One of India’s fastest growing jewellery brands, Kalyan Jewellers has set its FY25 goal to widely expand its presence in the non-Southern regions of the country. The Thrissur headquartered company reported a nearly 34% revenue growth from operations in Q3 FY24 at Rs 5,223.07 crore as compared to Rs 3,884.09 crore, a year ago.
In an interview with Shilpa Dhamija, RAMESH KALYANARAMAN, Executive Director at Kalyan Jewellers delineates the road ahead for national expansion.
How does Kalyan Jewellers plan to grow in India and in overseas markets in FY 24-25?
At Kalyan Jewellers, we have been aggressively expanding our presence across key non-South markets throughout FY23, targeting a revenue contribution of 50% from the region. As part of our FY25 expansion, we will be launching 80 showrooms across India, aiming to consistently focus on increasing our retail footprint across the non-South markets in India.
This year has been a fantastic financial year so far, with the company’s financial performance showcasing a consistent uptick across all quarters. The consolidated revenue growth for the first nine months of the current financial year is around 31% and revenue growth in India is ~36% driven by robust network expansion along with healthy same-store-sales growth.
Post-pandemic, which cities have generated the maximum sales for Kalyan Jewellers, and how does the brand plan to grow in these particular markets?
During the pandemic, the trend had shifted towards tier 2 cities, but now that the market is stabilised, and we are seeing consistent responses across the country, with tier-2 and tier 3 markets showing more market expansion possibilities.
How do you see design preferences and buying habits evolve with new customers who are investing in gold jewellery?
Concerning jewellery preferences, we have been witnessing revamped interest among younger, millennial consumers towards the yellow metal, leading to an acceleration in demand momentum for traditional temple jewellery as well as polki or uncut jewellery pieces. At the same time, there is sustained demand for dual-tone jewellery designs as well as diamond jewellery, which offer versatility for both casual occasions as well as festive celebrations.
We are currently witnessing an ongoing paradigm shift in consumer behaviour, marked by a growing preference for organised jewellery retailers. This rapid formalisation of India’s jewellery sector has enabled us to enhance our market share at a pan-India level, consequently boosting our market share significantly.
At Kalyan Jewellers, while we are seeing continued momentum on big-ticket purchases at our showrooms, there has been a significant uptick in smaller, gifting segment purchases. This reflects the renewed interest among millennial consumers in jewellery.
Furthermore, there has been a noticeable shift towards rose gold and platinum or rhodium-finished gold jewellery etc., which indicates growing design-first sentiments among young shoppers. We are expecting this strong demand to continue throughout the festive season.
Do you see weddings and related jewellery sales continuing their dominance in driving sales for Indian jewellery brands in the next 2-3 years? Which are the other categories likely to grow and why?
Over the years, we have witnessed a sustained and notable demand for heavyweight, studded, and traditional bridal jewellery pieces. These styles continue to be popular choices across various consumer groups.
Additionally, we have been observing renewed interest from millennial and Gen-Z consumers towards jewellery buying. This demographic shift highlights a changing dynamic in consumer preferences, and we are actively adapting to meet their evolving needs. To meet these changing preferences, we strategically align our offerings through deliberate retail expansion. This approach aims to keep our jewellery in sync with current trends and authentically reflective of cultural significance during the wedding and festive season.
Do you plan to cater to consumers through any kind of online marketplace initiatives? Do you think online sales of jewellery will become an important source of revenue for Indian jewellery brands in the future?
Over the years, we have strategically positioned Kalyan Jewellers as a national-local jeweller, providing consumers with a service-backed shopping experience in a world-class ambience, while also catering to authentic hyperlocal jewellery designs.
One of the biggest trends that have emerged out of the pandemic is an enormous increase in the screen time spent by Indians across digital platforms. So, brands have aligned their marketing budgets towards digital, social media & OTT, especially for including new content.
Keeping up with the fast-changing trends, we are also now focussing on short-format content to amplify its reach and visibility across digital platforms, especially for our vernacular campaigns. Through this, we aim to not only appeal to a younger, tech-savvy audience digitally but also retain consistent outreach with our existing customers in a targeted manner taking the hyperlocal route.
Furthermore, we believe patrons expect a much more holistic ecosystem when it comes to making their jewellery purchases. It will become increasingly critical for brands across the horizon to invest in adapting a much more flexible phygital model that provides added convenience and accessibility to next-gen consumers.