Indian Jeweller (IJ) Magazine August -September 2019

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The Big STory Jewellers love to serve their clients in a different way. We don’t want random walk-ins – and in malls people do a lot of browsing and window-shopping and we don’t want that kind of crowd, which is why we prefer standalone stores. There are not many corporate jewellers in India and the market is still dominated by family jewellers who don’t really believe in the idea of a shopping mall Sidharth Bafna, RC Bafna Jewellers Surrounding atmosphere and the kind of jewellers present in a particular locality are important for us. What crops are primarily grown in the surrounding villages/towns is a very vital factor. We also study the potential growth of the market in the future Vikas Kataria, DP Jewellers To Expand or not to Expand This question is relevant in today’s scenario more than ever, with economic volatility coupled with changing consumer preferences and digital disruption at its peak. With skyrocketing per sqft price for commercial spaces, companies are becoming all the more prudent in their expansion plans. In the U.S. luxury retail is adopting a different strategy and this in some cases does not reflect on their performances. Dialing back in light of a changing retail production model that focuses more on digital sales is a trend we are witnessing in the west. Ralph Lauren, Saks Fifth Avenue, Henri Bendel and Barney’s have all closed many stores. Lord & Taylor on the other hand announced the sale of its flagship store to WeWork and partner Rhône Capital. In India though while most brands are adopting a wait and watch approach given the market situation, some of them still believe in an aggressive retain expansion plan. “Retail expansion is related to the vision and growth prospect of a brand. Sometimes, due to certain economic and market scenario, a brand restrategises its expansion plan. But, expansion still takes place. In jewellery retail, offline or brick-and-mortar, retail still commands significant revenue share compared to that of online retail. Because, jewellery buyers in Dialing back in light of a changing retail production model that focuses more on digital sales is a trend we are witnessing in the west India still prefer the touch-and-feel aspect while loosening their purse strings. So, for a brand which aspires to grow, retail expansion through opening stores makes more sense,” quips Ahammed. Simply expanding alone doesn’t cut it as consumers are more conscious about quality than quantity. “Number of stores can definitely make an impact on the consumers but I feel nowadays quality is more important with quantity. To maintain and constantly upgrade the quality and venturing into new markets constantly are what make your brand a successful one according to me,” believes Aditya. Having opened many stores in Gujarat, Milan believes now is not a great time to expand, especially with rising gold prices. “Times are not good. The big corporate brands are expanding of course. But what clients want is also changing, they prefer conceptual jewellery. Big jewellers sell products and not stories. So for them it is easier to open stores as they deal with mass-produced stuff. For us, design value is important and we can’t keep expanding without thought. Even the big brands will eventually have to think of creating concept-based jewellery,” he says. Business volumes have definitely come down and with gold price becoming dearer, getting people to walk into your stores is definitely a challenge. “It is going to be very difficult for retailers to sustain. This is actually the time for consolidation with prices having gone up by 25 – 30 per cent. Proportionately, sales have also dropped. May be a year ago, expansion was the way forward but now I think we need to consolidate,” asserts Prathap. Sidharth looks at the current scenario in a different light. “People’s budgets haven’t gone up with the hike in gold price. They get lesser gold for the price they are paying today, so the volumes have decreased. The only way to make up for the lack of volumes is by opening new stores and reaching newer audiences. You can’t push your products to the same customer – you have to find new markets. So expansion is definitely the way forward.” 106 | august-september 2019 | INDIAN JEWELLER
Metros, Tier II & III – The Difference In the smaller towns or cities, the aspiration levels are much higher. A small town family would love to go to a big city and shop Every city or town is different. Tending to each of these markets also has to be different and hence factors differ while choosing the location for metros versus smaller towns. “Metro markets are very complicated even for us to understand, which is why we haven’t really entered the likes of Mumbai yet. People from South Mumbai will not travel to suburbs no matter what. In the smaller towns or cities, the aspiration levels are much higher. A small town family would love to go to a big city and shop So if you build equity that is as good as the ones in the city, then they will come and shop in your store said Bafna.” Agriculture plays a very important role while choosing a location in smaller towns, as farmers constitute a major chunk of the clients. “Surrounding is important. What crops are primarily grown in the surrounding villages/towns is a very vital factor. We also study the potential growth of the market in the future,” adds Vikas. Times are not good. The big corporate brands are expanding. But what clients want is also changing, they prefer conceptbased jewellery. Big jewellers sell products and not stories. So for them it is easier to open stores as they deal with massproduced stuff. For us, design value is important and we can’t keep expanding without thought. Even the big brands will eventually have to think of creating concept-based jewellery Milan Shah, Kalamandir Jewellers INDIAN JEWELLER | august-september 2019 | 107
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Indian Jeweller (IJ) Magazine August -September 2019

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