Documente Academic
Documente Profesional
Documente Cultură
MBA
2013-15
Table of Contents
1. Objective..3
2. Research Methodology..3
a. Supply Side...3
b. Demand Side........3
3. Competitive Performance.....4
4. Why to buy imitation jewelry.......4
5. Indian Market Overview .....6
6. Raw Material.......7
7. Production Hubs In India.....8
8. Important manufacturing hubs........8
9. Suppliers Present In India.....9
10. Value Addition Chains....11
11. Process of production of imitation jewelry...12
12. Costing of imitation jewelry...13
13. Workforce......14
14. Imitation Jewelry Market14
15. SWOT Analysis.15
16. The Road Ahead...15
17. The Challenges..17
18. Export Destinations from India..19
19. Major Importers....20
20. Demand Fact Sheet...22
21. Initiatives Taken.......22
22. Strategies to boost Exports......25
23. Recommendations25
Objective
The objective of the project is to evaluate the export competitiveness
of commodity
under chapter 61(HS code 7117) of Indian imitation jewelry sector. This study wo
uld look
at the entire value and its exports from India.
1. Research Methodology
a. Supply Side
To assess the supply-side factors of export competitiveness, a secondar
y research was
conducted to find the supply-side bottlenecks that they are facing in
India. The supplyside framework is based more on opinions than on data/ numbers
b. Demand Side
In order to evaluate the demand-side, the study has analyzed the comp
etitive
performance of Indian exports of the commodity (HS code 7117) in the
primary market
(US, UAE, Gemany, UAE, and France).
2. Competitive Performance
A product is said to be export-competitive if:
1. The growth rate in unit value of the product imported from India
exceeds average
growth rate in unit value of the product from all suppliers in a market, and
2. Its market share grows over the period 2008-2012.
3. To the extent market share is a function of quotas, market share of some coun
ty may
decline over time only because their exports are constrained by quotas.
Definition: Can also be known as cubic zirconia jewelry, faux jewelry
or costume
jewelry. They are generally inexpensive versions of popular, more expensive bran
d name
jewelry.
what we also called gold plated jewelry looks so real that anyone would
think you have
paid a packet for it.
Not only gold, but also even diamonds are available in its cheaper option called
American
Diamonds. These are actually pieces of glass that are polished and cu
t in a way to give
the sheen and look of a diamond. American diamond jewelry cost less than half of
what
actually diamonds cost.
Genuine jewelry has its limited wearabilty, which means that what you pick up ma
y not
go with every outfit you own. And because of its cost it is not possible to own
a piece of
jewelry to match up to your wardrobe. But with the option of imitati
on jewelry, you
could possibly afford to own a piece that could match with every dre
ss you have. The
range of colors and styles span over a wide variety. In fact there
are designers who
specialize in imitation jewelry. Right from feathered earrings to ivory
pendants, from
glass bangles to beaded anklets, it is probably available. In fact usin
g your imagination
and artistic and craft skills you could create your own range of imitation jewel
ry at home
with beads and strings.
Indian Market Overview
Indian jewelry business has undergone a drastic transformation over the
years. Original
diamond and gold jewelry has now made a way forward for artificial j
ewelry. The sky
rocketing prices of the traditional jewelry whether it is gold, diamon
d or silver, have
encouraged people to opt for affordable imitation jewelry.
Indian Imitation jewelry market has witnessed tremendous growth in the past few
years.
In 2012, the market grew around 85% compared to the previous year. T
he imitation
jewelry market was estimated to reach INR 98.5 Billion by the end of 2013 due to
rising
demand.
Imitation jewelry such as fashion jewelry is very much prevalent, especially amo
ngst the
college going teenagers. Since the prices are cheap, they can get a wide variety
and also
keep up with the changing fashion. Indian fashion jewelry industry is
growing in
quantum, patronized mainly by the youngsters.
In future, the imitation jeweler market is expected to grow further with soaring
gold and
silver prices, rising consumer preference, availability of more innovati
ve designs and
variety etc. Considering these factors, the imitation jewelry market in India is
anticipated
to grow at a CAGR of around 23.5% during 2013-2017.
Raw Materials
These are a few of the raw materials that are used as inputs for the Imitation J
ewelleries:
1. ZIRCON: Is a mineral occurring as prismatic crystals, typically bro
wn but
sometimes in translucent forms of gem quality. It consists of zirconiu
m silicate
and is the chief ore of zirconium.
Zircon occurs in many colors, i
ncluding red,
pink, brown, yellow, hazel, or black. It can also be colorless. The
color of zircons
can sometimes be changed by heat treatment. Depending on the amount of heat
applied, colorless, blue, or golden-yellow zircons can be made.
Major procurement centers:
Domestic: Tamilnadu , Kerela , Odisha
International :China , Indonesia , Malaysia , Ukraine , Brazil , Aus
tralia ,
South Africa
2. AMERICAN DIAMONDS: is the cubic crystalline form of zirconium dioxide (ZrO
2
).
The synthesized material is hard, optically flawless and usually colorless, but
may
be made in a variety of different colors. It should not be confused
with zircon,
which is a zirconium silicate (ZrSiO
4
). It is sometimes erroneously called "cubic
zirconium".
Because of its low cost, durability, and close visual likeness to diamond, synth
etic
cubic zirconia has remained the mostgemologically and economically import
ant
competitor for diamonds since commercial production began in 1976. Its
main
2011 2012 2013 2014f 2015f 2016f
2017f
competitor as a synthetic gemstone is the more recently cultivated mate
rial,
synthetic moissanite.
Major procurement centers:
Domestic: Panna mines , Rajasthan
International: China , Japan , USA , Germany
3. STAINLESS STEEL: In metallurgy, stainless steel, also known as inox
steel or inox from French "inoxydable", is a steel alloy with a minimum o
f
10.5%
[1
chromium content by mass.
Stainless steel does not readily corrode, rust or stain with water as ordinary s
teel
does, but despite the name it is not fully stain-proof, most notably
under lowoxygen, high-salinity, or poor-circulation environments. There are differe
nt
grades and surface finishes of stainless steel to suit the environment
the alloy
must endure. Stainless steel is used where both the properties of ste
el and
resistance to corrosion are required
Domestic procurement : Rajkot, Jamashedpur, Hyderabad, Pune, New
Delhi, Chennai
International: India is self sufficient in the production of stainless steel.
4. Cup Chains
5. Rondels
round
6. Metallic Balls
7. Stones in settings
Address 8, PLATINUM
PLAZA, OPP. INDIAN
OIL PETROL PUMP, NR.
JUDGE BUNGLOW
ROAD, BODAKDEV,
Ahmedabad - 380015,
Gujarat, India
ISABELLE EXPORTS
Member duration 6 years
With an aim to stand tall on the expectations of
are engaged in providing them with attractive range
imitation jewelry. We are highly in demand for our
assured products such as 3 Binder Case in Ring, 3
and 3 Ring Recipe Binder and more. Our Export
Markets: Germany, Europe, China, Munich and Miami
patrons, we
of
quality
Ring Binder
Address 2994/2-A,
STREET NO. 17,
RANJIT NAGAR,
400003,
Maharashtra, India
Zorba Logistics Pvt. Ltd.
imitation jewelery...Trader and Exporter of Fashion garments, dust woolen coat,
fashion
accessories, handicrafts, jute bags, imitation jewelery, spices, eatables,
logistics Service
Provider of Freight forwarding, import, exports, custom house agent, transportat
ions, air
freight
Address : I S-23, Sej Plaza, 2nd Floor, Off. S.V.Road, Malad (West),
Mumbai - 400067,
Maharashtra, India
Shree Ambica Novelty
Distributer and Supplier of Imitation jewelery-ring, bracelet Trader of Imitatio
n jeweleryring...Distributer and Supplier of Imitation jewelery-ring, pendent, bangle
s, set,
necklaces, bracelet Trader of Imitation jewelery-ring, pendent, bangles, s
et, necklaces,
bracelet
Address: No 1112/16, Toy Market, Pankore Naka, Ahmedabad - 380001, Gujarat, Indi
a
pricing
imitation jewelry are:
Simple jewellery pricing formula - Price = material costs x 3 + pro-ra
ted hourly labour
rate. For example the necklace made cost Rs. 5 in jewellery supplies and took 30
minutes
to make. Using the formula Price = Rs. 5 material costs x 3 + Rs. 10 labour (30
minutes of
labour equals half an hour. So half of Rs. 20 hourly labour rate equals Rs. 10 o
f labour on
this necklace)
This gives you a selling price of Rs. 25.
An additional step in using the jewellery pricing formula above is to take into
account the
following to adjust the resulting price:
(a) What will your target market be prepared to pay;
(b) How unique is the jewellery made;
(c) What do shops charge for similar pieces?
Indian Custom Duty of Products
HS-Code Item Description Basic Duty CVD SPL. CVD
71171100 Cuff-links and studs 10.00 % 6 % 0%
71171910 Bangles 10.00 % 6 % 0%
71171920 German Silver Jewellery 10.00 % 6 % 0%
71171990 Other 10.00 % 6 % 0%
71179010 Jewellery studded with imitation pearls
or imitation or synthetic stones
10.00 % 6 % 0%
71179090 Other 10.00 % 6 % 0%
CVD Countervailing Duties
Generally, imitation jewellery comes in four different varieties
Costume jewellery,
Fashion jewellery,
Rold gold and
Cubic Zirconia jewellery
Workforce
Though imitation jewellery industry is unorganized, it provides employme
nt to many
people, say merchants. About 70 per cent of employees working in the
industry are
illiterate women and they work from home. India may leverage its traditional cra
ft-skills,
low-cost labour, and fabrication techniques in some of the jewellery p
roducts (such as
processing of small-sized diamonds), and replicate such advantages in the produc
tion of
other products, and thereby become a global player across the gems an
d jewellery
segments.
Imitation Jewellery Market
Imitation jewellery (HS 7117): The Asian and European countries dominated th
e export
of imitation jewellery Hong Kong, China, Austria and France. Major im
porters of
artificial jewellery include USA, Germany, France, UK and Italy in 2007. Hong Ko
ng was a
major source country for all the major importers, followed by China and Austria.
Indias exorts under this roduct category amounted to US $ 117.46 milli
on. Though
India is also one of the major exporters of artificial jewellery, Indias roducts
are mainly
sourced by UK. Other major export destinations for India include: USA,
UAE, Spain and
Saudi Arabia; however, the volumes are insignificant as compared to the potentia
l.
India needs to target these markets through various strategies (Cuff
links & studs of
base metal w/n plated with precious metal (HS 711711): Major importers
of products
under this category include: USA, UK, Japan, France, and Hong Kong; m
ajor source
countries for products under this category include: Thailand, UK, Hong Kong, Chi
na, and
Germany in 2007. Thailand served as a source country for all major i
mporters of the
world (Table 37).
Indias exorts under this roduct grou amounted to US $ 2.58 million.
Though India
was not a major exporter under this category, India was a major source country f
or USA
contributing 8.1% of the total imorts by the USA. In value terms Indias
exort to USA
was US $ 2.09 million a share of 81 % of Indias total exorts under this roduct gr
ou.
SWOT ANALYSIS
technology
Low penetration
Oppurtunitie
s
Product Diversification
Rising prices of Gold and
Silver
Young untapped Indian
population
Advent of online marketing
Threats
Cheap imports from China
Entry of MNC Online
portals
Lack of customer
preference
Big penny marketing by
traditional jewellers
These are some of the key concerns that this industry faces in the
wake of
globalization and changing marketing landscape:
The jewelry industry in India adds a distinctive feature
with high domestic and
international demand. With rising gold and silver prices, imitation jew
elry market has
been witnessing significant growth over the past few years.
Moreover, Indian imitation jewelry making is emerging as the next big market whi
ch has
been pre-dominantly driven by its indigenous designs and local demand. In additi
on, the
perspective of manufacturers, wholesalers, traders and retailers of the imitatio
n jewelry
industry holds much more capability than the conventional offering.
The industry dynamics and consumer behavior atterns have made India th
e worlds
second-largest manufacturer of imitation jewelry after China. Rajasthan, Uttar P
radesh,
West Bengal, Bihar and Madhya Pradesh are some of the important state
s known for
such products.
Further, with the entry of large organized players, the market will b
ecome more
competitive and people have more choices among branded and quality products.
Beside, Indian imitation jewelry has a huge potential for exports and
enjoys huge
demand in the foreign markets. The demand is also rising in many Asi
an countries
which will help further the industry to accelerate in the near future.
However, there are also certain challenges such as cheap imports from
China, costly
labor, etc. which needs to be addressed as these can affect the growth of the in
dustry.
Considering the above factors, the future of Indian imitation jewelry market see
ms quite
bright
The Challenges Ahead
Market Driving Factors
Here we discuss in detail the propellants for the rising market of I
mitation jewellery in
detail:
High Demand: The demand for imitation jewellery
st one
year. People, especially women have adopted
g after being
influenced by daily soaps. They ape the jewellery
n by the
television stars. Moreover with the rise in
sposable income
customers undoubtedly prefer to go in for branded
ian market
and imports from China have already catured 30% of the countrys domestic maret.
It is also hurting imitation jewellery manufacturers, as Indian traders
are now importing
finished goods from China.
According to data from the ministry of commerce, India imported Imitat
ion jewellery
worth about INR 1.3 Billion in 2011-12. During the period April-Septem
ber 2012, 0.6 bn
worth of finished imitation jewellery was imported from China. However,
this figure
underestimates the actual level of imports, which are believed to be 10 times hi
gher.
Accessibility
Besides metros and tier one cities, accessibility of standardized imitation jew
ellery is a big
issue, and therefore, a significant portion of the consumer segment is underserv
ed.
Highly Unorganized
Indian Imitation jewellery market is highly unorganized with the organized marke
t is nearly
three-fourth of unorganized sector. In addition, the number of organize
d players is also
less in the sector Indias gems and jewellery industry is highly unorganied and fr
agmented
with more than 90% of the players having family owned businesses. Acc
ording to a FICCI
study, the gold processing industry has around 15,000 players, with on
ly around 80 units
having revenues of over US $ 5 million. India is also home to aroun
d 450,000 goldsmiths,
over 100,000 gold jewellers, about 6,000 diamond-processing players, and 8,000 d
iamond
jewellers. The unorganized and small-scale nature of the sector hampers
the ability of
Indian gems and jewellery industry to innovate, upgrade technologies, a
nd emerge as a
world-class supplier.
Lack of Customer Awareness
The customers need to be educated on the basic artificial jewellery c
are to maintain the
quality or the olish of the roduct. Also Indian customers need to be
informed that
certain regions in India have humid weather which adversely affects th
e shine and the
plating of the product.
Costly Labour
For the artificial jewellery industry labor is very expensive. In addi
tion, there is a lot of
attrition due to which the manufacturers have to continuously increase
the wages of the
labor, which adds to the overhead costs.
Low Quality Jewellery
In case of imitation jewellery, same designs are available in low quality materi
al at low cost
which is affecting the growth of the market.
Export Destinations from India
The following table represents the top ten major export destination
of Imitation
jewelry from India: (all data in US$ thousands)
Importers 2008 2009 2010 2011 2012
World 157362 176373 162907 324817 348983
Afghanistan 623 2095 1494 41847 67213
United States
of America
27777 27938 33221 44861 51448
United Arab
Emirates
16027 30641 13582 88055 47557
United
Kingdom
34601 35788 28171 34380 26721
Spain 8750 11046 11118 14469 16618
Saudi Arabia 6487 5113 7192 11819 12472
Thailand 270 108 28 68 11418
Malaysia 1256 1330 1854 2129 7865
Iran (Islamic
Republic of)
623 494 778 3801 7476
Sri Lanka 357 289 467 1477 6207
We can analysis the change in exporting trend by observing the follow
ing graph:
A global map wise representation of Indian Imitation jewelry presence:
United
Kingdom
84 259 146 437 749
Philippines 0 3 3 65 632
Italy 107 156 164 175 512
France 146 528 344 305 496
Thailand 323 225 282 328 460
United States
of America
108 124 405 306 451
The graph below shows the import footprint of India.
investments being made. One of the key areas entwined at each step in this strat
egy are
addressing the compliance issues, so that the products are acceptable
internationally.
The marketing strategy focuses on identification of the most appropriate market
niches,
ensuring quality and standardization of products, ensuring proper market
access,
branding, and marketing of the products efficiently. Sales of imitation jeweller
y continue
to be confronted by obstacles in meeting the quantity, quality, and c
ost demands of
different segments of the market. For producers to be able to take a
dvantage of new
economic opportunities and capture new market segments they need assist
ance in
expanding their production capacity, in upgrading the quality of their
products to the
standards demanded by buyers, and in overcoming the many obstacles the
y face in
meeting the requirements of the targeted markets.
Infrastructure Development: This strategy seeks to respond to the main challeng
e faced
in the availability of infrastructure and latest technologies in the s
ector and suggests
solutions to these challenges by ensured focused interventions. A new
scheme of
Infrastructure and Technology Develoment will be critical in filling the
institutional
gaps in the sector.
Livelihood and working environment: The strategy for livelihood and wo
rking
environment bases itself on providing social security to the artisans and their
families. It
also makes provisions for financial/ policy support and the necessary
regulatory
framework that fosters the development of viable entities which enable
artisans micro
enterprises (individually and collectively). Provisions have also been made for
supply of
tools and technologies, designs and marketing at the grass root level through th
e cluster
approach.
Export Initiatives
A three-day fair, organised by the Export Promotion Council for Handi
crafts (EPCH),
would be inaugurated by Textiles Minister K Sambasiva Rao. The objective
of the fair is
to increase the country s share in the USD 16.3 billion global fashion jewellery
market.
The council has been organising IFJAS on an annual basis and the export fortune
s of this
segment have got a significant boost. The year-on-year growth of fashi
on jewellery
alone over the last three years has been a noticeable factor.
At Indian Fashion Jewellery and Accessories Fair, the buyers will have the oppo
rtunity to
discover the finest in the Indian craftsmanship and artistic finish in
perfect harmony
with modern designs, contemporary colours and new product development u
nder one
roof, the release said.
The country s fashion jewellery and accessories exports increased to R
s 2,007 crore in
2012-13 from Rs 1,237 crore in th previous fiscal.
trade, USD
thousand
Value
in
2012,
USD
thous
and
Annual
growth
in value
between
20082012, %,
p.a.
Share
in
India s
exports
, %
Equivalen
t ad
valorem
tariff
applied
by France
to India
Value in
2012,
USD
thousand
Annual
growth
in value
between
20082012, %,
p.a.
Share in
world
imports
, %
Value in
2012,
USD
thousand
Annual
growth
in value
between
20082012, %,
p.a.
Share in
world
exports, %
711790
Imitation
jewellery nes
4,002 -1 1.7 10
131,213 6 4.9
232,048 23 13.2 127,211
711719
Imitation
jewellery nes
of base metal
whether o
not platd w
2,157 -4 1.9 10
465,457 6 8.3
116,457 28 2.9 114,300
prec metal
711711
Imitation
jewellery
cufflinks&stud of
base metal
w/n platd w
prec met
24 18 5 10
7,413 9 4.2
477 -28 0.3 453
Frances total imorted value in 2012 for imitation jewellery is 604083
USD thousand. India
contributed only 6183 thousand USD out of the total imports by France. From the
above table,
Indias exort to France has witnessed a negative growth rate of -1 %,
-4% and 18% in the
period 2008-12 in products 711790, 711719 and 711711 respectively. But
the overall increase
in imports of France is 6%, 6% and 9% in these products. Hence, the
re is an opportunity to
increase trade with France and increase exports of imitation jewellery
from India. European
region is the biggest trade market for India, therefore total ad valore
m equivalent tariff in the
European region is very low as seen in the below table.
Importing
country Year
No. of
corresponding
national tariff lines
India s
export(USD
Thousand)
Total ad
valorem
equivalent tariff
France 2013 4 8,851 10%
Belgium 2013 4 1,995 10%