Jewellers look to franchisees to expand retail footprint

Branded jewellers are looking at the franchisee route to expand their retail footprint, a strategic turn prompted by the volatility in gold prices and erosion of margins over the past two years. Rajesh Exports, Gitanjali Group, TBZ – the Original, PN Gadgil Jewellers and others have opted for this route to grow their businesses as the margins in plain gold jewellery have tumbled to 4% from 15-20% two years ago. Higher rentals, which push up the operational cost, also figure among the reasons for choosing the franchisee route, according to jewellers.


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