HR translates into Human Resources, but for the Jewellery Industry that requires & provides employment to thousands, it is not a high priority.
Some factors that are considered HR related
1) Loyalty – the single largest factor that is given importance in the industry. Whilst most organizations do so, here it is towards an individual or the seth as they are known.
2) Longevity – this is given equal credence as loyalty, because in practically all companies you would find father & son; brothers; uncles & nephew, nieces, so on & so forth. It is rated high, with the perception that there is a strong loyalty factor etc. whilst the fact may be that they are unable to get a similar or better job elsewhere on merit.
3) Individualistic; Lone Ranger – Since the system is of Peter to Purshottam (Manager to Peon) reporting to the Seth, everyone tends to be extremely individualistic. The shouting etc. is taken with a pinch/barrel of salt like a joint family.
4) Technologically challenged – whilst technology has permeated in the manufacturing process etc. in actual dealings & business it is kept far away. The small slip of paper with eendu or mohr (sign) is still the acceptable way of doing business.
To sum this up, it is extremely personality rather than process driven industry. It depends on varying moods, days etc. of the Seth!
It is slowly the 2nd generation, who have completed their graduation or more & are slowly being inducted into business, who can be relied on to bring changes, particularly if they have worked & gained a bit of business experience elsewhere.
Anaggh
Wednesday, October 31, 2007
Thursday, August 30, 2007
Industry, Organizations & People........
An Industry shrouded in secrecy, handed down from father to son over decades both employers & employees. A parallel “Jo Hukum” Raja Darbar functioning.
Everyone is a ‘Bhai’ Rameshbhai, Arunbhai, Pappubhai BUT not those Bhais this is a term of respect & belongingness.
The beauty of the entire industry is that though the main doors are locked with multiple locks & so is the big daddy chambers, the employees are all trusted verbally and Business is also done similarly.
The few instances of robbery have been well documented but never caught. Cases of deceit & fraud never come out since the industry closes ranks.
There are different tiers of organizations in the industry beginning with
1) The Sight Holders & Manufacturers – They are the top enlisted by DTC & practically hold a monopoly on the roughs offered by DTC every month. They also have manufacturing plants across India (Mumbai, Surat mainly) but with competition creeping in have opened or outsourced the activity in China etc. Besides this they are mainly in the export market manufacturing as per the country specific requirements.
2) The Manufacturers & Job workers – They are the 2nd tier, with some of them hoping to become a sight holder, but majority of them content to be out sourced manufacturers for the sight holders.
3) The Grade A Jewellers – These are the Ganjams (south); Hazoorilal (north); TBZ; Notandas of west, who have been established for generations, understand the power of brand but are content to straddle the middle for the time being.
4) The Sub Jewellers – These are mid level, powerful in their own right, act sometimes as the spoke to the other jewelers in smaller cities & towns as well as all the suburbs of the nation.
5) The Retailers – These are the GenX. Having come up in the last 10 years, believe branding is the way forward, led by Mehul Choksi; Shailesh Sangani; Vijay Jain; Prabir Chatterji; Hemant Shah to name few of them.
6) The Adjacencies – These are the smallest jewelers; some retailers who sell watches & want to sell branded Jewellery; And the large stores like Shoppers Stop; Pyramid; Just in vogue etc. All of them sell luxury items.
Most of the people hired are referrals or generations handed over, the attributes required being longevity; loyalty; individualistic & technologically challenged.
Everyone is a ‘Bhai’ Rameshbhai, Arunbhai, Pappubhai BUT not those Bhais this is a term of respect & belongingness.
The beauty of the entire industry is that though the main doors are locked with multiple locks & so is the big daddy chambers, the employees are all trusted verbally and Business is also done similarly.
The few instances of robbery have been well documented but never caught. Cases of deceit & fraud never come out since the industry closes ranks.
There are different tiers of organizations in the industry beginning with
1) The Sight Holders & Manufacturers – They are the top enlisted by DTC & practically hold a monopoly on the roughs offered by DTC every month. They also have manufacturing plants across India (Mumbai, Surat mainly) but with competition creeping in have opened or outsourced the activity in China etc. Besides this they are mainly in the export market manufacturing as per the country specific requirements.
2) The Manufacturers & Job workers – They are the 2nd tier, with some of them hoping to become a sight holder, but majority of them content to be out sourced manufacturers for the sight holders.
3) The Grade A Jewellers – These are the Ganjams (south); Hazoorilal (north); TBZ; Notandas of west, who have been established for generations, understand the power of brand but are content to straddle the middle for the time being.
4) The Sub Jewellers – These are mid level, powerful in their own right, act sometimes as the spoke to the other jewelers in smaller cities & towns as well as all the suburbs of the nation.
5) The Retailers – These are the GenX. Having come up in the last 10 years, believe branding is the way forward, led by Mehul Choksi; Shailesh Sangani; Vijay Jain; Prabir Chatterji; Hemant Shah to name few of them.
6) The Adjacencies – These are the smallest jewelers; some retailers who sell watches & want to sell branded Jewellery; And the large stores like Shoppers Stop; Pyramid; Just in vogue etc. All of them sell luxury items.
Most of the people hired are referrals or generations handed over, the attributes required being longevity; loyalty; individualistic & technologically challenged.
Wednesday, August 29, 2007
Jewellery Retail – My beginning……
April 2005 –
Finally decided to take a plunge into an Industry that is around 70,000 crores (according to various studies & reports). Out of this only 3% is the branded segment, though the industry as a whole is growing at 20% + year on year. The first impressions did nothing to assuage my fears or doubts on whether this was the right decision? The first couple of days tried desperately to find answers to the following:
Industry, Organizations & People
What is Jewellery Retail?
Who does Jewellery Retail?
What do they Sell?
Products – What are those? Where are they made? What works? How is it decided?
How do they Market? What do they understand by Marketing?
What is Branding & what do they mean by it?
What is Distribution? What is their understanding of it?
Is there a supply chain mechanism? How is the supply chain managed?
Is all of the above Professionally managed?
Do they intend using Professionals or more important turn Professional?
Anaggh
Finally decided to take a plunge into an Industry that is around 70,000 crores (according to various studies & reports). Out of this only 3% is the branded segment, though the industry as a whole is growing at 20% + year on year. The first impressions did nothing to assuage my fears or doubts on whether this was the right decision? The first couple of days tried desperately to find answers to the following:
Industry, Organizations & People
What is Jewellery Retail?
Who does Jewellery Retail?
What do they Sell?
Products – What are those? Where are they made? What works? How is it decided?
How do they Market? What do they understand by Marketing?
What is Branding & what do they mean by it?
What is Distribution? What is their understanding of it?
Is there a supply chain mechanism? How is the supply chain managed?
Is all of the above Professionally managed?
Do they intend using Professionals or more important turn Professional?
Anaggh
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