Melorra aims to become a ₹160 crore brand by the end of FY20 despite the economic slowdown and higher gold prices
- Despite a rise in the price of gold and
economic slowdown, the demand for Melorra’s jewellery remains unchanged
- The young jewellery brand attributes this stability to design differentiation and affordable pricing
- On the back of festive season, new technologies, and strong marketing game on digital media,
Melorrais aiming to become a ₹160 crore brand by the end of FY19 - 20
Melorra’s journey thus began in May 2016 with an aim to bridge this gap and address the wardrobe mismatch. It was conceptualized as a fashion-forward, real gold and diamond jewellery brand that styles for the western wardrobe of modern women.
Yeramilli takes pride in disrupting the market with a simple idea. “It has been fulfilling to see that as a brand which focuses on designing jewellery for the modern wardrobe, Melorra has been successful in 'unboring' and changing the perception about gold jewellery in the country. More and more women are now looking at gold jewellery as something trendy that can be worn with just about any everyday outfit.”
Yeramilli says its designs reflect the global runway trends of Milan, New York, Paris and London, and are in sync with the fashion seasons — Spring Summer and Autumn Winter.
Unaffected by the Economic Slowdown
Despite a rise in the price of gold and economic slowdown, there hasn’t been a decline in the demand for Melorra’s jewellery. Yeramilli attributes this stability to ‘design differentiation and affordable pricing.’
While traditional jewellery players in the market are not as excited for the festive season this year, the preparations at Melorra are on full swing. It has launched about seven Autumn-Winter 2019/20 collections and will be launching more collections in the weeks ahead.
Telling us how Melorra has managed to have a smooth ride in this economic slowdown and festive plans, Yeramilli said, “About 70% of our collections are priced below ₹30,000. This and the fact that we offer attractive discounts to consumers makes Melorra a popular choice. Apart from this, while festivals are synonymous with gold jewellery in India, Melorra offers something ‘untraditional’ — gold that can be matched with any every day outfit and become a part of a woman’s wardrobe even before or after the festivities. We are looking forward to an encouraging business season ahead. We are also witnessing an increase in demand from not only the metros but also really small villages that fall in Tier-5 and Tier-6 classification.”
Choice of Advertising Medium
Melorra’s growth story is built solely with the help of digital media. It’s marketing monnies are 100% on digital advertising. It was drawn to the medium as it allows you to navigate your own analysis, take corrective action, with minimum budget requirements.
Telling us how digital media can help a start-up grow leaps and bounds, Yeramilli said, “Given that our target audience consumes more digital media than any other form of media, digital channels enable us to be present where they are. Also, digital is one of the best mediums that can give brands measurable ROI and immediate impact, be it on YouTube or Facebook. Unlike in traditional media where a significant budget is required to get an uptick, and in digital, you can start off and see results with minimal spends too. Segmentation, personalized data and diverse viewership are among the other reasons why digital is a preferred media. With technology penetrating all aspects of marketing today, brands must understand what drives action for consumers and results for business.”
Investment in New Tech
Melorra has been investing in new technologies every year to increase the efficiency of its non-inventory business model. The brand uses
“Technology is one of the cornerstones of Melorra’s business. At Melorra, we have invested in Computer Aided Design (CAD) and 3D printing technology, enabling high precision and accuracy to execute and convert computer sketches into virtual 3D models, which are then rendered with real material input. Going forward, we are looking at investing in technologies to enhance customer experience with AI-led, voice-enabled and vernacular language-enabled shopping experiences,” says Yeramilli.
With an innovative positioning and business model, Yeramilli is confident that in the next three years, Melorra will be ‘one of the largest digital consumer brands’. Melorra has recorded a year-on-year growth of 400% in FY 2019 and is expecting to grow 5X in revenue by the end of FY 2020.
Yeramilli also shared her intentions of taking Melorra beyond India. She believes that Melorra’s designs are globally relevant and have a ‘market wherever there are high street brands.’