Kerala-based Kalyan Jewellers is planning a glittering expansion for its e-commerce brand, Candere, this fiscal, opening physical outlets and driving an omnichannel experience. The jewellery heavyweight — which has an 85 per cent stake in the online brand Candere, founded by Rupesh Jain — feels the time is ripe to grow the lighter, playful wear segment which has fewer players comparatively.
The plan is to increase the footprint by opening another 28 outlets in the current fiscal. Currently, Candere has two experience centres in Mumbai. Describing how Candere, with its modern, lighter designs and catering to younger Gen Z customers and office-goers is a perfect foil for the more traditional Kalyan brand, Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, said opening physical stores will drive better conversions for the brand. “You need physical outlets and an omnichannel strategy,” he said.
The opening of new outlets will include both high street as well as mall outlets and will be a mix of own stores as well as franchisee-owned operations.
Industry sources said the growing Gen Z and millennial shoppers are the driving force behind the jewellery market with their different buying pattern which is mainly design oriented, and often led by impulsive buying. The average ticket size of such sales is in the ₹15,000-30,000 range.
A World Gold Council report also says millennials — born between 1986 and 1996 — is driving the growth in India’s online gold jewellery market with an average ticket size of 5-10 g. The growth in internet penetration and rise in smart phones witnessed a rapid sales growth in the online market, projecting 7-10 per cent sales over the next five years. Lightweight, daily wear jewellery in the 18-carat gold segment are one of the most sought varieties in online sales.
The jewel-tech company, Candere, with its technology and data-driven strategy, was able to boost its sales for FY22 to ₹141.2 crore, while online traffic rose to ₹2.5 crore in 2022. The YTD (year to date) sales until October 2022 has crossed ₹100 crore in revenue.
Candere, which has 8,000 SKUs (stock keeping units), has contributed a little less than 1 per cent to the overall revenue of Kalyan Jewellers, he added. The plan is to take its contribution to topline to at least 5 per cent over the next few years. Kalyan Jewellers had recorded a consolidated revenue of ₹14,071 crore in FY23 against ₹10,818 crore in the previous year, a growth of over 30 per cent.