The Hindu Business Line : Modicare forays into jewellery market

BUOYED by the off-take of one lakh pieces of jewellery offered as promotions with the sale of its consumer products over the last four months, Modicare Ltd has entered the jewellery segment.

The direct selling company is marketing a range of 18-karat studded jewellery called `Bella Passione' designed by the Italian designer, Mr Antonio Rosso.

According to Mr Chris Bolsover, CEO, Modicare, the market for such jewellery worldwide is about $98 billion. The company has already conducted two fashion shows, with a third scheduled in Mumbai. The orders booked at the fashion shows had been overwhelming, he said. The company is looking at promoting and selling the jewellery range mostly through its female direct sellers and through parties and charitable events. At present, women account for 20 per cent of Modicare's total direct selling forces. In Mumbai, 50 per cent of the company's direct sellers are women.

Mr Bolsover predicted that the segment would see growth of 10-15 per cent once there is a larger range and more products are available for men. Right now, the range is focussed only on women, with seven collections or 29 products. The company has budgeted Rs 15-20 crore for promotions this year.

Mr Rosso has created two collections for the Indian market — a classic line as well as an "evergreen" line. The jewellery is priced between Rs 990 and Rs 3,000 and is manufactured in Hong Kong and China.

The company also set up a centre in Nepal this year, beginning its foray into the global market. Mr Bolsover said the company is hoping to be present in the SAARC region in three-five years. Modicare is targeting NRIs to expand its business into other countries. It also hopes to add a new range of products along with the Sci-vedic range of health products.

The company registered a turnover of Rs 250 crore for the year ended March 31, 2005. Last year, the company shed some unprofitable products and centres. Mr Bolsover said that as a result, productivity had increased by 50 per cent and bonuses to direct sellers had been raised by six per cent to accelerate growth.

Modicare offers products in the health and nutrition, colour cosmetics, skin care and personal care segments.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Fortis healthcare plans to go national

Richard Gere to feature in Visa's new commercial

Modicare forays into jewellery market

Tai Projects to expand C3 supermarket chain

Print medium reach rises to 200 m

Philips has biggest base among consumer durable brands: Survey

New Blackberry model launched

Hyundai launches cheaper Santro Xing variants

Gillette India launches new shaving system

New allergy pill from Panacea