A grand step for Diamond Jewelry market in the Corporate Gifting Sector
Diamond market further flourishes with its entry in the corporate sector serving itself as an important gifting and promotional tool.
Jewelry has been part of the Indian traditions for centuries. In the past it was treasured as a stone of value and security, but today more than even before the Indian consumer is lining up to buy jewelry that makes a fashion statement or expresses her individuality. Not only the richer class but also the sales were seen to be high in middle class section i.e. we are talking about approximately 300 million middle class consumers.
The rising purchasing power of the Indian consumer at all levels and the boom in the IT and the BPO industries has pushed up people’s desire to spend. India, which has long been the world’s largest consumer of gold, has in the last few years seen the overall jewelry market expand beyond expectations, with changing consumer preferences leading a shift away from heavy gold jewelry to lighter, trendier ornaments. India has tremendously increased it’s sales of diamond jewelry and taught Indians to value design where they once only looked at the intrinsic value of the jewelry.
Diamond no longer is a rich man’s possession, more or less it has turned out to be a fad today to gift diamond studded jewelry. This year itself in the month of February during the Valentine Day one had seen a remarkable upward trend in sales. The valentine day is no longer restricted to only youngsters but now older couples and families enjoy the occasion equally. This was very much evident in the jewelry market this year. Gifting has become an exclusive way of expressing your love and speaks just more than words.
The diamond boom in corporate world recently small, branded diamond Jewelry products are seen exchanged in the corporate gifting industry. Brands are playing a major role in propelling growth in the diamond jewelry industry. Branded products are bolstering consumer confidence with their assurance of quality. Brands cater to vary segments at different price points and new collections of the season are seen with the very coming festival – diwali, giving the customers the power of choice.
Particularly remarkable is the huge boom in the demand for diamond studded jewelry in the corporate segment. Within overall jewelry sales the diamond segment accounts for around 20 – 25% of the total sales in which it obtains 75% of it’s sales from metros. In which around 5-7% of the market sales is seen in corporate gifting. Though constituting in a small manner the corporate market is showing fast growth. It is seen to grow approximately 20% more per year.
The products seen to be most saleable as corporate gifts include small heart shaped diamond pendants, spiritual pendants, colored diamond jewelry, small bud earrings, balis good for casual wear, minakari, kundan and polki work diamond jewelry products etc. Rings are also considered while gifting but they face the problem of size however delicate rings of standard size are also seen to be a part in the corporate gifting product range.
Some of the well known brands ruling diamond market, who have put their foot in corporate gifting are D’damas, Ciemme of C.Mahendra, Adora brand of Concept Jewelry (India) Pvt.Ltd., DTC’s Asmi and Nakshatra to name a few. Festivals play an important role in a person’s life and diamonds have successfully managed to merge itself as a part of their gifting traditions. Diamond pendants and rings at just Rs.999/- & Rs.1999/-. The market demand for diamond jewelry has definitely improved than last year and the growth seems to be fast moving.
So the market definitely seems to be promising.
One has seen that the dominant consumers of diamond jewelry for corporate gifting are the all major pharmaceutical companies and electronic companies. Diamond jewelry products are also used for cross promotions by many travelling agencies, cosmetic manufacturers, clothing industries etc. Even in the banking and service sector this kind of jewelry has worked as an effective promotional tool. Many well known banks present their premium customers with small branded diamond pendants on becoming the proud owner of their gold credit card and such other schemes. Branded diamond product serves to be an ideal gift to the valued customer and being branded it also comes with a touch of trust. The customers are known to preserve such gifts forever.
Diamond Jewelry Gifting
Diamond jewelry as a gift is emerging in the market and not only in the corporate sector but with so many brand ambassadors advertising the brands, it is growing at an individual gifting platform too. The most recent, ‚Swaranjali‘ from Adora, to hit the marquee is the signature collection of noted playback singer Lata Mangeshkar, which is said to open a new spectrum in the premium branded jewelry segment in India. Further the retail scenario which is on an upswing in India is said to be supporting the growth of diamond jewelry. There are exclusive jewelry malls opening up in the cities where some of the best brands in the country are deciding to set up shops. Such malls are guaranteed to bring about a revolution in the highly fragmented jewelry industry where the retailers could provide which consumers deserved and desired. This will redefine jewelry-retailing standards, which will encourage Indian consumers, NRIs and foreign tourists to spend more on jewelry thus boosting the Indian industry.
Women Power
Last but not the least the Indian woman’s persona too has changed perceptibly, she is young, urban and independent. The percentage of Indian women who preferred to have a diamond set has grown by more than 300 per cent. It is found by a survey that approximately 15 per cent of Indian women within the upper-economic class own diamond jewelry. Thus the new Indian woman is a reality that no marketer can overlook. Also the diamonds are not just restricted to rings and earring they have now also become a part of a women’s other personal accessories, like diamonds are now studded in watches and bracelets, in their hand bags, clips etc.
One needs innovative ideas to attract and retain customers. Apart from the privilege of choice offered to the consumer, the branded diamond jewelry market has to face competition from the local fragmented jewelry market too and one has to keep it’s step cautiously. A customer today needs to be pampered and it is very essential to know your consumer, as it becomes easier to respond to their needs. Advertising has increased brand consciousness markedly and most importantly, branded and machine-made diamond jewelry has become increasingly more affordable. Diamond jewelry has consumption grown at a blistering 24 % in 2003. India has seen a similar growth pattern in 2004 & 2005 and it will be no different in 2006. The diamond has also stepped into the marriage market, until recently, which was had veritable strong hold of gold jewelry only. Diamond jewelry market is definitely at it’s zenith and has a very promising future ahead as far as corporate and personal gifting is concerned.