Oyzterbay plans a chain of 15 retail stores countrywide. It aims to up the number to 100 exclusive outlets spread over 67 cities in the next two years.

Says Oyzterbay chief operating officer Mr Johnson Verghese, "Oyzterbay is not in competition with Tanishq as Tanishq is mainly into the traditional type of jewellery. We will focus on easy-to-wear, non-traditional jewellery, non-locker jewellery that people can wear." The market for non-traditional jewellery is estimated at Rs 20,000 crore.

The strategy is quite simple: "We will offer variety in design, reliability and standardisation," said Mr Verghese. The volumes involved will allow Oyzterbay to leverage procurement and cost advantage not available to local and traditional players.

The unique feature of the business model is the franchising structure proposed by the company. The company is introducing an innovative store management concept. The exclusive Oyzterbay signature stores will be given out on wet lease to franchisees who will run it on day-to-day basis. The inventory management will be undertaken by the company and it will also upgrade the product lines regularly. The franchisee receives a commission, that is in direct proportion to the sale. "This ensures a win-win situation" says Mr Verghese.

Traditionally, exclusive stores are owned, stocked and run by employees appointed by the company or the entrepreneur ties-up with the company to market its products and services but bears the cost of property,inventory management and wages of employees etc.

The jewellery market in India largely has a presence in the unorganised sector. A huge chunk of the purchase is for traditional occasions and bought at traditional locations, usually an oldtime family jeweller. Repealing of the Gold Control Act, exposure to media and increased awareness have resulted in rising aspirations and consequently a market for jewellery beyond the traditional one, avers Mr Verghese.

"Oyzterbay is a storehouse of value, quite like the oyster which encloses the pearl," quips Mr Verghese, elaborating on how the company got its name. Oyzterbay describes itself as a click and mortar initiative.

Its e-commerce initiative at this point in time is more of a value-added service for customers. The company expects most of its revenues to flow from the traditional mortar format in the immediate future, though e-commerce might become a big contributor in the future. Explaining the rationale, he said "its still a touch, feel sort of thing, its not like buying ball bearings".