Jewels that were known to enhance beauty are now adding to profits as well. Indian jewellery business has undergone a drastic transformation over the years. Original diamond and gold jewellery has now made a way forward for artificial jewellery. The sky-rocketing prices of the traditional jewellery whether it is gold, diamond or silver, has encouraged people to opt for affordable imitation jewellery. Though imitation jewellery industry in India is still dominated by unorganised players, franchising has led to the foraying of organised players into the industry.
Growth of Imitation Jewellery Industry
Till a few years back imitation or artificial jewellery was limited to a few unorganised retail outlets with few people interested in buying them. Considering the changing scenario lot of branded players have entered the sector. The imitation jewellery market is about Rs 2500- Rs 3000 crore. However, there is still a lot of untapped potential in the orgnised retail sector of imitation jewellery. As informed by Sandeep Arora, CEO, Trenz, “The organised imitation jewellery industry is still lagging behind as compared to the unorganised market.” The ratio of organised vs unorganised is said to be 30:70. But still many organised players have addressed the growing need for the beautiful but reasonably priced jewellery. There is a drastic change in the attitude of the consumers towards costume jewellery. People from all social and economic backgrounds have turned towards this trend and would rather prefer to invest in costume jewellery rather than buying original jewellery.
Factors Responsible For Growth
Till now it is a known fact that the demand and franchising of imitation jewellery business is growing but as for the factors that have propelled costume jewellery to grow have not been talked about. Let us first discuss these factors .
- Affordability factor: With soaring gold and diamond prices, it is more affordable and convenient to embrace artificial jewellery. Moreover the costume jewellery items are not less beautiful or exquisite than the traditional real jewellery.
- Consumer preferences: The changing outlook of people regarding jewellery as a daily wear commodity rather than an asset for life has made imitation jewellery more popular.
- Variety: Due to affordable range of the artificial jewellery, it is much easier to make a collection for regular as well as formal occasions. Generally working women prefer to change their jewllery (earrings, neck-pieces, rings etc) according to their dresses.
- Security purpose: Imitation jewellery is safer to wear as compared to the authentic jewellery. In the present day when theft and crime is increasing in society, customers feel more secure wearing fake jewellery.
- Emergence of organised players: People, especially women have adopted better standards of grooming after being influenced by daily soaps. They ape the jewellery and the costumes which are worn by the television stars. Moreover with the rise in standard of living and disposable income customers undoubtedly prefer to go in for branded products.
- Excellent innovative designs: Imitation jewellery comes with unlimited and exquisite designs which can be easily purchased.
- Good value for money: Traditional jewellery cannot be changed according to latest fashion. However imitation jewellery can be worn and discarded according to latest trends due to their low cost benefit.
- Lack of gender bias: In the past jewellery was exclusively for the fairesr sex but in the recent times men have also initiated an interest in adorning themselves with this. One can easily come across specially designed fashion jewellery like bracelets, rings, chains, pendants, earrings for the male gender also.
Franchising In Imitation Jewellery
Earlier there were a few unorganised players but with the popularity of costume jewellery more and more players are making their presence felt via jewellery franchise option as it is considered to be the route for guaranteed success. The prominient players or brands that have opted for jewellery franchise route for the expansion and growth of their businesses include Sia Jewellery Ltd, Trenz Fashion jewellery, DG Fashion by Diagold etc. Elaborating on their franchise success Roli Malhotra, Manager, Strategic Marketing and Retail, Sia Lifestyles Pvt. Ltd says, “Sia which started with a one store in 1995 today has 25 operational exclusive business outlets, more than 50 shop- in- shop counters in Pantaloons, Shoppers Stop and Big Bazaar.” She further added, “Sia has highly benefitted from franchising. It has 12 franchised outlets at present and is growing. The company plans to open 15 new franchised stores mainly in metro cities by March 2012.” Trenz, another upcoming brand in imitation jewellery franchising has16 outlets in Punjab, Haryana and Guwahati, out of which six are run by franchisees. DG Fashion another brand of affordable Art Jewellery adopted franchising about three years back. Raj Shroff, Director, DG Fashion by Diagold informs, “We have more than 30 outlets. We are shop in shop partners with Future Group, Birla Retail and Shoppers Stop.”
Considering the growing number of outlets by these organised franchised imitation jewellery players the success of imitation jewellery business franchising is for sure. Though the sector has grown quite well, still the number of players is quite less. However, as the demand for the product is growing the number of players are also expected to grow via franchising.
Criterion for Franchise Selection
Taking a franchise of an established imitation jewellery business opportunity can be a lucrative franchise opportunity for aspiring entrepreneurs. Let us have a look at the basic franchise criterion for selection:
- This industry has a lot to offer, especially to the women entrepreneurs. Women have an inborn flair for fashion jewellery and can easily develop good marketing skills. This combination can effortlessly make them brilliant franchisees.
- A jewellery franchisee need not to be professionally qualified and can own a franchise without having high qualification degrees.
- There are a few other requirements for obtaining and running an imitation jewellery franchise successfully.
In words of Malhotra, “The company requires minimum 500 sq.ft carpet area with a minimum investment of approx Rs 28 lakh and a month’s time after signing of the agreement.” However Arora shares, “A franchisee needs an investment of Rs five lakh to Rs 25 lakh, depending on our formats.”
Annotation
The above discuss confirms costume jewellery franchising to be a lucrative opportunity. It is the most appropriate opportunity for entrepreneurs with a bent towards creativity and love for jewellery. The imitation jewelllery industry is forecasted to grow to newer heights in the future. If you also want glittering success, then hop on to the franchise wagon now!!
Jewels that were known to enhance beauty are now adding to profits as well. Indian jewellery industry has undergone a drastic transformation over the years. Original diamond and gold jewellery has now made a way forward for artificial jewellery. The sky-rocketing prices of the traditional jewellery whether it is gold, diamond or silver, has encouraged people to opt for affordable imitation jewellery. Though imitation jewellery industry in India is still dominated by unorganised players, franchising has led to the foraying of organised players into the industry.
Growth of Imitation Jewellery Industry
Till a few years back imitation or artificial jewellery was limited to a few unorganised retail outlets with few people interested in buying them. Considering the changing scenario lot of branded players have entered the sector. The imitation jewellery market is about Rs 2500- Rs 3000 crore. However, there is still a lot of untapped potential in the orgnised retail sector of imitation jewellery. As informed by Sandeep Arora, CEO, Trenz, “The organised imitation jewellery industry is still lagging behind as compared to the unorganised market.” The ratio of organised vs unorganised is said to be 30:70. But still many organised players have addressed the growing need for the beautiful but reasonably priced jewellery. There is a drastic change in the attitude of the consumers towards costume jewellery. People from all social and economic backgrounds have turned towards this trend and would rather prefer to invest in costume jewellery rather than buying original jewellery.
Factors Responsible For Growth
Till now it is a known fact that the demand and franchising of imitation jewellery business is growing but as for the factors that have propelled costume jewellery to grow have not been talked about. Let us first discuss these factors .
Affordability factor: With soaring gold and diamond prices, it is more affordable and convenient to embrace artificial jewellery. Moreover the costume jewellery items are not less beautiful or exquisite than the traditional real jewellery.
Consumer preferences: The changing outlook of people regarding jewellery as a daily wear commodity rather than an asset for life has made imitation jewellery more popular.
Variety: Due to affordable range of the artificial jewellery, it is much easier to make a collection for regular as well as $8jT9y7g5&DI158formal occasions. Generally working women prefer to change their jewllery (earrings, neck-pieces, rings etc) according to their dresses.
Security purpose: Imitation jewellery is safer to wear as compared to the authentic jewellery. In the present day when theft and crime is increasing in society, customers feel more secure wearing fake jewellery.
Emergence of organised players: People, especially women have adopted better standards of grooming after being influenced by daily soaps. They ape the jewellery and the costumes which are worn by the television stars. Moreover with the rise in standard of living and disposable income customers undoubtedly prefer to go in for branded products.
Excellent innovative designs: Imitation jewellery comes with unlimited and exquisite designs which can be easily purchased.
Good value for money: Traditional jewellery cannot be changed according to latest fashion. However imitation jewellery can be worn and discarded according to latest trends due to their low cost benefit.
Lack of gender bias: In the past jewellery was exclusively for the fairesr sex but in the recent times men have also initiated an interest in adorning themselves with this. One can easily come across specially designed fashion jewellery like bracelets, rings, chains, pendants, earrings for the male gender also.
Franchising In Imitation Jewellery
Earlier there were a few unorganised players but with the popularity of costume jewellery more and more players are making their presence felt via jewellery franchise option as it is considered to be the route for guaranteed success. The prominient players or brands that have opted for jewellery franchise route for the expansion and growth of their businesses include Sia Jewellery Ltd, Trenz Fashion jewellery, DG Fashion by Diagold etc. Elaborating on their franchise success Roli Malhotra, Manager, Strategic Marketing and Retail, Sia Lifestyles Pvt. Ltd says, “Sia which started with a one store in 1995 today has 25 operational exclusive business outlets, more than 50 shop- in- shop counters in Pantaloons, Shoppers Stop and Big Bazaar.” She further added, “Sia has highly benefitted from franchising. It has 12 franchised outlets at present and is growing. The company plans to open 15 new franchised stores mainly in metro cities by March 2012.” Trenz, another upcoming brand in imitation jewellery franchising has16 outlets in Punjab, Haryana and Guwahati, out of which six are run by franchisees. DG Fashion another brand of affordable Art Jewellery adopted franchising about three years back. Raj Shroff, Director, DG Fashion by Diagold informs, “We have more than 30 outlets. We are shop in shop partners with Future Group, Birla Retail and Shoppers Stop.”
Considering the growing number of outlets by these organised franchised imitation jewellery players the success of imitation jewellery business franchising is for sure. Though the sector has grown quite well, still the number of players is quite less. However, as the demand for the product is growing the number of players are also expected to grow via franchising.
Criterion for Franchise Selection
Taking a franchise of an established imitation jewellery business opportunity can be a lucrative franchise opportunity for aspiring entrepreneurs. Let us have a look at the basic franchise criterion for selection:
This industry has a lot to offer, especially to the women entrepreneurs. Women have an inborn flair for fashion jewellery and can easily develop good marketing skills. This combination can effortlessly make them brilliant franchisees.
A jewellery franchisee need not to be professionally qualified and can own a franchise without having high qualification degrees.
There are a few other requirements for obtaining and running an imitation jewellery franchise successfully.
In words of Malhotra, “The company requires minimum 500 sq.ft carpet area with a minimum investment of approx Rs 28 lakh and a month’s time after signing of the agreement.” However Arora shares, “A franchisee needs an investment of Rs five lakh to Rs 25 lakh, depending on our formats.”
Annotation
The above discuss confirms costume jewellery franchising to be a lucrative opportunity. It is the most appropriate opportunity for entrepreneurs with a bent towards creativity and love for jewellery. The imitation jewelllery industry is forecasted to grow to newer heights in the future. If you also want glitterin
