BUYING BEHAVIOUR OF WOMEN TOWARTS GOLD JEWELLERY IN

NAGERCOIL TOWN,TAMILNADU

Abstract

The gold market in India is predominantly a market for buying and selling physical gold and gold in the
form of ornaments. The Gold in India serves many functions and wearing it, has several implications. It is
considered as a status symbol. India is considered to be the fastest growing market in the world for gold
jewellery. It is valued in India as a savings and investment vehicle and is the second preferred investment
option after deposits and mutual funds. Hence, this study deals with the purchase behaviour of jewellery
buyers in Nagercoil town. The results of the study reveal that, consumers have purchased gold jewellery
for the purpose of investment. Design has been considered as an important factor influencing the
consumers purchase decision followed by purity. The purpose of this study is to find out buying behaviour
of women customer’s towards jewellery products with special reference to Nagercoil town. The objective
of the study is to get the feedback about various factors affecting Buying behaviour of Jewellery products,
Evaluate the brand awareness andbuyingattitude of the women customer’s in purchasing of gold at the
various jewellery retail stores. The study design used in this study is descriptive study de- sign. Data was
collected from around 200 customers from the Bhima, Jos Alukkas, Shahjahan, Lalithaa jewel lery
retail stores by survey method. The primary data is collected through questionnaire and personal contact
with customer. The secondary data is collected from journals, text books and through the internet. The data
collected and analysed using simple percentage method. Chi Square and Ranking method is the statistical
tool for analysing the collected data. The col- lected data includes personal details, customer opinion in the
Jewellery retail stores, services and current benefits provided in the jewellery retail stores, rewards,
autonomy, recognition and competitiveness. This paper analyses the Buying behaviour of women
customer’s towards jewellery products. The study was restricted only to Nagercoil town. So the results
cannot be gen- eralized. Some of the customers are not serious in their responses to the survey and as a
result there are some difficulties in reaching to the right conclusion. The results may help the
management of Jewellery retail stores to understand about the factors that influence the satisfaction
of customers towards retail stores.

3
 Introduction

Jewell Jewellery is valued as an important savings and investment vehicle in India. Even in
present times, Jewellery remains the Indian bride's `Streedhan', the wealth she takes with her when
she marries and which remains hers. Gold jewellery is the preferred jewellery worn by women in
India irrespective of their religious beliefs. In marriages, gold jewellery is the gift preferred by the
near relatives of the bride and the groom. Jewellery is very popular among farmers, with an
upsurge in gold sales after a good agricultural season.

Various benefits to health and well-being were ascribed to jewellery. There were numerous beliefs
concerning the efforts of specific types of jewellery on the health, and it was used to guard against
specific diseases such as a small pox. Gold on the nose was thought to guard against colds. While
“rudraksha beads” were believed to control blood pressure and precious stones were considered to
have an effect on health and temperament. Buying of gold Jewellery is an important part of every
stage of an Indian citizen's life- at birth, marriage, health, construction of home, festivals, religious
ceremonies, setting up of new business, and death.
Buying behaviour for jewellery and watches takes off in 2012: Actual shopping behaviour on that
year-over-year-growth of referrals to merchants for the second half of 2012 rose sharply compared to
the same period in 2010.Body jewellery up 384%, Fine jewellery up 332%, Men’s jewellery up 321%,
Watches & Accessories up 142%. The Consumer Behaviour Report tracks behaviour of online shoppers
and is designed to give merchants, media and industry analysis insight into current shopping trends, and
attitudinal preferences of con- sumers. Shopping behaviour varies by social class.

Most women enJos shopping regardless of their social class; however, reasons for enJosment differ. All
classes enJos the recreational and social aspects of shopping, as well as be- ing exposed to new things,
bargain hunting, and compar- ing merchandise. However, lower classes found acquiring new clothes or
household items more enJosable, while up- per-middles and above more frequently specified a pleas-
ant store atmosphere, display, and excitement. Middle and upper-class women shopped more frequently
than those in the lower class.
India's gems and Jewellery sector is one of the largest in the world, contributing around
29 per cent to the global Jewellery consumption. The market size is estimated to reach Rs 6.99
lakh crore (US$ 100 billion) by 2025. The sector is home to more than 300,000 gems and
Jewellery players, contributing about seven per cent to India‘s Gross Domestic Product (GDP)
and employing over 4.64 million employees. India's gems and Jewellery sector contributes
around 15 per cent to India‘s total merchandise export. The overall net export of gems and
Jewellery stood at US$ 29.01 billion in FY20, whereas, import was at US$ 26.05 billion in FY20.

The Government of India is aiming at US$ 80 billion in Jewellery export over the next
five years from 2019. India is the world‘s largest centre for cut and polished diamonds and export

4
75 per cent of the world‘s polished diamonds. Today, 14 out of the 15 diamonds sold in the world
are either polished or cut in India. India exported US$ 18.66 billion worth of cut and polished
diamonds in FY20P. It contributed 64 per cent of the total gems and Jewellery export. India is the
largest consumer of Gold in the world. Rising middle class population and increasing income
levels are key drivers behind the demand of Gold and other Jewellery in India. India‘s demand for
Gold reached 690.4 tonnes in 2019. The Government has permitted 100 per cent Foreign Direct
Investment (FDI) in the sector under the automatic route. The Rs 250,000 crore (US$ 35.77
billion) household Jewellery industry is probably going to get a major lift through the
Government‘s decision for FDI in retail.

5
 The Bureau of Indian Standards (BIS) has revised the standard on Gold hallmarking
in India from January 2018 to include a BIS mark, purity in carat and fitness, as well as the
unit‘s identification and the jeweller‘s identification mark on Gold Jewellery. The move is
aimed at ensuring stringent quality check on Gold Jewellery. The Government has made
hallmarking mandatory for Gold Jewellery and artefacts and a period of one year is
provided for its implementation (till January 2021). As per Union Budget 2019-20, the
GST rate has been reduced from 18 per cent to 5 per cent (*5 per cent without Input Tax
Credit (ITC)) for services by way of job work in relation to gems and Jewellery, leather
goods, textiles etc. cumulative FDI inflow in diamond and Gold ornaments for the period
April 2000–Marchstood at US$ 1.17 billion according to Department for Promotion of
Industry and Internal Trade (DPIIT).

Gems and Jewellery sector is witnessing changes in consumer preferences due to

adoption of western lifestyle. Consumers are demanding new designs and varieties in
Jewellery, and branded jewellers have managed to fulfil their changing demands better than
the unorganised players. Moreover, increase in per capita income has led to an increase in
sales of Jewellery as Jewellery is a status symbol in India. The cumulative Foreign Direct
Investment (FDI) inflow in diamond and Gold ornaments in the period April 2000 – March
2020 was US$ 1.17 billion according to Department for Promotion of Industry and Internal
Trade (DPIIT).

 In April 2020, majority of the players in the Indian market like Malabar Gold,
Tanishq, and Joyalukkas offered Jewellery online for Akshay Tritiya.
 Companies such as PC Jewellers, PNG Jewellers and Popley and Sons are
planning to introduce a virtual-reality (VR) experience for their customers.
 The customer will have to wear a VR headset, through which they can select any
Jewellery, see it from different angles and zoom it to view intricate designs.

1.2.1 Role in Indian Economy

The Gems and Jewellery (G&J) market is composed of sourcing, processing,

manufacturing and selling of precious metals and gemstones – Gold, Platinum, Silver,
Diamond, Ruby, and Sapphire etc. The G&J market is a significant contributor to the
Indian economy, based on the size of the domestic market and through its contribution to
the country‘s exports. The consumption of Gold in India stands at 1000 tonnes per year
(around 20 percent of global consumption) – largest consumer; it is also the processes 90%
of the diamonds by pieces (55 percent by value of the global market) – largest consumer.
The Gems and Jewellery Export Promotion Council (GJEPC) is responsible for sustaining
 the new initiatives in the sector (Public enterprise).

BUYING BEHAVIOUR
Consumers are individuals with likes and dislikes. When the predominance of people in a
particular group feel one way or another about a product, service, entity, person, place or thing, it
is said to be a generalized consumer attitude that could affect the marketing of that person, product
or entity in positive or negative ways. Marketers strive to influence con- sumer attitudes, and
understanding the prevailing attitude is the first step to changing it if needed. Attitudes are
“mental states used by individuals to structure the way they perceive their environment and guide
the way they respond to it”

Consumer behaviour is the study of how people buy, what they buy, when they buy and why they
buy. It attempts to un- derstand the buyer decision processes/buyer decision mak- ing process, both
individually and in groups. It studies char- acteristics of individual consumers such as
demographics, psychographics, and behavioural variables in an attempt to understand people’s
wants. It also tries to assess influences on the consumer from groups such as family, friends, refer
ence groups, and society in general.

According to World Gold Council, India is the largest market for gold jewellery in the world,
representing a staggering 746 tons of gold in 2010. Indian consumers are actively engaged in
considering their next piece; 75% of women say they are constantly searching for new designs.
Indian market is plush with varied designs and offerings. As Gold prices are rising sharply,
brands are targeting consumers with a limited budg- et. This is apparent in their offerings,
collection and market- ing campaigns.

THE EMERGENCE OF BRANDED GOLD JEWELLERY

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals
Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to
import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to import
gold freely

Exporters in export processing zones were allowed to sell 10 per cent of their produce in the domestic
market. In 1993, gold and gold ornaments mining were opened up for private inves- tors and foreign
investors were allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion
suppli- ers were also allowed to import gold into India. However, since the late 1990s, there was a shift
in consumer tastes: women were increasingly opting for fashionable and lightweight jewel- lery instead
of traditional chunky jewellery. There was a rise in demand for lightweight jewellery, especially from
consumers in the 16 to 25 age group, who regarded jewellery as an ac- cessory and not an
investment. The new millennium witnessed a definite change in consumer preferences.

In October 2002, Trendsmith conducted a survey to under- stand the shifting needs, motivations
and aspirations of con- sumers in the jewellery market, and to identify new trends and
opportunities.

The late 1990s and early 2000s, with the increase in number of designers from design schools such
as the National Institute of Fashion Technology (NIFT), a wide range of new designs.

The gold market in India is predominantly a market for buying and selling physical gold and
gold in the form of ornaments. Gold in India serves many functions and wearing it, has
 several implications. It is considered as a status symbol. India is considered to be the fastest
growing market in the world for gold jewellery. It is valued in India as a savings and
investment vehicle and is the second preferred investment option after deposits and mutual
funds. Its consumption is much higher in India than in other countries. Consumer buying
behaviour has changed dramatically in the past few years and they are being influenced by
family, friends, reference groups and society in general. Indian consumers are becoming
more aware and quality conscious. Understanding the consumers is not an easy task as it is
very difficult to infer what is going on in consumers mind. Hence, this study deals with the
purchase behaviour of jewellery buyers in Nagercoil town.

Growth
In the coming years, growth in gems and Jewellery sector would largely be
contributed by the development of large retailers/brands. Established brands are guiding the
organised market and are opening opportunities to grow. Increasing penetration of
organised players provides variety in terms of products and designs. Online sales are
expected to account for 1-2 per cent of the fine Jewellery segment by 2021-22. Also, the
relaxation of restrictions of Gold import is likely to a fillip to the industry. The
improvement in availability along with the reintroduction of low-cost Gold metal loans and
likely stabilisation of Gold prices at lower levels is expected to volume growth for
jewellers over short to medium term.

The demand for Jewellery is to be significantly supported by the recent positive

developments in the industry. India being the largest manufacturer of cut and polished
diamonds

globally, its global diamond market share is 60% and 90% in value terms and volume
terms,
respectively. The country where Gold Jewellery forms around 80% of the total Jewellery market,
stood as the biggest buyer of Gold globally in 2016-17.

Growth drivers
 Traditional Domestic Demand Rise in Gold demand during weddings and festivals like
Diwali Rise in income levels is directly proportional to rise in Gold demand
 Growing Middle-Class Population to reach 500 mn by 2025

 Increasing Expenditure, India to become 3rd largest consumer economy by 2025

 Growing Organized Retail Format, Indian retail market to reach $ 1 tn by 2020
The industry holds prominent significance as it is a net exporter and provides
employment to 1.3 people directly and indirectly. India is also emerging as the world‘s
 largest trading centre for Gold targeting US$ 16 billion by 2010. GJ market contributes 16
per cent of total exports, making it a significant foreign exchange earner for the country.
The Industry‘s value chain is indicated by the diagram above. India is not a major miner of
precious metals and stones. The country‘s inexpensive and skilled workforce are one of the
best in the world for processing of though. The most interesting development in India‘s
diamond industry in the last five years has been the industry‘s steady progress up the value
chain; from the skill to the ability to innovate and develop currently,
India‘s G&J industry is highly unorganized and fragmented with 96 percent of the total players being family
owned businesses. The Gold processing industry has around 15,000 players, with only 80 having revenues
over USD 5 million. India is also home to 450,000 Goldsmiths, 100,000 Gold jewelers along with 6,000
diamond processing players and 8,000 diamond jewelers. have started shifting towards branded jewelery,
which offers higher quality and saves the consumers from unfair trade practices in the industry. The
emergence of Jewelry retail chains provide customers with convenience and assurance of quality.
The organized gems and Jewellery sector is expected to progress with a good pace in near future,
and should hopefully account for nearly 8% of the total gems and Jewellery market by 2009-10.

The Branded Jewellery segment is also expected to have a high growth rate. The key drivers
for the industry growth are raising disposable income, conscious marketing efforts, rising young

population with urge to spend and Jewellery being increasingly regarded as fashion
accessory. The entry of foreign players is also to increase competition and provide consumers
with greater choice.
As Indian gem and Jewelry exports have grown to $17 billion, the industry has witnessed an
annual average growth of about 15-20 percent.

Market Demand and Supply

India‘s Gold Jewellery demand is seasonal with the highest consumption during the
festival and wedding season. Demand for Gold in India has an inverse relationship with
price volatility. With increased volatility in current months, the consumption has declined.
Consumers are demanding new designs and varieties in Jewellery, and branded jewellers
have managed to fulfil their changing demands better than the unorganised players.
Moreover, increase in per capita income has led to an increase in sales of Jewellery as
Jewellery is a status symbol in India. India‘s demand for Gold reached 690.4 tonnes in
2019. India's gems and export stood at US$ 29.01 billion in FY20P. During the same
period, India exported US$ 18.66 billion worth of cut and polished diamonds, thereby
contributing 64 per cent of the total gems and Jewellery export.

India‘s import of gems and Jewellery stood at US$ 24.01 billion FY20P. India is one
of the largest exporters of gems and Jewellery and the industry is considered to play a vital
role in the Indian economy as it contributes a major chunk to country‘s foreign reserves.

The Goods and Services Tax (GST) will steer India‘s Gold demand going forward. The
two major segments in India are Gold and diamonds. Gold is an integral part of the Indian
tradition & history. Gold Jewellery is the preferred Jewellery worn by women in India
irrespective of their religious beliefs.

India also dominates the and silver consumption globally with consumption of
about 10000 tones p.a. (largest in the world). Domestic Consumption of Gold jewelery
manufactured in India is also high.the domestic demand for Gold Jewellery is estimated at
Rs. 390 billion in 2005, accounting for an estimated 80% of the Indian Jewellery market of
Rs. 490 billion. Apart from its religious significance, Gold circulates within the system and
roughly 30% of Gold fabrication is from recycled pieces.

India is the largest consumer of Gold with a consumption of 800 tonnes per year.
is an
‗export-led‘ and ‗value added‘ industry. The industry depends entirely on imported raw
material, namely, rough diamonds, generally referred to as ―roughs‖ in trade
parlance. The diamond exporters have developed a global outlook, as theirs is an export-
oriented and import-dependent industry. In the diamond business, Indian companies are
mostly present at the `Beneficiate‘ level of the value chain; act as beneficiaries by
importing rough diamonds (or `roughs‘) from mining companies, cutting and polishing
roughs, and exporting them for further consumption in Jewellery, Prices of diamonds are
dictated by demand-supply gap with demand dominated in western countries, especially
the US. Because of increased disposable income and aggressive promotion strategies by the
diamond industry, Indian diamond Jewellery demand has increased significantly in recent
years-from Rs. 19.7 billion in 1995 to around Rs. 80 billion in 2005. India dominates the
diamond processing trade with 11 out of 12 diamonds being cut and polished in India.

Market Scope

India‘s gems and Jewellery sector is one of the largest in the world, contributing 29
per cent to the global Jewellery consumption. The sector is home to more than 300,000
gems and Jewellery players. Its market size will grow by US$ 103.06 billion during 2019-
2023. India's gems and Jewellery sector is one of the largest in the world, contributing
around 29 per cent to the global Jewellery consumption. The market size is estimated to
reach Rs 6.99 lakh crore (US$ 100 billion) by 2025. The sector is home to more than
300,000 gems and Jewellery players, contributing about seven per cent to India‘s Gross
 Domestic Product (GDP) and employing over 4.64 million employees. India's gems and
Jewellery sector contributes around 15 per cent to India‘s total merchandise export.

The overall net export of gems and Jewellery stood at US$ 29.01 billion in FY20,
whereas, import was at US$ 26.05 billion in FY20. The Government of India is aiming at
US$ 80 billion in Jewellery export over the next five years from 2019. India is the world‘s
largest centre for cut and polished diamonds and export 75 per cent of the world‘s polished
diamonds. Today, 14 out of the 15 diamonds sold in the world are either polished or cut in
India. India exported US$ 18.66 billion worth of cut and polished diamonds in FY20P. It
contributed 64 per cent of the total gems and Jewellery export. India is the largest
consumer of Gold in the world. Rising middle class population and increasing income
levels are key drivers behind the demand of Gold and other Jewellery in India. India‘s
demand for Gold reached 690.4 tonnes in 2019.

The Government has permitted 100 per cent Foreign Direct Investment (FDI) in the
sector under the automatic route. The Rs 250,000 crore (US$ 35.77 billion) household
Jewellery industry is probably going to get a major lift through the Government‘s decision
for FDI in retail. The Bureau of Indian Standards (BIS) has revised the Standard on Gold
hallmarking in India from January 2018 to include a BIS mark, purity in carat And fitness,
as well as the unit‘s identification and the jeweller‘s identification mark on Gold Jewellery.
The move is aimed at ensuring stringent quality check on Gold Jewellery. The Government
has made hallmarking mandatory for Gold Jewellery and artefacts and a period of one year
is provided for its implementation (till January 2021). As per Union Budget 2019-20, the
GST rate has been reduced from 18 per cent to 5 per cent (*5 per cent without Input Tax
Credit (ITC)) for services by way of job work in relation to gems and Jewellery, leather
goods, textiles etc. The cumulative FDI inflow in diamond and Gold ornaments for the
period April 2000–March 2020 stood at US$ 1.17 billion according to Department for
Promotion of Industry and Internal Trade (DPIIT).

In April 2020, majority of the players in the Indian market like Malabar Gold, Tanishq and

Joyalukkas offered Jewellery online for Akshay Tritiya

 Companies such as PC Jewellers, PNG Jewellers and Popley and Sons are planning to
introduce a virtual-reality (VR) experience for their customers. The customer will have to
 wear a VR headset, through which they can select any Jewellery, see it from different angles
and zoom it to view intricate designs.
 Companies are indulging in expansion to more and more cities as well as expanding across
the value chain.
  Retailers in India have started selling their Jewellery online. The growth of online Jewellery
is driven by increasing internet penetration rates, growth in high net worthindividuals‘
population and availability of low online Jewellery prices.
 Majority of the players in the Indian market have started selling Jewellery online; for
example Malabar Gold, Tanishq, Tribhovandas Bhimji Zaveri, PC Jeweller, etc
Companies are also giving buy back option to customers on Jewellery within certain days after the
purchase and based on certain terms and conditions
Companies have also started providing financial facility to their customers who cannot afford to
pay the whole amount at once
 The increasing middle class population symbolises an increase in income of the
population; and income is a major driver of demand for Gold and Jewellery in
India.
 As income rises, so does savings and Indians prefer buying Gold with their savings
as they consider Gold as an important form of investment.

In 2016, India‘s Gold demand stood at 666.1 tonnes; and 298.4 tonnes between
January- June 2017. Companies such as PC Jewellers, PNG Jewellers and Popley and Sons
are planning to introduce a virtual-reality (VR) experience for their customers. The
customer will have to wear a VR headset, through which they can select any Jewellery, see
it from different angles and zoom it to view intricate designs

Contributions to Other Industries and Manufactures

Jewellery in Mesopotamia tended to be manufactured from thin metal leaf and was
set with Large numbers of brightly coloured stones (chiefly agate, lapis, carnelian, and
jasper). Favoured shapes included leaves, spirals, cones, and bunches of grapes. Jewellers
created works both for human use and for adorning statues and idols. They employed a
wide variety of sophisticated metalworking techniques, such as, engraving, cloisonné fine
granulation, and filigree.

Extensive and meticulously maintained records pertaining to the trade and manufacture of
Jewellery have also been unearthed throughout Mesopotamian archaeological sites. One
record in the Mari royal archives, for example, gives the composition of various items of
Jewellery The Standardizations and Hallmarking Gold Jewelry trade in India is based on
Confidence. In previous times, a reputed Goldsmith had a fixed standing of local clientele
in a specific area. The buyer has implicit faith in his jeweller, and may not negotiate too
much. Standardization of Jewelry designs across the country is not feasible due to the
presence of local tastes.
 In the present system of selling Gold Jewellery, the purity may or may not be as
marked, and the buyer can lose. The original labour component is also a loss when Gold is
sold in the market. Cheating on caratage (and purity) is widespread. Thus, in 2000, the
GoId introduced voluntary hallmarking of Gold Jewellery through the Bureau of Indian
Standards (BIS). The system of hallmarking is expected to increase the buyer‘s confidence
in the Jewellery purity India‘s gems and Jewellery sector is one of the largest in the world
contributing 29 percent to the global Jewellery consumption The overall net exports of
gems and Jewellery stood at US$ 35.59 billion during FY2016-17 registering a growth of
9.07 per cent over FY 2015-16. India‘s gems and Jewellery imports increased at a
compound annual growth rate (CAGR) of 7.84% The Government of India has permitted
100 per cent FDI under the automatic route in this sector. US, Hong Kong and UAE
imported 75 per cent of the total gems and Jewellery exports from India during FY 2016-
17. India‘s exports 93 per cent of its cut and polished diamonds produced.

Opportunities And Challenges

Indian Government made hallmarking mandatory for Gold Jewellery and

Artefacts. A period of one year is provided for implementation i.e. till January 2021. As per
Union Budget 2019-20, the GST rate was reduced from 18 per cent to 5 per cent (5 per cent
without Input Tax Credit (ITC)) for services by way of job work in relation to gems and
Jewellery, leather goods, textiles etc. The Bureau of Indian Standards (BIS) has revised
the standard on Gold hallmarking in India from January 2018. The Gold Jewellery
hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit‘s
identification and the jeweller‘s identification mark. The move is aimed at ensuring a
quality check on Gold Jewellery.

The Gem and Jewellery Export Promotion Council (GJEPC) signed a

memorandum of understanding (MoU) with Maharashtra Industrial Development
Corporation (MIDC) to build India‘s largest Jewellery park in at Ghansoli in Navi-Mumbai
on 25 acres land with a capacity to have more than 5000 Jewellery units of various sizes
ranging from 500-10,000 square feet. The overall investment will be of Rs 13,500 crore
(US$ 2.09 billion). Gold Monetisation Scheme enables individuals, trusts and mutual funds
to deposit Gold with banks and earn interest on the in return. However, gems and Jewellery
sector is facing various problems such as dependence on imports, changing fashion,
imbalance growth of products, manual way of crafting, various problems regarding
labourers, financial problems, procedural hardships and unemployment etc.

The Jewelry industry, although prestigious and honorable, is not without its set of
 problems. Although we don‘t claim to have all the answers by any means, discussing them
serves a great purpose – bringing us closer to finding them. So with that in mind, toughest
challenges faced by the Jewelry industry today In the coming years, growth in gems and
Jewellery sector would largely be contributed by the development of large retailers/brands.
Established brands are guiding the organised market and are opening opportunities to grow.
Increasing penetration of organised players provides variety in terms of products and
designs. Online sales are expected to account for 1-2 per cent of the fine Jewellery segment
by 2021-22. Also, the relaxation of restrictions of Gold import is likely to provide a fillip to
the industry. The improvement in availability along with the reintroduction of low-cost
Gold metal loans and likely stabilisation of Gold prices at lower levels is expected to drive
volume growth for jewellers over short to medium term. The demand for Jewellery is
expected to be significantly supported by the recent positive developments in the industry.
Government Initiatives

 Indian Government made hallmarking mandatory for Gold Jewellery and

Artefacts. A
period of one year is provided for implementation i.e. till January 2021.
 As per Union Budget 2019-20, the GST rate was reduced from 18 per cent to 5 per cent 5 per
cent without Input Tax Credit (ITC)) for services by way of job work in relation to gems and
Jewellery, leather goods, textiles etc.
 The Bureau of Indian Standards (BIS) has revised the standard on Gold hallmarking in India
from January 2018. The Gold Jewellery hallmark will now carry a BIS mark, purity in carat
and fitness as well as the unit‘s identification and the jeweller‘s identification mark. The move
is aimed at ensuring a quality check on Gold Jewellery.
 The Gem and Jewellery Export Promotion Council (GJEPC) signed a memorandum of
understanding (MoU) with Maharashtra Industrial Development Corporation (MIDC) to build
India‘s largest Jewellery park in at Ghansoli in Navi-Mumbai on 25 acres land with a capacity
to have more than 5000 Jewellery units of various sizes ranging from 500- 10,000 square feet.
The overall investment will be of Rs 13,500 crore (US$ 2.09 billion).
 Gold Monetisation Scheme enables individuals, trusts and mutual funds to deposit Gold with
banks and earn interest on the same in return.
 Review of Literature

Rawal, K. R. (2015) in their research, “A study of consumer buying behaviour for purchasing
of diamond jewellery from branded retailers” determined the factors influencing consumer
buying behaviour to select branded jewellery product from branded outlets. This study helps
to get an idea about the customer’s expectation, perception and attitudes of consumer towards
branded jewellery.

Ramachandran, K. K. & Karthick, K. K. (2014) in their paper, “A study on the perception of

customers towards branded jewellery” found that branded jewellery products have formed a
sort of revolution in the field of jewellery market. The main attraction of branded jewellery is
that it has a unique style of their own that differentiates them from unbranded jewellery.

Jyothi, M. B. & K. V. S. N. Babu (2014) in their study, “An empirical study on consumer
preferences towards branded jewellery in Tirupati.” discovered that the varieties, purity of the
gold, brand image and its positioning in the market, service provided, advertisement, brand
familiarity, offers, promotional schemes, celebrity endorsement, are the major factors which
affect the behaviour of the consumers.
According to a study conducted by Tanishq buying roles of Consumer were studied in form of
various stages : Initiator: 64% of women’s says that they got jewellery as gift once in their life time
and maximum times they have received the same from their family members. Influencer: Who is
influenc- ing the buying decision? It can be for family, friends, and needs. This survey tells that
none of the women were influ- enced by their female friends hence they infer that women play
minor role when it comes to influencing her friend in buying of Jewellery.

Jewellery designs vary from region to region. In South India designs are inspired by nature, in
North & West India designs are inspired by Mughals like meenakari and kundan work. With all
this Indian Jewellery is also entering into Interna- tional markets like USA, EU, South East Asian
countries etc.

Another article How to invest in gold12 Mrs.Shweta B H states different view investing, she suggest
protecting wealth rather than creating wealth and states that gold is one such investment . The article
also states that gold is an asset which has long term intrinsic value which helps to shield from infla-
tion, currency debasement and equity market bears. It also helps to save countries purchasing
power and is not much af- fected by countries economic condition. They recommended to have
10-20% gold in investment portfolio.

A report by World Gold Council states various regulatory changes that has come in gold market
such as gold control act which was implemented in 1968 was abolished in 1990, forbidding the
holding of gold in bar form. This was a part of economic reform which took place in wake of
balance of payment crisis in 1990-91. In 1993 Foreign Regulation Act came permitting non-
resident Indian to bring 5 Kgs of gold into country twice in a year after paying tax. This allowance
was raised to 10 Kgs by 1997. In 1997 Committee on Capital Account Convertibility (CAC)
allowed import and export of gold under open general license. In 2003 custom duty was reduced
from 25 per gram to 10 per gram.

Objectives of the study

1. To Study the Socio economic Background of the Respondents in Nagercoil

Town. To Analyze the Brand preference to buy the jewellery in Nagercoil
town.
2. To Measures the factors influencing purchase decision in Nagercoil town.
3. To study the various factors affecting Buying behaviour of Jewellery.
4. To study the brand awareness of jewellery in Bhima, Jos Alukkas, TATA TANISHQ gold,
SHAHJAHAN, Lalithaa jewelleries in Nagercoil town.
5. To evaluate the Buying behaviour of the women custom- er’s in purchasing of gold.
6. To know the purchasing decision of the women cus- tomer’s inBhima, Jos Alukkas, TATA
TANISHQ gold, SHAHJAHAN, Lalithaa Jewelleries

Methodology

The researcher has used both primary data and secondary data for the study.

Primary data

The primary data has been directly collected by questionnaire.

Secondary data

The secondary data for this study has been collected from various publications

,journals magazines and books.

Sampling design

The researcher is interested to study the consumer behaviour towards gold jewellery in Nagercoil
town. Since the costumer are large number ,in the study area the researcher has selected 200
customers used convenience sampling method.

STATISTICAL TOOLS
Percentage Analysis
Chi Square Analysis
 Result analysis and Interpretation

Table-1
Socio economic Background of the Respondents

Particulars Factors No. of Per cent

Consumer
s
Male 40 20
Gender
Female 160 80
Less than 25 08 04
26-35 112 56
Age (in years) 36-45 40 20
46-55 28 14
Above 55 12 06
Married 160 80
Marital status
Unmarried 40 20
No formal 04 02
education
Educational
School level 88 44
Qualificatio
College level 80 40
n
Professional 28 14
Agriculture 20 10
Professional 28 14
Occupationa
Salaried 108 54
l Status
Business 28 14
Unemployed 16 08
Less than 25000 40 20
Monthly
25001 – 50000 120 60
Family
50001 -75000 28 14
Income (Rs.)
75001 and above 12 06
Less than 5000 20 10
Monthly
5001 – 10000 120 60
Savings
Above 10000 60 30
(Rs.)
Source: Primary data

The above table-1 indicates the general profile of the 200consumers who have purchased
gold jewellery. About 80 percent of the respondents are female, 56 of the respondents are
between 26-35 years of age, 80 percent of them are married 44 percent of them are educated
upto school level, 54 percent of them are salaried. 60 percent of the consumers earn less than
Rs. 25,001 to Rs. 50000 and 60 percent of them save Rs,5001-10000 for a month

Table-2
Products in Jewellery Preferred

Products No. of Consumers Percentage

Earrings 20 10
Bangles 60 30
Necklace 40 20
Chains 32 16
Rings 28 14
Bracelets 20 10
Total 200 100
Source: primary data

The above Table-2 shows that out of 50 respondents 30 percent of the respondents prefer to
buy Bangles, 20 percent prefer to buy Necklace, 16 percent prefer to buy Chains, 14 percent
prefer to buy Rings, 10 percent prefer to buy Earrings and Bracelets. Majority of the
respondents prefer to buy Bangles.

Table-3
Preference to buy

No. of Percentage
Prefer to Buy Consumers
Investment 80 40
Fashion 20 10
Occasions 64 32
Festivals 20 10
Gifts 16 08
Total 200 100
Source: primary data

The above table exhibits that 40 percent respondents prefer to buy jewellery for
investment purpose, 10 percent respondents prefer to buy jewellery for fashion and
festivals. ,32 percent respondents prefer to buy jewellery for occasions, 8 percent
respondents prefer to buy jewellery for gifts. Majority of the respondents prefer to buy
jewellery, for investment.
 Table-4

Factors influence to buy

Factors influence No. of Consumers Percentage

Advertising 80 40
Shop display 24 12
Word of worth 16 08
Family/friends/relatives 52 26
Attractive packaging 16 08
Dealer 12 06
Total 200 50
Source: primary data

The above table exhibits that 40 percent respondents prefer advertising as a influencing
factor which make them to purchase jewellery, 26 percent respondents prefer
Family/friends/relatives, 12 percent respondents prefer Shop display, 8 percent
respondents prefer Word of worth and Attractive packaging 6 percent respondents
prefer Dealer,. Majority of the respondents prefer advertising as influencing factor to
purchase jewellery.
Table 2 Showing that Brand Awareness of the Jewellery Shop

Particulars Number of Percentage of

Respondents Respondents
SHAHJAHAN 59 29.5
Jos Alukkas 27 13.5
Malabar Gold 50 25
TATA TANISHQ17 8.5
Lalithaa 47 23.5

Table 3 Showing that How Often Respondents to Buy Jewells

Particulars Number of Percentage of

Respondents Respondents
Every Month 29 14.5
Once a year 61 30.5
Once in 3 months 73 36.5
Rarely in ever 27 13.5
Twice a year 10 5
 Table 4 Showing Occasion does the Respondents Buy Jewellery

Particulars Number of Percentage of

Respondents Respondents
Birthday 18 9
Festival 67 33.5
Marriage 54 27
Gift 27 13.5
Other 34 17

Table 5 Showing the Money Spend on a year for Buying Jewells

Particulars Number of Percentage of

Respondents Respondents
Below 13,895 62 31
20,000 73 36.5
25,000 22 11
35,000 above 43 21.5

Table 6 Showing the Price Range of Gift Purchased

Particul Number of Percentage of

ars Respondents Respondents

Below 5,000 38 19
8000 47 23.5
10000 93 46.5
15000 above 22 11

Table 7 showing who makes the final purchase decision Average score analysis &
Ranking method

Particulars Number of Percentage of

Respondent Respondents
s
My Child 128 64
My Spouse 26 13
My Self 32 16
My Spouse & My 14 7
Self
 Table 8 Showing the Main Consideration to purchase in Jewellers retail sectors

Particular 1 2 3 4 5
Value of the design38 61 37 29 35
Friends & 29 37 31 46 57
Relatives
Latest Fashion 30 58 49 22 41
Branded 41 34 20 60 45
Company
Quality of the gold 53 78 22 32 20

The value which is calculated below ranking method.

Particular 1 2 3 4
5 Tota Ran
Value l k
Value of the 190 244 11 160 35 696 II
design 1
Friends & 145 148 93 92 57 535 V
Relatives
Latest Fashion 150 232 14 44 41 614 III
7
Branded 205 136 60 120 45 566 IV
Company
Quality of the 265 292 66 64 20 707 I
gold

Table 9 showing the ranking of Jewellery shop which gives more advertisement

Particular 1 2 3 4 5
SHAHJAHAN 22 52 34 34 58
Jos Alukkas 81 28 37 42 12
Malabar Gold 62 59 44 17 18
TATA 85 65 18 20 12
TANISHQ
Lalithaa 39 76 15 48 22
 The value which is calculated below by ranking method

Particular 1 2 3 4 5Total Ran

k
SHAHJAHA 110 208 102 68 58 546 V
N
Jos Alukkas 405 112 111 84 12 724 III
Malabar Gold 310 236 132 34 18 730 II
TATA 425 260 54 40 12 791 I
TANISHQ
Lalithaa 195 304 45 96 22 662 IV

Table 10 showing that what kind of Jewells the Respond- ent Interested

Particulars Number of Percentage of

Respondents Respondents
Gold 98 49
Silver 72 36
Diamond 30 15

Table 11 showing that Mode of Jewellery Work

Particulars Number of Percentage

Responden of
ts Responden
ts
From the branded shop 76 38
Giving order to the 56 28
goldsmith
Getting if from the local 68 34
shop

Table 12 showing that Attribute they look for in Jewellery

Gold quality 69 34.5

Other 5 2.5
Table 13 showing that How come they know about this brand

Particulars Number of Percentage of

Respondents Respondents
Friends 92 46
Banner 55 27.5
TV 44 22
Newspaper 9 4.5

Table 14 showing that what influence to buy Jewellery

Particulars Number of Percentage of

Respondents Respondents
Family 76 38
member
Media 71 35.5
Film actor 5 2.5
Role model 16 8
Friends 30 16

Table 15 showing that what are the offers discounts provided

Particulars Number of Percentage of

Respondents Respondents
Price 142 71
discount
Compliment30 15
Gift 28 14
Other 0 0

Table 16 showing that whether investment scheme is satisfied or not

Particulars Number of Percentage of

Respondents Respondents
Highly satisfied 32 16
Satisfied 96 48
Neutral 12 6
Dissatisfied 10 5
Highly 50 25
dissatisfied
 Chi-square Analysis

Table 17 showing that the Relation between Monthly In- come and Household Money
spend on Jewells in a Year

Particulars Below 10,000 20,001 30,001 Above Total

10,000 – – – 40,000
20,000 40,000 40,000
Below 13 13 19 10 10 65
13,895
20,000 9 9 8 7 6 39
25,000 10 9 10 8 9 46
Above 11 10 9 7 13 50
35,000
Total 43 41 46 32 38 200

Degree of freedom = (R - 1) (C – 1) Where R = No. of rows

C = No. of columns

Particulars Number of Percentage of

Respondents Respondents
Fashions& beauty 29 14.5
Price 37 18.5
Gram / weight 60 30

Oij Eij Oij – Eij (Oij – (Oij – Eij)2

Eij)2 /Eij2
13 13.98 -0.98 0.9604 0.068
13 13.33 -0.33 0.1089 8.1695
19 14.95 4.05 16.4025 1.0971
10 10.4 -0.4 0.16 0.0154
10 12.35 -2.35 5.5225 0.447
 9 8.385 0.615 0.3782 0.0451
9 7.995 1.005 1.0100 0.1263
8 8.97 -0.97 0.9409 0.1049
7 6.24 0.76 0.5776 0.926
6 7.41 -1.41 1.9881 0.2683
10 9.89 0.11 0.0121 1.223
9 9.43 -0.43 0.1849 0.0196
10 10.58 -0.58 0.3364 0.0318
8 7.36 0.64 0.4096 0.056
9 8.74 0.26 0.0676 7.7345
11 10.75 0.25 0.0625 5.814
10 10.25 -0.25 0.0625 6.0976
9 11.5 -1.5 2.25 0.196
7 8 -1 1 0.125
13 9.5 3.5 12.25 1.2895
TOTA 33.8546
L

Degree of freedom in the case = (r – 1) x (C – 1)

= (4 – 1) x (5 – 1)
= (3) x (4)
= 12

Table value shows the chi – square analysis

Calculated Value X2 33.8546

Degree of Freedom 12
Level of Significant 5%
Table Value 21.026
Result Accept

Since the calculate value X233.8546 is less than the tabulated value (21.026) the null hypothesis
H0 is accepted and alter- native hypothesis H1 is rejected. Hence, it is concluded that there is
no significant relationship between monthly income of household and money spends on
jewellery in a year.
 Findings
1. Out of 200 Respondents Majority of the respondents belong to the Gender of Females
2. Out of 200 Respondents Majority of the respondents belong to the age group of 26-35
3. Out of 200 Respondents Majority of the respondents belong to the status of married.

4. Out of 200 Respondents Majority of the respondents belong to the education of

secondary to graduation.
5. Out of 200 Respondents Majority of the respondents belong to the monthly family
income 25,001-50,000.
6.Out of 200Respondents Majority of the respondents belong to monthly savings
Rs5001- 10000
7.Out of 200Respondents 30percent of the prefer to buy bangles
8.Out of 200 Respondents 40percent prefer to buy jewellery for investment.
9. Out of 200 Respondents 40percent prefer advertising as a influencing factor which
make them to purchase jewellery
10. Three fourth of the respondents says that Jewellers gives brand awareness.
11. 36.5% of the respondents buy jewels once in 3 months.
12. 67 respondents say that they often buy gold at the time of festival.
13. According to 36.5% of the respondents are spending 20,000 rupees in a year for
buying jewels.
14. According to 46.5% of the respondents spend rupees 10,000 for gift purchase.
15. Majority of the respondents says that they decide before which brand of jewels before
entering jewellery shop.
16. Majority of the respondents always take their children’s or related persons when they buy jewels.
17. Majority of the respondents take the final decision buy them children’s to purchase
gold.
18. Half of the respondents are interested in gold jewels.
19. Majority of the respondents are satisfied by the brand of the gold.
20. Majority of the respondents are interested in jewellery work of branded shop.
21. According to 34.5% of the respondents are looking for the gold quality in jewellery.
22. Half of the respondents agree that they come to know about this brand to their friends.
23. Majority of the respondent agrees that their personality increases when they were their Brand
choices.
24. According to major respondents offers and discounts are provided the time of purchase.
25. Majority of the respondents agree that price discount is provided at the time of purchasing gold.
26. According to the major respondents on investment scheme is available in gold purchase.
suggestion
1. Introducing more attractive cash discounts schemes to the customer may enhance the sale
of gold.
2. More attractive design in line with latest fashion of gold should be offered to the
customer.

3. .Giving schemes like EMIs and offers to the customers at special occasion like
Deepawali and wedding seasons etc.

4. Most of the respondents look forward to good customer service from the jewellery shops. They
feel that their view and ideas must be given importance at the time of purchase. Hence the
Traditional jewellery shops can improve their service by providing satisfactory information to
their customers relating to their purchase. Giving immediate attention by receiving them
quickly, recognize the need of the particular product and helping them to chose the correct one
makes the Branded jewellery becomes more preferable by the customers.

5. Giving attractive advertisement through the media like online, television, newspaper,
radio, magazine.

6. Conducting customer survey very often it could review changes in taste and attributes
of customer.

7. Introducing more attractive cash discounts schemes to the customer to enhance the
increasing in the sale of gold.

8. Introducing more sales promotion measures depending upon changing taste preference
of organization. Introduce more attractive design, latest fashion of gold to the
customer.
 Conclusions

The present study was conducted on the consumers purchasing behaviour towards jewellery
Nagercoil Town. Today the market is consumer oriented and the importance is given to the
consumers. The preference of consumer is continuously shifted according to the needs,
desires, choices and fashion etc. In jewellery purchasing the consumers have more
expectations. Hence the jewellers should improve the quality, designs, wastage and making
charges, and customer service etc. Nowadays, the branded jewellery products is facing an
uptrend on these days, so the jewellers should take these aspects into consideration and keep
up its values of trust, authentitown, credibility, objectivity of the respondents and serve them
in a better manner. Purchasing of gold jewellery holds a very imperative value in several
cultures since it is a symbol of achievement, power and wealth. Based on the above,
customer's approach and behaviour on jewellery purchase in Nagercoil Town have played a
significant role. The Jewellery retail sectors has to adopt some sales pro- motion strategies
which improve the Sales of the Jewells in their shop and increase the awareness of the
Jewellery retail shops. Jewellery retail sectors have to be a better relation- ship with their
customer for the better sales. Thestudyer has gained more knowledge and experience in the
field of study and it will be even helpful for future studyer activ- ities is a possibility for the
further study in the same field.
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