LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT &TECHNOLOGY BAREILLY

Retail Project On

Comprehensive Practices of

PC Jewellers in Indian Market

Submitted to: Submitted by Mr. Abhinav Nath Anshika Agarwal

Assistant Professor PGDM (2014-16)

CONTENTS

1. Acknowledgement

2. Profile

3. Products & Services

4. Presence in the Country

5. Business Operations

6. Marketing Practices

7. Market Share & Industry Competitiveness

8. Profile of Competitors

9. Future Marketing Strategies

10. Bibliography

ACKNOWLEDGEMENT

This project consumed huge amount of work, research and dedication. Still, implementation would not have been possible if I did not have a support of many individuals and organizations. Therefore I would like to extend my sincere gratitude to all of them.

First of all I am thankful to Mr. Abhinav Nath for his support and for providing necessary guidance concerning projects implementation.I am grateful to him for provision of expertise, and technical support in the implementation. Without his superior knowledge and experience, the Project would like in quality of outcomes, and thus his support has been essential.

I would like to express my sincere thanks towards volunteer researchers who devoted their time and knowledge in the implementation of this project.

Nevertheless, I express my gratitude toward my families and colleagues for their kind cooperation and encouragement which helped me in completion of this project.

Anshika Agarwal

PROFILEPC Jeweller is India’s leading and preeminent jewellery house and is into manufacturing, wholesaling and retailing of 100% Hallmarked gold and certified diamond jewellery. It offers a vivacious and contemporary collection of remarkable jewellery designs to its customers. The plethora of products includes earrings, necklaces, pendent sets, bracelets, rings, etc. exquisitely designed byskilled craftsmen. These designs are a perfect blend of traditional and voguish essence and are bestowed with an aesthetic feel. It works under the highly experienced and professional flagshipof Mr. Padam Chand Gupta as the Chairman, a visionary and Mr. Balram Garg as the MD, a pioneer. Since its inception, the company has carved a niche in creating eternal jewellery designs that are magnificently fascinating. The core reason being that the company is run by a team which is a perfect blend of young and enthusiastic players along with idealist and experienced members.

It all started when PC Jeweller first opened its first showroom in 2005 in Karol Bagh, New Delhi with a vision to redefine elegance, allure and style in the form of stunning pieces of jewellery. Today it has its physical presence at 56 showrooms, across 47 cities and 17 states.

Since its inception, the company has been a pioneer in designs as every product is crafted to a standard of perfection. Whether it is elaborate wedding jewellery or affordable wearables, PC Jeweller has fashioned exceptional designs with unmatched quality. Over time, timeless treasures from PC Jeweller have helped intimate moments become lifetime memories.

Company’s business model consists of setting up large format, stand alone showrooms at high street locations. Its stores stock a wide range of jewellery across all price points, with an increasing focus on diamond jewellery. The company sells only hallmarked jewellery and certified diamond jewellery. This assurance on quality and purity along with transparent and customer friendly policies have enabled PCJ to become an established and trusted brand name in a short time span.

From sourcing of raw materials to the sale of the finished product, all the processes are integrated and aligned. They map out customer preferences and manufacture products in a way that leaves the customers spoilt for choice while making their purchases. Throughout the entire process, stringent quality measures are taken to ensure the purity, value and finish of the product. Their expertise extends to the possibilities of customized and personalized designs to help the customer find and design her or his perfect piece of jewellery.

PC Jeweller has made a remarkable journey so far and has created a brand of its own with sustainable customer initiatives and unrivalled quality that loyal customers vouch for. With contemporary and classic designs aimed for longevity, they are committed to providing customers the best buying experience using a collaborative approach across both online platform and showrooms.

The company hope to continue being inspired and create the most desired jewels.

PRODUCTS & SERVICES

The products offered can be broadly categorized as:

Diamond Jewellery – Majestically designed diamond jewellery that is preferred by most working women. Light weight and jaw-dropping designs to cater to the needs of today’s women.

Gold Jewellery – Traditional gold jewellery with voguish designs to keep alive the ‘Spirit of India’. Preferred by most women for all special and auspicious occasions like anniversaries, wedding ceremonies and many more.

Wedding Jewellery – Meticulously designed ornaments in gold and diamond with exquisite kundan or polky work resonating divinity. Sublime gift for the most important day of every girl’s life.

Designer Jewellery – Desire of every women and envy for the rest. State- of-the-art and au courant designs for the women with a classy taste. Depicts elegance at its best.

Gifts – Exclusive silver gifts for special occasions like silverware like silverware including plates with bowls, silver Ganesha, Krishna, Bal Gopal, Laxmi – Ganesha.

The products in the above categories are pendant, necklaces, earrings, rings (for both males and females), bangles, nose rings, bracelets, mangal sutras, goldcoins, gent’s kada, etc.

In an endeavour to provide world class and auxiliary services to its clients, PC Jeweller Limited has introduced a momentous service called “Jewels for Less”. The service has received huge appreciation and applause from the customers all across. The service is a remunerative and profitable way to plan jewellery buying in advance. Contemplating the prevalent scenario where the gold rates are increasing by leaps and bounds, this is a smart way to invest money in jewellery.

PRESENCE IN THE COUNTRY

It all started when PC Jeweller first opened its first showroom in 2005 in Karol Bagh, New Delhi with a vision to redefine elegance, allure and style in the form of stunning pieces of jewellery. Today it has its physical presence at 56 showrooms, across 47 cities and 17 states. It has its stores in the following cities:

Ahmedabad Ajmer Amritsar Beawar Bengaluru Bhilwara Bhopal Bilaspur Bhagalpur Bareilly Chandigarh Dehradun Durgapur Faridabad Ghaziabad Gurgaon Guwahati Haridwar Hisar Hyderabad Indore Jabalpur Jammu Jodhpur Jaipur Kanpur Kolkata Lucknow Ludhiana Mangalore Mathura New Delhi Noida Pali

Panchkula Patna Raipur Rajkot Ranchi Rohtak Siliguri Shri Ganganagar Vadodara Varanasi Yamuna Nagar

BUSINESS OPERATIONS

Jewellery occupies a very unique position in Indian culture and is an integral part of our culture and heritage. Jewellery retailing in India is dominated by unorganized sector, with a very limited presence of corporate players. PC Jeweller was one of the pioneers in this industry to create a brand with a 100% guarantee of the purity as well as friendly and transparent customer policies. The company has positioned itself as a wedding jeweller with large format stores located on high streets. Its stores aim to provide their customers with largest range and variety at all price points in a luxurious ambience.

PC Jeweller believes that in the long run, as the industry evolves from being largely unorganized towards consolidation, the differentiating factor amongst branded jewelers would be product design and price. Thus it is investing in augmenting its designing and manufacturing capabilities so that it is able to retain its unique selling preposition (USP) in a largely consolidated industry with a limited number of players. The company has a vast repertoire of designs in its data bank and is continuously working to update the same. It has proven manufacturing capabilities which enables it to bring out fresh collections at regular intervals. The company is one of the leading manufacturer of fusion jewellery which involves collection of various types of stones in a single set of jewellery and thus create a very unique item.

Besides domestic operations, PC Jeweller also exports handmade designer gold and diamond jewellery on a wholesale basis. The company has robust export operations but intends to retain focus on growing its domestic business for the next few years.

Company is a pan India player with 49 stores as on date. It has plans to expand its reach by covering more and more locations every year Currently the company is present in Metros, Tier I & Tier II locations. It has also finalized plans to move to Tier III locations through Franchisee stores Indian jewellery market is still predominately in the hands of unorganized sector. However, the consumer buying preferences is shifting towards branded players and this gives players like PC Jeweller immense potential to continue on the growth path for the immediate future PCJ also exports hand made designer gold jewellery. It is a B2B business and NRIs and Muslims are its target customers. Its export markets are primarily Middle East, US and UK. The company has also entered into the field of fast growing online space by launching its e commerce website WearYourShine.com. It also has a tie up with Flipkart and Snapdeal for jewellery sales.

Company has a strong team of over 50 designers who keep on creating new patterns and designs on a regular basis based on domestic and international trends. Company also participates in domestic and international fashion shows and exhibitions on a regular basis to understand the prevalent fashion. Our state of the art manufacturing facility is equipped with all latest machines for developing diamond jewellery with accuracy and speed. However, role of skilled artisans in the jewellery manufacturing cannot be overemphasized as significant portion of ethnic Indian Gold jewellery is hand made. The company has developed and maintained a skilled pool of over 1,000 workers who have the capability and skills of converting paper designs into exquisite jewellery pieces.

MARKETING OPERATIONS

Buying patterns of Indian consumers are changing fast. Consumer are getting more comfortable with online purchases Online sales of precious jewellery items is also picking up, especially small ticket value

items We have set up a focussed ecommerce vertical www.WearYourShine.com with an aim to

become India’s finest online fine diamond jewellery portal focusing 100% on customer experience, pricing and designs. Target is to make the website a go-to jewellery destination for high-end customers and

the masses alike. We have also done tie-up with Flipkart and Snapdeal for online jewellery sales. Tool for us to bridge gap between in-store and online shopping experience, enhancing

customer satisfaction and repeat purchases. Help us catch the target segment young.

Low-ticket online sales to help us target the high-ticket wedding customers at an early stage.

A regular visitor/ buyer at PCJ website (www.WearYourShine.com) will definitely visit/ prefer nearby PCJ Showrooms when she/ he has to evaluate a high-ticket wedding jewellery purchase

Better CRM systems. Enhanced data collections and analysis (for other online and offline customer visits) of

customers’ preferences and behaviour to develop effective marketing and communication and targeting strategies.

Platform for purchase of affordable luxury products. Our long term vision is to create a platform which customers can trust for purchasing

affordable and delightful luxury products online. We can then target such customers with other products like private labels for watches,

etc.

MARKET SHARE & INDUSTRY COMPETITIVENESS

The 3 Lakh Crore market is slowly becoming organized, with about 20% of all regional & national players becoming organized -The figure drops to 7-10% if you count only large players such as Titan, Keshavlal Dalpathbhai Zaveri & Sons, Joyalukkas, Kalyan Jewellers, Gitanjali & PCJ among others Size of Jewellery Market -3 Lakh Crore (Organized Market- Rs.50000 Crores) (Unorganized Market- Rs.2.5 Lakh Crores) PC Jewellers strategy on Organized Markets.

1) Selling more of Gold than Diamonds 2.Looking for outside markets -P C Jewellers overseas market comprises NRI’s looking for handmade Indian Jewellery. The machine made designs that are otherwise popular abroad are not the company’s forte & it has decided to stick to its knitting -The company has intentionally kept their exports sales at around Rs.1,000 Crores for the past two years while continuing to expand domestically 3.Localization of Jewellery designs -The company ties up with local designers in each location, in addition to getting jewellery manufactured at its central manufacturing unit in Delhi -In 2013,PCJ ventured into South India for the first time opening stores in Mangalore, Bengaluru & Hyderabad (50% of the inventory of this market is localized due to the preference for local designs) 4)Lower Making Charges PC Jewellers have lower making charges & also offer the option of returning jewellery within one week for a full refund whereas other jewellers usually retain the making charges on returns(P C J’s effective manufacturing & inventory strategy allows it to make this offer) 5)About 30% of the jewellery it sells is non-designer,which involves low making charges 6)Company’s manufacturing plant lets the company to save 2-3% on making charges.

PROFILE OF COMPETITORS

TANISHQ:

Titan Company brought about a paradigm shift in the Indian watch market when it introduced its futuristic quartz technology, complemented by international styling. Titan Company is the fifth largest integrated own brand watch manufacturer in the world. In addition to 'Titan' the watch brand, Titan Company has also built 'Tanishq' the leading jewellery brand over the past few years. Both these brands are among the most recognised and loved brands in India. 

The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Titan Company transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Titan Company reached out to the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 150 million watches world over and manufactures over 15 million watches every year. 

With a license for premium fashion watches of global brands, Titan Company repeated its pioneering act and brought international brands into the Indian market. Tommy Hilfiger, FCUK, Timberland & Police as well as the Swiss made watch – Xylys owe their presence in the Indian market to Titan Company. 

Entering the largely fragmented Indian jewellery market with no known brands in 1995, Titan Company launched Tanishq, India's most trusted and fastest growing jewellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment. 

Titan Company has also made its foray into eyewear, offering a variety of differentiated products to the end consumer consisting of frames, lenses, contact lenses and accessories. Frames are available in both international brands (Levis, Esprit, Hugo Boss etc.) and in-house brands – Titan, Eye+ and Dash which is an offering for children. The company has leveraged its manufacturing competencies and branched into precision engineering components & sub-assemblies, machine building & automation solutions, tooling solutions and electronic sub-assemblies. With over 1100 retail stores across a carpet area of over 1.5 million sq. ft. Titan Company has India’s largest retail network spanning over 220 towns. The company has over 400 exclusive ‘World of Titan' showrooms and over 150 Fastrack stores. It also has a large network of over 740 after-sales-service centres. 

Titan Company is also the largest jewellery retailer in India with over 160 Tanishq boutiques and 2 Zoya stores, over 30 Gold Plus stores. It also sports over 300 Titan Eye+ stores. In addition the company retails personal accessories such as bags, belts, wallets and most recently perfumes

under Skinn Brand.

Backed by over 7,000 employees, two exclusive design studios for watches and jewellery, 12 manufacturing units, and innumerable admirers’ world over, Titan Company continues to grow and set new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering. 

TBZ:

The story begins in 1864, in a tin shed at Zaveri Bazar. Late Shri Bhimji Zaveri’s vision was to give India the jewellery it deserved, that of uncompromising quality and craftsmanship. This vision was furthered by his son, Late Shri Tribhovandas Bhimji Zaveri, who expanded the business by opening new showrooms. But it was his grandson, Late Shri Gopaldas Zaveri, who shook up the Indian market by offering customers a full value gold buy-back scheme. This legacy of unapologetically putting the customer first still continues. Under the able guidance of Mr. Shrikant Zaveri, TBZ successfully transformed into the modern and innovative jewellery maker it is today.They are now the jewellery destination of choice for every occasion, from a woman’s everyday wear to delicately crafted pieces for the biggest day of her life. Our path-breaking ways are also evident in retail. The presence in the Indian market has been marked by a number of firsts - the first to offer buy back guarantee on gold jewelry, the first to promote the concept of light weight jewelry and the first to offer certified solitaire diamonds. Thanks to these and many other instances of innovation and commitment to excellence, we are now one of India’s largest jewellery retailers. 

DDAMAS:

D'damas is a diamond company which was founded in 2003 by a joint venture between India's Geetanjali Group and Dubai's Damas. Its business is growing in vast area of across more than 400 towns and 1000 retail stores.There are various ranges of diamond jewellery in D'damas like rings, bangles, diamond studs, pendants, earrings, bracelets etc. it also consist gold, colored and semi precious stones jewellery. The sister brands of D’damas are Vivaah, DER, Solitaire, Lamhe etc.

D’damas is a JV between Gitanjali (India’s largest jewellery retailer) & Damas, Dubai (Middle

East’s largest gold retailer). The S&D model of D’damas consists of B2B, B2C, Franchisee, Corporate & E-Commerce verticals. D'damas has the largest single brand exclusive franchise network in India & is the first diamond jewellery brand to have retail operations abroad as well. It is one of the top five brands in the branded jewellery segment and the ONLY brand with FIVE equally strong & well defined sub brands. The product range consists of exquisite designs in plain gold, diamond studded & semi precious coloured stone jewellery. The wide range of choice covers all needs, moods, emotions & tastes of its consumers across age & time.

FUTURE MARKETING STRATEGIES

Indian retail jewellery market is fast becoming organized and preference towards organized jewellery players is growing. Past decade has witnessed the emergence of various such organized players.

Smaller Indian cities (Tier II and Tier III) are also witnessing this phenomenon of growing preference towards organized jewellers as compared to local and age-old jewellers Growing comfort on buying high ticket value items from established and organized

jewellers who provide hallmark and certified jewellery Media campaigns by leading jewellery chains educating customers on transparent and

friendly customer policies In light of this, we are currently working on developing a franchisee model for Tier III

locations, wherein we can leverage on our brand and utilize the infrastructure and resources of local jewellers/ investors and make them our franchisees Tier III cities do not require significant inventory levels (relative to Metros and Tier 1

cities) and hence franchisees should be able to meet the capital requirement Checks and balances are critical to ensure that customer always gets right product at the

right pricing across PCJ own and franchisee stores We are working with Grant Thornton on developing a viable business model ensuring all

checks and balances are in place. We plan to open two franchisee stores on at pilot basis this fiscal.

Every Indian city has a number of women entrepreneurs working in the jewellery space. We are looking to build our social selling programme to harness this entrepreneurial intellect

and develop women ambassadors/ stylists who will showcase and market our products to their friends/family/ acquaintances and social network.

Our vision is to empower several women entrepreneurs who have the drive and the passion to achieve success on their own terms. Set up an innovative and modern social selling division that offers today’s woman a

career alternative, where she can achieve success and balance through a career in something she loves.

We believe, if implemented well, this can become a very powerful marketing tool. We are currently working on developing a business model for social selling and will go live

once we have sorted out possible issues on safety/ legal and social aspects. Active work on developing a separate team to focus on jewellery marketing to HNI

customers and regular buyers through home visits/ roadshows. Image Consulting: Image consultants being hired for lounges with a focus to help high

networth individuals and regular buyers in choosing jewellery that looks great as per their facial features.

Free facility for consultation with our designers for customized jewellery over video conference.

BIBLIOGRAPHY

http://www.slideshare.net/pcjeweller/pc-jeweller-jeweller-for-generations http://www.pcjeweller.com/about-us/ http://www.pcjeweller.com/store-locator/ http://www.pcjeweller.com/wp-content/uploads/2015/06/investors/downloads/PC

%20Jeweller_Roadshow%20Presentation_Complete%20Presentation.pdf http://www.pcjeweller.com/wp-content/uploads/2015/06/investors/downloads/

PCJCorporate%20Presentation_1%20Jan%202015.pdf http://www.dnb.co.in/IndiaTop500Companies2014/Adv%5CPC%20Jeweller

%20Limited.pdf