This society is diversified in all aspects. The Income levels of the people of India is been increasing which is enabling to increase in the buying capacity. The tastes and preferences are changing. The maximum individuals especially the women of India spend most of their money on shopping whereas the major spending goes into buying Jewelry.
The money spent on buying Jewelry can be treated in two ways and is social status and the second one is an investment. There are so many players who are in this business. This industry is been recording consistent growth of 5% every year. The government of India has identified the future boom for this segment and they have come up with wide range of initiatives like tax exemptions, liberalization of taxes etc., As foreign direct Investment has opened doors for the foreign players to invest their money in India.
There are different types of business models that came into the picture. Earlier there was only a traditional way of business where they will have fixed customers and Even the traditional customers if they have any function they prefer the only vendor whom they know but now a days the tastes and preferences are changing and traditional these traditional players could not cope up with changing environments. Now the trend is the retail business.
There are national and International players who are into this business. Every company has got its own business strategy, business plans, and models. In this study, I have gone through the various business models which are being adopted by various companies and there are a few players who are not coping with the change and they are getting into losses. In this study, I have proposed a new business model which will help the existing players to cope with this and even it will help the new entrants of business people who want to enter into this diamond Jewelry business.
India once is called the golden bird where we used to have a tremendous wealth of diamonds and Jewelers. India was a land for precious gems, diamonds, etc., world’s famous Kohinoor diamond was also born in India. Nowadays diamond jewelry has become fashionable and it is being considered a Prestige symbol and status signature. This trend is seen across the globe in almost all parts of the world. The increase in GDP and the Income levels of population of has created an urge to spend money towards luxury and the major contribution is from investing on diamond jewelry.
The economy of India has created a wide range of markets for diamond jewelry which leads to competition. There are so many national and international players who came into the business in India with huge Investments, new designs, and Models with sophisticated research & Development teams. The brand ambassadors of this segment are being paid huge.
This business in India is being done in two ways first is the old and traditional way where they have fixed customers and they do it in a disciplined way on a small scale where as when it comes the second model is a modern way where they educate customers on how to check the quality of the diamond etc., they invest huge amount of ambiance, quality staff, research, and development, etc., where they have to reap returns in this heavy competitive environment. There is an upcoming trend that is recording 5% consistent growth is the online purchasing of diamond jewelry.
The rationale of the Study:
The way of doing business in the diamond jewelry segment is dynamic in nature in current business competition and the environment. Diamond jewelry is one of the segments which is playing important role in the Indian economy by contributing 7% of India’s GDP. The government of India has identified this segment as fastest growing segment in India and it has liberalized regulations in Imports and exports. We believe or not there are more than 500000 diamond jewelry players are there in India.
The gross exports of Diamonds and gems from India to different parts of the world are worth US$ 3.23 Billion. It is been estimated that there will be consistent growth of 16% per Annum consistently till 2022 in India. In spite of having available resources except for quality human resources, there are few players who are getting into losses and there are players who are game changers who work on strategies and they are being successful. Keeping in mind the facts and figures of the diamond jewelry market in India, I have chosen the topic: Business Plan for Diamond Jewelry. This has to help and it should be like a ready reckoner for new entrants as well as for the players who could not cope with the competition.
Objectives of the Study:
- The major objective of the study is to identify, analyze and plan a competent business model which suits the Indian market
- The Business Model should help traditional diamond jewelry businessmen to compete with the corporate brands
- This Business Model has to help and it should be like a guide for new companies who want to step into the diamond jewelry business.
- The Business model should be competent where it has to consider the fluctuations of the markets, season and un season with respect to different parts of India, customer buying behaviors of a particular location, changing customer preferences, etc.,
- The key attributes which make the diamond jewelry business success
Scope of the Study:
The Scope of the Study is in India. The study consists of considering the existing models of business which are being adopted by corporates, traditional business men and the upcoming and successful retailers, online vendors, etc., The functional scope consists of considering almost all aspects of the business.
For retail business the scope covers the ambience, designs, models, staff, amenities, discounts, prices, events, etc., for online model it covers technical aspects and for traditional diamond jewelry business segment the current model which they are doing and the identification of gaps. The scope is huge as the objective is to prepare a competent business model which has to suit maximum number of entrants who are there in this business and who want to enter into this business.
The Methodology consists of Qualitative and Quantitative methods. The first one is a questionnaire-based model where the responses will be collected from the customers who buy diamond jewelry. This is a quantitative technique that I would be using in the project. The Qualitative technique is to observe the current business plans and the models of existing players.
The primary data will be collected from the different organizations that are in this business. The data will be collected from Corporates, senior leaders of the corporates, the traditional businessmen who are in diamond jewelry business. I’ll collect the data in a sequential way with a predefined questions which will be shared in final draft as it is tend to change from company to company and from person to person.
There will be additions and deletions in this set of questionnaires. The objective here is to understand exactly the mode of operations, business strategy existing and future etc., There is another set of questionnaire where the responses will be collected from the customers who buy diamond jewelry through various modes or at various stores or at various defined places or locations.
The secondary data will be collected through data analytics and statistics. The data will be collected from magazines, books, journals, and our academic concepts, etc., the secondary data mainly focuses on the strategies, theoretical knowledge, facts, and figures of the market and its analysis, etc.,
The Data Analysis part will be done by using statistical tools, and percentage methods for questionnaires from customers, and the final business plan will be derived based on responses collected from the business heads and representatives of different organizations and they will be compiled in line with the secondary data and finally, the business model or the Business Plan will be derived. This will be derived from the findings and conclusion as a part of the result of the Study.
The expected outcome is a Diamond Jewelry business model which is competent and which has to suit the Indian market which is domestic. In this project, I will not consider exports. This Model will be focusing on the domestic market which is a plan which has to help retailers, and traditional businessmen and coping up with online sales which is an alternative.