The Hindu Business Line : Gold retailers looking beyond T. Nagar

To test new markets jewellers are setting up flagship stores in high footfall locations like malls and also in upmarket areas like Cathedral Road nearer to their clientele.

MOVING OUT?: A woman silhoutted against a jewellery advertisement in T.Nagar. — Bijoy Ghosh

Chennai , Sept. 13

If you want to go jewellery shopping T. Nagar is probably the first place you would visit. This may not be so in the future. Chances are you may walk into an outlet of your T. Nagar jeweller right in your neighbourhood.

Gold retailers are looking beyond T. Nagar for business. Over the last two years jewellers in T. Nagar have set up outlets in areas such as Cathedral Road, Anna Nagar and Nungambakkam.

"The problem with T. Nagar is its congestion and lack of parking space," says Mr Princeson Jose, Managing Director, Prince Jewellery. Prince Jewellery is on Nageswara Road, near Panagal Park. A stone's throw away are Vummidi Bangaru Chetty and Sons, Lalitha Jewellery and TB Jewellery. Walking a short distance on Usman Road, one comes across other jewellers such as LKS Gold House, Khazana Jewellery, Original Kerala Jewellers and Dhanalakshmi Jewellers.

Going China Bazaar way

"T. Nagar today is what China Bazaar was about 50 years ago," says Mr Jithendra Vummidi of Vummidi Bangaru Jewellers. China Bazaar in George Town nurtured the gold trade in Chennai. Retailers and wholesale jewellers were housed in cramped shops along the road, he says.

The move to T. Nagar (from George Town) happened due to the presence of silk garment stores and utensil shops that were frequented for wedding purchases. The Mambalam Railway Station close by ensured connectivity for people from outside Chennai to shop in T. Nagar.

Today jewellers are unable to find space in T. Nagar for setting up large format shops. To test new markets jewellers are setting up flagship stores in high footfall locations like malls and also in upmarket areas like Cathedral Road nearer to their clientele.

Flagship stores feature select jewellery lines and help in brand building. Prince has a flagship outlet in Spencer Plaza on Anna Salai and a year ago, set up a full-fledged outlet on Cathedral Road. "With malls sprouting in Chennai, it makes sense to have flagship stores," says Mr Jose.

Moving away

To take the focus away from T. Nagar, jewellers are counting on the change in jewellery buying habits.

"Most of our clients are from the city. They are stylish and affluent and prefer shopping leisurely minus all the crowds and jostling in T. Nagar," says Mr Vummidi. He adds that people today shop through the year and not during special occasions as seen some years ago. "They experiment with styles and spend on jewellery without guilt," he says. To sustain their interest, he periodically introduces jewellery lines like Kundan Jewellery (from Rajasthan), platinum and silver jewellery at their Anna Salai outlet.

Banking on design

"Design is our strength and we reinvent jewellery, keeping stock of every possible design. People today want unique pieces," says Mr Jose. Besides diamond jewellery and the traditional designs they started with, Prince today offers collections that are uniquely crafted. At times, only a single piece is available, at a premium. Prince also unveils seasonal collections like antique jewellery or an Onam line from time to time.

Though such offerings may not bring in sales volumes, they help create value among clients, say jewellers. "This value makes people visit showrooms based away from T. Nagar. Volumes will eventually rise," says Mr Vummidi.

Multiple outlets

"Growth will only come through multiple outlets and it is logical for jewellers to move into residential areas," says Mr K. Shivram, Vice-President, World Gold Council - India. But he doesn't see Chennai devoid of a confluence of jewellery stores. "It is not difficult to imagine multiple areas like T. Nagar in the same city," he says.

Every city has its own jewellery area like the "Jewel Junction" at Kochi, Zaveri Bazaar in Mumbai and the Somajiguda- Panjagutta area in Hyderabad. As for Chennai, T. Nagar will remain synonymous with jewellery for some time.

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