Creativity Calling

Kolkata jewellers rely on creative schemes

Post By : IJ News Service On 22 July 2013 7:12 PM

The tough competition among the national, regional and local jewellers in Kolkata is likely to see an all new dimension to the marketing of a yellow metal, albeit differently. Sandhya Sutodia finds out. India is hub of the world jewellery market and this trade is one of the oldest in our nation. Kolkata on the other hand is the core of the Eastern India’s jewellery market and is a home to thousands of jewellers. But, with the industry bustling with bigger brands and corporate gianys stepping in, it is getting difficult for family jewellers in Kolkata to retain their old position. This is where new ideas and marketing gimmicks play a pivotal role. One jeweller says, “I will accept credit cards as it increases sales and earnings”, another adds, “I will soon offer jewellery gift certificates”. A city based jeweller boldy adds, “I will increase my jewellery sales by making my wife wear my brand’s jewellery wherever she goes which I believe can be a good marketing way.” Another says against an expected turnover of Rs 100 crore last fiscal, the net profit was around Rs five crore. “In the current fiscal, I do not think I will be able to achieve sales of even Rs 50 crore with the government taking tough measures to curb gold demand in India and the way the big brands are foraying into the West Bengal and particularly the Kolkata market.” “I will have to innovate to exist in the market. I have to maintain my website, get ready for domestic and international shows, ensure timely deliveries,” he articulates. Among other innovative ideas, popular ones that the local and regional jewellers came up include alluring customers via art shows, craft fairs, jewellery parties, trunk shows, galleries, shops, and other offline venues. Historically, jewellery was bought from our trusted neighborhood jeweller who would probably be a third generation. And the situation was same in Kolkata too where the local and regional players would cater to customers. But with the fusion of ideas, thoughts and business, national players like Tanishq, Reliance, Tribhovandas Bhimji Zaveri (TBZ) entering the market of Kolkata it not only threatened the local players but have made the existing jewellery players walk the extra mile to keep the show running. Nimesh Jain, Haren Dutta, Bimal Sen among others are a worried lot. These small jewellers have been hit hard by the high inflation and ill-effects of a downward economy, which has already impacted on their sales numbers. To top it up, six per cent import gold and the competition has made it difficult for them to report viable profit.

The tough competition is likely to see a new dimension of the marketing of a yellow metal, albeit differently by the national, regional and local players in Kolkata.“It is a tough business ahead and most of them are resorting to innovative push and pull strategies to keep the cash registers jangling,” said gold analysts. The local jewellers and regional players are increasingly looking at launching their own brands, expanding into new markets, adopting new retail formats and hiring jewellery designers to improve their product range now. It is interesting to note that national players including Tanishq, Gitanjali and big regional players like PC Chandra, Mehrasons Jewellers, Alokas, Malabar Gold & Diamonds among others enjoyed a total market share of five to seven per cent seven to eight years ago but now it has increased to more than 20 per cent. Bachhraj Bamalwa, ex-chairman, The Gem and Jewellery Trade Federation (GJF), said, “A jeweller not only sells a piece of jewellery but sells his services. Jewellers ought to educate customers that they are purchasing a piece of art made from high-quality material. If a jeweller wishes his clients on his birthdays and marriage anniversary, the customers have a bent towards him”. Suvankar Sen, Executive Director, Senco Gold, said, “Regional players have their own set of loyal customers who have been going to them over time. The big players in the industry have their strengths relating to promotion and positioning and designs, however, it is the benefit of the regional players if they can learn from the bigger players.” He also adds that Senco Gold’s business is not much affected by the national players. “We are working on greater innovation of designs and better service to stay ahead in competition. We are present in Delhi and would like to be present in many more cities. Format will remain the same in all the cities. Designers have always been a part of our group but we will gradually add the numbers of designers,” added the Senco official. “Regional players are upgrading themselves while adhering to the need of the hour. We too create jewellery which matches with the modern attire for the urban consumers,” said Chandra Surana, Proprietor, Bhuramal Rajmal Surana Jouhree. He further said the jeweller would always emphasise on the quality and the artistry and does not believe on schemes and discounts on making charges. While Chandrakanta Roy Chowdhury, Partner, Kolkata-headquartered MP Jewellers, shared,“Am I really being affecting when these (bigger brands) come to Kolkata to do business? No, not all! TBZ, Malabar Gold &Diamonds and the likes, canall get a share of the pie. I happy to announce that we too are in expansion mode and we will soon venture in Kochi.” Chowdhury further hinted that he welcomes the competition as fittest is likely to survive irrespective of the brand— whether it is a national player or a Kolkata headquartered jeweller. When asked about the innovations he opined, “Innovation for me are facts laid on the table. Break-up and clarity on transaction is a must for all jewellers.”

Whereas Nitai Jana, a jeweller from Southern Kolkata says,“We will give gifts with purchases keeping in mind the changing dynamics.” On the jewellery front, Kaushlendra Singh Sengar, Founder and Director, Dhanpurna Commodities explained, “The local players offer the local taste and are not able to offer a pan India selection.For example, jewellery demand in western India is different from southern India or northern India. In South it is gold while in west it is diamond, these national brands have designs from all markets and even if it is not in stock in a showroom, it could be made available in 24 hours on demand.” Although Arun Kejriwal, a director at Mumbai-based KRIS Capital feels that when purity and quality issues surfaced, demand shifted to branded players. Factory made jewellery is cheaper and better finished than completely handmade, he opines. “Therefore, there is a marked shift in demand and purchasing from larger branded players,” believes Kejriwal. But Harshad Ajmera, President, Indian Association of Hallmarking said, “Some regional players are now offering hallmark jewellery to customers. The jewellers in the nook and corner of the city who did not believe in offering innovative schemes that encouraged end users to invest their savings in gold through regular small purchases, have come forward with such offers.” “Well, I believe people like Kalyan Jewellers, TBZ, Titan and some more are all hiring designers, as this is becoming the new trend and demand. Secondly,all have introduced the concept of ‘mix and match’ where the same piece of jewellery can be worn in different combinations. For example, a necklace with the pendant, remove the pendant and it becomes a chain and so on,” said Kejriwal. The national players create demand. They differentiate jewellery by the events namely corporate jewellery, ceremonial jewelleryand various other categories for numerous occasions, said Sengar. Talking about the national players, Sengar said they hire market analysts who analyse the market demand, taste and preference.They design and manufacture jewellery according to this analysis. But, their work is not limited to designs as they also have a core marketing and sales team who convert their goods into cash. If we talk about their showrooms, presentation, it’s all very modern and up market. Their jewellery presentation is far better than the local vendor shop.” “Today people are becoming more brand conscious than before. We have to accept that India is following European culture and today’s generation is very much updated with the latest trend. People prefer light and designer jewellery instead of traditional,bulky and old pattern ones. And big brands understand this shift in trend very well. They are ruling the market because they have a team of experts. They work as a company, they themselves create demand for jewellery by launching latest fashion jewellery following the market trend,” said Namit Dave, a gold analyst. A market analyst explained that the big brands like TBZ, Tanishq and Reliance have big budgets for national advertisements while the regional players and local ones select the regional media to reach out to their clients. But Dwaipayan Sen, regional business manager- east of Tanishq, feels that small jewellerswill survive. “The local players are big players in their own way. Regional products are relevant to the respective market. They have survived all these years and will continue do so in future,” he said.

Talking about the innovative steps which Tanishq has taken, Sen said the brand always try to reach closer to the customers. “We need to be more on the ground. We try to innovate through our products.” Tanishq has designers in Kolkata, Mumbai,Bengaluru among other locations to cater to the local taste. Most of the national brands have also launched big format store, unlike the local players. “And, of course nowadays only one mantra is working jo dikhta hai wahi bikta hai (what is prominent, sells the most),” concluded Sengar.

The tough competition among the national, regional and local jewellers in Kolkata is likely to see an all new dimension to the marketing of a yellow metal, albeit differently. Sandhya Sutodia finds out. India is hub of the world jewellery market and this trade is one of the oldest in our nation. Kolkata on the other hand is the core of the Eastern India’s jewellery market and is a home to thousands of jewellers. But, with the industry bustling with bigger brands and corporate gianys stepping in, it is getting difficult for family jewellers in Kolkata to retain their old position. This is where new ideas and marketing gimmicks play a pivotal role. One jeweller says, “I will accept credit cards as it increases sales and earnings”, another adds, “I will soon offer jewellery gift certificates”. A city based jeweller boldy adds, “I will increase my jewellery sales by making my wife wear my brand’s jewellery wherever she goes which I believe can be a good marketing way.” Another says against an expected turnover of Rs 100 crore last fiscal, the net profit was around Rs five crore. “In the current fiscal, I do not think I will be able to achieve sales of even Rs 50 crore with the government taking tough measures to curb gold demand in India and the way the big brands are foraying into the West Bengal and particularly the Kolkata market.” “I will have to innovate to exist in the market. I have to maintain my website, get ready for domestic and international shows, ensure timely deliveries,” he articulates. Among other innovative ideas, popular ones that the local and regional jewellers came up include alluring customers via art shows, craft fairs, jewellery parties, trunk shows, galleries, shops, and other offline venues. Historically, jewellery was bought from our trusted neighborhood jeweller who would probably be a third generation. And the situation was same in Kolkata too where the local and regional players would cater to customers. But with the fusion of ideas, thoughts and business, national players like Tanishq, Reliance, Tribhovandas Bhimji Zaveri (TBZ) entering the market of Kolkata it not only threatened the local players but have made the existing jewellery players walk the extra mile to keep the show running. Nimesh Jain, Haren Dutta, Bimal Sen among others are a worried lot. These small jewellers have been hit hard by the high inflation and ill-effects of a downward economy, which has already impacted on their sales numbers. To top it up, six per cent import gold and the competition has made it difficult for them to report viable profit.

The tough competition is likely to see a new dimension of the marketing of a yellow metal, albeit differently by the national, regional and local players in Kolkata.“It is a tough business ahead and most of them are resorting to innovative push and pull strategies to keep the cash registers jangling,” said gold analysts. The local jewellers and regional players are increasingly looking at launching their own brands, expanding into new markets, adopting new retail formats and hiring jewellery designers to improve their product range now. It is interesting to note that national players including Tanishq, Gitanjali and big regional players like PC Chandra, Mehrasons Jewellers, Alokas, Malabar Gold & Diamonds among others enjoyed a total market share of five to seven per cent seven to eight years ago but now it has increased to more than 20 per cent. Bachhraj Bamalwa, ex-chairman, The Gem and Jewellery Trade Federation (GJF), said, “A jeweller not only sells a piece of jewellery but sells his services. Jewellers ought to educate customers that they are purchasing a piece of art made from high-quality material. If a jeweller wishes his clients on his birthdays and marriage anniversary, the customers have a bent towards him”. Suvankar Sen, Executive Director, Senco Gold, said, “Regional players have their own set of loyal customers who have been going to them over time. The big players in the industry have their strengths relating to promotion and positioning and designs, however, it is the benefit of the regional players if they can learn from the bigger players.” He also adds that Senco Gold’s business is not much affected by the national players. “We are working on greater innovation of designs and better service to stay ahead in competition. We are present in Delhi and would like to be present in many more cities. Format will remain the same in all the cities. Designers have always been a part of our group but we will gradually add the numbers of designers,” added the Senco official. “Regional players are upgrading themselves while adhering to the need of the hour. We too create jewellery which matches with the modern attire for the urban consumers,” said Chandra Surana, Proprietor, Bhuramal Rajmal Surana Jouhree. He further said the jeweller would always emphasise on the quality and the artistry and does not believe on schemes and discounts on making charges. While Chandrakanta Roy Chowdhury, Partner, Kolkata-headquartered MP Jewellers, shared,“Am I really being affecting when these (bigger brands) come to Kolkata to do business? No, not all! TBZ, Malabar Gold &Diamonds and the likes, canall get a share of the pie. I happy to announce that we too are in expansion mode and we will soon venture in Kochi.” Chowdhury further hinted that he welcomes the competition as fittest is likely to survive irrespective of the brand— whether it is a national player or a Kolkata headquartered jeweller. When asked about the innovations he opined, “Innovation for me are facts laid on the table. Break-up and clarity on transaction is a must for all jewellers.”

Whereas Nitai Jana, a jeweller from Southern Kolkata says,“We will give gifts with purchases keeping in mind the changing dynamics.” On the jewellery front, Kaushlendra Singh Sengar, Founder and Director, Dhanpurna Commodities explained, “The local players offer the local taste and are not able to offer a pan India selection.For example, jewellery demand in western India is different from southern India or northern India. In South it is gold while in west it is diamond, these national brands have designs from all markets and even if it is not in stock in a showroom, it could be made available in 24 hours on demand.” Although Arun Kejriwal, a director at Mumbai-based KRIS Capital feels that when purity and quality issues surfaced, demand shifted to branded players. Factory made jewellery is cheaper and better finished than completely handmade, he opines. “Therefore, there is a marked shift in demand and purchasing from larger branded players,” believes Kejriwal. But Harshad Ajmera, President, Indian Association of Hallmarking said, “Some regional players are now offering hallmark jewellery to customers. The jewellers in the nook and corner of the city who did not believe in offering innovative schemes that encouraged end users to invest their savings in gold through regular small purchases, have come forward with such offers.” “Well, I believe people like Kalyan Jewellers, TBZ, Titan and some more are all hiring designers, as this is becoming the new trend and demand. Secondly,all have introduced the concept of ‘mix and match’ where the same piece of jewellery can be worn in different combinations. For example, a necklace with the pendant, remove the pendant and it becomes a chain and so on,” said Kejriwal. The national players create demand. They differentiate jewellery by the events namely corporate jewellery, ceremonial jewelleryand various other categories for numerous occasions, said Sengar. Talking about the national players, Sengar said they hire market analysts who analyse the market demand, taste and preference.They design and manufacture jewellery according to this analysis. But, their work is not limited to designs as they also have a core marketing and sales team who convert their goods into cash. If we talk about their showrooms, presentation, it’s all very modern and up market. Their jewellery presentation is far better than the local vendor shop.” “Today people are becoming more brand conscious than before. We have to accept that India is following European culture and today’s generation is very much updated with the latest trend. People prefer light and designer jewellery instead of traditional,bulky and old pattern ones. And big brands understand this shift in trend very well. They are ruling the market because they have a team of experts. They work as a company, they themselves create demand for jewellery by launching latest fashion jewellery following the market trend,” said Namit Dave, a gold analyst. A market analyst explained that the big brands like TBZ, Tanishq and Reliance have big budgets for national advertisements while the regional players and local ones select the regional media to reach out to their clients. But Dwaipayan Sen, regional business manager- east of Tanishq, feels that small jewellerswill survive. “The local players are big players in their own way. Regional products are relevant to the respective market. They have survived all these years and will continue do so in future,” he said.

Talking about the innovative steps which Tanishq has taken, Sen said the brand always try to reach closer to the customers. “We need to be more on the ground. We try to innovate through our products.” Tanishq has designers in Kolkata, Mumbai,Bengaluru among other locations to cater to the local taste. Most of the national brands have also launched big format store, unlike the local players. “And, of course nowadays only one mantra is working jo dikhta hai wahi bikta hai (what is prominent, sells the most),” concluded Sengar.

The tough competition among the national, regional and local jewellers in Kolkata is likely to see an all new dimension to the marketing of a yellow metal, albeit differently. Sandhya Sutodia finds out. India is hub of the world jewellery market and this trade is one of the oldest in our nation. Kolkata on the other hand is the core of the Eastern India’s jewellery market and is a home to thousands of jewellers. But, with the industry bustling with bigger brands and corporate gianys stepping in, it is getting difficult for family jewellers in Kolkata to retain their old position. This is where new ideas and marketing gimmicks play a pivotal role. One jeweller says, “I will accept credit cards as it increases sales and earnings”, another adds, “I will soon offer jewellery gift certificates”. A city based jeweller boldy adds, “I will increase my jewellery sales by making my wife wear my brand’s jewellery wherever she goes which I believe can be a good marketing way.” Another says against an expected turnover of Rs 100 crore last fiscal, the net profit was around Rs five crore. “In the current fiscal, I do not think I will be able to achieve sales of even Rs 50 crore with the government taking tough measures to curb gold demand in India and the way the big brands are foraying into the West Bengal and particularly the Kolkata market.” “I will have to innovate to exist in the market. I have to maintain my website, get ready for domestic and international shows, ensure timely deliveries,” he articulates. Among other innovative ideas, popular ones that the local and regional jewellers came up include alluring customers via art shows, craft fairs, jewellery parties, trunk shows, galleries, shops, and other offline venues. Historically, jewellery was bought from our trusted neighborhood jeweller who would probably be a third generation. And the situation was same in Kolkata too where the local and regional players would cater to customers. But with the fusion of ideas, thoughts and business, national players like Tanishq, Reliance, Tribhovandas Bhimji Zaveri (TBZ) entering the market of Kolkata it not only threatened the local players but have made the existing jewellery players walk the extra mile to keep the show running. Nimesh Jain, Haren Dutta, Bimal Sen among others are a worried lot. These small jewellers have been hit hard by the high inflation and ill-effects of a downward economy, which has already impacted on their sales numbers. To top it up, six per cent import gold and the competition has made it difficult for them to report viable profit.

The tough competition is likely to see a new dimension of the marketing of a yellow metal, albeit differently by the national, regional and local players in Kolkata.“It is a tough business ahead and most of them are resorting to innovative push and pull strategies to keep the cash registers jangling,” said gold analysts. The local jewellers and regional players are increasingly looking at launching their own brands, expanding into new markets, adopting new retail formats and hiring jewellery designers to improve their product range now. It is interesting to note that national players including Tanishq, Gitanjali and big regional players like PC Chandra, Mehrasons Jewellers, Alokas, Malabar Gold & Diamonds among others enjoyed a total market share of five to seven per cent seven to eight years ago but now it has increased to more than 20 per cent. Bachhraj Bamalwa, ex-chairman, The Gem and Jewellery Trade Federation (GJF), said, “A jeweller not only sells a piece of jewellery but sells his services. Jewellers ought to educate customers that they are purchasing a piece of art made from high-quality material. If a jeweller wishes his clients on his birthdays and marriage anniversary, the customers have a bent towards him”. Suvankar Sen, Executive Director, Senco Gold, said, “Regional players have their own set of loyal customers who have been going to them over time. The big players in the industry have their strengths relating to promotion and positioning and designs, however, it is the benefit of the regional players if they can learn from the bigger players.” He also adds that Senco Gold’s business is not much affected by the national players. “We are working on greater innovation of designs and better service to stay ahead in competition. We are present in Delhi and would like to be present in many more cities. Format will remain the same in all the cities. Designers have always been a part of our group but we will gradually add the numbers of designers,” added the Senco official. “Regional players are upgrading themselves while adhering to the need of the hour. We too create jewellery which matches with the modern attire for the urban consumers,” said Chandra Surana, Proprietor, Bhuramal Rajmal Surana Jouhree. He further said the jeweller would always emphasise on the quality and the artistry and does not believe on schemes and discounts on making charges. While Chandrakanta Roy Chowdhury, Partner, Kolkata-headquartered MP Jewellers, shared,“Am I really being affecting when these (bigger brands) come to Kolkata to do business? No, not all! TBZ, Malabar Gold &Diamonds and the likes, canall get a share of the pie. I happy to announce that we too are in expansion mode and we will soon venture in Kochi.” Chowdhury further hinted that he welcomes the competition as fittest is likely to survive irrespective of the brand— whether it is a national player or a Kolkata headquartered jeweller. When asked about the innovations he opined, “Innovation for me are facts laid on the table. Break-up and clarity on transaction is a must for all jewellers.”

Whereas Nitai Jana, a jeweller from Southern Kolkata says,“We will give gifts with purchases keeping in mind the changing dynamics.” On the jewellery front, Kaushlendra Singh Sengar, Founder and Director, Dhanpurna Commodities explained, “The local players offer the local taste and are not able to offer a pan India selection.For example, jewellery demand in western India is different from southern India or northern India. In South it is gold while in west it is diamond, these national brands have designs from all markets and even if it is not in stock in a showroom, it could be made available in 24 hours on demand.” Although Arun Kejriwal, a director at Mumbai-based KRIS Capital feels that when purity and quality issues surfaced, demand shifted to branded players. Factory made jewellery is cheaper and better finished than completely handmade, he opines. “Therefore, there is a marked shift in demand and purchasing from larger branded players,” believes Kejriwal. But Harshad Ajmera, President, Indian Association of Hallmarking said, “Some regional players are now offering hallmark jewellery to customers. The jewellers in the nook and corner of the city who did not believe in offering innovative schemes that encouraged end users to invest their savings in gold through regular small purchases, have come forward with such offers.” “Well, I believe people like Kalyan Jewellers, TBZ, Titan and some more are all hiring designers, as this is becoming the new trend and demand. Secondly,all have introduced the concept of ‘mix and match’ where the same piece of jewellery can be worn in different combinations. For example, a necklace with the pendant, remove the pendant and it becomes a chain and so on,” said Kejriwal. The national players create demand. They differentiate jewellery by the events namely corporate jewellery, ceremonial jewelleryand various other categories for numerous occasions, said Sengar. Talking about the national players, Sengar said they hire market analysts who analyse the market demand, taste and preference.They design and manufacture jewellery according to this analysis. But, their work is not limited to designs as they also have a core marketing and sales team who convert their goods into cash. If we talk about their showrooms, presentation, it’s all very modern and up market. Their jewellery presentation is far better than the local vendor shop.” “Today people are becoming more brand conscious than before. We have to accept that India is following European culture and today’s generation is very much updated with the latest trend. People prefer light and designer jewellery instead of traditional,bulky and old pattern ones. And big brands understand this shift in trend very well. They are ruling the market because they have a team of experts. They work as a company, they themselves create demand for jewellery by launching latest fashion jewellery following the market trend,” said Namit Dave, a gold analyst. A market analyst explained that the big brands like TBZ, Tanishq and Reliance have big budgets for national advertisements while the regional players and local ones select the regional media to reach out to their clients. But Dwaipayan Sen, regional business manager- east of Tanishq, feels that small jewellerswill survive. “The local players are big players in their own way. Regional products are relevant to the respective market. They have survived all these years and will continue do so in future,” he said.

Talking about the innovative steps which Tanishq has taken, Sen said the brand always try to reach closer to the customers. “We need to be more on the ground. We try to innovate through our products.” Tanishq has designers in Kolkata, Mumbai,Bengaluru among other locations to cater to the local taste. Most of the national brands have also launched big format store, unlike the local players. “And, of course nowadays only one mantra is working jo dikhta hai wahi bikta hai (what is prominent, sells the most),” concluded Sengar.

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