Mehrasons to take the franchise route to retail premium diamond jewellery in India
23 Aug 2008
Mumbai: Chandigarh-based Mehrasons Jewellers has said that it would retail its premium jewellery, Mehrasons Just Diamonds, via the franchise route. The brand was launched by Mehrasons Jewellers managing director Ajay Mehra on 20 August, making it the twenty-second player to announce franchise plans in the gems and jewellery retail segment.
Organised retail in India accounts for around three per cent of retail in the country, and is expected to increase to around 10 per cent by 2015. Mehrasons says that the days to come will see intense competition between organised retail and traditional retail in India, forcing the traditional retailers to adapt for their survival and growth. The company says that the Indian jewellery market, estimated at around Rs70,000 crore, is no exception, and is also undergoing changes.
Mehra said the Just Diamonds brand has been positioned as a premium brand that will cater to customers who prefer contemporary designs in diamond jewellery. Mehrasons Jewellers has taken the franchise route for its expansion plans across India, and is looking for franchising partners to create a national footprint.
"The targeted states for the first phase of expansion include Punjab, Uttar Pradesh, Rajasthan, Karnataka and Tamil Nadu,'' said Mehra. "The new retail format will be the company's first distinctive jewellery format which will specialize in just diamonds and diamond jewellery. It will cater to the latent demand for versatile, au courant pieces of Indian jewellery which appeal to all age brackets."
Talking about choosing the franchise route to create their national presence, Mehra said that introducing a new retail format for diamond jewellery was a natural progression for Mehrasons Jewellers. He said that Mehrasons plans to demarcate and segregated its diamond division in order to draw focus to the product offerings, since the company's research indicated that there is a demand specific to contemporary diamond jewellery.
''In order to bridge this need gap and provide customers easy access to what they want we have introduced Just Diamond, which will specialize in diamond jewellery," said Mehra.
According to the Franchising Association of India, the official franchise directory, there are 21 franchise brands in the jewellery segment. Prominent brands who have taken the franchise route include Sangini Diamonds, Tara and Just in Vogue, Popleys, Chandrani Pearls, Titan Industries, Oyzterbay, Gitanjali Gems' and Asmi franchise
