The Value Of The Jewelry Market

990 WordsJul 12, 20154 Pages
According to the statistics from the IBEF (India Brand Equity Foundation, 2015) the estimated value of domestic jewelry market is about 70-75 Billion US Dollars. The Jewelry Market in India is expected to grow at a CAGR (Compounded Average Growth Ratio) of 15.95 per cent over the period 2014-2019. The potential market segments are Gender (Males, Females). Age (Baby boomers, Gen X, Gen Y). Income (High-income, Middle-income). Highly competitive international brands. Emerge in 3 forms: 1. ‘Corporate Giants’ – With a presence across various segments of the value chain. e.g. De Beers, Richemont (Cartier). 2. Volume Players – Companies with depth and huge capacity in a single segment whether mining, diamond manufacturing or retailing. e.g. Tiffany & Co. 3. Experts – Companies that develop specialized expertise in niche areas at various points in the chain. e.g. Harry Winston, Bvlgari. Porter’s 5 Forces The Porter’s 5 Force Model identifies the relative strengths of five competitive forces on the exquisite jewellery industry’s competitive intensity and profit potential. Bargaining Power of Buyers (Low) Fragmented Market: The consumers of fine jewellery are largely fragmented across geographical locations e.g. US, UK, Asia-Pacific, thus their bargaining power is relatively low. • Product Differentiation: Products in the fine jewellery sector are highly differentiated. For example, affluent consumers pursue exclusive designs by Tiffany’s renowned artists Paloma Picasso and Frank
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