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
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.