Joyalukkas to Spend 600 cr to Grow its Retail Footprint
Co ropes in actress Kajol as brand ambassador
Kolkata: Jewellery major Joyalukkas has roped in Bollywood actress Kajol as brand ambassador for its India as well as overseas operations. The actress, who has completed 25 years in the film industry, will endorse the jewellery brand in FY18-19.
Joyalukkas has also decided to invest ₹ 600 crore in the current fiscal to expand its retail footprint in India, where it is expecting to increase its turnover by 18.87% in the current financial year to ₹ 8,000 crore. Joyalukkas had clocked a turnover of ₹ 13,000 crore in FY17 from its Indian and overseas operations.
Talking to ET, Joy Alukkas, chairman of Joyalukkas Group said “Kajol has been in the industry for 25 years and is regarded as a trusted name in the entertainment world. Similarly, our jewellery business has been there from 1956 and has become a trusted name not only in India but in the overseas markets as well. So Kajol gels well with our brand philosophy.” Though Alukkas did not share the cost of roping in Kajol as the brand ambassador, he said that the total budget for marketing and promotion has been pegged at ₹ 200 crore. The Kerala-based jewellery major has 66 stores in India and 64 in the overseas markets with major presence in the Gulf countries. “We will set up 15 new stores in metros and major cities in India, each measuring 3,000 square feet. There is enough growth opportunities in India even after introduction of 3% GST on gold. We do not see any downtrend in Indian consumption going ahead,” Alukkas added. With this addition, the number of stores in India will go up to 81.
In fact, Alistair Hewitt, director (market intelligence), World Gold Council (WGC) has recently indicated that even though gold consumption may be around 650-750 tonnes in 2017 but over time however, he anticipates that an economic growth should push demand higher. “By 2020 we see Indian consumers buying between 850 tonnes and 950 tonnes of gold,” Hewitt said in June 2017 issue of Gold Investor published by WGC. Alukkas added that there has been not much decline in sales in the post GST regime.
Jewellery co has lined up a budget of 200 crore towards marketing & promotional activities