Jewellery tops the priority list of every woman. DG Fashion by Diagold with its unique collection of fashion jewellery offers the masses an affordable price range. In an interview, Raj Shroff, Director, DG Fashion talks about the company and its future aspirations.
Abha Garyali (AG): Tell us something about the origin and growth of ‘DG fashion by Dia Gold’.
Raj Shroff (RS): DG Fashion is the most vibrant and affordable Art Jewellery brand with a fusion of semi-precious and fashion jewellery. We are 15 years old jewellery company. Our registered office is situated in Mumbai and is managed by a strong team of more than 60 employees.
AG: When did you start franchising?
RS: We started franchising two and a half years ago.
AG: What is the USP of the company?
RS: Our company offers jewellery at a price that ranges from Rs. 35 to Rs. 3,500 and above. Imitation jewellery is always in high demand among the Indian middle class. With such affordable price range, our jewellery has gained acceptance among different strata of the society. Besides this, we have a range of designs to cater to different age groups. We are a one stop jewellery shop having extensive categories of jewellery that covers silver cz, Hyderabadi pearls, ethnic jadau and kundan, crystal and so on. Moreover, our product category is unique as it fits between precious jewellery and imitation jewellery very well. The rising price of gold is another factor that has led to the popularity of our jewellery collections. Interestingly, India has very few outlets for this type of jewellery. So there is a huge business opportunity for our brand to expand across India.
AG: What are the different formats on which the company operates?
RS: We have two brands. One is ‘Diagold’ which is meant for big departmental stores like Big Bazaar, Shoppers Stop, etc. This format is based on discount format and caters to the taste of middle class. The other is our Premium brand ‘DG Fashion’ which is exclusively for standalone showrooms especially for middle and upper class customers. Presently, we have restricted our promotions only to the local areas.
AG: Did recession have any effect on the business? How did you overcome the problems?
RS: Downturn had affected us but it was a good experience. To beat the downturn we had introduced a new category of jewellery which is very attractive as well as cost effective. Also, we take good care of avoiding repetition in designs.
AG: How many franchisees do you have and in which all cities in India?
RS: Presently, we have more than 30 outlets. We are shop-in-shop partners with Future Group, Birla Retail and Shoppers Stop. We usually prefer metros, tier I and II cities and towns across India for our franchised outlets.
AG: What are your future plans in terms of expansion through franchising?
RS: We plan to add 50 more stores in next two years.
AG: What are the qualities that you look for in your prospective franchisees?
RS: Prospective franchisees should have a suitable location. The background of the franchisees is of equal importance. Also, we look for financial status and social respectability of the franchisees.
AG: In what ways do you support and train your franchisees?
RS: We have 100 per cent exchange facilities. Our franchisees do not have to keep the old products as we take back whatever is not sold and exchange it with the latest jewellery. We give a lot of emphasis on customer satisfaction. We train the franchisees so that they deal properly with customers.