Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
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GOLD JEWELLERY CONSUMERS<br />
IMPORTANCE OF CITIES AS RETAIL CENTRES<br />
The sentiment of leading urban retailers underlines the importance of cities as retail centres of gold jewellery<br />
in their States.<br />
Their estimates of the market share of the major city within their State range from 25% to 35%.<br />
State Major city % of total<br />
retail sales<br />
in the State<br />
Maharashtra Greater Mumbai 35<br />
Rajasthan Jaipur 30<br />
Gujarat Ahmedabad 30<br />
Tamil Nadu Chennai 30<br />
Andhra Pradesh Hyderabad 30<br />
West Bengal Kolkata 30<br />
Karnataka Bangalore 25<br />
Kerala Cochin 25<br />
Range 25-35<br />
Source: Leading jewellery retailers in major cities.<br />
Although their estimates may be exaggerated, retailers observe that many consumers in smaller cities, towns and some<br />
villages travel to major cities when they need to buy a large quantity of jewellery. City retailers offer a wider range of<br />
designs. City purchases carry high status.<br />
TRADE OBSERVATIONS ON THE PROMOTION OF GOLD JEWELLERY<br />
The following records the sentiment of several leading retailers:<br />
Focus on marriage-related jewellery.<br />
High volume over the next 10 years will continue to rely on marriage-related purchases. There is a need to underpin this<br />
market.<br />
Parallel focus on “wearable” jewellery and self-purchases.<br />
Both categories are recognised as extremely important to achieve growth over the next 10 – 20 years. However, the extent<br />
of their promotion should be balanced against the need to support the marriage-related jewellery market.<br />
The market relies heavily on the “gifting” of jewellery.<br />
The target market is not only the female recipient but also the person who gives or pays for the jewellery. Givers and<br />
recipients both need to be motivated.<br />
The purchase of most jewellery is normally the outcome of a family decision. Reassuring the head of the household,<br />
parents and husbands is also important.<br />
Motivate the younger generation<br />
Many young people are not as committed as their parents to buying or receiving large quantities of gold jewellery.<br />
Jewellery has both an “adornment” and “investment” dimension.<br />
Retailers at every level are aware that the adornment dimension is strengthening. <strong>Gold</strong> jewellery needs to be positioned as<br />
“fashionable”. However, there is also a need to underpin gold jewellery’s “investment” dimension.<br />
Retailers observe that investment-related advantages can be emphasised credibly. Jewellery remains a “trusted and secure<br />
asset” that has risen in value over the “long term”. It is a “highly liquid asset” with a “high resale value”.<br />
122<br />
AN INTRODUCTION TO THE INDIAN GOLD MARKET