Inter Gold Forecasts 70 India Orra Stores by 2008

Indian jewelry giant Inter Gold said it expects to have 70 stores open across the country selling its recently launched Orra brand by 2008. The company, owned by DTC Sightholder Rosy Blue, currently operates 28 Orra stores.

Chief Operating Officer Amar Kothari told IDEX Online that the proliferation of jewelry brands in the Indian jewelry sector was leading to a degree of public confusion as the market became overcrowded.

With rapid economic growth in recent years and a turn to diamond jewelry from gold jewelry as well as the impact of De Beers’ Supplier of Choice policy that has forced traditional diamond manufacturers into jewelry making, the Indian market has seen ever more jewelry brands launched.

“I am not sure that we understand the branding exercise,” Kothari said. “It is very crowded. Several years down the line it will level out. It {jewelry brands] is new at the moment.”

Kothari’s comments were echoed by many other prominent Indian manufacturers who claimed the country’s domestic retail jewelry sector was becoming saturated as the industry looked to cash in on substantial growth in jewelry sales. The market expanded by 25 percent last year.

As for the Orra brand, Kothari said it was “value driven” since consumers are largely looking for value and not for brands. “The Orra concept is the branding of consistency. We are offering very well designed jewelry at good price points.”

Kothari said the company would continue to concentrate on the U.S. market despite its current weakness and the larger potential of other markets since America’s well-developed distribution channels made it easier to grow there.