Gitanjalis dressy extensions

SHARLEEN DSOUZA
Mumbai, 22 August

Gitanjali Gems, one of the major players in branded gems and jewellery, launched apparel lines under its jewellery brands such as Dia, Gili and Maya. These would cater to the mid, premium ethnic wear and bridalwear segments respectively. Its a conscious call taken by the management to go ahead and do a brand extension. While considering the brand extension categories, we needed to work in the adjacent categories to jewellery. Hence, apparel was the first step, followed by accessories for the second phase, says Mehul Choksi, chairman and managing director of Gitanjali Gems. The brand Maya will see expansive lifestyle stores that offer jewellery and apparel under one roof. Dia and Gili will see just line extensions into clothes. The jewellery brandss logos will be retained to ride on the recall. Although results from the surveys and research suggested the response would be positive, we were apprehensive about whether our customers would accept apparels and accessories under the same name of our jewellery brands or not. But after the launch, the increase reach in Andhra demand has kept growing, Pradesh, Karnataka, Maharashta and Gujarat. adds Choksi. Choksi informs that the The three brands are established lines of jewellery his team wants to gauge the apparel business for Gitanjali Gems. before expanding The apparel busi- Branded ethnic to other tier I and ness, though, is wear accounts II cities. less than 5 per cent for just 5 per The ethnic of the total revenue cent of the apparel segment, of the gems and ~30,000-crore where the three jewellery major at market, indicating the brands will operpresent. But with ~25 scope to grow in ate in, remains largely dominated crore in advertising the organised by the unorganand promotion segment ised market. There spends, the company is looking to gain at least are very few players in the two per cent of market organised category such as share in the next two years, Fabindia, AND, W and BIBA. Analysts say that Gitanjali expanding through a franchises. It has around 85-95 has huge potential if the marexclusive sale outlets and ket is tapped well. The company has the shop-in-shops. The jewellery major will potential to increase the

organised market share to 10 per cent if they wish to, as the scope for growth is immense in this category. These apparel brands have the added advantage of not facing any kind of competition from foreign brands which operate primarily in western wear, says Prashant Agarwal, joint president at Wazir Advisor. The organised space comprises just 5 per cent of the ethnic wear category. The current market value of ethnic wear in Indias apparel segment is ~30,000 crore. The company could benefit from the brand names being already known to its target consumer. But next up could be a new brand called Revv in apparels for young men.