Gems and Jewellery sales and marketing received a facelift with theadvent of the supermarket culture. As organized retail in India progresses to the next lap, Sadanand Subramanian checks for Diamond World with some precious Industry players about their preparedness and strategy to achieve maximum mileage.%%As India reacts to a retail revolution, the hitherto sober gems and jewellery industry seems to have jumped on the bandwagon with a clear plan of action. The industry has already made a mark by capturing 3 per cent of the organized retail space thanks to the leadership shown by a handful of companies prepared to dazzle the world. While organized retail under this segment impressively grows at over 50 per cent annually, deliberations are on to arrive at what the industry in general must do to keep the customer perennially delighted. The gems and jewellery market in India is estimated to be about Rs.80,000 crore and the topmost agenda is to adopt the right strategy to accelerate its growth keeping in mind current global dynamics. For now the industry faces keen competition from other luxury goods such as electronic innovations and other personal accessories. How far is it necessary for the gems and jewellery sector to seriously consider it?

%%There is no doubt that things are a lot more organized in stores inside malls. They also showcase and present products very attractively. But in my opinion, real sales take place through traditional jewellery stores as jewellery is mainly sold on trust. {{Ghanshyam Dholakia}}%%The urgency in the industry indicates rapid changes in the way goods are produced and marketed. The evolution of new formats for sale and the massive technology and to some extent, sizeable infrastructural developments taking place all foretell a prospect of growth way beyond the current overall 10 per cent.%%The Indian gems and jewellery industry boasts a strength of over 3 lakh jewellery retailers across the length and breadth of this country. The huge number indicates strength in itself but it also indicates a difficult diversity to grapple with when exploring common grounds to formulate united approaches to tackle common concerns.%%{{Organized V/s Traditional Retail :}}%%Comparisons have always been drawn between organized retail and traditional retail. Attempts have always been made to define

them. Rooting for organized retail, Navneet Goenka, Vice- Chairman of Goenka Diamond and Jewels says, “Right now organized retail seems to have wrested an edge over traditional retail.” Goenka argues that the indications to this effect are seen in the manner large proportions of the society are becoming lifestyle oriented, especially the younger generation. When considering India’s statistic of having the highest percentage of youth in the world, this observation cannot be taken lightly. Goenka says that the gems and jewellery sector is one of the fastest growing segments. He adds, “The young generation today has more disposable income and they are willing to spend it on luxuries of choice.”%%Ghanshyam Dholakia, partner, Harikrisha Exports holds a different view with regard to the tussle for supremacy over the two formats. “There is no doubt that things are a lot more organized in stores inside malls,” he concedes. “They also showcase and present products very attractively. But in my opinion, real sales take place through traditional jewellery stores as jewellery is mainly sold on trust.” While explaining his point of view, he adds, “To the credit of traditional jewellery stores they also have upgraded themselves in various ways including the overall ambience in the last five to ten years. They are also changing themselves in the matters of presentation and the customer approach.” Dholakia says that in promotions and awareness creation, traditional retailers have realized its importance thereof and have started allocating sizeable budgets for them. Consequently this section has already started reaping the benefits of quality promotions by creating awareness about their products and services. Dholakia is somewhat emphatic with regard to modern day organized retail citadels, “In my personal opinion malls mainly serve the purpose of promotion and show of products. I don’t think a lot of gems and jewellery sale takes place in malls.” %%Ashwin Shah, Head of Retail at C. Mahendra Exports holds a similar view with regard to jewellery sales at modern shopping malls. He opines, “The sales that take place in a mall are of a very different kind. You can call it window shopping if you like.” Shah elucidates his point, “The young generation often resorts to some impulse buying.” He stresses that serious buyers who are looking for high value purchases for occasions such as weddings prefer to plan their jewellery shopping and eventually purchase from known reputed jewellers.

There is a growing segment that is looking for bigger diamonds at a lesser price. If you have a product that matches a consumer’s taste, there is quality assurance, then she is willing to pay whatever the offering costs. The customer then goes home feeling that she has made the right purchase.%%{{What Attracts People to Malls ?%%}}What do these new age shopping arcades offer? The malls have become a place for providing a lifestyle experience. “Today families can go for an outing and combine shopping, eating out, and watching movies at the same place.” Ashoke Maitra, Former Director at The Times of India Group and CEO & Strategic Advisor at a prominent management consultancy continues, “People even converge here just to meet friends or to unwind after a hectic day at work.” %%Rashmi Lalla, a young shopper says, “There is a deluge of products and services these days. As a shopper, I like the ambience, the customer service offered without too much of interference.” Her friend, Amrin Shaikh adds, “Malls provide a fantastic shopping experience. You have so many varieties to choose from.” In the matter of jewellery she says, “If you like a particular design and if it suits your requirements, you feel confident about going ahead with the purchase.”

Ashwin Shah observes, “The new shopping arcades and malls have wonderful facilities, air conditioning, cleanliness, food courts, play area for children and so much to see. I can sum up that there is almost everything for everyone here.”%%{{Changes in Gems & Jewellery Retail :%%}}Whilst organized retailers are ahead when it comes to taking care of the different aspects in the marketing and sales value chain, those in traditional retail are also changing or adapting to the needs of the modern customer in the areas of service and customer care. They too are improving their style of presenting and dealing with customers. “In the past, jewellers didn’t have much modern education. Today, there are a number of MBA’s in these families and amongst key personnel employed by them,” points out Ghanshyam Dholakia.%%{{Retailing the Organized Way :%%}}While complementing the planned approach by organized retail, Mahesh Gandani-Head Retail, Hari Krishna Exports says, “We can see that times have changed and somewhere along the way, the whole approach to marketing has also undergone transformation.” Gandani says that for branded diamond jewellery there is much planning involved. He says meticulous strategy is charted out, and there is systematic presentation of the product. All this goes on even as a product portfolio is made and promotions are carried out. Gandani says creating brand awareness in the minds of the consumers is all about adopting a few strategic steps. “One might say the difference between traditional and organized is just doing and doing by planning.”

Recent developments have been both a boon as well as a bane. Actually, this has spurred us on to become innovative with our offerings to suit the market. We have actually managed to reduce cost by adopting the strategy of reducing the volume of gold in some of our products to make it affordable.{{Ashwin Shah}}%%Speaking about organized retail, V. Muraleedharan, gems and jewellery professional and visiting faculty at well known management institutes in Mumbai says, “The number of foreign brands coming into India is simply amazing. Brands that were only heard of a few years ago are today very much within anyone’s reach here. Muraleedharan goes on to explain, “So far people who had only seen traditional offerings have started making intelligent international comparisons with Indian products and this has brought about real room for retail to grow a number of times.”%%Well known brands have always insisted that when they talk about a particular grade, they are certified. Moreover the quality standard is confirmed and authorized and remains the same in any laboratory in the world. Muraleedharan says, “In my opinion the quality a brand expresses, and the certification make it easy for a customer to confidently buy the product.” %%Inland Insights%%{{From Gold to Diamonds :%%}}Traditionally, India has been a gold consuming market. Five years ago people hardly had any knowledge about diamonds. Today, the growing awareness has brought a shift in the customer’s choice. Ghanshyam Dholakia says, “Today you see it everywhere – in media -the magazines, newspapers, television and films. People watch their favourite stars donning it, and this raises their aspirations to also own something similar. Today, more and more people are buying diamonds.” Off course,awareness of diamonds and about the varieties on offer has to be given credit for this shift. Ashwin Shah observes similarly, “I must say the efforts of the Indian Gems and Jewellery Export Promotion Council’s promotional campaigns are bearing fruit. “In the past there was a perception that diamonds were far away from the reach of the common man.” Shah lauds the efforts of the Council for promotional campaigns. Dholakia adds that currently people are aware of the various offerings suiting different pockets and tastes. Shah substantiates by saying, “Working people whose incomes are over Rupees fifty thousand a month are seen making purchases of not only gold, but color stones and diamonds. Echoing the sentiment, Rashmi Lalla says, “As a woman I can easily say that most women today are eager to make a diamond purchase.” Shah narrates a happy experience, “We made a diamond pendant with 10kt gold and in about 3 to 4 days we sold 1,000 pieces valued at Rs.1,000 apiece across 5 showrooms recently.” Going along this trend, today diamonds are available almost everywhere. “I see tremendous progress in the way Indians look at diamonds today. Talking about the shift, we must understand that previously news spread slowly as either there was no such medium in a lot of places in India, or it got into the minds of people slowly,” Dholakia adds. “Media has indeed become fast-track today and this has brought about a revolution”.

The malls have become a place for providing a lifestyle experience. Today families can go for an outing and combine shopping, eating out, and watching movies at the same place. People even converge here just to meet friends or to unwind after a hectic day at work.{{Ashoke Maitra}}%%{{The Value Proposition :%%}}“Today everyone is looking for value for money, a new design, a new concept, something very creative and that is the concept of retail today. It is not like yesterday where the shopkeeper or the manufacturer used to dominate. Today, the customer is going for customized designs; the whole concept is changing,” says Muralidharan. “The consumer is looking for value for money, when they buy diamonds. They like to buy from reputed players like example Tanishq, Gitanjali, Goenka, Nakshatra, Kiah and Nirvana. All of whom have achieved very organized presence in the market today. Each one of them has a standard quality certification internationally and that is what is going in the minds of the customer when they talk about buying from the organized sector.”%%Says Ghanshyam Dholakia, “As regards our organization, we are witnessing changes for the better. We offer our products with an assurance of lifetime buyback. Our products are of VVS quality and come with the certificate of trust, not only from the company but also third party certifications.” Dholakia says that his organization provides plenty of design options for their products. He says that they have a good team of designers and they are always innovating new designs. Elucidating further he says, while his organization provides uniform MRP anywhere in India for their products, they are also unique in assuring 48 hour delivery to their customers. Dholakia says that they are capable of offering so much owing to a strong infrastructure capability, and highly skilled manpower. “Since we are integrated beginning from the polishing of roughs, to bringing our products to the end consumers, we can afford to give our customers the best of terms.”

Explaining how they offer value proposition, Shah says, “Recent developments have been both a boon as well as a bane. Actually, this has spurred us on to become innovative with our offerings to suit the market. We have actually managed to reduce cost by adopting the strategy of reducing the volume of gold in some of our products to make it affordable.” Shah says that his organization can offer buyback because of a long standing reputation of over three decades. He says they also often run schemes such as surprise gifts and free repairing during special occasions.%%{{Changing Expectations & Customer Delight :}}%%The customer these days are becoming increasingly lifestyle oriented. Navneet Goenka says, “They no longer consider jewellery as an investment. They consider it more of a lifestyle accessory.” Goenka says a lot of their customers currently prefer designs internationally in vogue. There seems to be a decline for traditional designs. Even as a change in the preference for design is happening, people are getting more practical. He adds, “A lot of our customers are looking for a ‘bigger flash’ for a smaller price.” Explaining the phenomenon he says there is a growing segment that is looking for bigger diamonds at a lesser price. %%The number of foreign brands coming into India is simply amazing. Brands that were only heard of a few years ago are today very much within anyone’s reach here. So far people who had only seen traditional offerings have started making intelligent international comparisons with Indian products and this has brought about real room for retail to grow a number of times.{{V. Muraleedharan}}%%What about customer delight? Goenka says, “Customer delight is evident when you provide a fantastic shopping experience, a splendid design and the right price.” What about customer satisfaction? Goenka is quick on the draw, “If you have a product that matches a consumer’s taste, there is quality assurance, then she is willing to pay whatever the offering costs. The customer then goes home feeling that she has made the right purchase.” Goenka stresses that it is important to understand the customer. Is there anything called a true retail experience? The basic and the foremost are an ethical approach and winning the customer’s confidence according to most persons. The ambience and pleasing customer care are also important.%%{{What Matters More in Modern Retail ?}}%%Amidst the big bang of the retail infrastructure developments, some experts also feel that they are not commensurate with standards available abroad in similar settings. One of the foremost is the safety aspect. Ashoke Maitra reminds, “We do not seem to have sufficient fire safety measures in our shopping malls.” Goenka says, “There is a need for modern technology and gadgets to step up store surveillance.” He is also passionate when discussing the customer approach in malls. “In the advanced countries the reception and treatment given to customers is far superior.” He goes on to stress that security can get better and each jewellery item can be monitored better with high tech CCTV monitors.%%{{Customer Approach – Here & There :%%}}“We must change our attitude when dealing with customers. Our sales people are rather inclined to easily prejudge a customer. It’s not a good thing to lose your interest in your customers if you think a prospect is not going to buy,” Says Ghanshyam Dholakia. He adds that we must change our tendency to become luke warm upon finding no buying signals from the customers. “I feel we must treat everyone with equal regard and there must not be any let up in the information and awareness we can create in the minds of the customer.”%%“To sum up, as compared to our foreign counterparts in gems and jewellery selling, we need a change in attitude. We need to adopt a positive posture all the time. This helps as the prospect is happy when she leaves whether there has been a buying or not. Eventually, it means giving the customer a great shoppin