BLUE SKY THINKING

The debut Lucky Laxmi Community Meet in Dubai aims to foster new ideas by harnessing the power of collective thinking, marking a new beginning for the industry.

The Lucky Laxmi Community Meet, organised by the All India Gem and Jewellery Domestic Council, GJC, provided a unique platform for retailers to share their insights, ideas, and strategies for seizing upcoming industry opportunities and tackling the industry’s underlying issues. This destination meeting, designed to free retailers from the daily rigmarole of business, fostered a collaborative environment for brainstorming.

“The aim of this community meet is to establish a well-informed community of retailers. The Lucky Laxmi Community Meet is a movement, and an opportunity for retailers to grow effectively as a community. This brainstorming session will help retailers understand and relate to each other’s problems, allowing them to address challenges by sharing advice”

– Dinesh Jain, Director of GJC and Convenor of Lucky Laxmi

Dinesh Jain, Director of GJC and Convenor of Lucky Laxmi, says “The aim of this community meet is to establish a well-informed community of retailers. We need to understand the advantages, disadvantages, and opportunities to grow effectively as a community. This brainstorming session will help retailers understand and relate to each other’s problems, allowing them to address challenges by sharing advice.”

IDEAL SCENARIOS

The brainstorming session was highly appreciated across the board. A significant discussion point was whether gold jewellery should be sold on an MRP. Some participants supported the MRP model, as seen in Europe and the USA, for its potential to simplify pricing and enhance transparency. Others argued that gold is often bought for investment purposes in India, especially in tier 2 and tier 3 cities, with customers accustomed to pricing based on weight and purity.

A hybrid pricing model was proposed. Low-cost, lightweight jewellery would be sold on an MRP basis, while high-cost, heavy jewellery would follow traditional pricing methods. This approach caters to investment-focused customers and those prioritising design and craftsmanship. Suggestions for addressing gold rate and discount wars included adopting a ‘One Nation, One Rate’ policy to standardise gold pricing and reduce deceptive advertising practices.

This initiative, already underway by GJC members, creates a level playing field promoting honest marketing. The need for jewellers to update their business practices and appeal to younger generations was discussed too. Building and maintaining customer trust was a recurring theme, with many noting that misleading advertisements and unethical practices have eroded consumer confidence.

Evolving LUCKY LAXMI

The event also focused on the upcoming Lucky Laxmi shopping festival and its progressive nature. Jain discussed the history and significance of the Lucky Laxmi initiative. Originally held in 2006 and 2008, the festival achieved notable success. The 2006 event garnered international attention and coverage.

After facing industry challenges, including hallmarking, regulatory issues, and disruptions from the COVID-19 pandemic, the need for a B2C event became ever stronger. The Lucky Laxmi Festival was rebranded as India’s Jewellery Shopping Festival (IJSF) in 2023. Rajesh Rokde, Vice Chairman of GJC, commented, “We rebranded the Lucky Laxmi Festival as IJSF due to the name’s religious implications. However, after receiving feedback last year that retailers across India widely recognise the festival as Lucky Laxmi, we decided to revert to the original name.”

“We rebranded the Lucky Laxmi Festival as IJSF due to the name’s religious implications. However, after receiving feedback last year that the festival is widely recognised by retailers across India as Lucky Laxmi, we decided to revert to the original name”

– Rajesh Rokde, Vice Chairman, GJC

The Lucky Laxmi Festival aims to bridge the gap between retailers and customers. Jain noted that last year’s debut faced challenges, especially with customer reactions to prizes like jadau jewellery and silver coins. This year, GJC has addressed these issues. “Promotion ideas are better this year, and we have planned everything in detail, from advertising formats to the number of hoardings and TV channels. We have done extensive homework, finalised vendors, and are much better prepared with expectations of more than 1,500 retailers to participate this year,” he added.

Jain explained, “Lucky Laxmi’s structure and promotional strategies were revamped based on feedback from previous years. Key changes include increasing the frequency and number of prizes, ensuring customers a higher probability of winning. Prizes are now awarded for every 50 coupons, rather than every 5,000, with weekly draws featuring substantial rewards like diamond necklaces, gold chains, and silver coins, and a bumper prize of 1 kg of gold.”

The festival also incorporates a community-oriented approach, encouraging jewellers to create selfie points in their stores and motivate customers to participate in a selfie contest. Successful participation could win jewellers’ laser marking machines.

This year’s festival aims to surpass previous successes with meticulous planning and innovations. “We are offering prizes worth Rs. 10 crore or more. Our strategy is to allocate 40 per cent of revenue to prize money and 45 per cent to media, ensuring that any revenue increase results in a proportional increase in prize money. Our goal is to reinvest and build up the programme so that in five years, it has significant influence,” added Mehra. Another standout feature is the introduction of customer ratings for jewellers.

The festival will also focus on creating new buying occasions. “Parallel to Lucky Laxmi, we are also executing Lucky Laxmi Fortune of Gurupushya and Diwali, where the customer buying the jewellery worth Rs. 1 lakh during the Gurupushya Nakshatra and Diwali period, will stand a chance to win one gold coin. The scheme will be carried out from 23rd October to 3rd November. We will also encourage participants to advertise their promotions for Guru Pushya Nakshatra.” says Jain.

“We are offering prizes worth Rs. 10 crore or more. Our strategy is to allocate 40 per cent of revenue to prize money and 45 per cent to media, ensuring that any revenue increase results in a proportional increase in prize money. Our goal is to reinvest and build up the programme so that in five years, it has significant influence”

– Saiyyam Mehra, Chairman, GJC

The meeting concluded with a consensus on the importance of continuous dialogue and collaboration among retailers and the GJC. Such initiatives are crucial for fostering a well-informed and cohesive community capable of addressing the industry’s challenges and seizing new opportunities. Retailers also had the opportunity to stock unique designs from the stalls of nine sponsor manufacturers, offering a wide range of designs and categories during the meet.

Written by Maithili Patange