Baggit eyes jewellery market entry, plans massive retail expansion

Premium mall locations to dominate growth strategy, with high-street presence also in the pipeline

Bengaluru – Mumbai-based accessories brand Baggit is set to enter the jewellery sector, with founder Nina Lekhi revealing plans to launch their inaugural collection next quarter. This strategic move comes alongside an ambitious retail expansion plan to add over 500 stores to Baggit’s portfolio within five years.

In a recent interview with a news outlet, Lekhi outlined the company’s aggressive growth strategy, which includes opening an average of five new stores monthly. By the close of fiscal year 2025, Baggit expects to have established 60 additional franchise-based locations, significantly boosting its market presence.

Since its inception in 1989, Baggit has transformed from a modest Mumbai outlet into a thriving business, now producing approximately 2,00,000 units monthly and boasting a valuation exceeding Rs 100 crores. The brand recently marked a milestone with the inauguration of its 100th store in Vijayawada, Andhra Pradesh, underscoring its rapid expansion.

Baggit’s multi-channel distribution strategy encompasses exclusive brand outlets, a robust direct-to-consumer online platform, strategic partnerships with major retailers such as Lifestyle and Shoppers Stop, and a network of traditional retail partners. This diversified approach has been key to the brand’s widespread market penetration.

Emphasising the importance of consumer insights, Lekhi, in her interview, revealed that she engages with shoppers in-store to gather firsthand insights into evolving consumer preferences and needs.

With a seasonal offering of 400-500 SKUs, Baggit is set to broaden its product range beyond jewellery, with plans to introduce a footwear line. The brand’s target demographic spans generations, from Gen Z to Gen X, reflecting its broad appeal in the accessories market.

Lekhi also shed light on Baggit’s marketing strategy, which includes targeted social media campaigns tailored to new market entries. Leveraging its impressive 98 per cent brand recognition, the company plans to invest over 10 per cent of its sales revenue into marketing and promotional activities to further solidify its market position.

The brand’s franchise expansion is gaining momentum, with plans to launch four to five new franchise stores monthly. While the majority of new locations will be situated in upscale malls, Baggit is also exploring opportunities in high-street markets to diversify its retail footprint.

On the international front, Baggit has established a presence in the UAE through Noon.com and is in talks with Amazon to facilitate global expansion. The company is eyeing significant online growth in key markets such as the USA, UK, Canada, and Australia, with long-term plans for physical retail locations in these regions.

Despite facing challenges in the previous fiscal year due to inventory management issues and shifting consumer spending patterns, Lekhi remains optimistic. She anticipates a robust 30 per cent growth for fiscal year 2025, indicating strong confidence in the brand’s strategic direction and market potential.

As Baggit ventures into the jewellery sector, industry observers will be keenly watching how this accessories giant leverages its extensive retail experience and strong brand recognition to carve out a niche in the competitive jewellery market.

Retail Jeweller India News