A Walk in the Jewellery Market

Jewellery has been the primary thing that has been an attraction to women since time immemorial. With the change in generations, the trend has caught up with men also. The varied designs on offer are from off the streets jewellery to very sophisticated (Read Expensive) range of jewellery from malls.

This Study is basically to see the various types of jewellery stores:

The Street Vendors:

The first category is the street vendors of Mahabalipuram. They do not have shops in any set place. Basically the jewellery is spread on the sides of the road near places where many people visit. These are usually handmade jewellery with beads being stringed together by the vendors themselves. There is no adaptation to the market. The choice is limited and designs always the same. This is because of the skill set of the makers which is not diversified. The cost of jewellery is anywhere between Rs.10 to Rs.100 the Maximum of being Rs.100. The vendors have a large margin; hence they are ready to negotiate to half the prices. The quality of the jewellery would be inferior in general. The value of goods can be anywhere between Rs.500 up to Rs.3000 depending on how many years they have been in the market. The price of the jewellery is normally quoted higher to foreigners and lesser to Indian tourists. This is noticed in all the vendors the prices are also strikingly consistent making us believe that there is lobbying among these vendors to decide the prices.

Push cart Vendors:

The push carts usually have jewellery which is little more superior compared to the above category. The sellers do not make the goods but it is bought from a distributor who brings it from markets of Chennai depending on the current trends. These vendors have a fixed cost at which they buy and a certain margin is added above it to sell. The profit margin is lower than the previous category. The range of prices can be anywhere between Rs. 25 to Rs. 300. The total value of goods can be between Rs.2000 to Rs. 5000.Each sellers has his own territory/ area to which other sellers do not come in. The price is normally same for foreigners and Indian though it may be different in certain cases. The products on sale are generally the kind which appeal to foreign tourists and the sellers also position themselves in places where the target customers are more. But during the off season the type of jewellery on sale is different and it matches the Indian tastes so as to increase sales.

Smaller jewellery shops:

These are the 3 x 5 shops on the sides of the beach. Target market is Indian Tourists. The sales start picking up on the weekends with peak on Sunday. The increase can be up to 300% on Sundays. The Cost of the goods ranges from Rs.10 to Rs. 300. But it is also noticed that they do not sell just jewellery but also decorative goods. This increases the prospect of sales since target customers are women for whom these goods are also of interest. All the products are marked with price with the same price being quoted to all customers. This is because there are a lot of shops with the same kind of goods in the same lane and increased price would not be a viable option. Instead diversification and offering what the other shops do not offer is the best approach.

The Jewellery store:

These are properly laid out stores in the shopping areas of Mahabalipuram. These places are far more expensive compared to all the above mentioned stores and have a very high margin. It is seen that the price heavily depends on the kind of customer. The investments are as high as 3 to 10 lakhs.  The major customer base is foreigners. So much so that the shops are closed in off seasons when the foreign tourists are less. Thus the sales are highly seasonal. These stores have jewellery which is only for only the niche market and does not cater much to other buyers. The jewellery sold is either semi-precious or precious often with superior quality. The stores offer designs from across the country, mostly ethnic designs to cater to the tastes of the target segment. The numbers of buyers are very less but the product value is high. The prices range from Rs. 500 to as high as Rs. 10,000 also.

The Covering Jewellery shops:

These shops follow a mass marketing strategy for the traditional families in Chennai. The jewellery is completely traditional, heavy jewellery which, the target market being the middle class women. The jewellery looks like gold but it is actually plated. The cost of the jewellery varies from Rs.50 to Rs. 2000. The jewellery is offered in various qualities in different price ranges. The value of goods can be very high, as much as 15 to 20 lakhs.

The Jewellery store in Malls:

These stores basically target the brand conscious younger generation who would prefer buying from malls than anywhere else. The price of the jewellery ranges from Rs. 200 to Rs. 2000. They usually have modern jewellery catering to the target segment. The quality is of utmost importance with exchanges also being offered in case of dissatisfaction. The Investments are huge up to 30 lakhs per store. 



Raksha A
FT 13462