 | « Back to article | Print this article |
Pranava Bhargava, Group General Manager (marketing), said, " We are in talks with leading European design houses for developing watches and handbags. The company might take the joint venture mode or co-branding initiatives after evaluating the value propositions."
The Rs 900 crore (Rs 9 billion) Shrenuj acquired Diamond Trading Corporation's 50 per cent stake in Arisia Jewellery, a company promoting the solitaire diamond jewellery brand Arisia. It is focusing on the luxury market with plans to launch diamond studded handbags, watches and mobile phones under the Arisia brand.
Bhargava said the entry in West Asia is a natural extension due to the presence of Indian diaspora. BRIC nations - Brazil, Russia, India and China - are emerging as lucrative markets.
Shrenuj will make the Chinese debut with Joliesse, a Hong Kong-based jewellery chain, which it acquired in 2003. It plans to open two stores in China and 18 outlets in Hong Kong in the next two years. Going forward, the company expects one-third of its revenues to come from the jewellery branding and retailing.
Asitava Sen, Vice President, retail and consumer goods of Technopak Advisors (a consulting firm), said, "There is an opportunity to take Indian jewellery brands globally from the ethnic point of view. Indian jewellery has very niche designs and skill craftsmanship."
He added managing other products such as shoes, belts and wallets may be a challenge as they are well accepted as western designs. Gitanjali Gems is also planning to extend its recently acquired premium jewellery brand Nakshatra into other lifestyle products. The Indian companies seem to be readying for bigger play in the luxury and premium lifestyle space, dominated by international labels such as Gucci and LVMH.
Anuj Rakyan, Vice President, Gitanjali Gems (jewellery division), said, "Nakashtra will be extended into other categories such as handbags, watches and cosmetics. We intend to position Nakashtra to the brands such as Gucci and LVMH."
Gitanjali estimates Nakshatra to garner sales revenues worth Rs 1000 crore (Rs 10 billion) in the next five years. Apart from brand extensions, Indian jewellery companies are also eyeing their potential in the overseas market. Raykyan said, "The company is in talks with partners to launch outlets in West Asia, the UK, Singapore and South Africa."
Shrenuj also plans to take Arisia in West Asia, Eastern Europe and Chinese market.
The lack of luxury retail space might be a hindrance in the domestic retail expansion. Gitanjali plans to open 200 exclusive chains of Nakshatra stores, while Shrenuj is banking on the network of existing jewellers, hotels and high-end multi-brand stores in the initial phase.
According to a report by Technopak Advisors on the changing retail landscape in India, the jewellery and watches market is pegged at $13.7 billion (Rs 53,841 crore). It is expected to register a 12 per cent growth by 2012, touching $23.6 billion (Rs 92, 741 crore).
Shrenuj will make the Chinese debut with Hong Kong-based jewellery chain Joliesse. It plans to open two stores in China and 18 outlets in Hong Kong in the next two years
Gitanjali Gems is also planning to extend its recently acquired premium jewellery brand Nakshatra into other lifestyle products such as handbags, watches and cosmetics. Gitanjali estimates Nakshatra to garner sales revenues worth Rs 1000 crore (Rs 10 billion) in the next five years.