Report on

Imitation Jewelry
Course Tittle
International Business
Course Code
IBS 301
Submitted To:
Tasneem Tarannum
Lecture
Faculty of Business Administration
University of Asia Pacific

Submitted By:

Name ID

Mehadi Hasan 16102067

Zahidul Islam 16102052

Rakibul Islam 16102058

Mozammel Hossain 16102059

 Research Methodology
a. Supply Side to assess the supply-side factors of export competitiveness, a secondary research was conducted to find the
supply-side bottlenecks that they are facing in India. The supply side framework is based more on opinions than on data/
numbers
b. Demand Side In order to evaluate the demand-side, the study has analyzed the competitive performance of Indian exports
of the commodity (HS code 7117) in the primary market (US, UAE, Germany, UAE, and France).

Competitive Performance
A product is said to be export-competitive if:
1. The growth rate in unit value of the product imported from India exceeds average growth rate in unit value of the product
from all suppliers in a market, and
2. Its market share grows over the period 2010-2018.
3. To the extent market share is a function of quotas, market share of some county may decline over time only because their
exports are constrained by quotas.

Definition: Can also be known as cubic zirconia jewelry, faux jewelry or costume jewelry. They are generally inexpensive
versions of popular, more expensive brand name jewelry.
 Why buy imitation jewelry

Jewelry is every woman’s best friend and yet, whether you agree or not her worst enemy. Why enemy? The answer is simple;
the price tag just makes her shun away the thought of owning jewelry. But then this is the case with expensive jewelry set in
gold or platinum, embedded with precious stones. After all anything genuine does come with a price tag. While real jewelry
may not be affordable, an absolutely wallet friendly option is imitation jewelry. This is available in a wide range from what
we call junk jewelry to the gold- coated jewelry. It is far cheaper than anything genuine. In fact, the gold coated or what we
also called gold plated jewelry looks so real that anyone would think you have paid a packet for it.
Not only gold, but also even diamonds are available in its cheaper option called American Diamonds. These are actually
piecing of glass that are polished and cut in a way to give the sheen and look of a diamond. American diamond jewelry cost
less than half of what actually diamonds cost.
Genuine jewelry has its limited wear ability, which means that what you pick up may not go with every outfit you own. And
because of its cost it is not possible to own a piece of jewelry to match up to your wardrobe. But with the option of imitation
jewelry, you could possibly afford to own a piece that could match with every dress you have. The range of colors and styles
span over a wide variety. In fact, there are designers who specialize in imitation jewelry. Right from feathered earrings to
ivory pendants, from glass bangles to beaded anklets, it is probably available. In fact, using your imagination and artistic and
craft skills you could create your own range of imitation jewelry at home with beads and strings.

Indian Market Overview

Indian jewelry business has undergone a drastic transformation over the years. Original diamond and gold jewelry
have now made a way forward for artificial jewelry. The sky rocketing prices of the traditional jewelry whether it
is gold, diamond or silver, have encouraged people to opt for affordable imitation jewelry.
Indian Imitation jewelry market has witnessed tremendous growth in the past few years. In 2012, the market grew
around 85% compared to the previous year. The imitation jewelry market was estimated to reach INR 98.5 Billion
by the end of 2013 due to rising demand.
Imitation jewelry such as fashion jewelry is very much prevalent, especially amongst the college going teenagers.
Since the prices are cheap, they can get a wide variety and also keep up with the changing fashion. Indian fashion
jewelry industry is growing in quantum, patronized mainly by the youngsters.
In future, the imitation jeweler market is expected to grow further with soaring gold and silver prices, rising
consumer preference, availability of more innovative designs and variety etc. Considering these factors, the
imitation jewelry market in India is anticipated to grow at a CAGR of around 23.5% during 2013-2018.
 Raw Materials
These are a few of the raw materials that are used as inputs for the Imitation Jewelries:

1. ZIRCON: Is a mineral occurring as prismatic crystals, typically brown butsometimes in translucent

forms of gem quality. It consists of zirconium silicate and is the chief ore of zirconium. Zircon occurs in
many colors, including red, pink, brown, yellow, hazel, or black. It can also be colorless. The color of
zircons can sometimes be changed by heat treatment. Depending on the amount of heat applied,
colorless, blue, or golden-yellow zircons can be made.

Major procurement centers:

 Domestic: Tamilnadu ,Kerela , Odisha
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 International :China , Indonesia , Malaysia , Ukraine , Brazil , Australia , South Africa
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2. AMERICAN DIAMONDS: is the cubic crystalline form of zirconium dioxide ZrO2.The synthesized
material is hard, optically flawless and usually colorless, but may
be made in a variety of different colors. It should not be confused with zircon, which is a zirconium
silicate ZrSiO4. It is sometimes erroneously called "cubic zirconium".
Because of its low cost, durability, and close visual likeness to diamond, synthetic cubic zirconia has
remained the nontheologically and economically important competitor for diamonds since commercial
production began in 1976. Its main

Competitor as a synthetic gemstone is the more recently cultivated material, synthetic moissanite.
Major procurement centers:
 Domestic: Panna mines, Rajasthan
 International: China,Japan,USA, Germany
STAINLESS STEEL: In
3. metallurgy,Stainless steel, also known as inox
steel or inox from French oxidable, is a steel alloy with a minimum of
10.5%[1chromium content by mass.
Stainless steel does not readily corrode, rust or stain with water as ordinary steel does, but despite the
name it is not fully stain-proof, most notably under low-oxygen, high-salinity, or poor-circulation
environments. There are different grades and surface finishes of stainless steel to suit the environment
the alloy must endure. Stainless steel is used where both the properties of steel and resistance to
corrosion are required
Domestic procurement : Rajkot, Jamashedpur, Hyderabad, Pune, New Delhi, Chennai
International: India is self sufficient in the production of stainless steel.

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
Cup Chains
5. Rondels Procured mostly from SME’s located around
6. Metallic Balls production houses.

7. Stones in settings

Production Hubs in India

Imitation jewelry such as: Bangle, Bangles, Costume Jewelry (also called artificial jewelry, replica jewelry,
junk jewelry, fake jewelry, or fallalery), Bracelets, Kada, Chain, Mangal Sutra, Mala, Necklace Set, Pendant
Set, Anklet, Nose pin, Nose ring, Earring, Ring, hair accessories

Manufacturer, Wholesaler, Supplier at: Rajkot, Gujarat, Mumbai, Maharashtra, Delhi, Moradabad, Sambhal,
Jaipur, Kohima

Important manufacturing Hubs

Here is a non-exhaustive list of major centers for manufacturing Imitation jewelry:

 Mumbai
 New Delhi
 Rajkot
 Jaipur
 Noida
 Kolkata
 Ahmedabad
 Chennai
 Hyderabad
 Coimbatore
 Bengaluru
 Moradabad
 Pune Surat
 Value Adding Chain in Imitation Jewelry (Handicraft Industry)
Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs

Process of Production of Imitation Jewelry

The process is essentially ambiguous and depends on the type of jewelry to be made. Some common steps for
imitation jewelry are: Basic techniques for bending wire, attaching clasps and closing crimps. And also usage of
the different types of stringing materials such as tiger tail and thread.

Basic tools required to make jewelry are round rose pliers, chain nose pliers, crimp pliers, a wire cutter and
bead board

Jewelry making supplies include stringing wire, clasps, crimps (used to hold the wire in place) and ear wires for
earrings

There are many different types of beads including glass, semi-precious stone, crystal, silver, gold, metal and
ceramic. Also use charms and various size chains to make jewelry.

It is a good idea to consider the use of jewelry presentation boxes and pouches for the display and selling of
your jewelry. Not only do they enhance the beauty of your jewelry pieces but they also help increase your sales.
Not only would the box protect the jewelry piece, but it also allows your customer to present it as a gift.
 Costing of Imitation Jewelry

Again as per the ambiguity in the manufacturing and raw material supply even the costing of this industry is
very vague. Some of the common methods deployed for pricing imitation jewelry are:

Simple jewelry pricing formula -Price = material costs x 3 + pro-rated hourly laborrate. For example, the
necklace made cost Rs. 5 in jewelry supplies and took 30 minutesto make. Using the formula Price = Rs. 5
material costs x 3 + Rs. 10 labor (30 minutes of labor equals half an hour. So half of Rs. 20 hourly labor rate
equals Rs. 10 of labor on this necklace)
This gives you a selling price of Rs. 25.
An additional step in using the jewelry pricing formula above is to take into account the following to adjust the
resulting price:
a. What will your target market be prepared to pay;
b. How unique is the jewelry made;
c. What do shops charge for similar pieces?

Workforce
Though imitation jewelry industry is unorganized, it provides employment to many people, say merchants.
About 70 per cent of employees working in the industry are illiterate women and they work from home. India
may leverage its traditional craft-skills, low-cost labor, and fabrication techniques in some of the jewelry
products (such as processing of small-sized diamonds), and replicate such advantages in the production of other
products, and thereby become a global player across the gems and jewelry segments.
Imitation Jewelry Market
Imitation jewelry (HS 7117): The Asian and European countries dominated the exportof imitation jewelry
Hong Kong, China, Austria and France. Major importers of artificial jewelry include USA, Germany, France,
UK and Italy in 2007. Hong Kong was a major source country for all the major importers, followed by China
and Austria.
India’s ex orts under this product category amounted to US $ 117.46 million. Though India is also one of the
major exporters of artificial jewelry, India’s products are mainly sourced by UK. Other major export
destinations for India include: USA, UAE, Spain and Saudi Arabia; however, the volumes are insignificant as
compared to the potential.
India needs to target these markets through various strategies (Cuff links & studs ofbase metal w/n plated
with precious metal (HS 711711): Major importers of productsunder this category include: USA, UK, Japan,
France, and Hong Kong; major source countries for products under this category include: Thailand, UK, Hong
Kong, China, and Germany in 2007. Thailand served as a source country for all major importers of the world \
India’s ex orts under this productgroup amounted to US $ 2.58 million. Though India was not a major exporter
under this category, India was a major source country for USA contributing 8.1% of the total imports by the
USA. In value terms India’s ex ort to USA was US $ 2.09 million a share of 81 % of India’s total ex orts under
this productgroup.
 SWOT ANALYSIS

Strength Weakness

 Excellent Innovation styles Lack of skilled workers

 Cheap LabourUnorganised
 Changing consumer Lack of high end
 preferences technology
 .Value for money Low penetration

Opportunities

Threats

1.Cheap imports from China

1.Product Diversification 2.Entry of MNC Online
portals
2.Rising prices of Gold and
Silver 3.Lack of customer
preference
3.Young untapped Indian 4.Big penny marketing by
 Demand Fact Sheet
 Demand for imitation jewelry has suddenly gone up by over 85% due to drastic hike in gold and silver
price and increased interest in gems & stones during wedding and current festive season as per the quick
survey undertaken by ASSOCHAM-Social Development Foundation ASDF.
 The exports have seen a rise of 35%, reveals the Associated Chamber of Commerce and Industry of India
(ASSOCHAM) survey.
 The imitation jewelry market is about Rs 8,000 core growing at the CAGR of 20% yoy in India and
expected to touch Rs 15,000 crore by 2015.
 Consumers between the age group of 18 to 35 amount for about 78% of the total demand.
 Major demand centers in India are: Delhi, Mumbai, Kolkata, Gurgaon, Lucknow, Bangalore.

Promotional Schemes to boost the sector

The government has launched various promotional schemes under its FTP to help the SME’s and SMSE’s to
incentive e the import and export of sunrise and hitherto.

Some of these schemes are:

 Focus Market Scheme: Exporters of all products to notified countries shall be entitled for Duty Credit scrip
equivalent to 2.5% of FOB value of exports for each licensing year commencing from 1st April,
2010.However New additional Markets notified in Appendix 37C of HBP v1 shall be entitled for Duty
Credit scrip on exports. 2013.Exports made by EOUs / EHTPs / BTPs who do not avail direct tax benefits
exemption shall be eligible.
 ASIDE:Jams and jewelry unites located in SEZ can now receive semi-precious metals prior to export or
after export equivalent to the value of jewelry exported.

Wastage for subcontracting/exchange of gems and semi-precious stones between SEZ and DTA is allowed
 Focus Product Scheme:Under this scheme the exemption re import duty forimitation jewelry sent to USA
for exhibition has been increased from 60 to 90 days. Duty free export has been allowed for Canada.
 Market access scheme: Financial assistance under the existing Scheme is provided to ex ort or trade
promotionorganizationsexporters etc. for enhancing India’s exports through accessing new markets or
through increasing the share in the existing markets. Financial assistance is also provided under the
scheme for various activities such as participation in trade fairs abroad, opening of showrooms and
warehouses etc.
 Initiatives Taken

Government Initiatives:
The strategy to achieve the vision for imitation jewelry is as follows:

 Product development and production: The product development strategy focuses ondeveloping demand-
driven products based on market requirements. The strategy builds upon already existing skills and cultural
heritage, coupled with inputs from new designers, training in core business areas, horizontal and vertical
linkages, ensuring access to raw materials and the fostering of entrepreneurship. The core of this strategy
lies in the successful implementation of the design development, compliance, quality control and capacity
building components that have been introduced in the schemes.

 Marketing and compliance: The overall marketing strategy focuses on the steps neededto enhance the
marketing efforts of the sector to capture a larger market share, and to seize the opportunities associated
with the expanding tourism and corporate investments being made. One of the key areas entwined at each
step in this strategy are addressing the compliance issues, so that the products are acceptable
internationally. The marketing strategy focuses on identification of the most appropriate market niches,
ensuring quality and standardization of products, ensuring proper market access, branding, and marketing
of the products efficiently. Sales of imitation jewelry continue to be confronted by obstacles in meeting the
quantity, quality, and cost demands of different segments of the market. For producers to be able to take
advantage of new economic opportunities and capture new market segments they need assistance
inexpanding their production capacity, in upgrading the quality of their products to the standards demanded
by buyers, and in overcoming the many obstacles they face in meeting the requirements of the targeted
markets.

 Infrastructure Development: This strategy seeks to respond to the main challenge facedin the availability
of infrastructure and latest technologies in the sector and suggests solutions to these challenges by ensured
focused interventions. A new scheme of
‘Infrastructure and Technology Development’ will be critical in filling the institutional gaps in the sector.

 Livelihood and working environment: The strategy for livelihood and workingenvironment bases itself
on providing social security to the artisans and their families. It also makes provisions for financial/ policy
support and the necessary regulatory framework that fosters the development of viable entities which
enable artisans’ micro enterprises (individually and collectively). Provisions have also been made for
supply of tools and technologies, designs and marketing at the grass root level through the cluster approach.
 Export Initiatives

 A three-day fair, organized by the Export Promotion Council for Handicrafts (EPCH), would be
inaugurated by Textiles Minister K Samba Siva Rao. The objective of the fair is to increase the country's
share in the USD 16.3 billion global fashion jewelry market.

 The council has been organizing IFJAS on an annual basis and the export fortunes of this segment have got
a significant boost. The year on year growth of fashion jewelry alone over the last three years has been a
noticeable factor.

 At Indian Fashion Jewelry and Accessories Fair, the buyers will have the opportunity to discover the finest
in the Indian craftsmanship and artistic finish in perfect harmony with modern designs, contemporary
colours and new product development under one roof, the release said.

 The country's fashion jewelry and accessories exports increased to Rs 2007 core in 2012-13 from Rs 1237
crore in the previous fiscal.

Recommendations

 The growing markets to be focused: The US is the largest importer, while the UK continues to be
the second largest buyer. EPCH Chairman Lekhraj Maheshwari says that this sector has
tremendous potential to expand further

 Anti-Dumping Intervention by Government: A growing concern voiced by the traders is that illegal import
of imitation jewelry has increased from China, thereby hurting not only the industry. "Due to dumping
from China, Indian manufacturers have lost almost 25-30 per cent business. We must stop it, otherwise it
will inflict major damage to the industry," said Nagendra Mehta, secretary of Imitation Jewelry
Manufacturers Association of India (IJMA).
 The domestic market is not doing well due to higher cost of production and overall inflation, which restricts
the buying of imitation jewelry. Factor such as higher inflation is hurting the industry and should be dealt
with.
 Better branding of the Indian Imitation Jewelry giving it better credibility and equity should
be done.
 Training for increased efficiency and quality can be provided to the handicraft industry.
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