Overview
For decades, jewellery or ornaments represent a way to expressing self i.e. personal style, social status, religion and culture, sentiments, and wealth. In other words, jewellery is considered a way of expressiveness with a lot of regional interpretations and customs. Moreover, especially in a country like India where there is the paramount importance of gold; jewellery (in gold or diamonds) is considered a great source for investment to secure the future. The importance of jewellery reflects in the culture and traditions of India. The verity and craftsmanship of Indian jewellery reveal the culture, heritage, and diversity of India and its people.
To meet the demand of jewellery in the country, different brands are operating and one such prestigious and well-known jewellery brand is “Kalyan Jewellers”. Being India’s one of the largest retailers in jewellery, this brand designs jewellery by deeply understanding local preferences and tastes. Kalyan Jewellers have a vast range and designs of traditional and contemporary jewellery in diamonds, gold, precious stones, and other precious metals.
The headquarter of the brand is in Thrissur in Kerela. By providing a huge range of jewellery, it caters to the different needs of various customers from different states. Kalyan Jewellers is present in 21 states and UTs (union territories) across the country. They have 137 showrooms across India and the Middle East in 2020. In the Middle East, the brand has around 30 showrooms (as of Jun’20) including Qatar, Oman, UAE, and Kuwait.
Kalyan Jewellers has a lot of celebrities on its brand payroll as brand ambassadors such as Amitabh Bachchan, Nagarjuna, Prabhu, Katrina Kaif, and many more.
A Brief Background of Kalyan Jewellers
Kalyan Jewellers is known for its legacy as India’s one of the oldest business families doing business over a century i.e. in early 1908’s. The starting of the brand was in the form of the launching of a showroom in Kerala’s Thrissur in 1993.
The founder of the Kalyan Jewellers, TS Kalyanaraman comes from a textile background and used to support his family in their old textile business in Thrissur. While helping in the textile business, he soon realized about the jewellery segment and its great potential in the market. As he was running a textile business from the jewellery market for a couple of years, he could develop a good network with the industry’s other entrepreneurs. This helped him to move from textiles and enter into jewellery business with Kalyan Jewellers. The initial investment was Rs. 75 lacs, out of which Rs. 25 lacs were the personal savings of Kalyanaraman and Rs. 50 lacs was in the form of a bank loan.
So, in the area of 4000 sqft, a large format store of Kalyan Jewellers was developed.
– The growth Journey of Kalyan Jewellers
Business Model of Kalyan Jewellers
Key Activities
Designing and Creating customized Products
Kalyan Jewellers is indulged in jewellery business in which they have a team of highly skilled craftsmen who create jewellery products by following high-quality control measures. The designs of the products of the brand are also carefully selected and customized as per the demands of customers in different states.
Sales and Marketing Activities
Kalyan Jewellers sales and marketing activities include the following:
The brand has retail stores all over India and at the international level to boost sales of its jewellery. Also, customers can shop online as well to buy jewellery from Kalyan Jewellers.
The marketing mix of the marketing strategy of Kalyan Jewellers consists of its product strategy, pricing, place, and promotion strategies. The brand gives utmost importance to promote their products in a correct way. For this, they have adopted a region-centric approach of advertising and promoting through different ambassadors for different states of India. The most renowned and best celebrities are chosen for all places to promote their brand. Moreover, as a part of their marketing strategy, Kalyan Jewellers advertise their products through print media or television medium.
Customer Segment
Customers of Kalyan Jewellers include women who are mainly from upper-middle-class and high-class society. They have products for both household and working or businesswomen. The brand has a special range for the millennial customer segment as well i.e. below 35 years of age.
Apart from the above, the customer segment of Kalyan Jewellers consists of wedding shoppers, and for this segment, the brand has specially designed ornaments for wedding purposes.
Value Preposition
- The products of Kalyan Jewellers are well-known for world-class quality, unique style, and performance.
- They have a vast range of products in their product portfolio that includes over 2 lacs designs in diamond and gold jewellery.
- The USP of the brand lies in creating jewellery products to fulfill the unique customer preferences according to the sensibilities of the local and cultural market. The jewellery collection of Kalyan includes a collection to meet daily wear and special occasion jewellery requirement.
- The designs and materials of jewellery of Kalyan Jewellers are from different parts of India. For example, in Kerela, they have Temple jewellery; for Kolkata, the designs are darker and include some Kali designs as Bangalis like such designs.
- Kalyan Jewellers value proposition also includes its customer-centric business model that includes the following distinct features:
-
- First to start a customer loyalty program
- Customer service centers
- First to start gold jewellery’s BIS certification
- Affordable diamonds that are duly certified and also, offer buy-back and cash-back on these.
Transparency
Kalyan Jewellers offers its products with high transparency that includes detailed price tags. Making and wastage charges are also mentioned on these price tags. Most of the diamond jewellery of the brand includes a hallmark that symbolizes purity. So, this guarantees the worth of the money of customers.
Price
The brand offers maximum value to its customers at a fair price. Kalyan Jewellers provide 100% gold with zero amalgamation by focusing on less margin and more customers.
Place
Kalyan Jewellers have a range of diversified collections at their huge stores for fulfilling the demand of different customers in different states having different preferences. A more region-centric approach is followed by the brand. The jewellery products are supplied to a place based on the crowd and taste of that particular place. More supply and more verity are there in case of more demand of a product in a specific area.
Key Resources
Retail Stores
137 retail stores of Kalyan Jewellers in India and the Middle East are its key resources as these are multi-story large-format jewellery stores.
Staff
The products of Kalyan Jewellers are created by highly skilled craftsmen.
Customer Relationships
Customer-centric Model
Kalyan Jewellers works on the customer-centric model in which their main focus is on quality products and maintaining trust, transparency, integrity, and innovation.
Customer Service Center
“My Kalyan”, which is a customer service center of Kalyan Jewellers, is specifically meant for accessibility of the brand to customers in rural areas. These are the mini-stores that offer different customer services to customers such as educating the customers having less knowledge related to the gold industry. This education and guidance are related to wedding shopping, gift voucher sales, etc. The company has more than 761 such customer center outlets across India.
Customer-friendly Initiatives
Kalyan Jewellers is also engaged in customer-friendly initiatives. For example, a special initiative by the brand for its customers is a 4-Level assurance initiative. This is a type of customer assurance program that offers protection to customers while purchasing jewellery. It ensures that all billing must include specific information of the product related to net and gross weight, the weight of the stone, etc. This helps customers to get the awareness of the real worth of the ornaments while making purchases.
Key Partners
Candere.com
Online e-commerce company Candere.com is the online partner of Kalyan Jewellers for selling its jewellery online to customers.
Regional Celebrities
Regional celebrities are also partners of Kalyan Jewellers such as Amitabh Bachchan, Jaya Bachchan, Katrina Kaif, Aishwarya Rai, Pooja Sawant (Marathi actor), Kinjal Rajpriya (Gujrati actor), and many more. Through these regional celebrities, the brand is able to run multiple local language-based campaigns in different multimedia formats.
Channels
Print Media
Kalyan Jewellers key channels of advertising and marketing include print media i.e. newspapers and magazines.
Social Media
Social media like Instagram, Facebook, Twitter, YouTube, etc. are also key channels of Kalyan Jewellers for its sales and promotional activities.
Retail showrooms
The brand has more than 137 retail showrooms at the national and international level to handle sales and customer care activities.
Television
Kalyan Jewellers run various campaigns through television.
Hoardings or Outdoor Advertisements
The brand generates brand awareness mostly through outdoor advertisements or in the form of hoardings.
Cost Structure
The cost structure of Kalyan Jewellers mostly includes marketing expenses, salaries of key personnel, and infrastructure costs. In the year 2020, Rs. 282.19 crores were spent on marketing activities.
Revenue Stream
The revenue of Kalyan Jewellers was Rs. 10,100 crore in the year 2019-20. Out of this, approx. 78% revenue was recorded from India and the rest 22% from the Middle East. (Source)
The revenue model of the brand is as follows:
Kalyan Jewellers has different products in its product portfolio that include a variety of jewellery products of different prices, and materials. The revenue of the brand comes from three main categories i.e. gold jewellery, studded jewellery, and others.
The revenue of Kalyan Jewellers for the year 2019-20 is shown in the below graph:
The total profit after tax of Kalyan Jewellers was stood at INR 15.6 billion in the year 2020. (Source).
Also, operations in India contributed 78.19% revenue out of the total revenue of the year 2020, and the rest 21.81% was recorded from the Middle East. In India, the share of operations from South India i.e. Tamil Nadu, Kerela, Telangana, Andhra Pradesh, and Karnataka was 42.31% in total revenue. Sales in Tier 2 and Tier 3 cities in India, contributed 51.29% of the revenue generated from operations. (Source)