Pure Gold to cash in on India

Dubai-based chain Pure Gold Jewellers is planning to make an aggressive push to enter the

Indian jewellery market over the next five years. They want to take advantage of the Indian consumer’s growing spending power and their traditional affinity for the yellow metal. Pure Gold plans to open 200 stores in the next five years at a cost of $200 million. In fact, this year alone they are planning to open 25 stores. In the next three months, Mumbai will have 10 Pure Gold stores. The brand will begin from the west and move to the east and then spread all over India.

The company also plans to enter Saudi Arabia and Qatar, opening a total of 15 new Pure Gold outlets in the two countries. Last year, the company’s revenue and profit fell by 20 per cent. This was due to the 30 to 40 per cent fall in the chain’s gold sales. The high price of gold pushed consumers to alternatives being offered by the company, and its diamond sales rose by 20 to 30 per cent.

According to Firoz Merchant, MD, Pure Gold, there is a huge consumer demand in the India market. Pure Gold’s expansion plans come after a tough year for gold retailers, when sales were hampered by consumer thrift and the record-high price of gold. In India, although demand for gold fell by 33 per cent to 480 tons over the previous year, the country still held on to its position as the biggest buyer of the metal worldwide. Merchant says by opening 200 stores in five years in India, the company will achieve annual revenues of Dirham 2.38 billion.