Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
A Study on the Perception of Customers towards Branded
Jewelry
K.K.Ramachandran and K.K.Karthick
Branded jewellery products have created a sort of revolution in the field of jewellery
retail market. The main attraction of branded jewels is that they have a unique style of
their own that differentiates them from others. Moreover the designs of the ornaments
are exquisite and have a futuristic approach that offers people a break from the
monotonous pieces that are not in vogue anymore. Each jewel has an element of
distinctiveness and newness that makes it preferable to the rest of the options. These
collections of ornaments are designed in pure gold and diamond and they are
synonym for fitness. The credit for coming up with these ultramodern pieces of
jewellery goes to Malabar Gold. The branded jewellery products have a great impact
on the purchasing power of the consumers and the sale of branded products is
increasing.
Introduction
Gold has always fascinated the mankind’s imagination and influenced their urge to
possess the same. Gold occupies a pivotal role in the social and economic life of poor
and rich alike. In India, besides the economic and strong social considerations,
individuals are highly sentimental about the gold jewellery in their possession, as the
gold ornaments are passed on from one generation to another. Acquisition of gold is
considered auspicious and necessary for making family ornaments to get a sense of
wellbeing in our country. Gold is increasingly considered as an investment that
appreciates over years and provides a hedge against inflation. Gold is also considered
as a medium that can be pledged easily during difficult times for securing financial
accommodation.
Till the early 1990s the consumers bought jewellery for investment rather than for
adornment. At that period confidence in the non-branded jewelry was the hallmark of
the gold jewellery trade in India. A jeweler or goldsmith in a local area had a fixed and
loyal clientele. The buyer had implicit faith in his jeweler. Additionally, the non-branded
jeweler catered to the local taste for non-branded jewelry products. However, since the
late 1990s, there was a shift in consumer taste and preferences. The modern world
witnessed a definite change in consumer perception. There was a rise in demand for
Branded and lightweight jewellery products. Women were increasingly opting for
fashionable and light weight jewellery instead of chunky jewellery. So in order to gain
market share, jewellery shops were forced 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. To compete with traditional jewellers, branded players
were forced to find out some way to differentiate themselves.
__________________________________________________________
Dr.K.K.Ramachandran, Director, GRD Institute of Management, Dr.G.R.Damodaran College of Science,
Coimbatore, Mail: dr.k.k.ramachandran@gmail.com
Dr.K.K.Karthick, Director, PMR Institute of Management, Chennai, Mail: karthick.hr@gmail.com
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Branded jewellery products have created a sort of revolution in the field of jewellery
retail market. It has been extremely successful in creating a stir amongst keralites. The
main attraction of branded jewels is that they have a unique style of their own that
differentiate their stuff from others. Moreover the designs of the ornaments are exquisite
and have a futuristic approach that offers people a break from monotonous pieces that
are not in vogue anymore. Each jewel has an element of distinctiveness and newness
that makes it preferable to the rest of the options. The credit for coming up with these
ultramodern pieces of jewellery goes to Malabar Gold.
Keralites always had a fondness for branded ornaments which were available
only abroad. The latest introduction of branded jewellery products of Malabar gold
includes:
1. MINE’ DIAMONDS: it is the premium diamond tudded jewellery range with most
contemporary and traditional designs for all occasions. Mine is a brand from the
joint venture between Malabar gold & Diamonds (The Leading Retail Jewelry
Chain) and Mahindra Brothers (One of the World's first & largest DTC sight
holder). 'Mine' offers exotic & exquisite range of collections in Bridal, Solitaire,
Everyday Lightweight, Men's & Platinum Diamond Jewelry. This exclusive brand
of Malabar Gold & Diamonds comes with the quality assurance of EF-VVS
diamonds with IGI (International Gemological Institute) certification, Lifetime Free
Maintenance, 100% buy-back guarantee and One Year Free Insurance.
2. ERA is an exclusive collection of uncut diamond jewellery. It is inspired by the
heritage culture of India. The designs are a fusion of ageless Indian jewellery
styles with modern trends. Mughal royalty wore these as a sign of prestige and
heritage. Exquisitely crafted in 22 Karat gold, the collection features uncut
diamonds and precious stones, offering unmatched craftsmanship, purity and
design excellence to jewellery lovers everywhere.
3. DIVINE is a tribute to Indian tradition and craftsmanship. Unique in style,
painstakingly carved, inscribed and embedded, Divine aims to revive memories
of a golden era marked by royalty, culture, and vintage lifestyles. But more than
ever, Divine marks a celebration of a bond; a union we made once, but one that
lasts a lifetime. Inspired by nature, fuelled by beauty and belief, it is the result of
artistic imagination and fine craftsmanship connecting the prehistoric ages to the
present day, Divine is one of its kind in beauty and quality.
4. ETHNIX handcrafted designer jewellery is one of the most exquisite brands in
Malabar Gold & Diamonds showrooms all across India and the Middle East. This
intricately crafted collection features necklaces, pendants, earrings and bangles.
The poise of traditional craftsmanship and intricate designs is visible in every
piece, with meticulousness and graceful enamel work making them the most
cherished pieces of artistic expression. They offer customized designs for those
who aspire to be unique, and meticulously craft exclusive designs as per
individual specifications in various colours and designs, often averaging over 200
skilled man-hours on a piece.
5. STARLET - Moms love to doll up their little ones with fancy and attractive jewels.
So there is no wonder that kids’ jewellery has become very popular and a
wonderful range of jewellery articles for children are available for all age groups.
Not only do the designs have to be playful and unique to suit the mischievous
nature of children, but the metals need to be 100% child-safe and nonhazardous. Starlet jewellery is really gorgeous for children and crafted using the
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
latest in child-friendly technology; these collections will be the ideal souvenirs for
children of all ages. By introducing varieties of design Starlet grab the little minds
between the age group of 1-10, each piece is carefully created with no sharp
edges and using the most child-safe materials possible.
6. PRECIA Malabar Gold & Diamonds now presents a graceful collection of gem
jewellery for the woman today; Precia-Precious Gem Jewellery is featuring an
assortment of stunning designs, incorporating precious gems like ruby, emerald,
yellow sapphire and blue sapphire crafted in 22K gold, the vast collection of
Necklaces, bangles, earrings and rings are sure to enthrall everyone.
7. Brides of India Collection: Jewellery forms a very important part of the overall
attire of Kerala bride. In fact, the bridal look is believed to be incomplete unless
the bride wears each and every piece of jewellery meant for her. Malabar Gold is
presenting “Brides of India” Jewellery festival, wherein a wide range of bridal
collections are on display. The jewellery chain is all set to add an extra glitter to
the wedding season with specific traditional collection for brides from different
regions such as Kerala, Karnataka, goa, Tamil Nadu, Andhra Pradesh,
Rajasthan, Punjab, Gujarat, and so on. The slogan used to express the Brides of
India “ Different Cultures One Emotion”
Malabar Gold
Today Malabar Gold is a leading jeweller in South India and Middle East. It has
not only retail outlets but also runs wholesale outlets too. Malabar Gold is
reputed jewellery maker and has millions of customers across India and outside.
The name “Malabar” itself gives a clear idea of its origin, it was born on 5th July
1993 at Kozhikode, which is known as heart of Malabar. Since its inception
Malabar Gold is successful in spreading its wings throughout Kerala, Karnataka,
Andhra Pradesh and Gulf Countries. In Kerala it has 32 retail outlets.
Significance and Scope of the Study
Precious metals like gold, silver and others is being worn as ornaments
by many people all over the world and especially in India culture heritage and
custom has influenced to a very great extent to the practice of wearing
ornaments made of precious metals and stones. Gold jewellery as a business
and trade is growing at a very rapid rate. The nature of this trade is made up of
both branded and non branded manufacturers and traders. A big market
evolution is being witnessed in the form of product branding especially in the
jewellery sector. Thus Kerala which has witnessed rapid expansion in the field of
handmade jewelry products in the past many decades is now having a new type
of competition and challenge in the form of branded jewellery products and it is
occupying more shares in the jewellery market.
The study covers the perception of the consumers of Malabar Gold in
Thiruvananthapuram City, Kerala. Branded Jewellery products offered by
Malabar gold in the selected study area is studied in detail. Branded jewellery
products offered by other jewellery shops are out of the purview of the present
study.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Statement of the Problem
Gold is a highly cherished and valued commodity. Today, our most usual
encounter with gold is through our purchase and use of gold jewellery. Even in
jewellery products branding exists. Many factors may be influencing the
consumers towards branded jewellery products. What makes the consumers to
purchase branded jewellery products forms part of the present study. Malabar
gold offers variety of branded ornaments. Most of the cases consumers are not
aware of the features and benefits of all branded Products. This forms the
another important problem of the study.
Objectives of the Study
Following are the objectives of the present study.
1. To know the factors influencing the consumer towards branded jewellery
products of Malabar Gold.
2. To analyse the awareness of consumer on various branded jewellery products of
Malabar Gold.
3. To study the socio-demographic factors influencing consumer’s preference
towards type of ornaments.
Review of Literature
Paul Noronha(2005) in her study “Brand appeal” that published in THE HINDU
Volume 22 - Issue 23 mentioned that Branded jewellery has carved a niche for
itself in the tough Indian market and Its increasing growth rates show that before
long it will corner a significant share of the jewellery market. DTC's Supplier aims
to grow consumer demand for diamond jewellery in the context of the growing
competitive luxury goods sector.
Rncos(2006) reported in his article “Indian Customers Showing Interest in
Branded Jewellery” that Indian Gems and Jewellery Market Future Prospects to
2011, gems and jewellery market in India possess tremendous potential for
future growth. It has an added advantage of low production cost and highly
skilled labor that separate it from its competitors. It is projected that the overall
gems and jewellery market will grow at a CAGR (Compound Annual Growth
Rate) of around 14% during 2009-2012.
Zoewood and Richard watchman (2010) opined that gold has always been seen
as a safe heaven for investors at times of economic uncertainty. Authors further
explained that in 2009, India accounted for a quarter of all gold used in jewellery
products and is the world’s biggest jewellery market, a head of china, the US on
the Middle East. Further, authors have identified that gold has been a standard
medium of exchange for Indians over the centuries and almost the only means of
saving in rural areas, which account for 70 per cent of the population.
Ashwin Shah (1998) analysed the impact of recession on the branded jewellery
industry. The researcher has found out that the economic slowdown experts
believe that it will grow at CAGR of 25%. There are also statements like the
industry does not cover the entire population making a scope for further growth.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The review also brings light to the fact that the Indian consumers are price
sensitive and hence the branded jewellers cannot charge exuberant prices for
the same.
Methodology of the Study
The present study is descriptive in nature. 180 respondents were selected at
random using Judgment Sampling of Non Probability Sampling Method. Both
primary and secondary data were used for the present study. Primary data were
collected from the consumers of Malabar Gold. Separate schedules have been
used to collect the primary data in person. Secondary data were mainly collected
from newspapers and internet. Various statistical methods like percentage
analysis and chi-square test were used for analyzing the collected data. Interview
schedules were prepared and used for collecting data from the selected
respondents.
Limitations of the Study
The researchers had to confine the study on accounts of the limitations listed
below.
1. The study has been limited to the native town of the researcher.
2. The primary data were collected from the sampling respondents while they
were busy. Their considered opinion may vary from time to time. However the
validity of such data is ensured as the researcher contacted them in personnel.
3. Lack of availability of full information.
Analysis and Interpretation
Based on analysis the various interpretations are given below:
Table 1: Age Group and Preference of Branded Jewellery Products
Age
No.of
Percentage
consumers
18-25
31
17.22
26-35
87
48.33
36-45
39
21.67
Above 45
23
12.78
Total
180
100
(Source: primary data)
It is observed that out of 180 consumers 48.33 per cent of the respondents
belongs to the age category of 26-35, 21.67 per cent of the respondents belong
to 36-45, 17.22 per cent of the respondents belong to 18-25 and the remaining
12.78 per cent belong to the age group 0f above 45.
Majority of the respondents belong to the age group of 26-35
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Table 2: Education-Wise Classification
Educational
No.of
Percentage
Status
consumers
Under
35
19.44
Graduate
Graduate
71
39.45
Post Graduate
74
41.11
Total
180
100
(Source: primary data)
It is observed that out of the selected respondents 41.11 per cent of the
respondents are Post Graduates 39.45 respondents are Graduates and the
remaining 19.44 per cent are Under Graduates
It is observed that majority of the respondents are Post Graduates.
Table 3
Income Wise Classification
Average Monthly
Number of
Percentage
Income
Consumers
(In Rs)
Below 10,000
60
33.33
10,001-20,000
57
31.66
20,001-30,000
44
24.45
30,001-40,000
19
10.56
Above 40,000
Total
180
100
(Source: primary data)
It is observed that out of 180 respondents 33.33 per cent of the respondents
belongs to the income group of below Rs.10,000, 31.66 per cent belong to 10,00120,000, 24.45 per cent belong to 20,001-30,000 and the remaining 10.56 belong to the
income group of 30,001-40,000.
Majority of the respondents belong to the income group of Below Rs.10, 000
Table 4
Type of jewellery product preferred
Products
Number of
Percentage of
Consumers
Consumers
Chains
57
31.67
Bangles
44
24.45
Ear rings
60
33.33
Finger rings
4
2.22
Necklace
15
8.33
Total
180
100
(Source: primary data)
The result shows that out of 180 consumers 33.33 per cent of the respondents
prefer to buy earrings from malar gold, 31.67 prefer to buy chains, 24.45 per cent prefer
to buy bangles, 8.33 per cent prefer to buy necklace and the remaining 2.22 per cent
prefer to buy finger rings. Majority of the respondents prefer to buy Ear rings.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Table 5
Frequency of Purchase
Frequency of purchase
Number of
Percentage of
Consumers
Consumers
Once in six months
35
19.44
Once in a year
71
39.45
Whenever any occasion
74
41.11
comes up
Others if any
Total
180
100
(Source: primary data)
The above table exhibits that Majority of the respondents (41.11 per cent)
purchase jewellery whenever any occasion comes up, 39.45 per cent purchase once in
a year and the remaining 19.44 per cent purchase jewellery once in six months. It is
clear that majority of the respondents (41.11 per cent) purchase jewellery whenever any
occasion comes up.
Table No.6
Most Preferred Jewellery product brand
Brands
Number of
Percentage
Consumers
Ethnix Collection
29
16.11
ERA Collection
14
7.78
Divine Collection
50
27.78
Starlet Collection
38
6.67
Precia Collection
20
11.11
Mine Collection
17
9.44
Brides of India Collection
12
21.11
Total
180
100
(Source: primary data)
It is found out that majority of the respondents (27.78 per cent) prefer Divine
Collection followed by Brides of India Collection (21.11 per cent), Ethnix Collection
(16.11 per cent), Precia Collection (11.11 per cent), Mine Collection (9.44 per cent),
ERA Collection (7.78 per cent) and the remaining 6.67 per cent prefer Starlet Collection.
Majority of the respondents (27.78 per cent) prefer Divine Collection.
Table No.7
Sources of awareness of branded jewellery products
Sources
Number of
Percentage
Consumers
Advertisements
73
40.56
Recommendations from
72
40
friends and relatives
Dealers and
35
19.44
representatives
Others if any
Total
180
100
(Source: primary data)
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Out of 180 respondents 40.56 per cent are aware of the branded jewellery
products through advertisements, 40 per cent are aware of the branded jewellery
products through recommendations from friends and relatives and the remaining 19.44
per cent through dealers and representatives.
Majority of the respondents (40.56) are aware of the branded jewellery products
through advertisements.
Table No.8
Motives for choosing branded jewellery products
Motives
Number of
Percentage
Consumers
Price
11
6.11
Quality
49
27.22
Design
34
18.89
Brand Image
30
16.67
Advertisement
9
5
Brand Icon
47
26.11
Others if any
Total
180
100
(Source: Primary Data)
27.22 per cent of the respondents opined that quality is the major factor influenced them
towards branded jewellery products. 26.11 per cent of the respondents opined that
Brand Icon influenced them to choose branded jewellery products. According to 18.89
per cent of the respondents design is the major motive influenced them towards
branded jewellery products. 16.67 per cent opined that brand image is the factor
influenced them towards branded jewellery products, 6.11 opined that price attracted
them and the remaining 5 per cent opined that advertisement is the major attribute
attracted them towards branded jewellery products.
Majority of the respondents (27.22 per cent) opined that quality is the major important
factor influenced them towards branded jewellery products.
Table No.9
Relationship between Type of Ornaments and Age of Consumers
Age
Type of Ornament
Total
Traditional
Modern
18-25
5
26
31
26-35
48
39
87
36-45
11
28
39
Above 45
14
9
23
Total
78
102
180
(Source: primary data), X2=21.62.df=3, table value at 5 per cent level of
significance=7.815
Consumer’s preference towards type of ornaments may differ according to their
age. The relationship between type of ornaments and age are presented in the above
table.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
HO- There is no significant relationship between preference for type of ornaments and
age of the consumers.
The computed chi-square value is 21.62 which is higher than the table value at 5 per
cent level of significance. So the hypothesis is rejected. Hence there is significant
relationship between preference for type of ornaments and age of the consumers.
Table No.10
Relationship between Type of Ornaments and Qualification of Consumers
Qualification
Type of Ornament
Total
Traditional
Modern
Under Graduate
11
24
35
Graduate
27
44
71
Post Graduate
Total
40
78
34
102
74
180
(Source: primary data), X2=6.61.df=2, table value at 5 per cent level of
significance=5.991
HO: There is no significant relationship between preference for type of ornaments and
qualification of consumers.
The calculated chi-square value is 6.61 which is higher than the table value at 5
per cent level of significance. So the hypothesis is rejected. Hence it is statistically
proved that there is significant relationship between preference for type of ornaments
and qualification of consumers or preference for type of ornaments is dependent on
educational qualification of consumers.
Table No.11
Relationship between Type of Ornaments and Income of Consumers
Monthly Income (in Rs)
Type of Ornament
Total
Traditional
Modern
Below 10,000
14
46
60
10,001-20,000
20
37
57
20,001-30,000
30
14
44
30,001-40,000
Total
14
78
5
102
19
180
(Source: primary data), X2=32.39 df=3, table value at 5 per cent level of
significance=7.815
HO: There is no significant relationship between preference for type of ornaments and
income of the consumers.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The calculated chi-square value is 32.39 which is higher than the table value at 5 per
cent level of significance. So the hypothesis is rejected. Hence it is proved that there is
significant relationship between preference for type of ornaments and income of the
consumers.
Findings
1.
2.
3.
4.
5.
Majority of the respondents belong to the age group of 26-35
Majority of the respondents are Post Graduates
Majority of the respondents belong to the income group of Below Rs.10, 000
Majority of the respondents prefer to buy Ear rings
Majority of the respondents purchase jewellery whenever any occasion comes
up.
6. Majority of the respondents prefer Divine Collection.
7. Majority of the respondents are aware of the branded jewellery products through
advertisements.
8. Majority of the respondents opined that quality is the major important factor
influenced them towards branded jewellery products.
9. There is significant relationship between preference for type of ornaments and
age of the consumers.
10. There is significant relationship between preference for type of ornaments and
qualification of consumers or preference for type of ornaments is dependent on
educational qualification of consumers.
11. There is significant relationship between preference for type of ornaments and
income of the consumers.
Suggestions
Advertisements have a great impact on the buying decision of the consumers so
more focus on advertisement and media is necessary. The company should
promote attractive gold investment schemes especially for the youth because this
category may not have enough funds to buy gold ornaments at a time. In addition
to the current brand icons the company should try to rope in new generation film
stars and sports personalities in order to woo the younger generation. Besides
the aforesaid points the company could
Conclusion
The present study was conducted on the perception of consumers towards
branded jewellery products with special reference to Malabar Gold
Thiruvananthapuram Town. The modern market is consumer oriented and the
consumer is having a sense of freedom and choice. The perception of consumer
is continuously shifted from non-branded to branded jewellery products. Hence
the branded jewellery products is facing an uptrend on these days, so the
companies should take these aspects into consideration and keep up its values
of trust, authenticity, credibility, objectivity of the respondents and serve them the
best of possible.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
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