Amrapali Jewels Case Study Marketing Essay

Abstract

This case study looks at the journey of Amrapali Jewels, an international jewellery company over the period of 32 years how Amrapali became what it is today. The presented case looks at the competitive profile of the company, fast emerging challenges from China and Far-East. Focus of the research was on knowing the success ingredients of Amrapali as it belongs to Jaipur, Rajasthan – A jewellery hub of India, especially in precious and semi-precious stones.

Key words

Retailing, Branding, Case Study,

Introduction –

Arts and crafts are an invaluable part of our country’s heritage. Their revival to former glory was imperative to prevent the skills from being lost for posterity. Keeping with rich Indian traditions and heritage the Amrapali Jewels were dreamt and later initiated by two young entrepreneurs, who with the help of dedicated and energetic team were able to build a royal territory that caters to beautification as well ornamentation needs of who’s who of the world. Clientele of Amrapali includes elites of both eastern and western societies.

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Amrapali is a design house of traditional Indian jewellery spearheaded by designer duo Rajiv Arora and Rajesh Ajmera. Its reputation has grown far beyond Jaipur, where its main showroom and manufacturing facility is based. The Economic Times quoted – “In India, Hindi film actresses like Rekha, Tabu, Manisha Koirala and Dimple Kapadia don Amrapali jewellery”. The recent additions being Frieda Pinto wearing Amrapali rose cut diamond earrings and bracelet to the 14th Annual VH1 Critics’ Choice Awards held at the Santa Monica Civil Auditorium in Los Angeles and Kiron Kher who wore Amrapali collection on several occasions for her show India’s Got Talent – Khoj 2. “One of the biggest Hollywood films, the Greek epic “Troy” saw actor Brad Pitt wearing Indian Jewellery. Pitt sported chunky silver Greek-style medallions made by jewelers Amrapali based in Jaipur, Rajasthan.

The Start –

Amrapali traces its origins to the year 1978, when Mr. Rajiv Arora and Mr. Rajesh Ajmera took upon themselves the task of showcasing to the world the exclusivity and magnificence of Indian jewellery. The task was an equivalent of creating or ushering in a renaissance in the ancient art of jewellery. They traveled extensively to the remotest interiors of India as well major international cities abroad in search of unique and fine pieces of Jewellery. They then delved into ancient craftsmanship and began to create exclusive jewellery with the help of master craftsmen and goldsmiths within and around the desert area of Rajasthan, specific centre of their activity was Jaipur. This also led to the employment for such craftsmen and Goldsmiths in the rural areas of Rajasthan who otherwise were deprived of utilizing their skills.

They used elements of Ethnic Indian jewelry in their designs and revived the traditional methods of jewelry making, in order to create a design language distinct to Amrapali. The gigantic as well path-breaking efforts of these two young business stalwarts made Amrapali the first organization in Rajasthan to start the exports of silver jewellery. Today 50% of the silver exports of the country are from Rajasthan and Amrapali shares a rich share in the complete pie.

Amrapali has expertise in all methods of jewellery making, from filigree work, hand beaten gold and silver, simple designs or designs with intricate settings in stone. The company manufactures exquisite necklaces, bracelets, pendants, earrings and other ornaments.

Initial Phase –

“Amrapali started rather set up its first shop in Chameliwala market in the capital city of Rajasthan, Jaipur. The design work was done by the two owners Mr. Rajeev Arora and Mr. Rajesh Ajmera, manufacturing was not the focus of Amrapali and it was vastly scattered over entire Rajasthan and sometimes over a great geographical area of India”, exalts Mr. Khushal Jangid. The competition was intense within the local market, even in chameliwala market at that point of time there were 4 exporters and 18 local vendors were present who were dealing with fashion jewellery especially with silver jewellery. The organization grew under the auspices of Central Cottage Industrial Corporation (CCIC).

Initial Challenges –

Discussing about major roadblock or challenges faced by Amrapali in its initial years the partners become nostalgic and high spirited. Starting in 1978 was not easy and even after that the road was bumpy and the journey was tiring. Till 1999 Amrapali was using outsourcers and there was no in-house manufacturing, the focus was to give designs to local, small craftsman and manufacturers and get the work done as scheduled. Mass production was not there and focus was on customization, exclusivity and superior design and product quality.

The situation though seems to be disadvantageous worked in favor of Amrapali as the designs got appreciated and their customers though paying very high value got exclusivity and uniqueness in their jewellery. The price range was never questioned but the lack of control over manufacturing often caused inconvenience to the partners as occasionally deadlines got missed. Variable pricing for each batch of production and advance preparation of price quotes were another drawbacks but company overcome all of them. Looking at the size of demand and the market position of Amrapali during that phase investing in machinery or rather having a big capital expenditure was not advisable but as the company grew in size and in volumes, the suppliers became more understanding but certain problems in operational areas existed which prompted Amrapali to initiate their own manufacturing facility at Jaipur, the capital city of Rajasthan in the year 2000. “With the beginning of the new century, Amrapali started a brand new chapter, manufacturing its own designs and preserving its brand value.” exalts Khushal Jangid, General Manager Operations.

Mr. Ajmera quotes his experience about initial distribution problems nationally and internationally, “poor level of brand awareness nationally as well as internationally and middlemen driven markets were other set of issues that Amrapali faced initially, we were in indirect exporting using our contacts and other middle man for delivering our products in international markets and this shortcoming created lot of problems for us when we decided to test international waters of our own as our Direct Selling Agents or DSAs become very protective and started feeling threatened by our expansion exercise”. It took Amrapali almost 5 years and more than 12 international fashions plus jewellery shows to firmly hold its feet in international markets.

The Competition –

Amrapali has no close competition rather its vast product range and product dept makes it unparallel to any other vendor, design, manufacturer or exporter but few suppliers in domestic markets claim that they are competing rather parallel to Amrapali Jewels, these are Gem Palace in gold jewellery especially in precious stones segment and stone studded jewellery. Another important contender is Derewala Jewellery Manufacturing Company. Derewala is also supplying to Wal-Mart and Silpada, though Amrapali is also one of the top suppliers to Silpada. Competition emerging from Fareast and Chinese Products is an eminent threat and challenge that Amrapali is seriously considering as a major force to beat.

Focusing on fast emerging competition Amrapali has decided to launch bridge jewellery (ornament made up of mix of base metal and silver or gold). The second step is to introduce fabric based or yarn based stone studded jewellery that will be cheap but could be worn as a design statement. “The competition has made us more creative and innovative, now our focus is to make Amrapali as design and craftsmanship statement along with to be known as value base exclusive designer fashion jewellery manufacturers. Over the longer run the retail presence rather a very strong retail presence world over will be our major strength to beat competition,” says Mr. Ajmera

Landmarks Attained –

Amrapali is the only Indian Jewellery designers to present their collection in Fashion Weeks of Milan and New York. Amrapali’s list of honoured customers includes Mr. Shimon Peres Ex-Prime Minister of Israel, Her Majesty Ashi Wongchuk Queen of Bhutan, Maharani Padmini Devi and Princess Diya of the Jaipur Royal Family.

International known families like Hermes, Corum, Porche, and Barbie-Muller are also on esteemed list. Amrapali had the honour of designing gifts presented to the former US president Mr. Bill Clinton on behalf of the Rajasthan Government.

Amrapali saw yet another international star coming under its creative purview Jennifer Hawkins endorsed their creativity by attending an important social do, a jewellery show at Jan Logan, Sydney, and wearing a neckpiece in tourmaline and gold designed by Rajiv Arora and Rajesh Ajmera. Abstract in form, the necklace recreates the freshness of leaf motifs encrusted with tourmaline that sit beautifully like dew drops on the leaf. It is a part of the modern line that Amrapali creates keeping the ethos of Indian Jewellery Design intact.

Another Feather in Amrapali’s cap came from Hollywood as a design team from Warner Brothers, the studio that has made the mammoth film based on Homer’s epic The Iliad, visited the store and were so impressed by a collection the jewelers did for swank London store Selfridges that they approached Amrapali to design for Troy. “What was most thrilling were the compliments we got,” said Mr. Rajiv Arora, one of the two partners who run Amrapali, which has earlier designed for the likes of supermodel Naomi Campbell and actress and video producer Ali McGraw. “It was one of the many orders until the team started corresponding with us.”

On a getaway trip to India, Klein decided to drop in at this world renowned jewellery store to feast his eyes with their exquisite range of jewellery. Calvin Klein was joined by design colleagues and friends Rajesh Ajmera and Rajiv Arora of Amrapali to celebrate his birthday. Says Rajiv Arora, “Mr. Klien had always shown interest to visit our store and was truly impressed with the Gold & Silver Jewellery collection. He is now interested in incorporating an India-feel to all his future collections with universal appeal.”

Discussing the roadmap of success Mr. Rajesh Ajmera said, “Amrapali has been the official jewellery designers for ‘Femina Miss India’ since 1996. We have the privilege of being associated with the big banners under Bollywood & Hollywood as well as with departmental stores of international fame like – De Bijenkorf in Holland, Galeries Lafayette, Le bon Marche and Le Printemps in Paris.”

To this day the Company has its showrooms in Jaipur (main showroom), Delhi, Mumbai, Jodhpur, Ahemdabad, Bangalore, Chennai and London along with three factories employing over 1100 employees. Its Jewellery is sold through several other well known stores across the world. With the start of 2009, during the severe global meltdown the company has seen major expansion activity and in last three quarters their distributors and retail stores have increased manifolds. The expansion in retail activity, promotion and distribution is not only limited to domestic markets but it is more vibrant and fruitful in international markets. According to Mr. Khushal Jangid, General Manager at Amrapali Jewels the growth in business and channel partners has made Amrapali a global name and the present position makes it mandatory for Amrapali to have a major web presences, focusing on business model the new website has been created and e-commerce models have been included so as to facilitate the international market segment of ‘One’. “The good news is that you don’t have to travel back to India’s glory days to acquire a selection for yourself. In fact, you don’t have to go to India at all. The finest selection is available right here on www.amrapalijewels.com” quotes Mr. Khushal Jangid.

Commenting on the growing popularity and phenomenal growth attained by Amrapali in both domestic as well as in International Markets, Rajiv Arora says, “We are touched with the attention our creations are getting internationally. We at Amrapali work very hard to give our pieces a global flavor, and when international celebrities like Jennifer Hawkins and others wear our creations, or recognizes our products it is indeed a great creative high for us. Our dedicated team of designers and managers has helped us to attain heights our international acceptance can be recognized by the fact that we are one of the rare Indian brands to have found place in the showcases of Selfridges.”

The Retail Story –

Amrapali has come a great miles from its initial days of indirect exporting. Concentrated areas are local as well international retailing and creation of independent sustainable and recognizable brand, known for value for money product in terms of design plus uniqueness of the finished product. Emphasis is on customization of jewellery to fit moreover suits the client’s persona and attire that will be worn by the client on a specific occasion. The brand value has to be sustained with the help of distribution channels and key clients in supply chain along with other important retail partners. Key clients like Banana Republic, GAP, John Lewis (UK), Past Times (UK), Stella Dot (Amrapali’s biggest direct selling agent in USA) are adding value to brand recognition. JC Penny and Macy’s are soon going to get associated with Amrapali as talks are almost finalized and ground work for expected collaboration is going on. Numbers of showrooms in India along with direct selling agents appointed are on all time high as almost every week a new Amrapali showroom or counter somewhere in world is opening up. The retail expansion was completely recession proof of the latest global meltdown rather Amrapali’s retail strength has gained momentum in the latest recessionary times.

At present there are 23 stores operating world over and alongside Amrapali has collaboration with Taj Khajana (a TTT Company Undertaking), exclusive stores managed at Tata Group Hotels. Direct Exporting is the major strategic focus of the Amrapali Group along with strong retail orientation.

The Products –

Since 1978 ‘Amrapali’ has steadily honed the tradition of Indian jewelry. Among the pieces sourced are Jewellery dipped in gold inspired by the Bonda tribe of Orissa, glass pendants crafted in a Greek genre of design and other oriental interpretation of the armlet and cummerbund. The house of Amrapali is known for coupling primeval Indian designs and modern chic in their work. They are influenced by the traditions of the Rajput warrior clan in Rajasthan and the Toda tribe of Tamil Nadu.

They also make a lot of fine filigree creations, pieces in hand beaten gold and silver and using gemstones like Rainbow Moonstone and Crystal Quartz. Keeping up with their rich tradition to give surprises to their competitors and customers, recently Amrapali has proudly introduced its new line of corporate gifts -an enticing range of lifestyle accessories -“Amrapali ~ Gifts” making gifting memorable for the corporate world. The wide range of gifts includes table accessories and desk accessories such as –

Photo Frame

Candle Stand

Dessert Fork

Dessert Spoon

Napkin Ring

Cocktail Stirrer

Photo/Memo holder

Pen/Pencil holder

Letter opener/Bookmark

Visiting card holder

Key Chain

Paper Weight

“On occasions, festivals, conferences and so on whenever you need to share your success or joy or gratitude with your clients, customers, guests or stakeholders say it with Amrapali. The wide range of lifestyle products vary from desktop items to dinner table accessories including general decorative pieces. We would also undertake custom designing if you have any specific requirement for a specific occasion. It would indeed be a privilege to serve you as and when you look at touching the lives of your business ecosystem” articulates Rajiv Arora, partner in Amrapali.

Rajesh Ajmera opines about product range, “Amrapali Jewellery Designers are aware that the taste in jewellery today is varied. People love the traditional look, but want a different style of jewellery which is non-traditional and stylish and yet made of gold and silver. The answer to this can be found in the exclusive designer range of Jewellery which we are trying to provide exclusively to our customers. Keeping in mind the changing patterns or a trend, customer preferences Amrapali is all set to come out with its very first ‘Bridge Jewellery’ collection.”

The Challenges –

Amrapali for at least three decades or so was tempered proof from competition but last five years have created kind of resistance in market expansion as local jewellery manufacturers from India, especially from Rajasthan has entered in the same segment as Amrapali, the growth in online marketing and easy and cheap availability of products similar in nature and quality coming from Fareast and Chinese markets are creating some minor roadblocks in expected expansion and growth. The online stores offer goods that are almost similar in design but less in quality and these products due to lack of distribution cost are almost 20% – 30% less in price. For Amrapali has its own stores operational in few of the major cities of the world or have collaboration with certain retail outlets and this mandates Amrapali to give certain margin to these channel partners, which takes away the flexibility of competing on prices.

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For Fareast and Chinese products the major competition is on stone studded jewellery the stones are treated or artificially grown whereas Amrapali uses natural stones and natural finish. “Heat treatment of stones given in China or Fareast makes those stones very attractive as well as colorful but what customer’s fail to understand is that the stones for which they are buying the jewellery is not authentic, once he or she realizes the value that Amrapali’s genuine product delivers they switch back to our products”, articulates Mr. Rajeev Arora.

Some other challenges in front of Amrapali are existence of several rather a large number of unorganized units and lack of adequate infrastructural support provided to jewellery manufacturers by the government.

According to Mr. Rajeev Arora, “Amrapali is continuously trying to upgrade its level o design sophistication and style quotient which will help us to cater our celebrity especially international clients better. Next focus area is enhancing product portfolio, we are looking for options to create and cater to men’s jewellery market by introducing products like cuff-links, male bracelets and tie-pins to name a few”.

Amrapali at the moment has a favorable industrial as well as export policy to support it along with a dedicated team of professional designers and managers to leverage its brand value that is recognized today in international fashion and jewellery markets. Lots and lots of celebrities adorn Amrapali jewellery and several fashion and Jewellery shows showcase Amrapali jewellery today. Keeping future in mind Amrapali is trying to generate future marketing strategies, actively looking for retailers that can add value to their brand, big prestigious clients like Stella Dot or Macy’s along with searching for perfect product-market fits that can provide it with major growth impetus and help it to attain the heights it dares to dream off.

Conclusion –

Thirty Two years ago when – Rajiv Arora and Rajesh Ajmera, set out on an entrepreneurial mission, little did they know that their “Amrapali” would be shining on the international map in a considerably short time span. Today Amrapali is India’s leading manufacturer, exporter and supplier of premium quality jewellery and artifacts – be it hand crafted sterling silver ornament or gold artifact studded with precious and semi-precious stones.

In last 32 years Amrapali has made a huge progress and traveled a great distance and become what they dreamt it to be but still it is not the end of the road and there are miles to go.

References –

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Websites:

http://www.amrapalijewels.com/?page_id=26 Accessed

Date: 16th September 2010

http://www.amrapalijewels.com/?page_id=8 Accessed

Date: 18th September 2010

http://www.amrapalijewels.com/?page_id=149 Accessed