Reliance Retail Ltd has forayed into the jewellery retail space with the launch of its first jewellery specialty store, Reliance Jewels, in Bangalore. Bijou Kurien, President & CEO-Lifestyle, Reliance Retail, revealed that 300 such Reliance Jewels stores would be rolled out across the country in the next three years.
The Bangalore Reliance Jewels store is spread over three floors, offering over 10,000 designs of exquisitely crafted jewellery from across the country to make it a one-stop shopping destination for gold and diamond jewellery.
“After food and apparel, jewellery is the third largest category in India. Secondly, the national and organised chains in the jewellery business and their contribution to this category are considerably low, but it is growing rapidly. So, we felt that there is a huge opportunity in the national and organised retail jeweller business,” Kurien said.
Initially, Reliance Jewels would sell jewels designed in-house and manufactured by third parties. However, there are plans to add on other products that would be complimentary to jewellery. Reliance also plans to create its own brands, which, according to Kurien, would be created as and when the collections and numbers of the stores grew. “The business strategy of Reliance Jewels would be to offer a wide range of designs, very competitive pricing and 100 per cent purity,” Kurien added.
Reliance is also planning to launch an advertising campaign shortly. “If you want to build a strong brand – I am not talking just about product brand, but also store brand – you have to make sure that your store brand is first known. Secondly, your store brand offers something different from the other store brands offer, and thirdly, it remains true to the promise that it has made. These are the three elements that we look forward to and any advertising campaign will basically focus on that,” he added.
Reliance Jewels would target women in the 25-55 age group, SEC A and B. The size of the each Reliance Jewels outlet would range from 2,000 sq feet to 15,000 sq feet, depending on the city and what kind of store they wanted to set up.
When asked whether Reliance would launch stores through the franchisee model, Kurien said that there were a large number of traditional jewellers in the market and many of them had got good stores and good business models. Therefore, Reliance did not want to grow by itself. “We would also like to create growth through an inclusive model and we will certainly be looking at adding franchisees to the network. However, that might not start at the beginning because what is important in the beginning is to run a few company models and company run store ourselves and understand the business and then replicate the same growth model through franchisee,” he explained.
Replying to a question on whether Reliance was in talks with any overseas retail players for any kind of partnership, Kurien said, “There is nothing I can share with you at this point of time.”