The Hindu Business Line : Jewellery malls to adorn Mumbai

Contrary to the notion that family-owned brands would shy away from such souks to retain brand equity, these speciality malls have leading jewellery brands vying for retail space.

Mumbai , March 19

THIS trend is silent and happening. Gold retailing is turning a new leaf. Far from the earthly neighbourhood clutter, Mumbai will soon offer specialised jewellery malls, rich with shopping experience, convenience and value — all under one roof.

Santa Cruz, a north-west suburb of Mumbai, has always been a cauldron of petty jewellery shops, but in the next 18 months, this place will make way for a plush new gold mall. The Neelkanth Group, a Mumbai-based realtor, in joint venture with Sunshine Enterprises, a consortium of financiers and realtors, is promoting this project, aptly christened Gold County.

Says Mr Mukesh Patel, Managing Director, Neelkanth Group, "Gold County will be a state-of-the-art mall with a built-up area of 1,40,000 sq. ft. It will house around 200 small and big showrooms along with car parking spread over two floors."

The mall is "strategically" placed close to the Santa Cruz station, which is close to both domestic and international airports, in order to entice tourists and NRIs flocking to Mumbai. Mr Patel added.

Aerens Gold Souk International, promoter of an exclusive jewellery mall, is another player that has set its eyes on Mumbai. According to a company release, its most likely destination will be the Bandra Kurla complex, with an approximate area of 1.8 lakh sq. ft. on an average investment of Rs 35-40 crore.

Mr G.S. Pillai, President, Aerens Gold Souk International, said: "Gold Souk, being a destination by itself, is for anybody who thinks of buying jewellery. It will be a fully air-conditioned, sophisticated `concept mall' which will bring together reputed jewellers from all over the country."

Mr Sanjeev Agarwal, Managing Director, World Gold Council (Indian Sub-Continent), said, "Much of this trend of gold malls in Mumbai has to do with consumer buying patterns, which is trailing behind the US market, where 50 per cent of the gold purchases are made through speciality malls."

Moreover, the consumer buying patterns here reveal a dichotomy between planned purchases done in smaller quantities, based on occasions such as festivals, and purchases made in larger quantities, especially during weddings. In the case of the former, people prefer buying at the local jewellers, but for the latter, they prefer indulging in a pleasant shopping experience, which most speciality malls promise and offer, added Mr Agarwal.

Contrary to the notion that family-owned brands would shy away from such souks in order to retain brand equity, these speciality malls have leading jewellery brands vying for retail space.

Says Mr Patel of the Neelkanth group, "Tribhovandas Bhimji Zaveri, one of India's largest and most reputed jewellery superstores, has confirmed purchase of a portion of the ground floor in Gold County."

The Gurgaon chapter of Gold Souk has also signed on leading jewellers from India and abroad such as Alukkas, based in Dubai, and Ratan Chand Jwala Prasad, one of the oldest jewellers in India. It will also feature the best of traditional and contemporary jewellery.

Mr Ambrish Chheda, Chief (Business Development), Pantaloon Retail India Ltd, says, "As a concept, jewellery malls have to prove themselves. Though they promise a lot in terms of shopping experience and consumer satisfaction, in most cases, the pricing and placement of these malls is the key to its emergence."

On pricing, Mr Pillai of WGC said, "Gold Souk in Mumbai will be priced competitively based on land cost and construction cost. Even now, slow-moving brands are leasing space at the market rate and have to compete with the established jewellers by spending heavily on advertising."

The concept of gold retailing has come a long way. Most speciality gold malls promise facilities and services such as food courts, children's areas, executive lounges, bank and ATM counters, business centres and conference rooms.

Call it the golden age of gold retailing, because malls like Gold Souk have facilities such as the designer gallery, which will provide young designers with an opportunity to retail their products.

More Stories on : Retailing | Gems & Jewellery

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