Joyalukkas looks at entry into US market in FY16-17

Joyalukkas looks at entry into US market in FY16-17

After making a mark in the West Asian market, jewellery major Joyalukkas is eyeing the  world’s biggest economy, the United States, a top executive said on Thursday.

Talking to Deccan Herald on the sidelines of opening the company’s 59th showroom in Malleswaram, Joyalukkas Chairman and Managing Director Joy Alukkas said, “With 39 showrooms abroad, we have captured a huge market share. In a bid to capture the potential of South Indian diaspora in US, we aim to enter the American market very soon.”

Alukkas explains, “For the first time we are entering the US market. We will set up one store each in Chicago, New Jersey, and Houston. It is in the nascent stage, maybe in the next financial year we should be there.”

Joyalukkas is embarking on an expansion drive, not only in India but overseas also. In less than one week’s time, Joyalukkas will open five new showrooms in West Asia, including Qatar, Oman, Abu Dhabi, and Saudi Arabia.

“Our target is 120 outlets by the end of this financial year. With 50 outlets in Gulf countries and 70 outlets in India. Joyalukkas has one store in London and aims to add one more,” Alukkas added.

The company saw a turnover of Rs 5,200 crore in the last financial year and aims to reach Rs 6,200 crore in FY15-16.

This year, Joyalukkas revenues have already reached the Rs 3,000-crore mark as of September 30, 2015, he said.

When asked on investments made in setting up new showrooms, Joyalukkas said, “There are three types of showrooms, ranging in cost from Rs 40 crore, Rs 60 crore, and Rs 100 crore. Depending on the cities it varies. On an average, the size of the showroom would be 3,000 sq ft.”

Teams up with Amazon
Seeing the potential of eCommerce sales, Joyalukkas has tied up with Amazon. Group CEO Baby George explains, “We have tied up with Amazon last week. We have sales of around Rs 3 lakh per day. We sell 150 small items like rings, ear rings, necklace, pendants, among others. Based on demand we are open to join hands with other players.”

After getting good response from Udupi showroom, the firm wants to strengthen its presence in tier-II cities. George explains, “Our intention is to move closer to people which can happen through tier-II cities with 3,000-sq ft sized outlets and which will give us good sales. We will tap Hassan and Ballari market in Karnataka very soon. In Tamil Nadu, we are opening a new showroom in Virudhachalam shortly.”

To tap the festive season, Joyalukkas is offering a discount of Rs 100 on purchase of one gram of gold. It runs a scheme wherein it collects money for a period of 10 months and allows customers to purchase ornaments in the eleventh month.
 

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