Diamond jewellery brand Orra is betting big on improving consumer sentiment this year. While the brand has already opened 20 stores, it will continue to open two stores every month for the next one year, said Dipu Mehta, Managing Director, ORRA. The jewellery brand has plans to add around 72 stores by 2025, which will be a mix of both owned and franchise stores. Currently, Orra retails through 60 stores in 27 cities, of which 59 are owned by the company.

Retail brands, across segments, are on an expansion spree with many opening or planning to open new stores across shopping centres and high streets, in line with rising consumer sentiments after three Covid waves. According to a CBRE report, India’s retail leasing is expected to cross the pre-Covid levels in 2022 and the country is likely to see a 25 per cent jump in new store openings when compared to the previous year.

Tanya Krishna from FinancialExpress.com interacted with Dipu Mehta, Managing Director, ORRA, about the company’s expansion plans, its pivot strategies during the pandemic, consumer demand in the segment, among other things.

Here are excerpts from the interview.

Elucidate on the evolving consumer behavior and new trends when it comes to gems and jewellery industry. How is the company adjusting to this?

Consumers are now looking at diamonds, literally, in a new light. We are seeing more people opting for both statement pieces as well as everyday diamond jewellery. Our range of fine jewellery, whether it is our patented 73 faceted Crown Star Range, our designer collection with Falguni Shane Peacock, the Desired range for the millennial woman, Astra which is our value driver as well as our platinum collection, serves all price points and segments. What consumers want is superlative service at every touchpoint which is what we have geared up to do. Our in-store experience is driven by a strong customer engagement, flexibility and transparency.

There will be a shift towards branded jewellery given the norms in terms of certifications and quality. Consumers will look for strong value propositions while straddling both the classic as well as newer and modern designs. Given the huge impact of social media across the board, fashion and jewellery influencers will also have a larger scope to play. Overall, consumers will prioritize their spending based on the trust in a brand, their relevance of designs and the seal of quality.

What kind of changes has ORRA witnessed in terms of business model, etc. since the pandemic hit the world? How are these working out for the firm?

Buyers have gravitated towards online purchases due to the WFH scenario and numerous lockdown norms. Brands have had to be nimble and pivot to serve these needs. ORRA connected and engaged with consumers through video assisted calls, a more experiential online experience which also had a shop-from-home model built in. However, now consumers are looking at getting back into stores for the touch and feel experience, especially when it comes to jewellery and fine diamond jewellery to be precise. The endeavor is to give an omnichannel experience to the consumers.

How has the segment and your brand bounced back after the last Covid wave? How are the days looking for ORRA, going forward?

ORRA has stayed the course even during the pandemic. The fact that we have opened 20 stores and will continue to open 2 stores every month for the next 12 months shows the confidence that consumers have in our brand and our jewellery. In terms of performance, we are looking at double digit growth during the coming year and even during the pandemic, we managed to be cash positive.

Going forward, we are seeing a jump in customer walk-ins as well as sales during the build up to Akshaya Tritiya, the festive seasons and the wedding season, which account for around 35-40 per cent of our annual sales. Our ‘Dream Purchase Program’ which gives consumers the flexibility to pay in instalments ensures that our sales are strong even during the ‘non-festive’ periods.

We are also looking at an IPO in the near future, however we cannot offer a definite timeline of filing right now.

Tell us about your expansion and growth plans.

We are looking at doubling the topline in the current financial year, with a healthy 35 per cent + blended gross margin since diamonds contribute approximately 85 per cent of the topline. Growth will be driven by the addition of a minimum of 24 new stores YOY over the next 3 FYs ( including FY23). This will be a mix of own and franchise stores – taking the network to 130+ stores, leveraging the asset-light franchise opportunity for which we have been receiving numerous enquiries.