UAE-based Damas Jewellery plans retail expansion in India
Monday, 03 February 2003, 20:30 IST
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NEW DELHI: Damas Jewellery, one of the largest gold retail chains in the Middle East, is chalking out plans to add more showrooms in India after opening its first outlet in Mumbai in November. The jewellery retail chain major, which manages 85 outlets in United Arab Emirates (UAE) out of 105 outlets it owns in the Middle East, plans to expand operations in India as part of its strategy to explore new markets. "Our first showroom that opened in Mumbai in November looks set to do good business," said Tawifique Abdullah, chairman of Damas Jewellery LLC. "By middle of this year, we are looking at expanding our presence in India with showrooms in Kochi and Delhi to cater to mid and high-end customers," Abdullah, now in India to attend a bullion merchants meet, told IANS. Abdullah said several of Damas' 12 in-house designer ranges like Legacy and Mangalsutra have been developed to cater to Indian tastes. "We are trying to fill the gap between high-end designer products and market demand for middle range designer jewellery that are being stocked in 15 outlets catering only to Asian tastes," said Abdullah. Damas has also firmed up plans for adding seven more retail showrooms in the Middle East, mostly in the UAE. "UAE has become a major centre for gold purchases for both European tourists and a large number of Indian transit passengers besides the resident buyers," said Abdullah. The official said purchase of new gold ornaments in the Middle East had seen a considerable dip in recent months due to sharp rise in the prices. "The fact that more gold jewellery is being recycled is not a bad sign as many people trade it for cash when prices go up and invest in property or other assets. "But the same customers come back to replenish their stock of jewellery as gold is seen as a portable asset that can be cashed at any time," said Abdullah. Abdullah said the last couple of years have seen a changing trend among Asians, including Indians, "with a perceptible shift from buying only 22 carat gold jewellery to more fashionable 18 carat branded jewellery, colour stones and designer watches". The Dubai Shopping Festival, which started on January 15 and will continue for a month, has come as a boon to the gold trade in the Emirate, said Abdullah. As part of the festival, customers are offered one kilogram of gold a day. Also on the offer is mega prize of Dirhams one million at the end of the festival period.
Source: IANS
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