The Jewel Box

The mass market the low and middle price segment has seen a flurry of activity in recent years. There have been deluge of new brands in this segment and they have had a focussed marketing strategy. These brands including Sparkles, Valencia, Gili and Rose Collection are mainly into 18-carat jewellery. Using the benefits of large-scale, machine-led production they have pegged the prices almost 30 per cent lower than the traditional jeweller who depends on hand-fabricated jewellery.

How have the branded jewellery makers derived this price advantage? Forsimple reasons, says Mehul Choksi, CMD, Gitanjali. One: Most branded jewellers produce casted jewellery this involves technology that minimises the loss of gold during the production process. Compared to a 10 per cent loss of gold in the traditional method of hand-fabricated jewellery, casting cuts it down to almost 4 per cent. Two: with mass production, jewellery makers benefit from the economies of scale. Three: labour cost is negligible in the casted method and the benefit consequently can be passed on to the customer.

This segment is extremely price sensitive and the buying pattern at this price bracket has been mostly impulse-driven. In that sense the low-value gold jewellers are focussing on the not-so-serious jewellery buyer and most often they end up attracting the middle, upper-middle teenagers who dont mind buying trinkets for Rs 3,000 or Rs 4,000. The idea is to develop the gift segment. Over the last two-three years few in Mumbai would have missed the hype that Gili has tried to whip up in the market as Valentines Day approaches. Jaydeep Shetty, manager, marketing services, Shoppers Stop, The two weeks just before Valentines Day this year, weve sold 30-40 per cent more of Gilis products that any regular two weeks period.