Parag Shah’s distribution-driven business model propels KISNA to the top

‘Parag Shah, Director, H.K. Jewels Pvt. Ltd, has ensured that Brand KISNA is one of the most widely distributed diamond jewellery brands in India, with his strategic distribution-driven business model. Now, he is all set to further enhance KISNA’s retail presence even as he nurtures its global ambition’

Brand KISNA was born in 2005, on the back of a growing demand for quality, certified diamond and gold jewellery at affordable prices in India. “This gap in the market motivated us to enter the industry,” says Parag Shah, Director, H.K. Jewels Pvt. Ltd, a subsidiary of the Hari Krishna Group of Companies, that launched KISNA Diamond & Gold Jewellery. The brand adopted a unique franchise model to notch up more than 3,500 retail outlets spread across 28 States, that ensured rapid growth, and added to it with the launch of exclusive retail showrooms in Siliguri, Hyderabad, Hisar, Ayodhya, Bareilly, Raipur, New Delhi, Mumbai, Jammu and Bengaluru. KISNA has reportedly seen more than 100% growth in revenue over the last couple of years, from FY 2021 to 2023. The brand nurtures global ambitions even as it moves ahead with the vision ‘Har Ghar KISNA’, Parag Shah tells The Retail Jeweller in a conversation.

EDITED EXCERPTS:

The Retail Jeweller (TRJ): How has Brand KISNA fared so far, considering that there were already established players in the market by the time it was launched in 2005?

Parag Shah (PS): Despite the presence of established competitors, our brand has evolved significantly over the years. Our strategic expansion plan involved opening numerous exclusive showrooms and adopting a franchise model, which allowed us to reach customers across the country. We’ve continued to expand our operations, focusing on maintaining the highest ethical standards and product quality.

TRJ: What made you decide on a distribution-driven business model? How does it work for the brand?

PS: Our distribution-driven model was born out of a commitment to making diamonds accessible to all corners of India. By partnering with a vast network of retailers, we could reach customers in both urban and rural areas, fulfilling our mission to democratize access to high-quality jewellery. While the investment is substantial, it aligns with our long-term vision of becoming a household name and our success in expanding our reach and customer base has validated this approach.

TRJ: What have been some of the challenges in operating the distribution-driven business model, including shop-in-shop counters? What is the future potential that you see?

PS: The challenges in operating a distribution-driven model include ensuring consistent quality control, supply chain management and maintaining brand uniformity across various outlets. However, the potential is enormous. As India’s economy continues to grow, the demand for fine jewellery is expected to rise and our extensive distribution network positions us to capture this growth effectively.

TRJ: What are some of the other business strategies that have really worked to build the brand? What sets KISNA apart from the rest in the industry?

PS: Our focus on customer-centric strategies, such as complimentary free 1-year jewellery insurance, our 90% buyback and 95% exchange offers, etc., resonated well with consumers. Additionally, our commitment to ethical practices, transparent operations, and stringent quality standards differentiates us in the industry. We are not merely a jewellery brand; we are a trusted partner in celebrating life’s special moments.

TRJ: How far have you progressed on your mission to “make diamonds accessible to all women in the country”?

PS: We’ve made significant strides toward our mission. Our expansive retail presence, affordable pricing and consumer-friendly policies have made fine jewellery a reality for women across India. However, we view this mission as an ongoing journey, and we will continue to expand our reach and offerings to ensure that every woman in the country can adorn herself with KISNA Diamonds & Gold jewellery.

TRJ: Tell us about the fine jewellery offered by KISNA and its USP or specialty. What kind of jewellery is most in demand?

PS: KISNA offers an extensive range of 14KT and 18KT diamond and gold jewellery, including rings, earrings, pendants, mangalsutras, necklaces, bangles, bracelets and nose pins. Our jewellery is 100% certified and HUID hallmarked, guaranteeing impeccable quality and authenticity. The most in-demand items include engagement rings, classic diamond studs and contemporary gold designs. Our USP lies in the perfect blend of craftsmanship, quality and affordability, making our jewellery accessible to a wide range of consumers

“One notable change is the increasing preference for online shopping, driven by convenience and safety. Additionally, there is a growing demand for personalized and customizable jewellery pieces, reflecting individuality and uniqueness”

TRJ: How do you find out what the customer wants? Do market trends help or do you take other routes?

PS: Our approach is customer-centric. We listen to customer feedback, closely monitor market trends and leverage data analytics to understand evolving preferences. We also engage in extensive market research to anticipate customer needs. This holistic approach ensures that our jewellery offerings are aligned with what our customers desire, whether they are first-time buyers or experienced jewellery collectors.

TRJ: What are the significant changes you have observed in the market with regard to customer demand/patterns and overall buying behaviour?

PS: One notable change is the increasing preference for online shopping, driven by convenience and safety. Customers are also seeking value-added services, such as insurance and buyback guarantees, to enhance their buying experience. Additionally, there is a growing demand for personalized and customizable jewellery pieces, reflecting individuality and uniqueness.

TRJ: Customers are extremely value-conscious. What is the brand’s price range and how is it creating value for customers?

PS: KISNA’s pricing strategy is thoughtfully crafted to accommodate a diverse range of budgets, ensuring that there’s something exquisite for everyone. We consistently offer top-tier jewellery at highly competitive prices. However, our commitment to customers goes beyond affordability; it extends to a complete jewellery experience. The price of our jewellery is in the Rs 3500-Rs 18,50000 range

TRJ: Most businesses have a strong online and e-commerce presence nowadays. How does your e-commerce portal contribute to the overall business?

PS: KISNA’s online presence, exemplified by our website kisna.com, has emerged as a vital component of our response to the shifting landscape of consumer behaviour. This digital platform has not only facilitated access to our exquisite range of jewellery but has also enabled us to extend our reach far beyond the confines of our physical stores, offering a complete experience, one that is rich in information, choice and convenience for our valued customers.

TRJ: You have been at the helm of KISNA for more than six years. What are some of your deep business insights gained in the course of leading the brand?

PS: Leading KISNA has reinforced the importance of maintaining unwavering commitment to ethical practices and quality. It has also taught me the significance of staying adaptable and responsive to evolving market dynamics while never losing sight of our core values and customer-centric approach.

“We are expanding our franchise showrooms at a swift pace. Our long-term vision extends beyond borders, as we aspire to be globally recognized as a symbol of trust and excellence in both diamond and gold jewellery”

TRJ: Where would you like to see KISNA in the next few years and what are your plans for it in the long and short term?

PS: In the next few years, we aim to solidify our position as a household name in the Indian jewellery industry and we’re doing so by expanding franchise showrooms at a swift pace. We plan to strategically enhance our retail presence, explore new and captivating product offerings, and consistently innovate to meet the ever-evolving desires of our customers. Our long-term vision extends beyond borders, as we aspire to be globally recognized as a symbol of trust and excellence in both diamond and gold jewellery.