A successor of one of the pioneering jewellery brands in the country P N Gadgil, Saurabh Gadgil has been instrumental in transforming the image of PNG from a family-run showroom to a professionally-run corporate entity with global ambitions. After opening first showroom in California, this global Indian has plans to expand his footprints in New York, Los Angeles and New Jersey. He is also looking at opening showrooms in other parts of the world. Saurabh discusses PNG’s future course of action with Chandran Iyer
Congratulations, PNG’s Jewellery showroom in US celebrates third anniversary in August. How has been the response?
The response has been incredible considering we opened the store in US just when recession hit the country. The Maharashtrian community knew about PNG’s name from India. However, it has been a challenge to be a preferred vendor of fine gold and diamond jeweller among other Indian communities.
What has been your investment when you opened the store in California?
Total investment in stock was around $2 million, and the set up cost was about $0.5 million.
Are your clients mainly the NRIs and PIO’s or is it also attracting other foreign buyers?
80% are NRI’s — mainly from Maharashtra, Gujarat and South Indian. We also have some Vietnamese, Chinese and Latin American buyers along with American buyers.
Are their plans to launch more stores in other parts of the world? If so when and where?
We would first expand in US; next store would be in LA and then east coast especially New York/ /New Jersey. After covering the US, we would like to expand in London and Europe and south east Asia.
How is the jewellery consumption in US and other countries different from India?
Jewellery in US is bought as a fashion accessory and not just as investment. Otherwise, the love for ornaments is the same everywhere.
As FICCI executive member you led a delegation to China and Hong Kong last September to promote economic cooperation and bilateral trade with these two country. How successful were these visits. Has there been any tangible gain?
It was a successful visit and the delegation opened up a lot of avenues for bilateral trade. Indian jewellers have set up trading offices there and have also entered into manufacturing tie-ups and looked at innovative manufacturing techniques. China has opened up its domestic markets for Indian companies to service, which is a major breakthrough to promote trade.
What are the demand drivers for branded jewellery in India in the current economic scenario?
Jewellery is India is predominantly seen as a tool for investment, but the recent times have seen a change wherein it has become more of a fashion accessory.
What are the current and emerging trends in Indian branded jewellery market and what’s the share of PNG owned brands among the branded jewellery market in India?
Branded jewellery has a bright future. But I see a better future for branded family jewellers like PNG. They enjoy an additional advantage of customer connect and loyalty.
How do you foresee the export opportunity for Indian jewellery retailers? What are the emerging markets for India?
India is the largest market in the world after the US and there are more opportunities, thanks to growing income levels. People now have higher disposable incomes, and their tastes are broadening because of increased global exposure. I think the metros are still big growth areas, but Tier II and III towns are the dark horses. Even rural market is opening up, and this will be a new opportunity for Indian jewelers.
What’s PNG’s business model and business strategy for growth?
Family jeweller with string embedded values is growing slowly and steadily. We aim to increase our retail space both nationally and internationally through strengthening the company’s current departments
What’s PNG’s USP?
USP is service from the heart, purity, quality and transparency in all dealings: THINK PURE.
What are the company’s future plans in terms of expansion and diversification?
The company would look at strengthening the existing set up and focus on improving the customer buying experience. Along with this, PNG would be expanding in various cities of Maharshtra as there is ample scope for development here. Besides, a pan-India expansion will be on the cards.
What measures should be taken to boost the Indian gems and jewellery sector?
Four things need to be done to give a boost to this sector. It is necessary to have a uniform tax regime, simplify licensing and approval procedure, abolish draconian taxes like octroi and also organize more trade shows and exhibitions to expose Indian jewellery and jewellers to customers around the world.
