The Retail and Luxury Segment of the World Diamond Conference was split across the two days due to practical logistical issues, with Darshan Mehta, President and CEO Reliance Brands speaking on Day 1; and Kent Wong, Managing Director Chow Tai Fook; Oded Edelman, Co-Founder and CEO, JamesAllen.com; and C.K. Venkataraman, Chief Operating Officer, Titan Industries, all speaking on Day 2.

 However, all of them had the same focus – the customer. How to cater to the luxury consumer, the importance of understanding the consumer, and  how to achieve it, how to reach a cross segment of consumers  – all of which featured in their talks.

Mehta’s company brings luxury brands to India and the big brand in the stable currently is Ermenegildo Zegna with its own dedicated stores.

Mehta divided the luxury consumer into three categories: the Experimentalists; the Connoisseurs; and the Flaunters.

Outlining the core philosophy of luxury branding he said, “The store is the temple of the brand.” Mehta went on to outline the various aspects that play a role like exemplary sales and after sales service, VIP events, brand communications and technology.

The trend in India showed that the Made to Order (MTO), Made to Measure (MTM), Bespoke and Limited  Editions were becoming desirable and sought after. “So much so that even the cloth is specially woven for the consumer in some cases,” he said.

Mehta also touched upon the store fascia and the importance of “keeping your door open”, and greetings by salespersons in which “can I help you?” was a big No-No. “In designing our store we drew parallels from Apple,” Mehta explained. “They did the unthinkable – and mind you many didn’t think they could – when as a tech company they set up these advanced stores.”  Interestingly, as he pointed out, the realisation per sq foot at the Apple stores was virtually double that of Tiffany’s!

“Ultimately, a lot of retail and the last mile experience is about doing sensible things – but doing them again and again,” Mehta concluded.

Wong set the context of his talk by saying that the overall market for jewellery had a positive outlook. “The GDP growth in China is still strong and projected at 7%,” he said. “While in India it is set at about 6%.  Disposale incomes are also rising in China and there is an expanding middle class.”

In China, he said, 50% of the people were young; 25% constituted the middle class and 13 million couples get married annually.

Wong stressed that knowing their customer was key to their operations and for this they had devised innovative technological methods of collecting and analysing data. For example, they have a “People Counter” over the store entrance which is able to calculate the foot traffic in stores as well as conversions.

“We also have a Smart Tray - patented - which can give us information about a customer’s tastes, shopping behaviour, number of peices per transaction, price of the pieces etc,” Wong informed audiences. “By the end of the year we will install these in 10 stores and then gradually put them in all our stores.”

Wong felt that it was essential to offer innovative differentiated products to cater to diverse customer groups. His group also initiated several path-breaking campaigns to reach a variety of consumer segments, he said.

Odelman felt that their primarily internet-based sales allowed them to collect vast amounts of detailed data relating to consumers and thus serve them better.

He said that the Diamond Imaging Technology which they had spent two years developing, allowed them to showcase their products in 3-D for their customers. “Photography is not enough,” Edelman averred.

For him the Millenials – all those born in the years between 1982-2004 were the key focus group as they were more technologically savvy and preferred to do their shopping online.  They also had technology which could allow consumers to try on the jewellery, virtually.  Packaging and delivery were very important aspects of selling. Edelman said, as the Y generation wants everything instantly. In some cases, brick and mortar stores had also installed touchscreens to snable their customers more comfortable with technology to make their choices.  He ended by exhorted aspiring entrepreneurs in the segment, “First Dream the Plan.”

Venkataraman said that his company was continuously striving to understand the consumer. “We elicit data about our customers not only through our sales process,” he said. “But we also do specific research.”

This research had thrown up three categories of consumers: Career working woman; the discerning wealthy; those buying jewellery for romance and relationships.  This had led to the development of the Mia brand of “contemporary, light affordable jewellery” for the first category and Zoya stores with their luxurious appeal for the second. Tanishq’s  One Love campaign focused on solitaires, was an example of catering to the third category. Venkataraman added, “Emotions are at the centre of it all.”

He showed a variety of promotional films which captured the emotions at the heart  of each category and explained how Tanishq had got its various messages across.

Olivier Mellerrio spoke briefly on behalf of his daughter  Emilie Mellerio, Chairperson, Mellerio dits Meller, Paris, as she was indisposed and unable to attend.

“I am the descendant of a family going back  400 years  which has had a jewellery business in our name,” said Mellerio, himself one-time chairman of the company. “But everything is fragile and ephemeral and we have to keep re-inventing our business models.”  Referring to the changes his company had made he said for the first time they  had a woman chairman, and for the first time too, they had a CEO (from outside the family).