Vummidi Bangaru Jewellers (VBJ) scion Amarendra Vummidi, on Friday, said that company’s new e-commerce venture would serve as the vehicle for an eventual foray into China, a market whose margins far outstrip that of India.
Mr. Amarendra, who runs the over 100-year-old gold and jewellery house along with his brother, bifurcated the company’s online retail strategy a month ago when he launched online portal Za Amor.
Za Amoris completely separate from the VBJ website, which mainly serves as a point of entry for customers who live abroad.
“VBJ is known for bridal [jewellery]…the typical customer is high-class and so on . Za Amor, on the other hand, is different. The potential here is Rs. 1 lakh-plus purchases . We believe we can hit Rs. 100 crore [in sales] in three years,” he told this correspondent on Friday. “We’re able to sell on price difference as well. Much of this price difference, which is generally in the range of 6 – 8 per cent, is because we save on cost. Retail stores have to be staffed, insured, protected etc..,” he added.
Mr. Amarendra also believes that Za Amor may be the vehicle through which the company will be able to eventually enter the Chinese market. According to the VBJ scion, entering China through the physical retail route would be very difficult.
“China has its own issues if you want to set up a retail store. But its luxury market is great [better than India]. We can make Za Amor completely Chinese [giving no impression we are an Indian player]. After we perfect our India set-up, we will look at China and the U.S.,” he said.
