Reliance Branded Jewellery Retail Outlets: Will it Succeed?
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Code :BSM0061B
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Region : India
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Indian Retail Jewellery Market Scenario Gems and jewellery play a significant role in Indian customs and traditions, making this sector integral to the economy and one of the fastest growing industries in the country. The gold jewellery market has grown steadily at around 20% in the last four years, despite a 40% increase in gold prices, according to Mr Princeson Jose, director, Prince Jewellery. A study conducted by consulting firm McKinsey, says that, the branded jewellery market in India would grow by 40% per annum to INR 10,000 crore (INR 100 billion) by 2010. According to Vaishali Banerjee, manager, Platinum Guild India, “Consumer expectations are changing. These are exciting times"... Reliance's branded Jewellery: Will it Work? Due to increase in the growth of the branded jewellery market, Reliance Retail forayed into the branded jewellery with their brand 'Reliance Jewel', and opened its first store in Bangalore in November 2007. Mukesh Ambani plans to aggressively promote jewellery retailing in a big way. The company has proposed to set up 300 stores by 2010, out of which 100 stores would be on the franchisee model... Challenges and Future Ahead According to industry experts the major challenge in SHGs model was book-keeping. The book-keeping included maintenance of primary book, ledgers, member's passbooks, individual member's ledger, receipt book and vouchers. Calculating trial balance was also an important part of book-keeping. This was being mainly performed by rural people who had low levels of literacy. This gave rise to incompleteness, inefficiency, and transparency issues. Besides these stores, the company plans to have ‘shop-in-shops’ setup in various malls. The company plans to invest INR 6,000 crore in the jewellery business and expects returns of INR 10,000 crore by 2010. Ashok Kaul, business head and vice presidentjewellery, Reliance Industries Ltd. said, "It is a huge market and we are targeting about 10 per cent of that going forward. By 2010, we plan to overtake Tata's Tanishq, the largest organised player in this market now"... |
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