The gold market in India is predominantly a market for buying and selling physical gold or in the form of ornaments and is considered a status symbol. India is considered to be the fastest-growing market in the world for its gold jewellery. It is valued in India as saving, and investment and is the second preferred investment option after mutual funds. Is consumption in India is much higher than any other countries.
Buying Behaviour Of Consumers
Indians have traditionally considered the purchase of jewellery as a symbol of saving and wealth. Rising disposable incomes has led to an increase in domestic consumption. Increasing penetration of organized player provides variety in terms of products and design. These players are also offering financing schemes to consumers to boost sales further.
Since the consumers of Gold jewellery are getting younger, there is a need for statically rich designs to attract these young consumers. We have come far beyond the time when consumers would only buy jewellery for a wedding or on personal occasions like birthdays or anniversaries. The current era of the consumer buying decision is greatly different from the past, especially before liberalization India.
In the past two decades, things have changed drastically in terms of individual income, lifestyle, and literacy rate, so there is a visibly different approach to evaluation when purchasing gold.
Evolution Of Branded Jewelry
The precious metal is a symbol of prosperity and appeals to both younger and older generations across the social straighter within the country. Jewellery consumption behaviour in India also varies across geographical difference in terms of gold type, quality, the jewellery type and decision-makers.
For example, in the East and the south, gold jewellery In Gurgaon has a high Association with culture and traditions, making them better markets for traditional designs. While cities in the north and the west like Delhi e and Kolhapur, prefer pieces of jewellery that express class, and modern aesthetics. This difference in consumption behaviour lead to the dominance of local and regional suppliers.
Factors Which Affect The Buying Behaviour Of Consumer
1. Tradition
2. Ornaments for occasions
3. Price/ investment
4. Status symbol
5. Necessity
Surveys have shown, the majority of the consumers consider jewellery to be a planned purchase while the remaining minority deem it as an impulsive purchase. In the case of planned purchase, prise is seen as the most important factor.
Consumer buying behaviour in the jewellery industry can be studied on the internal parameters as well. These include the price, occasions like festivals, birthdays, anniversaries, weddings, engagements, etc. Companies also concentrate much on image differentiation to convince the field that they have chosen the right brand and help them reduce the complexity in buying decision processes.
Most consumers enjoy shopping according to their social class. Reasons for enjoyment differ at all levels. Consumers with higher affordability enjoy the recreational and social aspect of shopping as well as being exposed to new things. However, lower classes found acquiring new clothes or household items more enjoyable. The upper-middle-class and above more frequently specified a pleasant store atmosphere, display, and excitement.
Literature Analysis
Several previous searches on consumer buying behaviour revealed that consumers make a rational decision instead of emotional ones. Depending upon the complexity and situation, a consumer makes good adjustment with two and tries to accommodate the logical analysis in their buying behaviour. However, consumers do not follow the process of rationality always.
According to researches conducted by jewellery shops, buying roles of consumers were studied in the form of various stages:
Initiator: 64% of women said that they got jewellery as a gift once in their lifetime, and most of the time they received the same from the family members.
Influencer: Who is influencing the buying decision? It can be for a family or a friend. This survey explodes that none of the women were influenced by their female friends and that women play a minor role when it comes to influencing people to buy jewellery.
Consumer buying behaviour has changed drastically in the past few years, and they are being influenced by family friends reference group and Society in general. Indian consumers are becoming more aware and quality conscious. Understanding the consumer is not an easy task as it is very difficult to infer what is going on in customers mind.
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