Tier-II and III towns add glitter to branded jewellers
CRISIL Ratings has come out with its report on branded gold jewellery retailers growth by Tier-II and -III towns.
July 19, 2011 / 15:51 IST
CRISIL Ratings has come out with its report on branded gold jewellery retailers growth by Tier-II and -III towns.
CRISIL believes that Tier-II and -III towns will drive growth for the branded gold jewellery retailers over the medium term. Around two-thirds of the new outlets that these retailers set up over the medium term will be in such small towns. The demand for gold jewellery in these centres is strong and growing, buoyed by increasing affluence and preference for branded jewellery. The gold jewellery retailers are therefore, expected to derive over half their revenues from such small towns by 2012-13 (refers to financial year, April 1 to March 31), as against around 40 per cent in 2009-10. These are the findings of a CRISIL study of 63 gold jewellery retailers rated by it, which collectively account for 20 per cent by revenue of the gold jewellery retailed in India in 2010-11.In the decade through 2010-11, some of the rated players, have grown from being one- or two-outlet retailers, and expanded significantly in the metros and Tier-I cities. In the process, they have established a distinct identity through brand-building initiatives that have fuelled their growth.
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