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ORRA Fine Jewellery expects to exit March 2021 with a 5 per cent dip in revenue over the previous fiscal’s ₹478 crore. It also plans to record 40 per cent growth in FY2022, driven by growing demand from millennials and serious buyers.
The company plans to ramp up its 44 company-owned and operated stores across 24 cities pan India to 60 stores in FY2022, Dipu Mehta, Managing Director, ORRA, told BusinessLine .
According to financial data accessed from business intelligence platform Tofler, ORRA’s revenue dipped from ₹491 crore in FY2019 to ₹478 crore in FY2020. Losses fell sharply from ₹3.45 crore in FY2019 to ₹1.39 crore in FY2020.
“After five months of store closure due to Covid-19, we started off with a bang in August when our mall stores started opening. We saw a lot of revenge-buying and pent-up demand, and that trend has continued through February and March. Although our stores had much fewer walk-ins due to the pandemic, those who visited were serious buyers. We were able to give them extra attention and that resulted in a nice recovery for us. Additionally, we invested heavily in digital, and as a result saw, a good recovery from the millennial segment. From August to March, we have seen 50 per cent growth y-o-y and, therefore, we are just 5 per cent short of our last fiscal’s revenue this year,” he said .
The company has launched its new millennial collection for women called ‘Desired Collection.’ The collection has 170 pieces — a mix of gold and diamond jewellery, and made in 14 carat gold. Actress Disha Patani is ORRA’s brand ambassador.
Digital constituted 20 per cent of the company’s total advertising and marketing spend in FY2021, while the bulk of the spend is on print and outdoor. The company plans to add 12-15 stores in FY2022, at an investment of ₹7-10 crore per store.
‘Diamond DNA’
“We plan to add new stores in the metros where we are already present in — Delhi, Mumbai, Bengaluru, Pune, Hyderabad, Ahmedabad and Lucknow. Being primarily a diamond player, metros are where we are concentrated in. Metros contribute to over 80 per cent of our overall business, and diamond jewellery contributes to 85 per cent of our sales. We keep gold jewellery as a customer retention tool rather than for customer acquisition, because our DNA is diamonds,” Mehta said.
The company’s average order value at ₹90,000 has seen a 7-8 per cent increase over the previous year, largely due to rising gold prices. Website sales for the company has seen a 100 per cent y-o-y growth. The company offers assisted sales on WhatsApp, too. “We are starting exhibitions in tier II and III cities because lot of our growth is based on what we will do for exhibitions. We have put together an exhibition team that will be visiting all the prospective tier II and III cities.”
ORRA launched its first store in Mumbai in 1996 under the name Intergold Gems. In 2004, the stores were re-branded as ORRA.
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