Indian consumer’s strong cultural affinity towards gold has been the vital dynamic for the growth of the jewellery industry. Talking about organised and successful brands in jewelleryindustry, leading the pack is PCJeweller, an eminent player in the Indian retail market. The brand has more than 80 stores spread pan-India & is further seeking partners to strengthen its retail presence.
ICRA Ratings estimates the Gold jewellery demand in India to grow at a steady 11 percent during 2023. India’s jewellery retail sector is growing at the rate of 8.4 percent CAGR. Presently it is estimated at Rs6 lakhcrore but expected to reach Rs 9-10 lakhcrore in next five years. Within the jewellery retail industry, revenue of organised retailers are likely to grow at a higher pace by 14 percent due to their aggressive store expansion plans and a gradual shift from unorganised segment towards organised.The organised sector is growing at the rate of around 25 Percent CAGR.
PCJ was incorporated in the year 2005 as a private limited company. Later on in 2011 the company was subsequently converted into a public limited company. PCJ is one of the very few listed jewellery companies of India. It is listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). PCJ had only one showroom in 2005, but as on date the brand has over 80 showrooms spread over 16 states and in 56 cities. Today PCJ is one of the leading jewellery companies in India in the organised retail sector.
PCJ is known formanufacturing and retail of gold jewellery, diamond studded gold and silver jewellery, silver jewellery as well as other articles.
Vision for 2025
PCJ is one of thefastest growing companies in jewellery retail. The brand has been increasing the number of showrooms to cover more cities and towns. The customer friendly policies and products for all occasions in the affordable price rangemake PCJ a preferred jeweller. As shared by Balram Garg, Managing Director, PC Jeweller, “We have our stores in metros, state capitals, tier I and II cities to serve the needs of our customers. PCJ is recognised as one-stop jewellery shopping destination for all the generations.” The brand will be developing through different formats. Although, online jewellerysale is not very substantial at present but would be growing in the future. Garg adds, “Increase of online sale will benefit us as we are one of the early entrants. Our growth in franchise model, opening small format stores at malls, prominent locations especially for youth and men’s fashion accessories will all be added in the coming years. We shall also be opening wedding stores in near future.”
PCJ stands apart
The USP of PCJ can be defined by 3 A’s: accessibility, availability and affordability. The brand has more than 80 stores spread pan-India. Moreover it is accessible through its online retail portal as well.
PCJ offers variety of jewellery for everyone, be it middle, upper or the elite class. The brand has occasion based designs and jewellery collections. It includes wedding jewellery, daily wear, party wear, baby jewellery, youth body accessories along with variety of gifting options as well.Garg says, “Today we are living in times where customization is involved. We are catering to this need of customers and provide customized jewellery as per their requirement.”
Regarding affordability,Garg says, “PCJ provides jewellery at all price points. A customer gets more than sufficient options as per his budget. Our transparent dealing, customer friendly policies and class shopping experience makes us unique.”
Ups and Downs in Business
Up and downs are nature of any business and jewellery is also no exception. However, jewellery demand in India is ever growing. Majority of the sales come from weddings which is a stable business. Customerscan only pre-pone or post-pone their buying as per price fluctuations. Their shopping preferences may change but demand is universal. However during pandemic time, this business like others got affected to a great extent.
Leveraging on Online Retail
PCJewellers is one of the few companies with a retail website.The brand almost has a decadeof experience in e-commerce. On this Gargacknowledges, “We are leveraging the latest developments in technology for managing our online store and we see a great potential for it in near future. We focus heavily on digital marketing through various channels like Facebook, Instagram and Google Digital advertising.”
Franchising Potential in the Business
Jewellery retail is a sustainable business. It is transforming at a faster rate and business is shifting from unorganised players to organised brands. As shared by Garg, “Compulsory hallmark, increased preference towards diamond jewellery (where brand trust is essential), customer friendly market practices of established brands, increasing corporate governance & regulatory requirement and higher customer expectations are creating challenges with jewellers. Bandwidth with a single shop owner is limited and, therefore, many such jewellers are inclined to convert their business into franchise business.” Moreover, in addition to the existing jewellers, newbies are also entering by taking franchise of established brands. BalramGarg adds, “In this business model goodwill and social relationship of franchisee and brand value of franchisor both help in successful running of the business. Creation of a brand is not so easy as it take years. Franchisee starts enjoying expertise and support from day one.”
PCJ has created a brand, set all systems procedures, created manufacturing facilities, developedin-house designers’ team,technological advancement, accounting systems, media marketing and digital marketing capabilities and also an online presence. The brand has been able to create a loyal customer base. Garg on taking the franchise route for expansion says, “PCJ need not to invest funds in new stores expansion. We are now determined to develop our franchise business in a big way for overall business development of the company.
Ratio of Company Owned and Franchised Showrooms
Being incorporated in 2005, PCJ adopted franchising in 2016. It presently has 10 franchisee-run showrooms but the rest 70 are company operated. Garg says, “Due to Covid we did not expand during the last two years. However, we are now committed for increasing our geographical presence using the franchise model. We have our own team for looking after the franchise business development.”
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