Even the largest of the Indian "Brendovye jewelers" who have their own trading halls, want to take advantage of the franchising system to expand their retail sales. This trend began a few years ago and is a strategic step in the time of volatile gold prices and a reduction in revenues.
One of the recent players in the jewelry market, which decided to start a franchise project, was the Mumbai TBZ (Tribhovandas Bhimji Zaveri).
"In today's world, the brand needs to make a lot of effort to attract customers, and franchising is an internationally recognized practice used to maximize coverage and enter new markets," said Prem Hinduja, CEO of TBZ .
Indian companies such as Rajesh Exports, Gitanjali Group, PN Gadgil Jewellers and others used this system to develop their business, as revenues from simple gold jewelry fell from 15-20% to 4% in just the last two years. As representatives of many jewelry firms say, among the reasons for choosing a franchising model of distribution of goods are high prices for renting premises that increase transaction costs.