Gold Demand Surges Despite Price Fluctuations
Sandeep Kohli, Chief Executive Officer of Indriya, the Aditya Birla Group's branded jewellery retail venture, has observed a robust resurgence in gold demand across India. Despite recent challenges, including increased customs duties and fluctuating gold prices, Kohli noted a strong comeback in consumer interest over the past few weeks, largely attributed to the cultural significance of jewellery and upcoming wedding dates.
Indriya, launched in 2024 under Novel Jewels, aims to be among the top three jewellery retailers in India within five years. Kohli highlighted that while a 9% customs duty hike initially led consumers to pause, the underlying cultural importance of gold in India ensures sustained demand. He emphasized that Indian consumers generally view gold as an appreciating asset over the long term, mitigating the impact of short-term price volatility.
Innovative Schemes Address Price Concerns
To counter consumer hesitation during price fluctuations, Indriya has introduced a 'Double Rate Protection' scheme. This allows customers to book a product and secure the gold rate from either the booking day or the collection day, whichever is lower. This initiative aims to instill confidence and encourage purchases, even when market prices are uncertain.
Furthermore, Indriya's Gold Exchange Program has proven highly popular, accounting for 45-55% of total sales. This program enables customers to exchange old gold of any caratage from any jeweller for its full value, without deductions or processing charges, making new purchases more accessible.
Rapid Expansion and Gen Z Focus Drive Growth
Indriya has demonstrated remarkable growth, rapidly expanding to 81 stores across over 40 cities since its inception, making it one of the fastest-growing retail brands in India. Kohli stated that the immediate focus was on achieving scale, and now the company prioritizes strategic store locations and curated jewellery assortments to maintain its trajectory towards becoming a top-tier jeweller.
A key aspect of Indriya's strategy is its focus on Gen Z consumers. Unlike older brands, Indriya's design philosophy, in-store experience, and product assortment are specifically tailored for this demographic. Gen Z views jewellery not merely as an investment but as a means of self-expression and enhancing personal style, balancing design appeal with intrinsic value.
Enhancing Trust and Experience in Jewellery Retail
Kohli identified several gaps in the traditional jewellery market that Indriya aims to fill. Leveraging the trust associated with the Aditya Birla Group, Indriya emphasizes transparency and reliability. The brand boasts a large in-house design team, a departure from many retailers who rely on manufacturers' designs, ensuring fresh and relevant collections for its target audience.
The in-store experience is also a priority, with comfortable bridal lounges, changing rooms, and the integration of technology. Jewellery consultants use tablets to provide detailed product breakdowns, ensuring complete transparency in pricing and specifications. Indriya refers to its outlets as 'theatres,' aiming to provide a pleasant and engaging environment that celebrates craftsmanship and the love for jewellery. The company also highlights its 'Sparkle Effect' for diamonds, prioritizing stones with superior brilliance beyond the traditional 4Cs.