BENGALURU: Jewellery retail major Bhima Gold is looking to consolidate its existing footprint and scout for newer markets, while uniquely strategising for its diamonds business, in a bid to achieve greater profitability. At present, Bhima Gold operates 19 stores, across Bengaluru, Hubballi, Belagavi, Udupi, Hassan, Mangaluru, Shivamogga, Chennai, Hosur, Vijayawada and Rajamahendravaram.
“In the next fiscal, we plan to open three new stores in existing markets, catering to a broader audience,” Bhima Gold Pvt Ltd Managing Director Vishnusharan Bhatt said, adding that the company is also eyeing entry into Maharashtra.
Meanwhile, the primary focus remains on consolidating existing stores and leveraging their customer base. Focused efforts are under way to get more revenue out of these stores, which in some cases will require bigger spaces and unique marketing approaches.
“We have implemented a comprehensive marketing and advertising strategy, incorporating door-to-door canvassing, events, above-the-line and below-the-line activities,” Bhatt said.
Bhima stores are standalone, multi-storied setups spread across 5,000-7,000 sq ft. “We have also designed our online platform to mirror the diverse offerings available in our showrooms. We have also set up interactive kiosks wherein a customer, who is unable to find a specific product in the physical space, can access our entire database. The kiosk features a try-on experience using augmented reality. We have also put in place a sophisticated security apparatus,” Bhatt elaborated.
Diamond demand
Demand for diamonds is growing steadily in the country. While there is optimism in the luxury segment, in recent years, a lot of young professionals are emerging as potential customers, which calls for a new approach to tap this opportunity.
Accordingly, Bhima has diversified its diamond portfolio, even curating sets under the Rs 1-lakh price range -- which include a chain, studs, and a bracelet. “We understand that there’s a common misconception that diamonds are always expensive. Through these affordable sets, we aim to educate customers that diamonds can be as attainable as gold,” Bhatt said.
Currently, diamonds contribute 7-8% of Bhima’s overall business. With concerted efforts and such disruptions, the company foresees diamonds accounting for 10-12% of total business in the next fiscal.
According to Statista, in 2022, the Indian gems and jewellery market was valued at $85 billion, and projected to grow over 8% and reach $127 billion by 2027. Meanwhile, Bhima Gold has been growing at a CAGR of 20% over the past few years.