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BRANDED JEWELLERY RETAIL CHAINS
PRODUCTS AND CONSUMERS
“Wearable” and “fashionable” jewellery
Generally, the retail chains are encouraging urban women, especially younger women, to acquire lighter weight,
inexpensive, lifestyle jewellery that is “wearable”. It can be used every day. It can be worn on many occasions within the
home, at work or socially. It can be bought on impulse. In most outlets, it can easily be exchanged to accommodate the
latest “fashionable” trend. Innovation is their hallmark. New collections tend to be launched every few months.
Studded jewellery
The chains focus on higher value added studded jewellery. None sell hallmarked jewellery. Some sell no plain gold
jewellery. Most items (Tanishq is an exception) tend to contain less than 10 g of gold.
Fixed prices
Unlike traditional retailers, the chains sell jewellery at fixed prices, although prices can be adjusted across the board to reflect
significant gold price movements. One reason for fixed prices is that store managers are now employees (not trusted
family members), and to offer jewellery at fluctuating prices through so many outlets is considered an unmanageable task.
Most items are priced below Rs 10,000 (US$ 200). They observe that many potential customers are resistant to fixed prices
for larger items.
Promotion
All chains brand their outlets and jewellery through extensive TV and press advertising campaigns.
Perspective
The retail chains are at an experimental stage. Some are aware that they may need to include innovative plain gold
jewellery, or increase its proportion, within their product range.
ADDENDUM ON FABMART – INTERNET RETAILER
Fabmart was established in Bangalore (Karnataka) as a private company in 1999. A major shareholder is Reliance Industries,
India’s largest private sector company. Fabmart retails music, books, toys, computers, videos, watches, coins, jewellery and
other items through its website.
When an order for jewellery is received, it is forwarded to one of 20 leading jewellery suppliers in 6 major cities. Pricing is
fixed on the day of the order. Most orders are less than Rs 10,000. Fabmart normally delivers the item by courier within
7 days. All jewellery is hallmarked. There is a 30 day money-back guarantee.
While Indian residents account for the bulk of its jewellery business, Fabmart also services international customers. They
either take delivery overseas, or request that the purchase be sent to relatives or friends within India.
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Tanishq, the largest retail chain, has outlets in 42 cities.
AN INTRODUCTION TO THE INDIAN GOLD MARKET