The Hindu Business Line : Jewellers see good biz from NRIs on holiday

The jewellery brand of Titan is confident that this season will contribute significantly to yearly sales. The third quarter of the year usually contributes 30-35 per cent of Tanishq's sales. This year too, Tanishq expects the same growth, enabling it to cross sales of Rs 1,000 crore this fiscal year (from Rs 790 crore). "We expect the ticket size (value of items sold) to go up 25 per cent during this period," says Mr V. Govind Raj, Vice-President, Retail and Marketing, Tanishq.

"The holiday season coincides with the winter wedding season that begins in end-October and goes up to mid-March. The NRIs also take a break from work and visit the country to get together with family. Good weather also adds to the holiday mood. A lot of gifting also happens during this time. This period is, thus, the time for shopping, especially jewellery," says Mr Govind Raj.

The December to mid-February period contributes 30-40 per cent of the total sales of Orra, makers of diamond jewellery. According to Mr Vijay Jain, CEO, Orra, the company expects a 50 per cent jump in sales this season over the same period last year.

For the NRIs, it's the comparative pricing that's alluring, say jewellers. "Price-wise, India is a cheaper market for buying jewellery. Retail margins are larger overseas — could be almost double that in India," says Mr Govind Raj. Mr K. Ravikumar, General Manger, Kirtilals, Bangalore, says prices in India are 20 per cent lower compared to those abroad. "The NRIs have the purchasing power to buy heavily. They account for 20-30 per cent of our client base," says Mr Ravikumar. Kirtilals expects a 10-15 per cent spurt in sales this season (December to January) compared to the other months.

Competitive quality

As far as quality is concerned, Indian jewellery is as competitive as those sold abroad, say jewellers. Besides, the NRIs get to choose from a range of designs, both contemporary and traditional, says Mr Suresh Subrahmanyam, Head-Marketing, Ganjam.

To make the most of the general festive mood, jewellers are offering new collections and freebies. This is the period when the best of jewellery collections are on display, says Mr Govind Raj.

Tanishq has launched about seven new collections for the season including `Colours of Royalty' and the `Tanishq Exclusives' range of diamond intensive jewellery. There is also an advertising campaign now on across all media focussing on fashion earrings for the season.

Orra, too, has launched its wedding and platinum collections. Kirtilals' collections for the season include antique jewellery, kundan sets, colour stones, pendants and jhumkis. The jeweller has also announced a lucky draw, against a minimum purchase of jewellery worth Rs 25,000, across its stores.

More Stories on : Outlook | NRIs | Retailing | Gems & Jewellery

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