Nov 11, 2021
By: BI India BureauIn the September quarter, the Indian chain of jewellery showrooms made a profit of ₹69 crore due to rising demand and consumer shift from unorganised to organised sector.
Credit: BCCL
“We should give some merit to the pent-up demand maybe and the major reason for the revenue growth is the shift from the unorganised segment (to organised segment),” said Ramesh Kalyanaraman, executive director at Kalyan Jewellers in an interview to Business Insider.
Credit: BCCL
Unorganised sector consists of mom and pop shops with less inventory particularly in villages. Besides, there is an industry shift towards organised sector because of government push on hallmark jewellery and buying from Bureau of Indian Standards (BIS) jewellers.
Credit: BCCL
“We see demand shift from there (unorganised) to organised to segment because unorganised segments would have faced a lot of issues like there may be liquidity issues, supply chain. Again customer mood is also now to come to standalone stores where there is basic hygiene rather than going to a crowded street or a small shop where there is no social distancing etc,” said Kalyanaraman.
Credit: BCCL
The jewellery chain witnessed huge footfalls in the September quarter because of festive demand, which led to good revenue. However, the demand has continued after Diwali. “Even post-Diwali the momentum has continued, we see high traction at the stores,” said Kalyanaraman.
Credit: BCCL
On Dhanteras, Kalyan Jewellers registered higher footfalls both from existing as well as new customers, resulting in robust revenue growth. While the sales momentum in the plain gold segment continued, it also witnessed a significant increase in the studded jewellery category.
Credit: BCCL
It does not expect 50-60 percent growth further because of the higher base that took place due to festive sales.
Credit: BCCL
“Gold anytime when you invest, it is good only because you are not looking at a short term benefit, right? It is a long game. So, India has always seen gold only improving in many cycles and whenever we have liquidity we should buy gold and wait that is,” said Kalyanaraman.
Credit: BCCL
“Gold is not only an investment here in India, it is not only a fashion accessory, it is a part of the custom or ritual in our country,” he said.
Credit: BCCL
It launched digital gold in September, mainly, for tech savvy consumers. “It is a new segment of customers we are looking for. We are yet to start a campaign around it,” Kalyanaraman added.
Credit: BCCL