The big controversy that surrounded the opening of the new Parliament House in 2023 was the installation of the Sengol – a gold-plated, silver sceptre. As per reports, the lost sceptre was first gifted to the first Prime Minister of India – Jawaharlal Nehru – on the eve of the Independence of India in 1947.
The Sengol, created by Chennai-based Vummidi Bangaru Jewellers, popularly known as VBJ, has been known for its quality craftsmanship since its inception in 1900.
VBJ’s legacy is now being carried forward by fourth-generation siblings - Jithendra and Amarendran – with the fifth generation all set to enter the business.
Speaking on how the brand continues to stay relevant even after more than 12 decades, Jithendra Vummidi, Managing Partner, Vummidi Bangaru Jewellers says, “ You need to be relevant to the customers’ requirements during every phase of the journey. You cannot be stereotyped with a particular style of jewelry because then you would lose out with others taking your place. The opportunity is in expanding your offering, using the latest techniques available and ensuring that quality standards are always met.”
Engaging with Millennials and Gen-Zs
VBJ positioning as a premium brand translates to the older generation being the core clientele. However, the brand is also looking to engage with the Millennials and Gen Zs.
Says Vummidi, “The older generation passes on the confidence to the next generation that VBJ is a trusted place. We connect with the new generation with our design, the language that we use so that it resonates with them. It is important that we keep refreshing our outlook and the product offering. That’s how we stayed relevant. With every generation that comes in, you need to do business differently.”
“Jewelry is entrenched in our culture. As long as you are passionate about dealing with your clients, understand their needs, fulfill their requirements and also focus on after sale service which is important. You need to give the right price, right product offering, right service, and right ambiance. If you can do this then you will remain relevant to what the customer wants.”
For a price-sensitive market like India, the decision of the government to bring down the duty rate brought a cheer to Indian consumers. Earlier, the customs duty on gold was 15% along with 3% GST, totaling to 18% tax on buying gold, making the price of gold 18% more expensive than the international price. government, decided to cut down the rate of, duty so that, you know, bringing down, that from 15% to 6%. The recent budget saw the customs duty reduced by 9% which significantly reduced the price of gold in India. Says Vummidi, “There was a fall of almost ?500 to ?600 fall in gold price which delighted customers. Internationally, the price of gold has risen by 20% since January 2024. This fall in price due to the duty reduction was a welcome move for customers.”
Upping the Digital Game
While the advent of Augmented Reality (AR) has helped redefine customer service, with online sales, video consultation and doorstep customer service, Vummidi says touch and feel remain important for the category. He says, “When it comes to jewelry, we still feel that touch and feel is most important. While online will be the model, for everybody, as we have a wider market to reach out, having an offline presence is the key. An online presence creates that interest and moves people to actually go in your direction.”
Commenting on VBJ’s media mix he says, “Print is being substituted by Digital, however Print still has a role to play as there's a lot of visual impact and awareness that comes out of Print. Whatsapp and social media, such as Instagram and Facebook, are efficient ways to reach out to the consumer as is a good in-store experience. You cannot focus your attention on one segment, it has to be a 360-degree engagement.”
Looking at sales, currently 3% to 5% of sales currently comes from online.
Looking ahead
With the festive season kicking off, Vummidi is optimistic of seeing a higher growth this year compared to last year. “We are hoping to grow at a minimum rate of 10% to 12%,” he says.
Looking ahead, VBJ is working on opening its new flagship store in Chennai in the first quarter of next year. Additionally, the brand is looking at expanding its presence in Chennai and also in other cities in Tamil Nadu such as Coimbatore and Trichy followed by Bangalore and Hyderabad.
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