Gitanjali

1. INTRODUCTION

A report by McKinsey the branded jewelry segment is India is going to witness a growth rate of 40% p.a and will touch the 10,000 crore revenue mark this year (Service, 2010). The gaining popularity of branded jewelry has also made significant changes in the sales and distribution system in jewelry segment. Traditionally jewelry was sold through jewelry stores but now different jewelry brands have widened their retailing channels into mass merchandisers, super markets, apparel stores, online buying, mail order buying etc. Some of the other changes in the Indian Jewelry retailing segment is as shown below.

Yesterday | Today |

Unbranded from family jeweler | Branded |

Gold Jewelry | Diamond studded jewelry |

Jewelry for Investment | Jewelry for fashion |

Traditional ethnic and chunky designs | Light weight, innovative and fashionable designs |

Marriage and festival season as peak season | “Wearability” and gifts spreading the demand through the year |

Jewelry sold on commodity basis with labor charges | Jewelry being sold on per piece basis |

Courtesy (Gitanjali Gems Ltd, 2008)

Gitanjali Gems Ltd. is one of the biggest success stories in the branded jewelry segment. Their distribution system with broad retailing channels has been a key aspect of their success story.

2. THE ORGANIZATION

Gitanjali Gems is a diamond and jewelry manufacturing company based in India. Some key aspects of the company are listed below

a) Large integrated diamond and branded jewelry company with global footprint

* Diamond Trading Company (DTC) sight holder since 1967

* Operation capture the entire value chain from sourcing rough diamonds to producing finished diamond studded jewelry

b) Distribution and retail presence across top 5 global jewelry markets

* Presence in all major jewelry markets like US, Japan, China, India, Middle East

c) Pioneer in B2B marketing of jewelry with significant retail operations in India

* Pan India...