Reliance Retail enters jewelry biz
NDTV.com, India
Sunanda Jayaseelan
Wednesday, November 14, 2007 (Bangalore):
Mukesh Ambani-promoted Reliance Retail has entered into the jewelry business starting with a store in Bangalore entitled ‘Reliance Jewel’ and then going to Hyderabad before it establishes a pan India presence. The store will offer gold, diamond, platinum and silver jewelry.
“It is a huge market and we are targeting about 10 per cent of that going forward. By 2015, we plan to overtake Tata’s Tanishq, the largest organised player in this market now,†said Ashok Kaul, Biz Head and VP-Jewellery, Reliance Industries Ltd.
Reliance is betting big on the jewelry retail business as the company plans to open over 300 stores across metros and mini metros. In order to lure customers Reliance plans to offer its product range at very competitive prices.
There is a huge potential for growth as the market size of jewelry market is estimated to be around Rs 18,000 crore. According to the company, Reliance Jewels will contribute around 6 per cent of total revenue of Reliance Retail.
“We are focusing on class A and B cities as it is a huge market and we do not want to restrict ourselves to anyone particular group,†said Kaul.
The scale of these stores is typical of Reliance as the focus is on mass and volumes to drive growth. It is evident from the fact that the company is planning on taking these stores to tier 2 n 3 towns as well.
