The Indian gems and jewellery industry has come a long way in the past decade. Jewellery has been an indelible part of our lives in India since time immemorial. That it continues to occupy a prime place is visible from the growth of the Indian Gem and Jewellery sector, both on the domestic and international front. India is even today the largest consumer of gold and proud of its Gem & Jewellery Exports which is well in excess of over 40,000 crores and growing rapidly.

Jewellery in India has been traditionally bought as an investment to be utilized during times of trouble, and also mainly to be worn during special occasions such as festivals and marriages. Most of the designs are complex, traditional and chunky in nature and designed by the local family jeweller. In fact, it is believed that the domestic market in India is fragmented and serviced mainly by around three lakh small and medium sized retailers across the country.

However a notable trend in the recent past has been the entry of branded jewellery in India, which has slowly started changing the perceptions and attitudes of Indian customers towards jewellery.

The introduction of branded jewellery, very different, both in terms of look and cost has placed jewellery in the “lifestyle and value’ plank in the minds of the Indian consumer, rather than the traditional “investment and value’ approach that most jewellery was bought on. Today the Indian customer has begun to look at jewellery as a part of his/her lifestyle rather than just an investment. Suddenly women realized that they didn’t have to wait for long periods of time to take that piece of jewellery out of their safe and wear it to the occasional marriage. They could now wear jewellery as part of their accessories to work or to college or to parties or even gift it to loved ones, thanks to the trendy and contemporary designs that were available. Branded jewellery also broke the myth that ‘that which is precious must be pricey’. Today branded jewellery is available from a starting price range of Rs 900 upwards.

The other factor that has made companies such as Tanishq, Carbon, Gili etc household names today, is the way in which these companies have built their brands. They have created a niche for themselves by offering their customers a unique experience that makes the customer go back for more. There has been a definite shift towards branded jewellery in the last couple of years. This positive acceptance has come about due to many factors such -lifetime warranties and guarantees, offers of exchange and buy-backs and with many brand superior and internationally competent styles, polished finishing and price ranges that compare favorably with the unbranded segment. Coupled with added ammunition like funds for advertising and promotion, a complete shopping experience and attractive packaging branded jewellery has become a status symbol, indeed something that lends an aspiration value. Aggressive marketing strategies, coupled with the use of celebrities as brand ambassadors and the commercialisation of ‘days’ honouring every possible relative, have also aided the success story of branded jewellery in India.

Brands have been readily accepted in all other sectors and the same trend is catching on in the jewellery segment too. The branded jewellery industry in India, which was almost negligible a decade ago, has grown into an estimated Rs. 800-1,000-crore industry today. Although branded jewellery as a fashion accessory is still a small portion, less than one per cent of the total Rs. 40,000 crores per annum gem and jewellery exports from India; it is growing at a tremendous pace of 20 to 30 per cent annually.

The success of branded jewellery in India is reflective of the fact that companies that have put in efforts at building their brands in the market have succeeded in making a place for themselves in the consumers mind thus adding value to their reputations and to their toplines.

It is worth contemplating then, that by creating sustainable brands, companies can look at success not only in the domestic market, but also at the international level, where the challenges are quite varied and intense.

India’s Gem and Jewellery Exports have today reached US$ 11986.63 million (Rs. 54919 crores) this year as compared to US$ 9138 million (Rs. 44080 crores) last year, an increase of 31% in dollar terms and 24% in rupee terms in FY 2003-2004. The total value addition this year itself is to the tune of over US$ 2 billion. Even coloured gemstones have made their presence felt in the export scene over the years recording an overall growth of nearly 60% in the last decade having registered exports of barely $100m in the early 90s to nearly 177m this year. It is expected that this sector will register a growth of at least 10% this year (04-05.) The industry is ecstatic, having crossed last year’s exports by almost US$ 3 billion & surpassing its fiscal target of US$ 10 billion. It is now hopeful of achieving the GJEPC’s vision of touching US$ 16 billion by 2007.

Despite this sterling performance, India’s share in the $ 80-billion industry worldwide is hardly 1-1.5 per cent, with majority of Indian exports continuing to be at a lower end of the value chain. Be it diamonds, where India has a massive share of cutting and polishing of rough or even jewellery set in precious stones, most of our products do not directly pass onto the end consumers hands in the export market. In a way, India is actually an outsourcing hub for the world G&J industry and caters mostly to the wholesalers or retailers of the world.

While this is a great opportunity for the industry as a whole, Indian companies would stand to gain substantially if they were to directly tap foreign markets by reaching out to end consumers and sell their finished products there.

So how can the Indian G&J sector reach out to the end consumers in foreign markets where they are unknown & face challenges far more difficult than in the domestic market ?

An insight worth looking into may be the fact that most Indian companies are “invisible” to end consumers abroad. Not many have so far been able to establish any relationship with retail customers in foreign markets, either physically or emotionally.In order to gain a place in the consumers mind, Indian companies will not only have to bring themselves up to speed with the latest in product design, quality and technology, but will have to establish a direct relationship with these consumers on a physical and emotional level. Indian companies will have make themselves visible to these consumers and build their communication with them.

One of the best ways of creating trust in the consumer’s heart is by building credible brands that offer a particular proposition (a credible promise) that consumers can believe in and relate to.

Indian companies have only to look at some of the world-renowned companies in the lifestyle business such as Cartier, Bulgari, Piaget, Tissot, and Chopard etc. to follow their success story. Almost all these companies were small individual jewellers to begin with, but today are global brands that have become bigger than the products they make. The Cartier name inspires the same trust irrespective of whether it is a Cartier pen, watch, jewellery or bottle of perfume, no matter which country. People buy a Cartier because of the confidence in the brand.

So what exactly is a brand and how does a company go about building its brand in a relatively unknown market?

A Brand is a simple thing. To the consumer it represents a whole host of attributes and a credible guarantee of quality and origin. A Brand is how a consumer feels about a product or a company — it is the relationship that a consumer has with a brand. Brands are all about the emotional connection...the relationship and the experience that the consumer has of the company / product that leaves an impression in his mind, that ensures a recall.

A brand is what is created in the hearts and minds of the consumer - the brand is the relationship between the product and its user. Any soft drink quenches thirst; a Coke is a personal experience. Nike is a mindset. Kodak is not film; it’s a personal record of life and history.

Why should companies invest valuable time and money to build brands?; because :-

	Brands help companies differentiate themselves from competition and create a special place for themselves in a crowded market. For example While Nike, Reebok and Action make shoes, the experience that comes with owning each of these products is different. Investing in creating and nurturing their brands will help Indian jewellers stand out (differentiate themselves) from amongst similar competitors and develop their own special relationship with consumers.
	Brands are ownable. Products are not. In an age when new products and designs are the order of the day, a brand makes a unique emotional connection.
	Brands convey trust. A brand is the insurance policy for trusts... the underwriter of your promise. A brand lends credibility to any product promise, because if the promise is broken, your brand is tarnished, and your business suffers. No enterprise would willingly make false promises and risk damage to its brand. Having a brand means you plan to deliver, over and again, Which is why consumers don’t mind paying a premium for big brands. In an industry such as Gem and Jewellery, where trust is such an important factor, what better way to lend credibility to ones organization and business than by creating your own brand promise?
	In an age of information overload, brands compress data better than anything else. Brands signal; they identify. They help people edit. They pull all the attributes - rational and emotional - together. You immediately know what the brand is the minute you hear the name. McDonald’s, Surf, Jet Airways, Indian Airlines, Citibank, Bank of Baroda etc. Domestic jewellery brands have been able to create their own special value in the minds of consumers-TBZ, Gili, Tanishq.
For example Oyzterbay would like to be perceived as cool, contemporary, precious and affordable. Therefore, they reckon that a majority of their customers will be people who identify themselves with these attributes. According to Carbon, the profile of the average customer likely to purchase a Carbon item is a well-paid urban professional, 24 to 38 years old having a credit card. Carbon would therefore like to target these customers and convey to them that Carbon products are meant for them.
	Not only can a brand be an organizing principle for how you present yourself to the outside world, it can also be a powerful tool for communicating with your internal audience. The brand can be a motivator, a morale booster, a signal for change, and a rallying cry. Employees are one of the most important brand ambassadors for a company-they are the main contact points with clients. The impression an employee gives about the company can make or break its reputation. The brand therefore has to begin from within first. Everyone in the company must exemplify what the brand stands for.
	One of the most valuable attributes of a strong brand is that it attracts loyal users, and loyal users are the cornerstones for corporate profit. By instilling credibility and trust in the minds of their consumers, Indian jewellers can look forward to acquiring loyal customers to increase profitability.
	A last point on the value of strong brands. They can really help in the fiercely competitive global marketplace, as a brand starts to move from country to country or different locations in the same country. No matter where they go the brands provide customers with the same set of attributes to experience. A MacDonald’s will provide you with the same experience, no matter where you go. A Tanishq showroom will provide the customer with the same experience, no matter which of their 600 outlets he / she may visit.
The consumer is the most important constituent of any business; especially in a dynamic industry such as Gem and Jewellery where changes and new developments are fast and furious. In such a context, a sustained brand building effort done through judicious understanding of the con-sumer’s wants and needs, followed up by effective marketing and communications strategy employing tools such as advertising, public relations, direct marketing, internet marketing, events and promotional campaigns etc have a three pronged effect on the target consumers:
»	First they begin to notice the brand
»	Second, if they are well stimulated by the communication, they will use the brand
»	The brand experience will then determine whether they will be brand loyal.
While creating a brand and building brand equity takes a lot of money, time and effort, in light of the advantages it should be looked at more as an investment than a cost. In the long run, the brand really signifies the reputation and goodwill of the company. Today, the power of brands is all around us to see. We have also seen the instance of Indian companies making a place for themselves in the customers mind by building credible brands that have contributed to the success of branded jewellery in India. For Indian companies wanting to tap domestic as well as foreign markets by reaching out directly to end consumers, building sustainable brands may be one of the best ways of ensuring that they leave an indelible impression in the minds and hearts of their customers, ensure that customers remain loyal to the brand experience and thus ensure economic profitability for themselves. For further information contact Vikram Padbidri C-10, Parijat Apartment, Patel Estate, Jogeshwari (W), Mumbai-400 102. Tel. : 26783900