Laabh: India Retail Market's New Entrant

Rajesh Exports Limited, the largest gold manufacturer in the world has entered the Indian retail market by launching Laabh- gold jewellery outlets.

REL (Rajesh Exports Limited), the largest gold manufacturer in the world and also the biggest exporter of gold jewellery in India, has entered the Indian retail market by launching Laabh- gold jewellery outlets. This move is an outcome of high gold consumption, strong economy and stable stock performance of the market.

"We are getting into retailing in India so that we are able to effectively compete in market and provide value to the consumers in terms of design representing Indian craftsmanship and also in terms of finishes," said Vipin Sharma, Chief Executive Officer of Laabh Jewelers, in news published on Daily India.

Mr. Vipin Sharma also said, "The Indian gold jewellery market is still dictated by the unorganized sector, due to which, the consumer has always been at the receiving end in terms of purity of gold, consistency in designs and fair pricing", in news published on New Kerala.

At present, the total gold consumption in India is expected over 900 tons, and Indians use typically 20/22 carat gold jewellery. Approximately 95% of the gold goes into the country's domestic jewellery market and remaining 5% is exported.

In 2006, India exported worth US$ 7,760.6 Million of gems & jewellery. From sometime now, India-made jewellery has climbed up the value chain. A definite change has come in the market from being labor intensive to a one driven by technology.

Looking at the capacity of gold consumption of Indian consumers, strong economy and stable stock performance of the market, Rajesh Export Limited has launched 27 outlets in 23 cities in India.

As per a research analyst at RNCOS, "In recent past, Indian jewellery got an impetus in the market of United States. Market experts opine that many international retail giants like JC Penney and Wal-Mart are likely to source gold jewellery from India. Also, Indian jewellery exporters are now looking for new markets like South East Asia and EU where the Indian jewellery is considered high than those from other countries".

In India, the domestic market of gold jewellery has increased slowly, inspite of gold prices touching historical heights. The sales of gold jewellery in domestic market have maintained at around 8%. Now the domestic market is moving towards the branded jewellery and only organized retailers can provide for this surging demand.

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