Kalyan Jewellers is banking on phygital model to drive sales to the next level on its online platform Candere, and plans to open 30 physical stores before the end of this fiscal.
The company acquired the online platform in 2017 and it has since been growing at the compounded annual growth rate of 60 per cent.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers told businessline that the company has already opened two Candere physical stores on a pilot this year and plans to open 30 physical stores by FY24.
“The opening of physical stores will start by this month end so that we can capture some of the Diwali sales. We want to derive at least 20-25 per cent of our revenue from Candere by next financial year,” he said.
Unlike Kalyan Jewellery stores, Candere will be of 1,000 square feet and will showcase low-ticket light-weight jewellery.
It will be an omni-channel experience where customers can browse on the Candere website and then be directed to the nearest physical store.
To start with, he said it will come up in major cities such as Delhi, Mumbai, Chennai and Bangalore before taking it to smaller cities.
The studded jewellery ratio in Candere will be 70 per cent while it is 28 per cent in Kalyan Jewellers showrooms.
According to the company, Candere will cater to youngsters who like lightweight and diamond jewellery, and over time become customers of Kalyan Jewellers for wedding and religious functions.
Though selling jewellery without Hallmark Unique Identification Number is prohibited, it has not been enforced strictly. Once it is enforced, this will drive customers from the unorganised sector to organised players like Kalyan Jewellers, said Kalyanaraman.
Though demand has slowed due to adhik maas (inauspicious time to buy gold), but it will be over by mid-August and wedding demand will start picking up, he said.
Moreover, Kalyan Jewellers had planned to open 52 stores in this fiscal. Of this, 15 showrooms have been opened and another 11 will be operational in this month. The remaining will be opened before Diwali or by end of the year to cater to the demand during the peak season, said Kalyanaraman.