All that glitters is gold

BY IMPACT Staff

From its first store in small town Thrissur in Kerala, Kalyan Jewellers has made rapid strides in just two decades and is now looking at establishing itself not just nationally but also internationally. TS  Kalyanaraman, Chairman and Managing Director, Kalyan Jewellers, talks about roping in Amitabh Bachchan and Aishwarya Rai Bachchan as brand ambassadors, and the company’s USP of less profit and more turnover

Q] Kalyan Jewellers has used film stars as brand ambassadors across all four southern states and now Amitabh Bachchan and Aishwarya Rai Bachchan as you spread your wings nationally. How has this association with superstars helped Kalyan Jewellers?

Celebrities should match the profile of the brand. We were one of the first to choose a male brand ambassador and it was done because we have many educational campaigns which will help the jewellery business as a whole. All our ambassadors in the South are superstars and sons of legends and now we have Amitabh Bachchan, who himself is a living legend. We have many sub-brands and have product specific campaigns for which we wanted the most beautiful women in the world. So we have Aishwarya Rai Bachchan, an icon for the same. Both of them and all our regional brand ambassadors have contributed for our communication.

Q] Of late we have seen a blitzkrieg of advertising from Kalyan Jewellers. What is your total advertising/marketing budget and what is your media mix?

The annual budget for the next financial year is approximately Rs 100 crore and the ratio between television and print will be in the ratio 60:40.

Q] You have used the digital platform, especially your Facebook page, to promote your store openings, even live streaming the event. What are your future plans in this space? Are you looking at an app?

Yes, we are looking for a new option and will come out with innovative plans.

Q] What is the strategy adopted before entering a new market?

Creating a successful brand identity is a challenge in any market. Taking our brand from a market where it’s a household name to one where it’s virtually unrecognizable brings the challenge to another level. There are many other geographical, demographic, and cultural differences that need to be taken into account to properly align with a new market. It can certainly be a challenge, yet it is exactly the mission that we at Kalyan take on as we attempt to expand globally. In order to gain a cut of this market’s disposable income, it’s imperative to understand who the consumer is and how you can appeal to them in a way that will sway their loyalty.

Q] As you look to go pan India, will you be adapting your jewellery designs to cater to the different preferences in the different states and regions of the country?

Yes, we will be adapting our jewellery to the likes of our customers. For example, gold maang tikas are popular in North India while gold puchhootal fashioned in gold and set with gems, forms one of the most admired hair ornaments in Tamil Nadu. The major difference between the jewellery of North and South India is in the detail, delicacy and motifs. However, what is common is that they all like gold.

Q] Traditionally, gold is looked at as a savings in Indian families and is a must buy for every family. However, the high price of gold seems to have a slowdown effect in demand. Does this affect you?

India is by far the largest consumer of gold in the world. It accounts for about one-third of all gold purchased — that is, consumer demand, not from central banks or government agencies. India’s gold demand surged 41% in the fourth quarter of calendar year 2012. The World Gold Council (WGC) data showed the country’s demand at 262 tonnes in the quarter, compared with 185.5 tonnes in the  corresponding period the previous year. Retail consumer demand comprises around 75 % of India’s overall gold demand. It has remained intact. Retail consumers buy gold jewellery for gifting to kin, especially on weddings and other such celebrations. Gifting gold jewellery to children is extremely popular. And, young and enthusiastic investors buy gold coins as safety for the future. People will be only happy to buy when the rate increases. For any other product, the value depreciates immediately from day one but gold appreciates; hence people will keep buying.

Q] How do you compete in a market crowded by high-end branded jewellery such as Tanishq, Gilli, Nakshatra? What is your USP?

Kalyan has always stood on the side of its clients, often inviting the ire of the trade. We were the first company to introduce BIS hallmarking,we also introduced the carat meter to check the purity of gold. Kalyan has been at the forefront of pioneering efforts to educate the public about cheating and malpractices in gold quality and pricing through our campaign ‘Fight against impure gold’. Kalyan Jewellers is not just branded jewellery, it is a traditional branded jewellery and that makes a big difference. All classes of people can buy from Kalyan. Less profit and more turnover is our USP.

Q] How do you enhance the in-store experience for your customers?

We know that a customer’s in-store experience greatly contributes to his or her overall impression of a brand. At Kalyan, we take great efforts to enhance the shop experience. On the sales floor, we make sure it’s easy for customers to find the items they’re interested in and items similar to them; so we have sections for gold and diamonds separate. We have trained staff as we realize that employees are our face to the world, they are imparted with knowledge on all our products; thus they can serve the customers well. They neither neglect nor overwhelm the customers. 

We take care of customer’s choice and requirement, what exactly they want to buy. We offer the right jewellery to them. We design the jewellery with fresh outlook for them; offer something special to our customers. At some of our stores we have a separate kids area where the toddlers can be left to play while parents choose the jewellery.

Q] What is your brand positioning and pricing aimed at? Do you target all segments of customers?

Kalyan has imbibed the values of trust, quality and transparent pricing. Kalyan has been known as a brand for years and has a band of loyal customers; we have strived to position the brand in its rightful place in the hearts and minds of the people. Kalyan Jewellers is known for its innovation and finesse in jewellery design and lowest making charges. We have products to target all segments.

Feedback: simran.sabharwal@exchange4media.com

Tags : CMO Interview