to offline sales. Additionally, major
players are operating online shops through marketplaces such as T mall and Ten cent.

The online jewellery market in Singapore, Japan and Indonesia is at a nascent stage as very few
players are offering jewellery online. The market size of online jewellery in the aforementioned
countries is significantly lower relative to India and China. The Asian Online jewellery market
will continue to be dominated by China due to its large internet population and rising personal
disposable income of the population. China would be followed by India as extensive advertising
by major players will drive the demand for online jewellery in the country.

Singapore is an ideal location for online jewellery due to its robust e-commerce market.
Additionally, cross border sales in the country provides enormous opportunities to the online
retailers operating in the country. Online jewellery in Japan has not gained popularity as yet
despite a large e-commerce market. The Japanese prefer to purchase jewellery at offline stores.
Thus, the Japanese market offers fewer opportunities as compared to contemporaries. The
Indonesian online jewellery market is extremely small as very few players are operating in the
market. However, the country has immense potential as the average ticket size of online
jewellery is significantly higher relative to established markets such as India and China.

Though the online jewellery market is booming, it is really difficult for online retailers to expand
and grow not only domestically but also internationally due to strict legislations and customer
perceptions and sentiments. There is huge demand for online jewellery abroad but due to lots of
paper work and delivery time it is becoming difficult for retailers to meet the demand while
domestically the demand is not very high due to sentiments and perceptions of the Indian

14
CHAPTER I - INTRODUCTION

customers. However with the increasing usage of internet and younger people showing interest in
online jewellery, the market has a good future and has a potential to growth up to three times
from now in the next five years.

The following are some of the leading online jewellery retailers in India:

Bluestone.com
Caratlane.com
Wearyourshine.com
Gitanjalishop.com
Tanishq.com
Karatcraft.com
Grtjewels.com
Amazon.com/jewellery

TYPES OF INDIAN JEWELLERY

In India, jewellery is designed to match with the attire. The theme of its design as well as the
colour of the jewellery is taken into consideration while adoring. To make jewellery more
attractive, it is topped by diamonds and various types of gems. Traditionally, Indian jewellery
has been made of heavy and voluminous gold pieces, but recently jewellery made of silver,
platinum and other metals has become quite popular among people. The popularity of jewellery
made of stone, encrusted on metal, has grown more recently. The following are the types of
Indian jewellery among which some are sold online:

Items which are sold online include:

15
CHAPTER I - INTRODUCTION

1) Bridal jewellery

Maangtika is worn on the forehead by the bride. This is a reason why


most of the bridal hair styles bear centre parting. It usually consists of a string a with a centre
piece attached to one end. In varied cultures, the form of the maangtika varies. It is even seen as
a crown in some regions.

Necklace is the most eye catchy piece of jewellery, worn


by the bride. It comes along with matching ear rings and nose piece. Moreover, attention is paid
that it complements the colour of your attire and neck line. A choker is deemed perfect for such
an occasion, coupled with a long necklace.

16
CHAPTER I - INTRODUCTION

Earrings are usually match the necklace. You can


choose between varieties like long heavy ear rings or short loops, from antique ear rings to small
studs, depending upon your wedding outfit's colour and design.

Nose ring is another essential jewellery item to be


worn by the bride. It is also chosen keeping in mind the colour and design of the ear rings. The
traditional nose piece is known as 'Nath', which consists of a studded nose ring with a long chain
hooked up in the hair. In case the nose is not pierced, there are nose studs available, which can be
temporarily worn by the bride for the ceremony.

17
CHAPTER I - INTRODUCTION

Bangles are the symbol of the nuptial rituals. As a


result, the bride wears both gold as well as glass bangles on her wedding day. The glass bangles
are mostly of the colour of the wedding dress. However, the gold bangles are the ones gifted by
the mother in law.

Arm bands also called as Vanki or armlets enhance the beauty


of the bride, elating her grace and elegance. It is a traditional and regal jewellery item, which has
become quite a fashion statement today. For a more stylish look, they are worn only on one arm.

18
CHAPTER I - INTRODUCTION

Rings are also vital to the embellishment of the bride. Usually the
bride wears a Hath phoolhar in her hands. This consists of five rings for all the fingers,
connected with a central piece, further connected with a bracelet, to be worn in the hand.

2) Fashion Jewellery

Fashion jewellery is also called costume jewellery, mainly for the reason that it is not made of
precious metals and stones, rather lighter and cheaper material are used. Fashion jewellery is
trend-conscious and keeps on changing as per changing needs. For those who are open to
experimentation with new and unusual designs, shapes and colours, costume jewellery offers
plethora of choices. Rather than using precious ingredients, like gold, silver, platinum and white
gold, fashion jewellery designers use cheap products, like jute, leather, peppier Mache, Bakelite
plastic, wood, bone, stone, oxidized metal, horn, lac, terracotta, etc. Fashion jewellery is almost
like an imitation of real jewellery and has been considered cheaper copy of the latter. It is widely

19
CHAPTER I - INTRODUCTION

available and is pretty light-weight, which forms one of its USP also. The process of making
costume jewellery is such that its look deceives for original and authentic version. In place of
precious stones, artificial stones, such as cubic zirconia and rhinestones, are used. Such jewellery
is available in several colours and looks very attractive. At the same time, it's readily available
and has economical prices. In India also, the concept of fashion jewellery is very much prevalent,
especially amongst the college going teenagers. Since the prices are cheap, they can get a wide
variety and also keep up with the changing fashion. Indian fashion jewellery industry is growing
in quantum, patronized mainly by the youngsters. Following are the most popular products
forming a part of the costume jewellery of India.

Types of costume jewellery:

Spiral bangles and rings


Glass beads, strung on nylon
Chunky tribal jewellery
Surgical steel jewellery
Ornaments with symbols and messages
Charm jewellery, such as mood rings, charm bracelets and others.
Tattoo jewellery
Chandelier earrings
Sterling silver jewellery, studded with artificial stones
Abstract jewellery
Body piercing jewellery

20
CHAPTER I - INTRODUCTION

The following are usually now sold online but maybe made on customers demand by
certain online retailers

3) Antique Jewellery

The jewellery which is not in mainstream production and of which the mode of
production is no longer popular is known by the name of 'Antique Jewellery.' This kind
of jewellery has dull and rough look, combined with an old world-world charm, and this
serves as the major USP of such jewellery. It takes you back to yore era, by its unfinished
and dull looks. The jewellery pieces in antique jewellery usually belong to a particular
period of history, when its popularity was at its peak.

In India, you can find antique jewellery in numerous forms, like meenakari, kundan
work, and so on. Those pieces of antique jewellery that are extremely rare are usually
sold at auctions, in antique stores and curio shops. They include the jewellery that
belongs to the early period of history. It is this rarity of antique jewellery that makes it so

21
CHAPTER I - INTRODUCTION

appealing. However, at times, jewellery that is furnished in antique pattern is also given
the name of antique jewellery.

Still, those who really value the rarity and exclusivity of antique jewellery, go for the
original pieces. Antique jewellery embodies the unadulterated jewellery tradition of the
country, in the earlier times, concentrating on ethnic motifs and stones, metal and design.
The antique jewellery of India is popular not only within its own territorial boundaries,
but also finds favour amongst people belonging to UK, USA and other western countries.

4) Bead Jewellery

Bead art in India is five thousand year old and dates back to the time of Indus Valley
Civilization. People of that civilization used to make beads out of gold, silver, copper,
clay, ivory and even wood. The excavated carried out there came out with finished and
unfinished beads from the site. After looking onto them, one gets amazed at the
wonderful sense of bead work and jewellery at that time. India is amongst the largest

22
CHAPTER I - INTRODUCTION

producers of glass beads and particularly, the beads produced in Banaras are exported in
large quantities.

During Mughal era also, bead jewellery was in vogue. Bead necklaces of different size
and shapes, made up of precious and semi-precious stones, were quite popular during that
time. Later on, when Europeans came to India, the bead work became more transparent
and semi-transparent. Europeans looked for better and refined as well as transparent bead
work, which enabled the artisans to develop their art up to the optimum. This led to
widening of the horizon of bead jewellery making.

The bead making part of making bead jewellery is extremely intricate and time
consuming. As regards the procedure for the same, the material out of which beads are to
be made is first chiseled to obtain a desired shape and size. Thereafter, a hole is drilled
into the material, so that a string passes through it, facilitating the stringing of a number
of beads together. This whole process is time consuming and asks for lots of patience.
Indian craftsmen have known the making of silver beads since ancient times.

Karnal city is known for hollow beads made out of silver. These days, beads made out
sterling silver are gaining popularity. Now is the time for fancy glass beads, coloured
glass beads and crafted metal beads too. Today, glass beads have become a part of the
jewellery worn by urban women in India. Beads made from semi-precious stones also
continue to be popular in the country. Beads come in an assortment of shapes and colours
and at times, are carved also. Other than the use in jewellery, they are used for
embroidery works too.

23
CHAPTER I - INTRODUCTION

5) Jadau Jewellery

Jadau Jewellery forms one of the major examples of high skilled craftsmanship that was
brought into India by Mughals. Historically speaking, the tradition of Jadau work has
been in practice in the states of Rajasthan and Gujarat since the Mughal era. Jadau
jewellery is also called engraved jewellery and is unique and a kind in itself. Considered
to be a traditional jewellery of India, it is used in many traditional and auspicious
occasions, like marriages and festival celebrations.

Though the art was introduced by in India Mughals, Indian craftsmen made it popular by
adding their indigenous skills. In Jadau jewellery, precious and semi precious stones,
gems, crystals and beads are embedded in gold, which is first melted a bit. When the gold
becomes pliable, the stones are set on it with great precision and artistry. After that, it is
allowed to cool down and the stones and gems get fixed on it without any adhesive or
carvings.

Jadau work is team work, where a group of craftsmen are involved together. Each
craftsman carries out a specific task related to the jewellery creation. The chiterias make
the basic design, ghaarias are responsible for engraving and making holes, Meenakari or

24
CHAPTER I - INTRODUCTION

enamelling is done by the enameller and the goldsmith takes care of the kundan or the
gold. These days, Jadau is done on not just jewellery, but also jewellery boxes and
delicate showpieces.

Uncut diamonds called polki or vilandi are used as the central stone. Meenakari or art
work done at the back of the jewel is purely for beautifying purposes. Highest care and
attention is given towards the detail on every piece that the master craftsman creates. The
stone setters first set the stone in silver foil, and then fuse with a finishing of pure gold.

6) Kundan Jewellery

During Mughal period, the art of kundan work reached Rajasthan from Delhi. Later on,
craftsmen from the different part of the country migrated to the place and made Rajasthan
a hub of Kundankari. Rulers and feudal lords gave patronage to the art and it developed
into perfection. Today, Kundankari is known the world over, with Rajasthan serving as
its epicenter. Kundankari is basically done on gold and silver jewellery. The beauty of
kundan work lies in the precise setting of stones into kundan and the overall look of the
ornament.

25
CHAPTER I - INTRODUCTION

Traditional kundan jewellery has stones encrusted on one side and colourful and intricate
meenakari on the reverse. The entire technique of Kundankari lies in the skillful setting
of gems and stones in gold, which is rarely solid. Holes are cut for the gems, engraving is
carried out and the pieces are enameled. The core of the ornament is made out of lac, a
natural resin. Later, lac is inserted into the hollow parts and is then visible from the front,
through the holes left for the gems. Highly refined gold or kundan is used to cover the lac
and gems are then pushed into the kundan.

To increase the strength of the joints and to give it a smooth finish, more kundan is
applied. Kundankari is such a specialized work that it is carried by a group of craftsmen,
each carrying out a specific task. The chiterias make the basic design, the ghaarias are
responsible for engraving and making holes, meenakari or enameling is done by the
enameller and the goldsmith takes care of the Kundan or gold. The jadiyas or stone
setters, set stones such as jade, agate, garnet, emerald, rock crystal, topaz, amethyst, and
spinel into kundan.

26
CHAPTER II
RESEARCH
METHODOLOGY
CHAPTER II RESEARCH MOTHODOLOGY

i. NEED & IMPORTANCE OF THE STUDY

While buying any product, a consumer displays different kinds of behavior towards
different kinds of products from soap to a car. More complex decisions involve more
buying participants, affecting the consumer behaviour, especially in a place like India.

In India, gold jewellery is an important part of the society as it is not only worn as an
adornment but also has a traditional and sentimental importance in the Indian society.
However, gold jewellery being a very expensive product which satisfies the self
esteem needs of a consumer (According to Maslows hierarchy of needs), the
consumer shows a complex buying behaviour. Consumers are highly involved when
the product is expensive, risky and highly self expressive.

With rapid modernization and increasing use of internet, consumers nowadays are
purchasing jewellery online and the online jewellery sector has become one of the
fastest growing sectors. A decade ago, no one would have thought that something so
expensive would be purchased online because during that period a jewellery purchase
always meant a visit to the trusted retailer.

Hence the study conducted helps me to analyze the changing market trends in the
jewellery sector, changing consumer preferences and consumer buying behaviour
with respect to online jewellery shopping.

27
CHAPTER II RESEARCH MOTHODOLOGY

ii. SCOPE OF THE STUDY

The study is conducted to understand the various aspects of customer buying preferences
towards online jewellery shopping in Hyderabad. The findings and conclusions from this
study are based on responses of jewellery customers in the city only. This study will be
helpful to some extent in gaining an insight into Customer Preferences in buying
jewellery online and buying jewellery from offline retailers

iii. OBJECTIVES OF THE STUDY

To understand the awareness about the online shopping of jewellery amongst the
consumers
To know the consumer preference towards online jewellery shopping
To explore the online jewellery market and analyze the scope of its growth

28
CHAPTER II RESEARCH MOTHODOLOGY

iv. DATA COLLECTION METHODOLOGY OF THE STUDY

The data for this study was collected though a questionnaire. A structured questionnaire
is framed as it is more convenient, less time consuming and, easy to analyze and
interpret. Moreover collecting the data through primary sources, i.e. the direct consumers,
gives us the latest information which is very helpful. Only a close-ended questionnaire
has been used.

Collection of Data

Primary data It was the main source of data collection. Primary data was
collected using a structured questionnaire which was personally sent to each of
the respondents.
Secondary data The study also included secondary data which was collected
from various different sources like magazines, articles, books and the internet.

v. SAMPLE SIZE

Since it is not possible to study the whole population residing in Hyderabad, hence only 75
consumers residing in different areas of Hyderabad were involved.

vi. SAMPLING TECHNIQUE

The sampling technique used for the study is convenience sampling. Convenience sampling
technique is one of the main types of non-probability sampling techniques. It is a method of
drawing representative data by selecting the sample which is easily available. This method is
helpful when the time period of the study is less as the data can be collected quickly. The main
advantage of this technique is the easy availability of data and the quickness with which it can be
selected.

29
CHAPTER II RESEARCH MOTHODOLOGY

vii. LIMITATIONS OF THE STUDY

Since the time period of the study was only one month, an in depth analysis
could not be done
The sample size of the study being only 75, would not give a comprehensive
result and may ignore many important samples.
Since the sample size is small and the survey covers only a part of Hyderabad,
the results cannot be generalized
The sample taken and the conclusion drawn may lead to only one side of the
study if there is lack of awareness about online jewellery shopping among the
consumers.

30
CHAPTER III
REVIEW LITERATURE
CHAPTER II REVIEW LITERATURE

Indias jewellery market is offering a massive opportunity for online startups because of the
booming e-commerce industry. During the last five years many new online ventures have been
started like Caratlane, Bluestone, etc. which have now established themselves as major players in
the online jewellery sector. The online jewellery market is still at its nascent stage and has a lot
more potential to grow. Although at present the total revenue of the online jewellery may not
even be one percent of the total jewellery market but with rapid modernization and increasing
usage of the internet this scenario is sure to change. The online jewellery market is expected to
grow up to 3 times from what it is now in the next five years.

Source: http://articles.economictimes.indiatimes.com/2015-04-26/news/61542707_1_jewellery-
market-caratlane-mithun-sacheti, (Indias jewellery market offers a massive opportunity to
online startups)

The IT professionals have played an important role in the growth of online jewellery sector in
India by restructuring the selling dynamics. In India where buying jewellery always meant a visit
to the traditional retailer, no one ever thought that a commodity so precious and expensive would
be purchased online. This happened only because of the efficiency, innovation and
entrepreneurship of the IT professionals who changed the consumer perception. A survey in the
year 2013 showed the online market in India may grow to 1.3 billion $ by 2015 expected to grow
at 100 percent per year.

Source: The Art of Jewellery (Role of IT professionals in the growth of online jewellery
market), October 2014.

31
CHAPTER II REVIEW LITERATURE

Even though the online jewellery sector is offering massive opportunities, setting up an online
venture is not at all easy especially in a country like India. There is a lack of proper contact
between manufacturer and retailer as it is difficult to create a platform where the two can
communicate. Consumers love personalized jewellery and this is pain for the retailers because
maintaining inventory becomes difficult and delivering the product takes time. Problems further
increase for online retailers because of the competition given by the offline retailers.

Source: http://www.stratos-invest.in/why-starting-up-in-online-jewellery-sector-is-not-easy-in-
india/, (Starting up in online jewellery sector is not easy in India)

In todays modern market, it is important to integrate both online and offline experiences for
their customers in order to sustain and maintain a good customer base. Jewellery being a high
involvement product category, the look and feel of the product is very important in a purchase
decision. Although with improved internet facilities in rural India and a bright future for
jewellery e-tailing, online jewellery is largely an urban phenomenon because majority of the
rural population are unable to navigate the technological wilderness of the shopping apps. A
recent study showed that 91 percent of the rural customers did not know how to enter their
addresses in English. A Bangalore based startup Store King was started to address the rural
problem. Keeping the difficulties faced by retailers, one thing is sure that only those retailers will
flourish in future who have both online and offline presence.

Source: The Art of Jewellery, E Tailing (September 2015)

32
CHAPTER II REVIEW LITERATURE

Although the current online sales amount to less than one percent of the total $50 billion
domestic jewellery market, it is soon catching up as issues such as pricing, quality, accessibility,
variety, lab certification and payment modes are being taken care of. The industry projections
have resulted in to a lot of funding activity in the capital intensive segment in the last two years,
much as it has seen newer companies joining the e-tail bandwagon, jewellery e-tailing has a very
bright future. While the competition in the space seems to be tough as various e-tailers are
jostling for online space, it is the designs, after sales service and prices that will determine their
success.

Source: http://retail.franchiseindia.com/article/multi-channel/eretail/Online-Jewellery-Retailers-

Riding-the-Wave-of-Internet-Consumerism.a3002/, (Online retailers riding on the wave of


internet consumerism)

33
CHAPTER IV
INDUSTRY PROFILE
CHAPTER IV INDUSTRY PROFILE

ONLINE JEWELLERY MARKET

The changing consumer trends have led to the growth of the online jewellery sector in India.
With more and more consumers opting for light weight and fashionable jewellery, the online
jewellery market has increased its horizons to a vast extent. In a country like India, where
purchasing jewellery always meant a visit to the trusted family retailer, no one thought
something so expensive and precious would be sold and purchased online. The online jewellery
market has emerged as one of the fastest growing industries in India. This industry has been
majorly driven by factors such as growing base of internet users, rising awareness among the
users and lower prices of online jewellery. It has been observed that now majority of the Indian
population is quite familiar with the internet and its widespread uses. Due to the convenience
provided by online jewellery, customers can compare the jewellery offered by different
companies easily. Asian online jewellery market has displayed a CAGR of 62.2% during the
period 2011-2014.

In India, the market has evolved over the years, with metropolitan cities such as Delhi/NCR,
Mumbai, Chennai, Pune and Bangalore driving growth in the Indian market. Customers are
intrigued by lucrative prices of online jewellery. Additionally, major players are offering
certificates of authenticity in the Indian market in order to build customer confidence. Young
Indians falling in the age group 24-35 years are driving the demand for online jewellery in the
country. The competition in Indian online jewellery market has remained concentrated among
few major players though there are more than 20 e-commerce companies operating in this
domain. Owing to the nascent size of the market, the players have been hesitant to make an entry
into the market but several offline vendors have started selling their inventory through
marketplace business model. The market for Indian online jewellery market is dominated by
Carat Lane.

34
CHAPTER IV INDUSTRY PROFILE

Though the online jewellery market is booming, it is really difficult for online retailers to expand
and grow not only domestically but also internationally due to strict legislations and customer
perceptions and sentiments. There is huge demand for online jewellery abroad but due to lots of
paper work and delivery time it is becoming difficult for retailers to meet the demand while
domestically the demand is not very high due to sentiments and perceptions of the Indian
customers. However with the increasing usage of internet and younger people showing interest in
online jewellery, the market has a good future and has a potential to growth up to three times
from now in the next five years.

There are many online shopping websites where you can purchase jewelry, some are exclusively
for jewelry for ex: Caratlane.com, Bluestone.com, WearYourShine.com, etc, whereas some of
them are e-commerce websites which provide a platform to the retailers from various different
places, who can their designs online, for ex: Amazon.com, Flipkart.com, Snapdeal.com, etc. The
following are some of the major players in the Indian online jewellery sector:

Caratlane.com
Bluestone.com
Gitanjalishop.com
Tanishq.com
WearYourShine.com
Malabargoldanddiamonds.com
Grtjewels.com
Karatcraft.com
Pngadgil.com
Kuberox.com
Jewelslane.com
Johareez.com
Velvetcase.com

35
CHAPTER IV INDUSTRY PROFILE

FOUNDERS: Mithun Sancheti, Srinivasa Gopala


YEAR OF COMMENCEMENT: 2008
HEADQUARTERS: Chennai, Tamil Nadu
ESTIMATED REVENUE: 10 Million $

Founded by Mithun Sancheti and Srinivasa Gopala, CaratLane.com has become one of
Indias leading e-commerce company for selling jewelry and one of the most visible
online brands since its inception in October 2008. CaratLane was started with a mission
to change the way diamonds and diamond jewelry is bought in India and in 4 short years,
this vision is well on its way to being realized.

It mainly deals in diamond jewellery and is largest online dealer in diamonds and
diamond jewellery in the country. The company has many variants in gold and diamond
jewellery like rings, ear rings, pendants, necklaces, bangles, and many more.

The company has shown a steady growth over the past 4 years and its current revenue is
estimated to be 10 million USD with an estimated employee base of 125 members.

36
CHAPTER IV INDUSTRY PROFILE

Figure 4.1 Revenue history of last 12 months

Caratlane has raised its funds over the past 4 years from Tiger Global in series A, C and
D. Below is the funding graph of the company.

Figure 4.2 Funding history of Caratlane

37
CHAPTER IV INDUSTRY PROFILE

FOUNDER: Gaurav Singh Kushwaha


YEAR OF COMMENCEMENT: 2011
HEADQUARTERS: Bangalore, Karnataka
ESTIMATED REVENUE: 5 Million $

Founded by Gaurav Singh Kushwaha in the year 2011 and supported by the likes of
Ratan Tata, Bluestone.com has come a long way since it was established. Today it has
become the number one e-commerce website for jewelry in India even beating the likes
of Caratlane.com. With the aim of revolutionizing real jewelry and lifestyle scenario in
India with a firm focus on craftsmanship, quality and user experience. In a short span of
time BlueStone has built a large family of loyal consumers in India and abroad.

It has more than 4000 unique designs on its website which include all variants be it
diamond, stones, gold, silver, etc. Its net revenue is estimated to be 5 million USD and its
investors include the likes of Ratan Tata, Accel Partners, Kalaari Capital, Saama Capital,
IvyCap Ventures and Dragoneer Investment Group. It has an estimated employee base of
about 100 members.

38
CHAPTER IV INDUSTRY PROFILE

Figure 4.3 Revenue history of Bluestone over last 12 months

Figure 4.4 Funding history of Bluestone over the last 2 years

39
CHAPTER IV INDUSTRY PROFILE

FOUNDER: Sourav Lodha


YEAR OF COMMENCEMENT: 2012
HEADQUARTERS: Jaipur, Rajasthan
ESTIMATED REVENUE: 1 Million $

KuberBox, is a fine jewellery brand from KuberBox Lifestyle Pvt. Ltd. with a strong
focus on quality, affordability & reach. It was started in December 2012 by a qualified
diamond professional, Sourav Lodha, who also happens to be an Electronics Engineer.
For Sourav, KuberBox is not the first startup he has founded and thus he has deep
insights into the market. Sourav, with his experience and education, understands the role
of technology in the otherwise still traditional gems & jewellery sector.

It may now be having a big employee base but with its 5 member team it has come a long
way since establishment and today its net revenue is estimated to be 1 million USD. Its
tagline, We offer experience, not jewellery is a unique one which attracts customers. It
provides a catalogue to customers who can place orders and also offers exchange
schemes where the customers can exchange old jewellery for new ones.

40
CHAPTER IV INDUSTRY PROFILE

FOUNDER: Kapil Hetamsaria, Runit Shah


YEAR OF COMMENCEMENT: 2013
HEADQUARTERS: Mumbai, Maharashtra

Velvetcase.com is an online marketplace of curated fine jewellery from designers across the
globe. There is not much known about Velvetcase because it is a recent startup. It has a 17
member development and management team which is running the company and with its unique
designs and presence all over the world, it has a potential to grow into a global giant within a few
years. The company has been funded with 1 million USD by the Chennai Angels a Venture
Capitalist firm. One can also visit the lounge, and meet their experts who assist customers to
choose from a variety of designs available in the vast collection of fine jewellery available.

41
CHAPTER IV INDUSTRY PROFILE

FOUNDED BY: PC Jewellers


YEAR OF COMMENCEMENT: 2014

It was launched by PC Jewelers in the year 2014 as a part of its new campaign for todays
women Nayi Roshni Naya Vishwas. Wearyourshine.com was started only as an online
platform for to sell designs of PC Jewelers but at present it sells jewelry of various other brands
such as Blue Nile, Augrav, Kama Jewellery, Ornomart, etc. Wearyourshine is an online
discovery platform focusing on intricacy with usability, tradition with sophistication, design with
value and transparency with great customer experience. It has its presence on all social media in
order to serve the customers better. It strongly believes that transparency is the key to success.

42
CHAPTER IV INDUSTRY PROFILE

FOUNDER: Mukesh Gajra

YEAR OF COMMENCEMENT: 2010

It was started on December 5, 2010 by Tanya Gajra and Ajay Nihalani, and led by the current
CEO Mukesh Gajra. Karatcraft.com is a full service jewellery retail brand selling Gold
Jewellery, Diamond Jewellery, Platinum Jewellery and Silver Jewellery. Its Collection includes
mens jewellery like rings, chains, bracelets. For women they have everything that you would
want either as Casual jewellery, Bridal jewellery or Cocktail jewellery. They also serve
wholesale orders for dealers and distributors.

43
CHAPTER IV INDUSTRY PROFILE

FOUNDER: Harvey Kanter

YEAR OF COMMENCEMENT: 1999

HEADQUARTERS: Seattle, Washington, United States

ESTIMATED REVENUE: 435.9 Miilion $

Blue Nile is an online specialty retailer of fine jewelry. Blue Nile was founded in 1999 and today
is the largest online retailer of diamonds. Blue Nile is based in Seattle, Washington and competes
with traditional jewelry stores such as Tiffany & Co., and online retailer stores such as James
Allen, Belgium Diamonds and Angel City Jewelers. The key feature of being able to search
through thousands of diamonds by carat weight, cut, clarity, color and other characteristics, is
what attracts many customers to the website.

It is an internationally recognized brand with an estimated revenue of 435.9 million USD and an
employee base of about 500 employees. Recently it has signed a pact with the reputed Indian
jeweler PC Jewellers.

44
CHAPTER V
DATA ANALYSIS AND
INTERPRETATION
CHAPTER V DATA ANALYSIS AND INTERPRETATION

1. Distribution of age groups.

NO. OF
RESPONSE RESPONDENTS
20-30 55
30-40 9
40 & Above 11

Table 5.1 Distribution of age groups

AGE
20-30 30-40 40 & above

14%

12%

74%

Figure 5.1 Distribution of age group

Interpretation

Majority of the respondents, i.e. 74% belong to the age group of 20 30 years; while 12%
belong the age group of 30 40 years; and 14% i.e. 11 respondents belong to the age group of 40
years & above.

45
CHAPTER V DATA ANALYSIS AND INTERPRETATION

2. Distribution based on gender.

NO. OF
RESPONSE RESPONDENTS
Female 40
Male 35

Table 5.2 Distribution based on gender

GENDER

Male
46%
Female
54%

Figure 5.2 Distribution based on gender

Interpretation

54% of the 75 respondents i.e. 40 are female respondents while 46% i.e.35 of the respondents are
male.

46
CHAPTER V DATA ANALYSIS AND INTERPRETATION

3. Distribution based on marital status.

NO. OF
RESPONSE RESPONDENTS
Single 18
Engaged 12
Married 45

Table 5.3 Distribution based on marital status

MARITAL STATUS
Single Engaged Married

24%

60% 16%

Figure 5.3 Distribution on marital status

Interpretation

24% of the total respondents i.e. 18 respondents are single; 16% i.e. 12 respondents are engaged;
and 60% i.e. 45 respondents are married.

47
CHAPTER V DATA ANALYSIS AND INTERPRETATION

4. Distribution based on income.

NO. OF
RESPONSE RESPONDENTS
Below 5 lacs 21
5 to 10 lacs 24
10 lacs & Above 30

Table 5.4 Distribution based on income

INCOME DISTRIBUTION
Below 5 lacs 5 to 10 lacs 10 lacs & Above

28%
40%

32%

Figure 5.4 Distribution based on income

48
CHAPTER V DATA ANALYSIS AND INTERPRETATION

Interpretation

Majority of the respondents belong to income group of 10 lacs & above, though there is not
much difference between the incomes of the other respondents as well.

28% respondents belong to the income group of below 5 lacs; 32% belong to the income group
of 5 lacs to 10 lacs; and 40 % belong to the income group of 10 lacs & above.

49
CHAPTER V DATA ANALYSIS AND INTERPRETATION

5. Why do you purchase jewellery?

NO. OF
RESPONSE RESPONDENTS
As Investment 16
As Adornment 23
Both 36

Table 5.5 Purchasing jewellery

PURCHASING JEWELLERY

Investment
22%
Both
48%

Adornment
30%

Figure 5.5 Reason for purchasing jewellery

Interpretation

Out of the total 75 respondents, 22% i.e. 16 respondents purchase jewellery as a long term
investment asset; 30% i.e. 23 respondents purchase jewellery as an adornment; and 48% i.e. 36
respondents purchase jewellery for both investment and adornment reasons.

50
CHAPTER V DATA ANALYSIS AND INTERPRETATION

6. When did you last purchase jewellery?

NO. OF
RESPONSE RESPONDENTS
Past month 10
Between 1 and six months 33
Between 6 months and 1 year 10
1 year or older 22

Table 5.6 Last Jewellery purchase

LAST JEWELLERY PURCHASE


In the past month Between 1 month and 6 months ago
Between 6 months and 1 year ago 1 year ago or older

14%
28%

14% 44%

Figure 5.6 Chart on last jewellery purchase

Interpretation

14% of the total respondents (10 respondents) purchased jewellery in the last month; 44% of the
total respondents (33 respondents) last purchased jewellery in a period between last month and 6
preceding months; 14% of the total respondents (10 respondents) purchased jewellery in a period
between 6 months to 1 year; and 28% of the total respondents (22 respondents) purchased
jewellery in the last year or even before that.

51
CHAPTER V DATA ANALYSIS AND INTERPRETATION

7. From where would you prefer to purchase jewellery?

NO. OF
RESPONSE RESPONDENTS
Branded store 22
Trusted Retailer 44
Online 9

Table 5.7 Preferred place

PREFERRED PLACE

Online
12%

Branded store
30%

Trusted retailer
58%

Picture 5.7 Preferred place of purchase

Interpretation

Even today more than 50% of the respondents prefer purchasing jewellery from trusted retailers
while only 12% of the respondents prefer purchasing jewellery online and the remaining 30%
prefer purchasing jewellery from branded stores.

52
CHAPTER V DATA ANALYSIS AND INTERPRETATION

8. What are the factors you consider before making a jewellery purchase?
(Note: Multiple options can be selected)

NO. OF
RESPONSE RESPONDENTS
Price 40
Goodwill of the Retailer 45
Brand 37
Design 29
All of the above 10

Table 5.8 Factors considered before purchase

FACTORS INFLUENCING JEWELLERY


PURCHASE
50
45
40
35
30
25
20
15
10
5
0
Price Goodwill of the Brand Design All of the above
Retailer

Figure 5.8 Bar graph on factors considered before purchase

Interpretation

Out of the total 75 respondents, 40 respondents consider price as an influencing factor in the
purchase decision; 45 considered the goodwill of the retailer as the influencing factor in the

53
CHAPTER V DATA ANALYSIS AND INTERPRETATION

purchase decision; 37 respondents considered brand to be the influencing factor in the purchase
decision; 29 respondents said design influences their purchase decision; and 10 respondents said
they consider all the above factors before making a jewellery purchase.

54
CHAPTER V DATA ANALYSIS AND INTERPRETATION

9. Are you aware of jewellery being sold online?

NO. OF
RESPONSE RESPONDENTS
Yes 66
No 9

Table 5.9 Awareness

AWARENESS

No
12%

Yes
88%

Figure 5.9 Consumer awareness

Interpretation

Awareness regarding jewellery being sold online is very high among consumers as 88% of the
respondents said that they are aware while only12% respondents responded as no.

55
CHAPTER V DATA ANALYSIS AND INTERPRETATION

10. How did you come to know about online jewellery shopping?
(Note: Multiple options can be selected)

NO. OF
RESPONSE RESPONDENTS
Television 25
Radio 0
Social Networking Sites 50
Newspapers 21
Other 5

Table 5.10 Source of information

SOURCE OF INFORMATION

50
40
30
20
10
0
Television Radio Social Newspapers Other
Networking
Sites

Figure 5.10 Source of information

Interpretation

25 respondents got to know about online jewellery shopping through television; none trough
radio; 50 respondents through social networking sites; 21 respondents came to know trough
newspapers; and 5 people came to know through other sources (friends, family, etc.).

56
CHAPTER V DATA ANALYSIS AND INTERPRETATION

11. Have you ever or would you consider purchasing jewellery online?

NO. OF
RESPONSE RESPONDENTS
Yes, I have already purchased jewellery online 15
No, I havent purchased jewellery over the internet yet but would like to consider it 29
No, I would never use the internet to purchase jewellery 31

Table 5.11 Purchase jewellery online

PURCHASE JEWELLERY ONLINE


Yes No, but would like to consider No, and would never use the internet

20%
42%

38%

Figure 5.11 Purchase of jewellery online

Interpretation

Only 20% of the total respondents i.e. 15 respondents have purchased jewellery online; 38% i.e.
29 respondents havent purchased jewellery online yet but are open to do so in the future; and
42% i.e. 31 respondents said they will never purchase such precious item online.

57
CHAPTER V DATA ANALYSIS AND INTERPRETATION

12. Why did or would you purchase jewellery online?


(Note: Multiple options can be selected)

NO. OF
RESPONSE RESPONDENTS
Convenience 29
Prices are better than offline retailers 24
Discounts and coupons 22

Table 5.12 Reasons for online purchase

REASONS TO PURCHASE JEWELLERY ONLINE


30
25
20
15
10
5
0

Convenience
Prices are better
than offline retailers Discounts and
coupons

Figure 5.12 Reasons for online purchase

Interpretation

29 of the respondents said they purchased or would purchase jewellery online because it is a
convenient option; 24 of the respondents said they purchased or would purchase jewellery online
because the prices are better when compared to offline retailers; and 22 respondents said they
found the discounts and coupons to be attractive.

58
CHAPTER V DATA ANALYSIS AND INTERPRETATION

13. What are the difficulties you think you would face if you purchase or have purchased
jewellery online? (Note: Multiple options can be selected)

NO. OF
RESPONSE RESPONDENTS
Payment processing 14
Delay in delivery of the product 16
Product damaged during transit 49
Wrong product being delivered 45

Table 5.13 Difficulties faced online

DIFFICULTIES

50
45
40
35
30
25
20
15
10
5
0
Payment Delay in delivery Product damaged Wrong product
processing during transit being delivered

Figure 5.13 Difficulties faced online

59
CHAPTER V DATA ANALYSIS AND INTERPRETATION

Interpretation

Majority of the respondents have the fear of product getting damaged during transit (49) and
delivery of the wrong product (45) while very few responded saying the difficulties they faced
were that related to payment processing (14) and delay in delivery (16).

60
CHAPTER V DATA ANALYSIS AND INTERPRETATION

14. How much did you or would you spend purchase of jewellery online?

NO. OF
RESPONSE RESPONDENTS
Below Rs 10,000 45
Rs 10,000 20,000 18
Rs 20,000 30,000 4
Rs 30,000 & above 0

Table 5.14 Amount spent on first online purchase

AMOUNT SPENT ON PURCHASE OF


JEWELLERY ONLINE
0%
5%

27% Below Rs 10,000


Rs 10,000 - 20,000
Rs 20,000 - 30,000
Rs 30,000 & above
68%

Figure 5.14 Amount spent on first online purchase

61
CHAPTER V DATA ANALYSIS AND INTERPRETATION

Interpretation

45 respondents said that they would not spend more than Rs. 10,000 for purchasing jewellery
online; 18 respondents said they would spend between Rs. 10,000 to Rs. 20,000 for purchasing
jewellery online; 4 respondents said they are ready to spend up to Rs. 30,000 for purchase of
jewellery online; and none of the respondents would spend more than Rs. 30,000 to purchase
jewellery online.

62
CHAPTER V DATA ANALYSIS AND INTERPRETATION

15. According to you are there more designs available online than offline?

NO. OF
RESPONSE RESPONDENTS
Yes 41
No 34

Table 5.15 Availability of designs

MORE DESIGNS ONLINE


Yes No

45%
55%

Figure 5.15 Availability of designs

Interpretation

55% of the respondents found more designs online than offline while 45% said that there are
more designs available offline than online.

63
CHAPTER V DATA ANALYSIS AND INTERPRETATION

16. What are the factors you would consider while purchasing jewellery online?
(Note: Multiple options can be selected)

NO. OF
RESPONSE RESPONDENTS
Website design and navigation 25
Trustworthiness or brand name of the online retailer 56
Payment options 36

Table 5.16 Factors influencing online jewellery purchase

FACTORS INFLUENCING ONLINE JEWELERRY


PURCHASE
60

50

40

30

20

10

0
Website design and navigation Trustworthiness of the online Payment options
retailer

Figure 5.16 Factors influencing online jewellery purchase

Interpretation

25 respondents said that website design and navigation plays an influencing role in purchasing
jewellery online; 56 of the respondents said that the trust/goodwill of the online retailer in an
important factor; while 36 respondents said that the payment options play an important role.

64
CHAPTER V DATA ANALYSIS AND INTERPRETATION

17. Is the option of cash on delivery a convenient one in case of online jewellery shopping?

NO. OF
RESPONSE RESPONDENTS
Yes 64
No 11

Table 5.17 Convenience of the COD option

IS CASH ON DELIVERY OPTION CONVENIENT

12%

Yes
No

88%

Figure 5.17 Convenience of the COD option

Interpretation

88% of the respondents found the cash on delivery option to be convenient and safe as payment
is made only after the product is received; while 12% of the respondents said it doesnt matter to
them because they dont want to purchase online anyway.

65
CHAPTER V DATA ANALYSIS AND INTERPRETATION

18. Which online retailer would you prefer to purchase your jewellery from?

NO. OF
ONLINE RETAILERS RESPONDENTS
www.gitanjalishop.com 12
www.caratlane.com 21
www.bluestone.com 6
www.pcjeweller.com 14
www.amazon.com 12
Other 10

Table 5.18 Preferred online retailer

PREFERRED ONLINE RETAILER

13% 16% www.gitanjalishop.com


16% www.caratlane.com
28% www.bluestone.com

19% www.pcjeweller.com
8%
www.amazon.com
Other

Figure 5.18 Preferred online retailer

Interpretation

The most preferred online retailer is Carat lane with majority votes of 21 respondents followed
by PCjeweller with 14 votes, Gitanjalishop and Amazon with 12 votes each, and least being
Bluestone with only 6 votes.

66
CHAPTER V DATA ANALYSIS AND INTERPRETATION

19. Would you need to see the jewellery item physically before making the final purchase
decision?

NO. OF
RESPONSE RESPONDENTS
Yes 68
No 7

Table 5.19 Physical verification before final purchase

PHYSICAL VERIFICATION BEFORE FINAL


PURCHASE

20%

Yes
No

80%

Figure 5.19 Physical verification before final purchase

Interpretation

80% of the total respondents said they need to see the jewellery item physically before making
the final purchase while 20% responded saying they need not verify the item physically before
making the final purchase.

67
CHAPTER V DATA ANALYSIS AND INTERPRETATION

20. Do you feel trust factor plays a vital role in online shopping?

NO. OF
RESPONSE RESPONDENTS
Yes 75
No 0

Table 5.20 Importance of trust factor

IMPORTANCE OF TRUST FACTOR

0%

Yes
No

100%

Figure 5.20 Importance of trust factor

Interpretation

All the respondents responded saying trust factor plays a vital role in the jewellery market.

68
CHAPTER VI
FINDINGS, SUGGESTIONS
AND CONCLUSION
CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSIONS

FINDINGS

The following are findings of my analysis:

Consumer trends have changed. Consumers are now purchasing jewellery not only for
investment but also as an adornment, due to the change in fashion trends.
Jewellery being a high involvement product category, majority of the consumers still
prefer purchasing jewellery from trusted retailers over branded stores and online retailers.
The most important factor that the consumers consider before making a jewellery
purchase is the goodwill of the retailer, followed by price, brand and designs available.
Consumer awareness regarding online jewellery is very high amongst young
professionals and the major source of information is social networking websites.
Even though the awareness is high regarding online jewellery, consumers restrain from
purchasing jewellery online because of the fear of the product getting damaged during
transit or the original product not being delivered and even if they are purchasing online,
they are not willing to spend more than RS. 10,000.
Among various online jewellery retailers, Caratlane.com is the most trusted and popular
among consumers in Hyderabad.
Trust factor has been found to play a significant role in the jewellery industry.

69
CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSIONS

SUGGESTIONS

Online retailers should improvise advertising and come up with some innovative
advertisements to grab the attention of the consumers.
As 80% of the respondents said that they would need to see the jewellery item physically
before purchasing, online retailers can come up with the option of try at home service.
Online retailers can provide attractive discounts and offers during festive season when the
demand for gold jewellery is high.
The online retailers can either tie up with branded offline retailers or open their own
chain of stores because in todays market both online and offline presence is equally
important to improve the customer base.

70
CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSIONS

CONCLUSION

Customer perception is subjective in nature as it differs with every individual. Customer


perception refers to the process by which a customer selects, organizes, and interprets
information/stimuli inputs to create a meaningful picture of the brand or the product. It is a three
stage process that translates raw stimuli into meaningful information. In this project report, the
consumers perception on jewellery being sold online in Hyderabad has been studied.

It is concluded from the study that consumer preferences have changed with the changing market
trends. Previously when buying jewellery always meant a visit to the traditional jeweller,
scenario has now changed as people are also purchasing jewellery online. Even though the
scenario is changing, majority of the consumers still prefer purchasing jewellery from trusted
retailers when compared to online retailers. The above problem can be overcome by integrating
both online and offline experience of the consumers as it is important to survive in the long run.
The online retailers can tie up with offline retailers or can start their own chain of stores to
expand their customer base. The online jewellery segment is still is in its nascent stage and has a
lot more potential to grow. The online jewellery segment at present is about only 5% of the
jewellery market is more popular amongst young professionals as they are more exposed to
internet and technology.

71
CHAPTER VII
BIBLIOGRAPHY &
REFERENCES
CHAPTER VII BIBLIOGRAPHY & REFERENCES

BIBLIOGRAPHY
http://yourstory.com/2015/10/online-jewellery-sector/

http://articles.economictimes.indiatimes.com/2015-11-18/news/68382481_1_caratlane-silver-
jewellery-calvin-john

http://www.gold.org/jewellery/india-market

http://www.prnewswire.com/news-releases/asia-online-jewellery-market-outlook-2015-2019---
driven-by-lucrative-discounts-and-rising-online-buyers-522072381.html

http://retail.franchiseindia.com/article/multi-channel/eretail/Online-Jewellery-Retailers-Riding-
the-Wave-of-Internet-Consumerism.a3002/

http://www.euromonitor.com/jewellery

http://www.thehindubusinessline.com/info-tech/jewellery-brand-melorra-receives-5mn-funding-
from-lightbox/article8081524.ece

http://www.thehindubusinessline.com/info-tech/jewellery-brand-melorra-receives-5mn-funding-
from-lightbox/article8081524.ece

http://icra.in/Files/ticker/SH-2013-H1-1-ICRA-Jewellery.pdf

http://www.thehindubusinessline.com/info-tech/jewellery-brand-melorra-receives-5mn-funding-
from-lightbox/article8081524.ece

http://www.wearyourshine.com/

http://articles.economictimes.indiatimes.com/2015-04-26/news/61542707_1_jewellery-market-
caratlane-mithun-sacheti

http://articles.economictimes.indiatimes.com/2015-11-18/news/68382481_1_caratlane-silver-
jewellery-calvin-john

http://www.thehindu.com/thehindu/mp/2002/12/24/stories/2002122400410100.htm

http://yourstory.com/2015/10/online-jewellery-sector/

http://jeweltrendz.in/increasing-e-commerce-to-boost-jewellery-industry/
CHAPTER VII BIBLIOGRAPHY & REFERENCES

REFERENCES

1. Abbey Nithin, March 2015, http://retail.franchiseindia.com/article/multi-


channel/eretail/Online-Jewellery-Retailers-Riding-the-Wave-of-Internet-
Consumerism.a3002/
2. Ganguly Payal, November 2015, http://articles.economictimes.indiatimes.com/2015-11-
18/news/68382481_1_caratlane-silver-jewellery-calvin-john
3. India Brand Equity Foundation, February 2016, http://www.ibef.org/industry/gems-
jewellery-india.aspx
4. Krishna V, October 2015, http://www.stratos-invest.in/why-starting-up-in-online-
jewellery-sector-is-not-easy-in-india/
5. Prabhakar Anil, The Art of Jewellery, September 2015
6. Sachitanand Rahul, April 2015, http://articles.economictimes.indiatimes.com/2015-04-
26/news/61542707_1_jewellery-market-caratlane-mithun-sacheti
7. The Art of Jewellery, October 2014
8. World Gold Council, 2016, http://www.gold.org/jewellery/india-market
9. yourstory.com/2015/10/online-jewellery-sector/, October 2015.
10. daagina.com/Indina_Jewellry_History.pdf
CHAPTER VIII
ANNEXURES
CHAPTER VIII - ANNEXURES

Questionnaire on consumer perception towards online Jewellery

1) What is your age?


20-30
30-40
40 & above

2) What is your gender?


Male
Female

3) What is your marital status?


Single
Engaged
Married

4) What is your annual family income?


Below 2 lacs
2 to 5 lacs
Above 5 lacs

5) What is your main idea behind purchasing jewellery?


As an investment
As an adornment (ornament)
Both

6) When did you last purchase jewellery?


In the past month
Between 1 month and 6 months ago
Between 6 months and 1 year ago
1 year ago or older
CHAPTER VIII - ANNEXURES

7) From where would you prefer to purchase jewellery?


Branded store
Trusted retailer
Online

8) What are the most important factors you consider while making a jewellery purchase?
(You can select multiple options)
Price
trust
Brand
Design
Goodwill of the retailer

9) Are you aware about jewellery being sold online?


Yes
No

10) How did you come to know about online jewellery shopping?
(You can select multiple options)
Television
Radio
Social networking sites
Newspaper
Others :____________
CHAPTER VIII - ANNEXURES

11) Have you ever or would you consider ordering a piece of jewellery online?
Yes, I have already ordered a piece of jewellery over the internet
No, I havent ordered a piece of jewellery over the internet yet but would like to
consider it
No, I would never use the internet to order jewellery

12) Why did or would you purchase jewellery online?


(You can select multiple options)
Convenience
Prices are better than offline retailers
Discounts and coupons
Better payment options

13) What are difficulties you think you would face if you purchase or have purchased
jewellery online?
(You can select multiple options)
Payment processing
Delay in delivery of the product
Product damaged during transit
Wrong product being delivered

14) How much would you spend to purchase jewellery online?


Below Rs 10,000
Rs 10,000 20,000
Rs 20,000 30,000
Rs 30,000 & above

15) According to you are there more designs available online than offline?
Yes
No
CHAPTER VIII - ANNEXURES

16) What are the factors you would consider while purchasing jewellery online?
(You can select multiple options)
Website design and navigation
Trustworthiness or brand name of the online retailer
Payment options

17) Is the option of cash on delivery a convenient one in case of online jewellery shopping?
Yes
No

18) Which online retailer would you prefer to purchase your jewellery from?
www.gitanjalishop.com
www.caratlane.com
www.bluestone.com
www.pcjeweller.com
www.amazon.com
Others :_______________

19) Would you need to see the jewellery item physically before making the final purchase
decision?
Yes
No

20) Do you feel trust factor plays a vital role in online shopping?
Yes
No

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