Italian and Indian gold and jewelry SMEs, marketing practices in the USA

Abstract

Purpose-The purpose of this paper is to examine current patterns of international marketing activities of Italian gold firms with a special emphasis on the US market and to juxtapose them with those adopted by Indian gold firms. Design/methodology/approach-A sample of small-and medium-sized enterprises (SMEs) from Italy and India served as the study setting. Data were collected via depth interviews from the owners/managers of four Italian and three Indian firms. Findings-The paper finds that the competitive behavior of Italian SMEs is primarily reactive, whereas Indian companies strategically focus on the expanding Indian immigrant community. Research limitations/implications-This is a case study evaluating small companies based in two regions (Arezzo, and Hyderabad, India). Originality/value-A strategic comparison of the competitive conducts of SMEs based in an old economy country and a new economy emerging market-based firms.

Globalization, Recession and the Internationalization of Industrial Districts: Experiences from the Italian Gold Jewellery Industry

“…Suppliers must have greater control over marketing and retail segments of the chain and a tighter coordination with foreign buyers. Italian producers are generally not as fast as their international competitors in embracing these changes, relying on existing importer-distributors and their extended distributional channels with little effort devoted to brand and product differentiation (Simoni et al, 2010).…”

“…The most successful firms, like Graziella Group, have invested in product innovation and brands and in retailing to target higher-end markets; another part specialized in the production of components, like spring rings, clasps and beads, or in services (e.g. the treatment and recovery of precious metals and the precious metal bank), serving firms both internal and external to the district (see also Nomisma & Istituto S. Anna, 2006;Simoni et al, 2010).…”

“…Subsequently, the district underwent a restructuring, with firms that did not own a brand being the most weakened, especially in international markets (Nomisma & Istituto S. Anna, 2006). While many firms, especially the smallest ones and those that have not invested in innovation and branding, are still in economic decline (see Simoni et al, 2010), a dynamic group of SMEs has emerged and accounts for the positive performance of the district in international markets. The most successful firms, like Graziella Group, have invested in product innovation and brands and in retailing to target higher-end markets; another part specialized in the production of components, like spring rings, clasps and beads, or in services (e.g.…”

“…Second, from a GVC perspective, this industry has been affected since the early 2000s by intensified international competition and changing consumer markets, which make GVC factors relevant in explaining ID performance. Finally, the focus on gold jewellery in Italy allows for deeper understanding of an industry on which, with a few notable exceptions (Gaggio, 2006(Gaggio, , 2007Simoni et al, 2010), limited comparative research has been conducted, notwithstanding its long history and importance for the Made in Italy sector.…”

Building long-term supplier-retailer relationships in the jewellery sector: antecedents of customer loyalty

“…This is particularly true in the Italian context, notwithstanding its long history and importance. The sector has mainly been used as a study context for researches on industrial districts (De Marchi et al, 2014;Gaggio, 2006Gaggio, , 2007, such as Arezzo, Vicenza, Valenza Po, but also Birmingham (De Propris and Lazzeretti, 2009), or on the role of contract design in overcoming critical demand management issues (Brun and Moretto, 2012), rather than for comparing patterns of marketing activities at an international level (Simoni et al, 2010). From a strategic point of view, some authors proved that jewellery manufacturers are consistently transforming into niche producers whose competitiveness is based around a process of customisation through a co-production relationship with customers, the delivery of service experiences and a continual process of design-intensive innovation (Bryson and Taylor, 2009).…”