Kalyan Jewellers has witnesseda significant shiftfrom the unorganised sector to the organised one.
The fine jewellery segment has seen a major changeover, thanks to some visionaries who knew how to take care of the sensitive Indian consumer for whom gold is auspicious. But, they do not have the courage to take the leap of faith with anyone other than the family jeweler due to sheer lack of knowledge. It is only with constructive efforts of brands like Kalyan Jewelers, that the fine jewellery segment has become organised. T S Kalyanaraman, Chairman & MD, Kalyan Jewellers shares his insight with Utpala Ghosh.
Where is the future of retail jewellery in India?
We see a significant shift from the unorganised sector to the organised one. Now people have become brand conscious, want quality and variety before making any investment in gold. Despite of fluctuation in price, there is a healthy demand of gold ornaments among the consumers.
How has the consumer’s mindset changed for precious jewellery over the years?
As there is a strong demand for precious stone and studded ornaments, the demand for ruby and emerald studded ornaments is the highest. To cater to this demand, Kalyan has a range named RANG which is the collection of precious studded ornaments. The range starts from simple pendant studs, which can be worn to the office to heavy chokers that are adorned for weddings and other special occasions.
What strategies do you adopt to make value for high priced product such as yours?
Brand Kalyan is synonymous with ‘trust’. We have more than 2 million loyal customers and nearly 90% of our business depends upon repeat costumers -- a testimony of the strong bond that we enjoy with our customers. We have established benchmarks when it comes to quality, customer service, transparent pricing and innovation and this has held us in good stead. We have also reinvigorated our supply chain and this helps us to identify trends as they unfold and deliver designs that cater to fulfill distinct needs across the country. While we are a national player, we are able to customise designs that appeal to local sensibilities and we believe this makes Kalyan a compelling proposition. We rely on our vast network of artisans across the country to deliver exquisite designs that are intricately crafted.
Why haven’t you considered franchising as an expansion route as yet?
Jewellery retail is an intricate and complex business. So far, we have followed the model of having our own distribution channel as it allows us to understand the customer better and track trends, thereby enabling us to customise designs quickly. We also get a ground view of operations and market behaviour. There is no transmission loss on insights. Having said that we may consider the franchise model option as and when the need arises.