An Insight of the Jewellery Industry An Analysis of Consumer Perception Towards Online Shopping

India's gems and jewellry industry is a bright star of the economy, and one of the important foundations of the country's export-led growth. The consumption of gold and Jewellery products in India has grown rapidly over the years at the rate of 10-15 per cent per annum and today, the domestic Indian market is estimated to be over US$ 30 billion. India possesses world's most competitive gems and Jewellery market due to its low cost of production, highly skilled, low-cost and best artisan force for designing and crafting Jewellery, along with strong government support in the form of incentives and establishment of special economic zones (SEZs).

Indian gems and Jewellery sector is expected to grow at a compound annual growth rate (CAGR) of around 16.26 per cent during the period 2011-12 to 2016-17 on account of increasing government efforts and incentives coupled with private sector initiatives, according to a report of the working group on 'Boosting India's Manufacturing Exports', by Ministry of Commerce & Industry. India took its first leap into cyberspace nearly a decade ago. Indians in turn have readily taken to the internet with an online populace that's been growing exponentially over the past 10 years. Last year, 33.9 per cent of all Asian internet users were Indian. With this year's e-commerce figures in India set to reach over half a billion dollars, this is a market that Jewellery retailers cannot afford to ignore. According to a report on Internetworldstats.com, around 3923 million Internet users for June 30, 2012, 11.4%per cent of all the Asians online even though they constituted less than 5 per cent of India's own population. According to a report by the Internet and Mobile Association of India (IAMAI), in 2011-12, the Indian internet-using population is set to surge to over 1205 million. In 2012, online Jewellery sales in India accounted for around 4 per cent of all web-based transactions at Rs.11083.32 crore ($213 million), coming in at eight among the top ten performing categories that included airline and railway tickets, electronic gadgets, home appliances and apparel.

 Some marketing experts think these luxury brands somehow feel that making them too easily available over the internet could negatively impact their “rarity factor”. Perhaps it’s the fear of being clubbed together with “bargain-shopping” sites like eBay or Amazon.  Maybe it’s the very nature of the medium itself. The internet with its democratic set-up is the ultimate leveler, and this attribute puts it at odds with the very basis of their concept of luxury – something meant for the “exclusive few”.  Even the touch and feel factor requested by majority of customers cannot be met through online retail.

LITERATURE REVIEW

Mehta, Pravin (2005) in the article describes the other benefit aspect of online sales of Jewellery and related products. It refers to meeting the demands of the niche market segment comprising of people who have travelled abroad and require the products available and produced in abroad. Apart from the finished goods, raw material imports in India are a major need as it is the largest Jewellery consumer, polisher and manufacturer of Jewellery in the world. Kothari, Sanjay (2008) in this report speaks that every 11 of 12 diamonds sold around the globe are processed in India, irrespective of where these are mined. With the right policy and regulatory framework, India could establish itself as a brand in the international Gems & Jewellery market, increase employment and create new breed of entrepreneurship. Since the demand of diamond-studded Jewellery among Indian consumers has risen sharply, the industry should focus on the domestic market. Diamantaires, in Surat's US$ 11.29 billion diamond industry, are eyeing Jewellery manufacturing in a major way, after DTC has decided to prune supply of rough diamonds to India. If India becomes a manufacturing hub for Jewellery as well as a consumption market it will just prove India’s strength in both sectors. Since India plays such a major role in the Jewellery sector worldwide, online sales have led to a major India which highlights rural India as a new and rising buyer of Jewellery through an online platform. EBay India had entered Indian market in 1995 and since then it’s seen a tremendous growth rate. It believes that technology is the most traded vertical category in India which contributes over 48% of its transactions. According to their reports “Jewellery is the largest selling product online and every four minutes a Jewellery piece is sold in India.”“ Rural towns are major comer targets for eBay India.”

Madhvi Sally, SutanukaGhosal (2011)highlights in the article the new and changing market for the industry. Major players such as Surat diamonds, Gili, and johareez have given online sales of their Jewellery as an important option for growth and sales. They have been able to tap the young target market of the working professionals of ages from 22-26 years. These professionals need diamond Jewellery which is easily ordered, low priced and delivered with a brand name. This article mainly focuses on the young untapped and tapped market in India which is fast growing for low prices diamond Jewellery. Bell, James (2011) in the article concludes a comparative study of customer preference between brick and mortar and online retail of Jewellery. The greatest advantage with buying product from reputable online sources is that it can be achieved quite readily without the time and effort of going to the store, (that is assuming that there is a store in the first place) whilst still being able to get the right product at the best price. It is a new and innovative market which reduces efforts of consumers and even makes products available to them of varied varieties and at lower prices.

India, being a rapid adaptor of technology is apace with the current scenario of electronic data exchanges and has taken to e-commerce. In view of this, this article tries to present a snapshot of the evolution of e-commerce business indicating the chronological order, category of e-commerce business, description of organizations involved in e-businesses in India, key characteristics of the firms engaged in e-commerce application, to examine the growth of e-commerce in both physical and financial terms, to evaluate the benefits obtained from e-business, to critically analyze the barriers and constraints involved in flourishing e-commerce businesses in India and finally to develop a framework for effective dissemination of e-commerce in India. Thomas, Melvyn (2013) This article describes the initiatives taken by the Surat Diamond Association to promote the small and medium scale diamond jewelers of Surat who lack resources such as staff and capital by opening an online portal. These surat small and medium scale businesses will have to upload their inventories on the website which would cater to customers worldwide. As surat is the biggest polisher and cutter of diamonds in India. It is expected to obtain and sell diamonds at attractive prices to customers worldwide. Moreover, it is a boon for these businesses as they are getting the correct modern platform to supply their Jewellery worldwide with a recognized organization backing them. Sharma, Anukrati(2013) writes in her paper that with the changing market scenario and economic growth, the demand for online shopping has increased. Explosion of e-commerce has changed the buying patterns and preferences of customers. The important brands are also moving towards e commerce technology for increased sale of their products. There is no doubt about it that ecommerce has made the transactions smooth, quick, faster and easier. Both the sellers and the buyers get benefited by his technology. As we all are aware that Commerce and Business are the backbones of a country’s development, if they were supported by the electronic technology and tools like e-commerce, it will make wonders in the economic growth of the country.

RESEARCH OBJECTIVES:

• To study the key inducing factors for shopping online: From the study researchers want to find out which are the factors that mostly influences the customers to shop jewellery online.

• To identify the issues faced by the users while shopping online: Customers encounter

customers while shopping jewellery online.

• To know the profile of customers shopping online: From this survey it was also to be known what the demographic profile of the customers shopping online is.

• To study the category of Jewellery purchased online: From this survey researchers would like to find the category and the type of jewellery purchased online.

The research design adopted was the multi-cross sectional design. The study includes online buyers’ in NCR who have purchased different jewellery items from online shopping site. Structured questionnaire was developed in Google docs with five point rating strongly agree to disagree .Sampling unit for the study have been chosen students and professional employees. The sample size was taken 120 respondents. Firstly, the respondents were made aware about the purpose of study and then they were requested to give their unbiased responses

In order to identify perception of respondents towards the online jewellery cross tabulation with the demographic characteristics of the respondents was performed. The respondents were given a questionnaire pertaining to different issues related to the purchasing on-line jewellery Gender Vs Shopping online Jewellery: Table-1 highlights the relationship between the

female shops jewellery online and only 9 female do not shop online. It can be concluded that online jewellery shopping is more female oriented.

From this table it can be concluded that, mostly respondents in the age group of 23-27 years tend to Shop jewellery online, followed by respondents in the age group of 28-32 years and 18-22 years. Respondents in the age group above 33 years don’t tend to shop jewellery much through online mode. It represents more of youth oriented.

From table 3 it can be concluded that mostly students tend to shop jewellery online followed by Homemaker, businessmen. Customers employed in private and government jobs shop least from online site. It is representative of emerging trend of online jewellery market. Table 4 clearly depicts that, Customers having a monthly income of Rs 15,001-20,000 tend to shop jewellery online followed by respondents having monthly income of Rs 10,000-15,000. Customers having monthly income of more than 25,000 are happy shopping at jewellery store rather than from online site. Customers with low income are more inclined towards online mode of shopping.

Note : Respondents were asked to rate the above mentioned factors according to their viewpoint.

Based on the mean score, ranking of factors has been done from 1st (most important) to 6th (Least important) From the table it can be concluded that due to convenience of shopping from their place online mode of shopping was preferred by customers followed by the home delivery service and price factor. Variety, Style & design, Brands availability and payment options moderately influences customers to shop

From the graph it is clearly understand that respondents mostly shop artificial jewellery followed by Silver and gold Ornaments. It may be because customers get wide variety of artificial jewellery online at great price compared to normal stores. Moreover less of risk taking capacity is displayed here.

From the table it can be concluded that customers mostly tend to shop earrings followed by pendants and rings, bracelets being their last choice. This is because there many online portals selling jewellery at best price specially earrings and pendants compelling consumers shop from online. Also because earrings and pendants are jewellery of daily wear.

From the table it can be concluded that respondents tend to shop jewellery online in the price range of Rs 3001-6000, followed by in the price range of Rs 6001-9000. Respondents refrain from purchasing costly jewellery due to touch & feel factor, fraudulent product, poor quality product etc.

Based on the mean score, ranking was done on issues from 1st (most important) to 6th (Least Important) From the table it can be concluded that lack of physical examination of the product is one of the most important issues faced by customers shopping online. Products being below quality

From the table it can be concluded that 49.4% of customers are satisfied while shopping jewellery online. Whereas only 9.2% of customers are dissatisfied while shopping online. Hence conclusion can be drawn that online jewellery shopping has a positive impact on customers and is emerging as one of prominent trends for Jewellery shopping. In order to find the significant difference between the internet usage aptitude and usage satisfaction perceived by respondents, an ANOVA test was performed and the result of the test is shown below. Hypothesis 3: There is no significant difference between internet users’ aptitude and usage satisfaction.

The F value 5.05 for the mean difference in usage satisfaction between various usage competency of internet consumers is significant (p<0.005). It emphasis that there is significant difference between internet usage competency of the consumers and usage satisfaction. The post hoc test reveals that excellent users of various online shopping have more satisfaction than their other counterparts: Moderate and beginners level competency. Hence, the hypothesis is not accepted.

• Bell, James (2011, July 27). Buying Beads: Online Vs. Physical Stores

• Digumarti, Sharat(2010, December 9). Jewellry tops online product sales’. Business Standard.

• Dutta, Saptarishi (2011, January 23). Tiger Global invests $6 million in Carat Lane. The Economic Times

• Madhvi Sally, Sutanuka Ghosal (2011, August 8). Online shopping boosts diamond Jewellery sales as net hooks young buyers. The Economic Times.

• Mehta, Pravin (2005, August 22). Imported Jewellery to see more demand. The Economic Times.

• Kothari, Sanjay(2008, April 5). The changing retail formats are changing the way Jewellery is sold. GJEPC.

• Rambhajo, A. (2011, January 8). Venus Jewel sees growth in online sales. Surat Times.

• Thomas, Melvyn (2013, May 25). Diamantaires to get online marketplace. Times of India.

Engineering and Intelligent Systems, 2(5), 17-35.

• Sharma, Dr Anukrati. (2013). A Study on e – commerce and online shopping: Issues and influences. International; Journal of Computer engineering & technology (IJCET), 4(1), 364-376.

1. http://www.bluestone.com/whybuyfromus.html 2. http://www.tribebyamrapali.com/voucher 3. http://winthropJewellerymetals.com/resources/Jewellery-4-research-project-archives/ 4. http://www.gjepc.org/trade_information/trade_information