In the less-than-ideal world of logistics and transportation, the hub and spoke model emerged as a messiah to save on transportation cost, speed up the chain and increase delivery efficiency. Kalyan Jewellers has replicated a similar model to spruce up the last mile and post sparkling growth!
The adoption of a hub-and-spoke model has had two immediate benefits. First, it has helped the brand expand its network while staying asset light, and second, it has brought the brand’s service network to the doorstep of the customer. These two pillars also form the support structure for its hyper-local growth strategy. “Being hyperlocal has been an integral part of the brand — from our product offerings and staff members to our marketing campaigns,” says Ramesh Kalyanaraman, executive director, Kalyan Jewellers. “As part of this strategy, each showroom has 30-35% unique designs, inspired by regional cultural preferences.”
The company has built up its retail presence across the country on the back of a franchise-owned-company-operated (FOCO) showroom network, which has freed up cash flow, making the expansion sustainable, says Kalyanaraman. This model was extended to West Asia, with the launch of the first FOCO showroom in FY24.
Alongside scaling up its retail presence, the three-decade-old brand has also revitalised its My Kalyan service network to ensure last-mile access for its customers across the country. Those living in remote areas can make payments for installment schemes, submit jewellery for maintenance, and collect their purchased products at these centres. “The My Kalyan model plays a critical role in taking the brand to every household through the traditional brick and mortar route,” says Kalyanaraman. According to its Q4 FY 2024 investor presentation, Kalyan has a dedicated 4,003 My Kalyan personnel for door-to-door and direct marketing among local communities. “Significant proportion of gold jewellery demand originates from rural, semi-urban markets where penetration of organised jewellery retail is low,” says the presentation.
To connect with the new age customer, the brand will speed up it omnichannel journey with digital-first brand Candere. The company plans to launch another 40 showrooms of Kalyan and 30 showrooms of Candere in FY25 as part of its broader agenda of rolling out over 130 outlets in the ongoing fiscal.