In an intriguing revelation within the sectoral indices, the Gems and Jewellery Index showcases a remarkable trend – the domination of hyperlocal jewellery brands among the listed small-cap players. Research into these firms reveals a common thread in their origin stories, as each began as standalone jewellery shops and later expanded to cater to their local markets. Rather than seeking nationwide expansion, these businesses have concentrated their efforts on Tier-II cities, bolstering their financial strength by accurately gauging their respective markets.
The top positions in the jewellery index are held by a large-cap and a mid-cap player, both of which are pan-Indian brands with a presence in the country’s top 10 cities. On the other hand, the small cap jewellery firms have chosen to specialize in hyperlocal markets. This strategy offers valuable insights into consumer sentiment across the spectrum.
Senco Gold: Founded in Kolkata in 1938, Senco Gold has steadily grown over the years, primarily establishing a significant presence in the eastern part of the country. Presently, Senco operates 127 stores in West Bengal and 27 stores in other states. A substantial 85% of their revenue is generated from sales in the Eastern region. Notably, Senco Gold made its debut on the stock exchanges in July 2023.
Thangamayil Jewellery Limited: This company operates a network of retail jewellery stores spread across various districts in Tamil Nadu, a state that accounts for 40% of India’s total gold consumption. All 54 Thangamayil stores are strategically positioned within Tamil Nadu. Thangamayil Jewellery Limited marked its presence on the stock exchanges in February 2010.
DP Abhushan: A jewellery maker based in Madhya Pradesh, DP Abhushan currently operates eight stores situated in Ratlam, Indore, Bhopal, Udaipur, Kota, Bhilwara, Ujjain, and Kota. Their forward-looking strategy involves targeting Tier-II cities in Madhya Pradesh, Gujarat, and Rajasthan. DP Abhushan ventured into the stock exchanges in October 2017.
Manoj Vaibhav Gems N Jewellers Ltd: Hailing from Andhra Pradesh, this company identifies as a ‘hyperlocal’ jewellery brand. They maintain a network of 13 showrooms across Andhra Pradesh and Telangana, placing strong emphasis on local markets. Manoj Vaibhav Gems N Jewellers Ltd entered the stock exchanges in July 2023.
This unique focus on hyperlocal markets, particularly in the context of the extended festive season, underscores the strategic acumen of these small-cap jewellery brands, positioning them as significant players in the industry.