A
grand step for Diamond Jewellery market in the Corporate
Gifting Sector
Diamond market further flourishes
with it's entry in the corporate sector serving itself
as an important gifting and promotional tool.
Jewellery has been part of the Indian traditions for
centuries. In the past it was treasured as a stone of
value and security, but today more than even before
the Indian consumer is lining up to buy jewellery that
makes a fashion statement or expresses her individuality.
Not only the richer class but also the sales were seen
to be high in middle class section i.e. we are talking
about approximately 300 million middle class consumers.
The rising purchasing power of the Indian consumer
at all levels and the boom in the IT and the BPO industries
has pushed up people's desire to spend. India, which
has long been the world's largest consumer of gold,
has in the last few years seen the overall jewellery
market expand beyond expectations, with changing consumer
preferences leading a shift away from heavy gold jewellery
to lighter, trendier ornaments. India has tremendously
increased it's sales of diamond jewellery and taught
Indians to value design where they once only looked
at the intrinsic value of the jewellery.
Diamond no longer is a rich man's possession, more
or less it has turned out to be a fad today to gift
diamond studded jewellery. This year itself in the month
of February during the Valentine Day one had seen a
remarkable upward trend in sales. The valentine day
is no longer restricted to only youngsters but now older
couples and families enjoy the occasion equally. This
was very much evident in the jewellery market this year.
Gifting has become an exclusive way of expressing your
love and speaks just more than words.
The diamond boom in corporate world
Recently small, branded diamond Jewellery products are
seen exchanged in the corporate gifting industry. Brands
are playing a major role in propelling growth in the
diamond jewellery industry. Branded products are bolstering
consumer confidence with their assurance of quality.
Brands cater to vary segments at different price points
and new collections of the season are seen with the
very coming festival - diwali, giving the customers
the power of choice. Particularly remarkable is the
huge boom in the demand for diamond studded jewellery
in the corporate segment. Within overall jewellery sales
the diamond segment accounts for around 20 - 25% of
the total sales in which it obtains 75% of it's sales
from metros. In which around 5-7% of the market sales
is seen in corporate gifting. Though constituting in
a small manner the corporate market is showing fast
growth. It is seen to grow approximately 20% more per
year.
The products seen to be most saleable as corporate
gifts include small heart shaped diamond pendants, spiritual
pendants, coloured diamond jewellery, small bud earrings,
balis good for casual wear, minakari, kundan and polki
work diamond jewellery products etc. Rings are also
considered while gifting but they face the problem of
size however delicate rings of standard size are also
seen to be a part in the corporate gifting product range.
Some of the well known brands ruling diamond market,
who have put their foot in corporate gifting are D'damas,
Ciemme of C.Mahendra, Adora brand of Concept Jewellery
(India) Pvt.Ltd., DTC's Asmi and Nakshatra to name a
few.Festivals play an important role in a person's life
and diamonds have successfully managed to merge itself
as a part of their gifting traditions. The sales for
diamond jewellery in the corporate gifting sector is
said to further spike up in the coming diwali festival.This
year it's seen that though Department stores, specialty
stores and malls are the major channel partners of all
branded diamond jewellery companies, diamond product
manufacturers are also coming out with their own stores
and marketing strategies targeting many corporate bulk
orders at very exciting competitive low prices, for
example C.Mahendra, under it's Ciemme brand are now
providing 10Kt. diamond pendants and rings at just Rs.999/-
& Rs.1999/-. When asked about the market of diamond
jewellery in corporate gifting to Mr. Mahendra, - Director
of C. Mahendra and Ciemme Jewels Pvt. Ltd. he was of
the opinion that " The market for corporate gifting
has become a vast emporium and diamond jewellery is
slowly gaining importance in this field too as people
are now looking for innovative gifts with a touch of
reliability and value. The market demand for diamond
jewellery has definitely improved than last year and
the growth seems to be fast moving."
So the market definitely seems to be promising. One
has seen that the dominant consumers of diamond jewellery
for
corporate
gifting are the all major pharmaceutical companies and
electronic companies. Diamond jewellery products are
also used for cross promotions by many travelling agencies,
cosmetic manufacturers, clothing industries etc. Even
in the banking and service sector this kind of jewellery
has worked as an effective promotional tool. Many well
known banks present their premium customers with small
branded diamond pendants on becoming the proud owner
of their gold credit card and such other schemes. Also
Adora a renowned company in branded diamond jewellery
products had tied up in a particular scheme with HDFC
in the 'Dream come true offer' where HDFC gifted diamond
jewellery products to all the HDFC's premium customers
who qualified the criteria of shopping with HDFC's credit
card to a certain people who went beyond the limit given
by HDFC . Branded diamond product serves to be an ideal
gift to the valued customer and being branded it also
comes with a touch of trust. The customers are known
to preserve such gifts forever. Not always as a promotional
tool, the diamond jewellery product is also used in
the corporate industries as tool for boosting the employee
moral like giving a small diamond pendant or a ring
or a pair of small earrings to an employee who have
completed twenty-five years of service in the company
or for giving away low priced diamond studded gold pendants
as gift to all the employees during festivals or when
the company completes it's silver or golden jubilee
years etc.
Diamond Jewellery Gifting
Diamond jewellery as a gift is emerging in the market
and not only in the corporate sector but with so many
brand ambassadors advertising the brands, it is growing
at an individual gifting platform too. The most recent,
'Swaranjali' from Adora, to hit the marquee is the signature
collection of noted playback singer Lata Mangeshkar,
which is said to open a new spectrum in the premium
branded jewellery segment in India. Further the retail
scenario which is on an upswing in India is said to
be supporting the growth of diamond jewellery. There
are exclusive jewellery malls opening up in the cities
where some of the best brands in the country are deciding
to set up shops. Such malls are guaranteed to bring
about a revolution in the highly fragmented jewellery
industry where the retailers could provide which consumers
deserved and desired. This will redefine jewellery-retailing
standards, which will encourage Indian consumers, NRIs
and foreign tourists to spend more on jewellery thus
boosting the Indian industry.
Women Power
Last but not the least the Indian woman's persona too
has changed perceptibly, she is young, urban and independent.
The percentage of Indian women who preferred to have
a diamond set has grown by more than 300 per cent. It
is found by a survey that approximately 15 per cent
of Indian women within the upper-economic class own
diamond jewellery. Thus the new Indian woman is a reality
that no marketer can overlook. Also the diamonds are
not just restricted to rings and earring they have now
also become a part of a women's other personal accessories,
like diamonds are now studded in watches and bracelets,
in their hand bags, clips etc.
One needs innovative ideas to attract and retain customers.
Apart from the privilege of choice offered to the consumer,
the branded diamond jewellery market has to face competition
from the local fragmented jewellery market too and one
has to keep it's step cautiously. A customer today needs
to be pampered and it is very essential to know your
consumer, as it becomes easier to respond to their needs.
Advertising has increased brand consciousness markedly
and most importantly, branded and machine-made diamond
jewellery has become increasingly more affordable. Diamond
jewellery has consumption grown at a blistering 24 %
in 2003. India has seen a similar growth pattern in
2004 & 2005 and it will be no different in 2006. The
diamond has also stepped into the marriage market, until
recently, which was had veritable strong hold of gold
jewellery only. Diamond jewellery market is definitely
at it's zenith and has a very promising future ahead
as far as corporate and personal gifting is concerned.