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Gemfields Report On Indian Colour Gemstone Industry

2015-09-03   04:00:00


Gemfields Releases Report On

Indian Colour Gemstone Industry

Highlights a significant rise in coloured gemstone consumption

Gemfields, the world’s leading supplier of responsibly sourced coloured gemstones, conducted a research project in collaboration with Drshti Strategic Research Services Pvt. Ltd, in order to understand attitudes towards colour gemstones in India. The research was conducted with SEC A female participants, aged 18 – 64, across eight key markets. 

At the ocassion Dev Shetty – COO of Gemfields said, “India has been a key market for Gemfields and will continue to be one of our main focus regions in the coming year. The research was commissioned to better understand the gemstones category in India along and gain further awareness of the size of the market, consumer trends in jewellery buying and the category purchase factors. The report provides comprehensive insights and analysis that will help Gemfields build a branding and communication strategy for coloured gemstones in the Indian market.”

The research also identified how single gemstone designs are the preferred choice across all jewellery categories with ruby seen as the most desired stone. Also, wedding anniversaries have emerged as the most important occasion for the purchase of gemstone jewellery. Family and friends are the key influencers followed by brand and retailer advertisements. 

Executive Summary: Consumer:

Category Code & Incidence: Gemstone Jewellery:

1:            The category has positives working in its favour in spite of low communication- is perceived as ‘fashionable/ trendy’ and scores even above diamond jewellery on this count- believed to be meant for slightly upmarket/ wealthy, fashion conscious women, though not seen as a good investment option and as something which people are not very confident buying.

2:            There are 2 forces driving the current gemstone jewellery market in India- the traditional markets like Hyderabad where it is felt like more of an Indian thing to wear and the  more modern markets like Delhi etc where the category is seen as a fashion symbol.

3:            Currently ~19% of the respondents own some sort of jewellery with natural color gemstone in it- 11% own it only for ornamental or jewellery purpose, 5% own it because of some astrological purpose and 3% own it for both. Center wise variations do exists with Hyderabad having close to 50% ownership and Ludhaina on the other extreme with 7% current ownership.

4:            Majority of owners of jewellery with natural colour gemstone own a ring (Ring- 75%, Earring- 20%, Pendant- 15%, Necklace- 14%). By type of pieces currently owned, ~60% are rings, 11% are earrings, 7% are pendants and 7% are necklace.

5:            For Earrings, Pendant and Necklace – the purpose of ownership is by and large for ornaments, however for rings, over 40% of the pieces are owned for astrological purposes.

 Acquisition in last 1 year:

1:            11.5% respondents acquired jewellery with natural colour gemstone in the last 1 year across the 8 cities covered- with Hyderabad having the highest proportions of acquirers of jewellery with gemstones- ~34%.

2:            The average number of pieces acquired across 7 cities barring Hyderabad was ~1. However, in Hyderabad, the average pieces acquired were 2.4.

3:            In terms of people, out of the total universe population of these 8 cities of 4.67 mn, ~.54 mn people acquired jewellery with natural color gemstones. The total number of pieces acquired was .84 mn - Hyderabad and Delhi together account for 62% of the acquirers and 70% of pieces acquired.

4:            Average price for all types of pieces taken together was INR 43,500 or ~USD 700 (Ring- INR 31k, Earring-INR 41K, Pendant- INR 67K, Necklace- INR 91K). The total Market Value of pieces acquired last year is ~INR 34-38 bn or USD 540-600 mn- ~10-15% of this value is the astrological pieces market.

5:            The pattern of break-up of different jewellery pieces acquired in the last 1 year is similar to that of ownership (Ring- 52%; Earring- 14%; Pendant- 9%; Necklace-9%; Others-16%).

6:            Acquisition of combination stones jewellery is higher (62%) compared to single stone jewellery (38%).

Entry into the Category, Occasions of Purchase & Barriers:

1:            Small ticket items like rings (63%) & earrings (18%) are preferred as entry pieces with close to 30% of the respondents enter the category for ‘in fashion/ trendy/ looks attractive’ sort of reasons.

2:            84% of the Gemstone jewellery purchase happens for some special occasion - the biggest ones appear to be Wedding anniversary (24%), Birthdays (16%) and Wedding (10%). The occasion of gifting is more prominent for wedding anniversaries (30% vs 21%)- the biggest motivator to purchase jewellery with natural color gemstone is to celebrate a relationship milestone (30%) followed by impulse purchase (17%) and to celebrate a personal milestone (14%).

3:            Word of mouth is by far the most important influence on purchase decisions, not just from family but from friends and sales person also thus it is imperative to get a positive word of mouth going first while building the brand through communication/ ad.

4:            The barriers to purchase can be categorised into two sets- First set of rejections are directly associated with the Gem stones like “It is purchased for astrological reasons only”, “Low resale Values”, the second set, however, is associated with the consumers’ mindset like “Never occurred to buy gem stones, “Not a priority”, “Don’t know enough” and Not interested in Gem stones”.

5:            Both the second and the first set of rejections can be reversed through a communication campaign which can set right some of the misplaced views on Gem stones acquisition.

Executive Summary: Retailers:

Trends:  Current Clientele of Gemstone Jewellery:

1:            Almost all retailers of jewellery with natural coloured gemstones said that their clientele currently comprises of rich/upper class and upper middle class women following fashion trends closely- spread across age groups- customers who buy modern and delicate jewellery with gemstones are usually young working professionals, while traditional bulky jewellery is usually sought out by the middle aged ladies. The middle class females & males also purchase gemstone jewellery, but this is limited to jewellery for astrological purposes mainly.

2:            In terms of social classes, majority of the retailers feel that there is not going to be much of a change in the profile of the customers in the coming times- it is going to be limited to rich class & upper middle class females itself.

3:            However, in terms of age-groups, the trend is already changing with younger individuals- mainly working professionals seeking modern & fashionable delicate jewellery for daily wear- preferring to buy gemstones jewellery.

Trends: Type of Gemstone Jewellery:

1:            Some of the retailers feel that ruby-in different combinations- would still be the most preferred gemstone, followed by Emerald & Sapphire. Combination of ruby with diamonds, ruby with emeralds and ruby with pearls will be sought out more.

2:            However, a certain set of retailers feel that single studded gemstone jewellery & modern delicate jewellery will be more in demand as more working professionals and college going students are coming into the fold and are looking for jewellery suitable for daily wear & in fashion.

3:            Retailers in Jaipur have mentioned increasing demand for green coloured stones. Retailers in South, Mumbai & Kolkata feel that demand for Tanzanite will increase in coming times.