1. 1
Research Findings
Consumer Buying Behavior:
Gold Jewellery
October 2012
Prepared By:
2. Research Background 2
• According to World Gold Council, India is the largest market for gold jewellery in the world,
representing a staggering 746 tones of gold in 2010
• Indian consumers are actively engaged in considering their next piece; 75% of women say they
are constantly searching for new designs. Indian market is plush with varied designs and
offerings
• As Gold prices are rising sharply, brands are targeting consumers with a limited budget. This is
apparent in their offerings, collection and marketing campaigns.
3. Research Objectives
The key research objective was to find out the impact of high price on the purchase of Gold
To meet the stated objective MX approached the category customers to ask few key questions:
• Popular and most admired brands by the consumers
• Source of awareness
• Perception of gold jewellery
• Purchase behavior
- Occasions of purchase
- Most preferred merchandise
- Purchase point
- Purity they look for in gold jewellery
- Purchase considerations
• Impact of price rise on the purchase, what it entails for this festive season
Consumer feedback is presented in forthcoming slides
4. Research Methodology 4
Quantitative Research technique was followed. 600 consumers were interviewed at their homes
and market places.
Research Technique • Face to face interviews
Research Tool • Structured Questionnaire
• Consumers who bought Jewellery in the preceding year and likely
Target Segment to buy soon
• Delhi (NCR). Mumbai, Kolkata, Hyderabad, Bangalore, Cochin,
Research Center Jaipur and Pune
Sample Size • 600 respondents
6. Demographic Profiling
Education n=600
Gender
All respondents
belong to SEC A Graduate/Post graduate-Prof 38%
Male Graduate / Post graduate- 60%
35% General
SEC
Female 1%
Some college but not graduate
65%
A2
33% 1%
C School- SSC/ HSC
W
Age
A1 E
67% Officer/Executive-Middle/Senior 39%
More than Self employed professional 3%
45 yrs 18-30 yrs
21% 32% 7%
Businessman with 10+ employees
Young consumers
31-45 yrs are also into buying Businessman with 1-9 employees 19%
47% gold jewellery an
emerging trend Businessman with no employees 9%
Shop owner 12%
Occupation
• Respondent profile was a mix of different age groups so the inputs contained a good representation of people
• Gender split was natural outcome of interactions. No specific age or gender related quota was followed
7. Brand Salience – Awareness 7
n=600
Tanishq 41% 36% 23% 60% 18% 6% P C Jewellers
Sanchi 3% 32% 42% 22% 2% Shubh and Labh
1%
Malabar Gold 6% 37% 38% 1% MMTC
Episode 4%
14% 1% Cartier
2%
Gili 5% 30%
15% 2% Forever Jewellery
TOM
Mehrasons 8% 20% 56%
59% 14% 8% Nakshatra
Ddamas 8% 5% 31% 2%
33% 4% Vivaha
SPONT
TBZ 5% 11% 35%
24% Maya
Oyzterbay 13%
2%
AIDED 8% 1% Giantti
Carbon 1% 21%
7% Jos Alukkas
Belirams 1%12%
2% 30% 25% 8% Gitanjali
Karma 15%
Meta Jewel Krafts 1%11% 1% ORRA
D P Zaveri & Sons 2% 23% 1% 4% ASMI
Momentz 5% 11% 26% Others
*Other brands include unfamiliar names and brands with small base
• More than 40% of the respondents mentioned Tanishq as their Top of the Mind recall
• Cent percent of the respondents are aware of Tanishq followed by Mehrason (84%), PC Jewellers (84%), Nakshatra (81%), Sanchi
(77%) & Gitanjali (63%).
8. Brand Salience – Most Admired 8
n=600
45%
20%
12% 11%
4% 3% 2% 2% 1%
Tanishq Gitanjali Nakshatra Regional Asmi Gili Sangini TBZ MMTC
Branded
Store
• Tanishq (45%) emerged out to be the most admired brand among majority of the respondents whereas 3/10th of the respondents
also admire Gitanjali and Nakshatra.
9. Sources of Awareness 9
n=600
Newspaper 58%
Television 51%
Friends/Colleagues 46%
Family/Relatives 33%
Magazines 28%
Websites 22%
Banners/Posters 13%
POS in shops 10%
Online Social Media 9%
Cinema/Theaters 8%
Radio 7%
• Newspaper pop out to be the most important source of awareness for getting info about various Jewellery brand. Television and
WOM also plays a significant SOA.
11. Perception of Jewellery – As an
adornment / investment 11
n=600
14%
50%
36%
As an adornment As an investment Both
• Majority of the Indians seek dual benefit of buying gold, an investment coupled with a functional adornment. The youngsters
though go for low priced, light items to be used as regular jewelry items
12. Type of purchase – Planned Vs. Impulsive 12
n=600
79%
73% 75%
68% 67%
65% 64%
61%
52%
48%
39% 37%
35% 36%
32%
27% 25%
21%
Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Jaipur Pune Cochin
Impulsive Purchase Planned Purchase
• Across cities Gold purchases are pre- planned however, there are frequent incidents of impulsive purchase also
13. Purpose of Purchase 13
n=100
For own use in household 80%
For marriage in the family 61%
Gifts to close friends and relatives 41%
To safegaurd family as Gold/silver is highly liquid 32%
For traditional values 29%
For investment purpose 28%
Considered as status symbol 15%
Got religious significance 8%
For kids 1%
• Gold has different connotations attached to it. It is an ornament, habit, companion of difficult times, way to prosperity and carrier of
values
• Customers have a unique reason every time they buy gold
14. Purchase Occasions 14
n=600
Wedding 95%
Akshaya Tritiya 89%
Diwali 82%
Bonus/sudden financial gain 79%
Baby birth 35%
Birthdays 24%
Aniversary 23%
House warming 5%
New year 2%
No specific reason 15%
• There is no single time and occasion to buy jewellery since it is an exclusive as well as a common affair
• Though buying jewellery is integral to weddings and festivals (Where customers opt for heavier items and the purchase is
infrequent), new reasons have emerged where small and frequent purchases are made ( financial gains, birthdays, anniversaries
etc.)
15. Reasons for Buying Branded Jewellery 15
n=600
100% 70%
62%
90%
60%
80%
70% 50%
60%
40%
50%
88% 30%
40%
30% 64% 61% 57% 20%
52% 52% 51%
20% 10% 42% 40%
8% 36% 34% 25% 19%
4% 5% 4% 4% 30% 10%
10% 1% 1% 0 0 0 0 0
0% 0%
Purity of gold It is certified Name and Written lifetime Good selling Designs Finishing Provide good Promotional Wide product Has a more Unique offerings Ambience Better sales staff
reputation gives guarantee policies exchange offers discounts range contemporary
confidence available on look/original look
special
occasions
Reasons Most Important Reason
• Jewellery being a very expensive acquisition requires assurance of quality and trouble free ownership .
• To the modern customers brands inspire confidence of purity and exchange. That is why, safety elements have received a higher
score than aesthetics and service
16. Reasons for Not Buying Branded Jewellery 16
n=600
100% 60%
90%
50%
80%
72%
70% 66%
35% 40%
60% 57%
50% 46% 44% 30%
40%
40%
16% 15% 20%
30% 25%
10% 11% 20% 18%
20% 7%
5% 10%
10%
0 0 1% 1%
0% 0%
Lack of awareness Lack of awareness Hesitation to switch Added taxes Perceived high Better payment Non-availability of Non-replacement/ Non-availability of People do not have
about existing about the benefits of from age-old making/polishing terms of local preferred designs non-feasible preferred sizes white money
brands among branded jewellery jewellers charges of branded jeweller -Credit replacement terms
buyers jewellery period etc. of branded outlets
Reasons for not buying Most important reason for not buying
• Customers lack enough information about jewellery brands
• There is a perception that brands charge higher making charges
• Additional cost that customers have to bear in terms of taxes is a big obstruction to growth of brands. Many local jewellers adjust
taxes by different ways
17. Description of Purchases 17
n=600
54%
36%
32%
17%
12% 11%
8%
5%
3%
Rings Ear Rings Chains Necklace Pendants Gold Bangles Bracelets Gold Set Mangalsutra
• Across the cities the key selling items for the brand so far have been rings, ear rings and chains, increasing prices have led to low
weight gold item purchase
18. Jewellery Type – City wise preference 18
n=600
Fig. in % Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Jaipur Pune
Fashion Jewellery 2 1 - - - - 4 3
Gold Jewellery Studded with Color
6 34 - 2 6 - 13 2
Gemstones
Gold Jewellery Studded with Diamonds 3 25 2 9 9 - 64 15
Plain Gold Jewellery 89 36 96 89 72 97 11 73
Pearl Gold Jewellery - - - - - 3 3 1
Platinum Jewellery 2 2 2 - 5 - 5 2
Platinum Studded Jewellery - 2 - - 5 - - 2
Silver Jewellery - - - - 2 - - 2
Synthetic Diamond Jewellery - - - - - - - -
• Consumers prefer to buy plain gold jewelry due to its high resale value
• Gold studded jewellery with color gemstones and diamonds is increasingly becoming popular
19. Purchase Point 19
n=600
Online purchase
An emerging
Trend
Frequent destination Preferred destination
93%
81%
43%
38%
14%
7% 4% 6% 4%
1%
Branded Outlets Unbranded outlets Franchisee brand Exhibitions Online purchase
Showrooms
• Branded outlets are the most visited as well as the preferred shopping format followed by franchisee brand showrooms. Few
young consumers also prefer online purchase as it gives them the option of EMI
20. Purity Looked For 20
n=600
Gold Jewellery
54%
Shift to 14 Carats
An emerging
Trend
32%
13%
1%
24 Carat (100% pure 23 Carat (91.66% pure 22 Carat (83.33% pure 18 Carat (75% pure gold) 14 Carat (53.84% pure
gold) gold) gold) gold)
• More than half of the respondents looked for 22 carat purity which shows customers are quite clear on what to expect from purity
point of view.
• 32% of the respondents also look for 18 carat purity which indicates that there is a market for 18 carat gold jewellery too
• Few consumers also cited to be opting 14 carat gold due to the rising gold prices
21. Factors Considered while Selecting a Brand 21
n=600 Unaided Aided
Rank Score*
Price of product 39% 41% 0.93
Long Life 32% 38% 0.82
Purity of product 31% 31% 0.76
Resale value 35% 39% 0.59
Available in wide range i.e. designs 28% 39% 0.46
Quality of product 35% 36% 0.33
Brand advertising 20% 37%
0.33
Warranty period 26% 33%
0.27
* Rank score has been
calculated by multiplying 3 Overall good brand name 25% 45%
0.26
with % of rank 1, 2 with %
After sales service 12% 28%
of rank 2 and 1 with % of 0.23
rank 3 and then summing Trustworthiness of the brand 23% 42%
it up 0.19
Offer / discount available 20% 35%
0.19
Past experience 11% 43%
0.16
Is recommended by friends/ relatives/ dealers 13% 31%
0.12
Is the market leader 5% 34%
0.09
Trendy look offered by the brand 9% 30%
0.05
Knowledgable staff at outlet 2% 17%
0.03
• Price, durability, purity, resale value, availability of wide range of designs are top five factors while selecting a brand
22. Resale / Exchange of Old Jewellery 22
n=600
In %
89%
6% 4%
1%
None Once in 6 months Once in 3 months Once in 2 months
• Consumers avoid selling/exchanging their old jewellery for buying new one
• In most cases resale is considered only when in financial crises
23. Effect of price rise on purchase 23
n=600
Yes No Can't Say
7%
50%
43%
• One in two consumers cite that they are affected by price rise and hence defer purchase on the said account, however 43% still go
for the desired possession!
24. Effect of high price on gold purchase this Diwali 24
n=600
Yes No Can't Say
10% 14%
76%
• The consumers term the festivities especially Diwali/ Durga Puja (in its various manifestations) as the most auspicious time to
shop hence deny the purchase to be impacted by rising prices. Though many voice that a pre determined budget guides their
actions!
25. In the nutshell 25
• Tanishq register Cent percent awareness followed by Mehrason, PC Jewellers,
Nakshatra, Sanchi & Gitanjali.
• Further, Tanishq is the most admired brand among majority across centers. Gitanjali,
Nakshatra and regional branded stores are also popular among the consumers
• The rising prices and the younger generation entering the category Consumer class looks
for small products. Rings, earrings, pendants, necklaces, bracelets, chains and bangles
as preferences.
• Few young consumers also prefer online purchase as it facilitates them with EMI option
• Consumers prefer to buy plain gold jewellery for its high resale value.
• Branded outlets are the most preferred point of purchase for buying gold jewellery
• Price, durability, purity, resale value, availability of wide range of designs are top five
factors while selecting a brand among consumers
• Majority looked for 22 carat gold purity whereas a significant 32% also emphasize for 18
carat purity which indicates that there is a market for 18 carat gold jewellery too
• Few consumers also cited to be opting 14 carat gold due to the rising gold price and
limited budget
• Resale or exchange of gold jewellery rarely happens
• Consumers are affected by rising prices and defer purchases however the festivities
prove exception to the rule
26. Key Emerging Trends 26
• Consumers of Gold jewellery are getting younger need for aesthetically rich design
to attract this young consumers
• Apart from bridal category consumers are increasingly purchasing gold jewellery on
personal occasions such as birthdays and anniversaries Need for daily wearable
products
• Increasing popularity of online options Websites and online offering should be
focused
