Hotline: 1800 102 2007
Search Business Opportunities
jewellery retail 2012-02-06

Dazzling opportunity

Women have always cherished love for gems and jewellery. Though traditional heavy jewellery has given way to sleek designer daily wear jewelery but the love for jewellery has become even stronger with time. Read on to know how retailers and franchisors ta

By Abha Garyali Sub Editor

A peek into the Indian jewellery industry reveals that a lot of organised players have emerged during the 21st century. In fact there is drastic transformation in Indians jewellery buying behavior as jewellery is no longer considered to be only an asset to be kept in lockers and used only during the need of the hour. Rather Indian women now prefer to buy slight weight daily wear jewellery pieces as compared to traditional heavy jewellery. As a result Indians no longer buy jewellery from traditional family jewelers rather they prefer buying jewellery from organised retailers. Moreover earlier people used to buy jewellery only on special occasions like wedding, birthdays, and engagements or during festival seasons. However, today with the coming up of organised jewellery players people prefer buying their favorite jewellery pieces at any time of the year.

Traditional to organised

Traditional gold smiths are a thing of the past. Instead of buying jewellery from the traditional jeweller, customers are now more inclined to buy jewellery from organised players. These organised stores not only provides authentic hallmarked jewellery but also offers the splendid ambience, stylish and air conditioned interiors with the beautiful display of the latest designs that makes one drool to buy them. Moreover traditional jewelers do not offer the finishing and gloss that branded jewellery has in it. These benefits have led to the popularity of branded jewellery stores, which has paved way for many of these organised brands to adopt franchising for rapid expansion and success. Santosh Shrivastav, MD, Gitanjali Jewels Ltd informs: “There are reasons for choosing franchise model. Increasing interest by investors, and company’s main objective to have pan India presence motivated us to take the franchise route. Investors are attracted to the idea of offering the entire portfolio under one roof; offering a wider range of products catering to various income groups.”

Glitter of jewellery via franchising

The increased awareness among customers for investing money in authentic hallmarked jewellery rather than the gold of local gold sellers has paved way for more and more brands to enter cities and towns via franchising. Moreover the attractive and latest designs of branded players have made them popular pan India. These major factors have led to the increase in franchising in jewellery industry. Moreover as informed by Niyat Parekh, CEO, Diya jewllery: “Unorganised sector still dominates the Indian gems and jewellery market. But this trend is expected to change in near future, with organised sector fast becoming the mainstream sales channel. The franchise industry has grown with a considerable rate since the economic slowdown and franchising presents a lot of opportunities in the fashion and lifestyle industry. With the growth in the jewellery market and with different brands competing for making presence in the market, franchising for jewellery is in demand.

Evergreen business overpowers occasional buying

At present investing in a jewellery store can be safest as well as most profitable because it is a perfect example of an evergreen business. The last few years have seen the gold price rising sky-high but this has not affected its sales. Shrivastav shares: “Though gold prices are at an all time high and continue to rise but gold purchase increases every year. India has exhibited a 20-25 per cent increase in jewellery sales over the last year. Viable factors for this are: Indians still buy jewellery not just as an accessory, but also as an investment. Moreover, weddings and other festive occasions still influence the demand for jewellery.” Weddings do not stop at time of recession or any other economic slow-downs. Therefore this business segment will do well in all circumstances.

Gates open for Tier II and III

As mentioned above customers are getting more aware of the benefits of buying jewellery from branded stores. This awareness has opened the gates of smaller cities and towns for big jewellery brands. Parekh shares: “Diya plans on expanding through exclusive franchise stores. Diya targets the Tier II and Tier III cities as well, as they are the new possible jewellery markets.”

Glittering opportunity via franchising

Key players offering franchising in jewellery industry includes Gitanajli Group that includes in its portfolio a wide array of other premium brands. Gili, Asmi, Nakshtra, Sangini, D’damas, Diya, Parineeta etc., are a few of these. Tanishq is another significant brand in gold and diamond jewellery. Both these brands have adopted the franchise route for making their presence significant pan India.

Who is eligible for jewellery franchise?

The primary requirement for taking up a jewellery franchise is passion for jewellery and business. Prospective franchisee also needs to dedicate long hours to his venture. Highlighting the eligibility criteria for jewellery franchisee, V Govind Raj, Vice President - Integrated Retail Services, Titan industries Ltd  says, “Franchisees need to be able to spend quality time on the projects that they are working on and too often they put their fingers in too many pies as a result of which they are not able to do adequate justice on the projects that they take up.” Shrivastav also said: “Franchisees need to have a strong financial background and zero criminal records. However, prior experience in jewellery industry is not an essential factor, as Gitanjali Jewels provide support and adequate training to all its franchisees. Investment may range from Rs two to five crore, depending on the store size and city.”

Franchising in jewellery has a long way to go but needs a lot of hardwork and dedication. If you are an aspiring jewellery business entrepreneur and wish to add glitters to your business then taking up a franchise of a jewellery franchise is the best foot forward.

Tony 19, Jan 2012 at 02:07 AM
Great Article. I\'ve been enlightened.\r\nI would like to know what us the limit for a franchisor\r\nto sell to franchises of his/her busines? \r\nIs there a limit, legally ? \r\nLike 100,000 franchisees ib The more.\r\nWhat\'s the number? (non exclusive territory)
Maru 23, Apr 2012 at 05:58 PM
Have you ever ever thought-about inculding more videos to your blog posts to keep the readers more entertained? I imply I simply learn by way of your complete article of yours and it was quite good but since I\'m more of a visible learner,I discovered that to be more helpful effectively let me know the way it seems! I love what you guys are all the time up too. Such clever work and reporting! Keep up the nice works guys I\'ve added you guys to my blogroll. This is a nice article thanks for sharing this informative information.. I will visit your blog usually for some latest post. Anyway, in my language, there will not be a lot good supply like this.
Related opportunities
  • Bars, Pubs & Lounge
     About Cafe Turquoise CottageCafe Turquoise Cottage is a proven and tested..
    Locations looking for expansion New Delhi
    Establishment year 1997
    Franchising Launch Date 2014
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 2500 sqft
    Franchise Outlets No Outlets
    Franchise Type Unit
    Headquater New Delhi New Delhi
  • Gift Shops & Card Galleries
    Mohan Impressions Pvt. Limited has the opportunity that will bring..
    Locations looking for expansion West Bengal
    Establishment year 1995
    Franchising Launch Date 2006
    Investment size Rs. 10lac - 20lac
    Space required 100 - 1000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolkata West Bengal
  • World's Largest Flower Retail Chain - Ferns N Petals Pvt...
    Locations looking for expansion New Delhi
    Establishment year 1994
    Franchising Launch Date 2000
    Investment size Rs. 5lac - 10lac
    Space required 150-300 sq feet
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New Delhi New Delhi
  • Quick Service Restaurants
    Greetings from Rollacosta !!! ‘Rollacosta’ is brought to..
    Locations looking for expansion Maharashtra
    Establishment year 2012
    Franchising Launch Date 2012
    Investment size Rs. 10lac - 20lac
    Space required 80 to 500 sq feet
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories