How Jewel Dubai’s category-segmented retail model creates a competitive edge for them in the market

Tailored Stores, Targeted Growth 

Jewel’s success lies in its strategic segmentation—operating separate stores for silver, gold, and diamonds to cater to distinct customer bases. CEO Jay Patni reveals how this approach, coupled with market-specific expansion plans and digital transformation, has enabled the brand to scale while maintaining operational efficiency in a competitive Middle Eastern landscape in an exclusive interview with Retail Jeweller Middle East.

Established in 1990 in Dubai, Jewel has evolved from a modest silver store to a multi-category powerhouse, offering silver, gold, and diamond jewellery. With a unique approach of operating separate stores for each category, the brand has successfully catered to diverse customer bases, from international silver enthusiasts to high-net-worth diamond buyers. Jay delves into the brand’s strategic expansion, operational challenges, and innovative marketing strategies, offering valuable insights into how Jewel has maintained its stronghold in the competitive Middle Eastern jewellery market.

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Maithili Patange (MP): Can you tell us about the origins of Jewel and how it all began?

Jay Patni (JP): Jewel was established in 1990, during a tumultuous period marked by the Kuwait and Iraq war. My father, who had lost his job due to regional tensions, decided to venture into the jewellery business. With limited savings, he invested in silver, a more accessible precious metal at the time, and opened our first store in Dubai’s Gold Souk. Back then, silver jewellery was a niche market, and our unique positioning helped us attract a diverse customer base, including the US Navy personnel stationed in Dubai. This early success laid the foundation for what Jewel is today.

MP : Jewel started with silver, but over the years, you’ve expanded into diamonds and gold and operate them separately. What was the strategy behind this expansion?

JP : Our expansion into different categories was driven by market demand. We started with silver, which remains a core part of our business, contributing around 50 per cent of our gross profit. In 1997, we ventured into diamond jewellery, initially focusing on wholesale before opening our first retail store in 2009. Diamond jewellery now accounts for 30-35 per cent of our business. Gold jewellery, which we introduced in 2017, makes up the remaining 15-20 per cent. Each category serves a different customer base, and we’ve structured our business to cater to these distinct segments.

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MP : Why did you choose to open separate stores for each category instead of consolidating them under one roof?

JP : The decision to have separate stores for each category was well-thought and necessary. Each segment—silver, gold, and diamonds—has a different customer base and requires a unique approach as we are based out of Dubai which has a mix of Arabs as well as expatriates. For example, our silver jewellery appeals to a broad international audience, which is why we have kept everything from a nose ring to a necklace in this category; while our diamond jewellery caters primarily to Middle Eastern and European customers. Similarly, gold has a more Indian customer base. By having separate stores, we can offer a more focused shopping experience, which has significantly improved our conversion rates. Additionally, it allows us to tailor our marketing and customer service strategies to the specific needs of each segment.

MP : Can you break down the customer base for each category?

JP : Certainly. For Silver, our customer base is quite diverse. We have wholesale clients from Africa, the US, and Europe, as well as retail customers from around the world. Silver jewellery is accessible and affordable, making it popular in markets like Kenya, South Africa, and Mauritius. In contrast, our diamond jewellery customers are predominantly Arab—70 per cent and European—30 per cent. We’ve also started to see a shift in trends, with more Indian customers showing interest in diamond jewellery. Gold, on the other hand, is primarily targeted at the Indian subcontinental market, where 22-carat and 21-carat gold jewellery is in high demand.

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MP : Dubai is often associated with gold, but you’ve mentioned that silver has significant potential. How has the silver market evolved over the years along with your brand?

JP : Silver has always been an underrated metal in Dubai, but its potential is immense. The pricing of silver, compared to gold, makes it an attractive option for many customers. Over the years, we’ve seen steady growth in the silver market, with an 8 per cent year-on-year increase in revenue in the category. The market has evolved to include not just jewellery but also silver artefacts, which are popular among the Indian subcontinental community. We’ve also noticed that customers are more willing to experiment with silver jewellery, especially when it comes to designs that mimic diamond jewellery. This has allowed us to compete in a space that was traditionally dominated by gold and diamonds.

MP: Managing multiple stores across different categories must come with its own set of challenges. What are some of the operational hurdles you’ve faced?

JP : One of the biggest challenges we face is human resource management. Each category requires a different skill set, and finding employees who can cater to the specific needs of each segment is not easy. For instance, selling diamond jewellery requires a different approach compared to selling silver artefacts. Over time, we’ve invested in training programs to upskill our employees, which has helped us improve our customer service across all categories. Another challenge is finding synergies between different departments to reduce costs. While we operate each segment as a separate business, we also look for opportunities to collaborate and streamline operations.

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MP : How do you approach marketing for such diverse categories?

JP : Each category has its own marketing strategy. For diamond jewellery, we focus on community building and collaborations with influencers who resonate with our target audience. Silver jewellery, on the other hand, requires a different approach, often involving influencers who can tap into the Indian market. We’ve found that direct client approaches are less effective today, so we’re focusing more on building relationships and being part of the communities where our customers are. We maintain separate social media handles for each category to ensure clear distinction and a tailored aesthetic. For example, our gold category page focuses on Indian festivals and their marketing, aligning content with cultural and seasonal trends to engage the target audience effectively.

MP : How is Jewel adapting to the digital age? Do you have an e-commerce platform?

JP : We do have a website, and we’re in the process of expanding our e-commerce capabilities. Currently, we’re seeing more traction from our social media platforms, but our focus is on building a robust online presence. We’re planning to integrate advanced technologies like Virtual Reality and Artificial Intelligence to enhance the customer experience. For example, high-end clients can book consultations or appointments through our website, and we’re exploring ways to offer a more personalized shopping experience online. The goal is to create an omni-channel approach where customers can interact with us through multiple touchpoints, not just in-store.

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MP : You’ve recently ventured into high jewellery. How has that experience been so far?

JP : High jewellery is a growing segment for us. We’ve set up an 800-square-foot diamond boutique to cater to high-net-worth individuals (HNIs). The focus here is on customization and exceptional customer service. Our high jewellery customers are primarily Arabs—60-70 per cent and Europeans—30-40 per cent. We’ve noticed a shift in the market, with more customers willing to invest in unique, high-quality pieces.

In the high-end jewellery segment, we cater to two distinct categories of customers. The first group prefers classic designs with superior-quality diamonds and impeccable craftsmanship. The second group seeks more artistic, designer-based, and customized jewellery.

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MP : What are the next milestones for Jewel?

JP : Our immediate focus is on retail expansion. We currently have nine stores in Dubai, but we’re planning to expand beyond Dubai by targeting areas like JLT and Marina. We are also exploring expansion in the Middle East, using insights from regional exhibitions. This year, we are considering store openings in Kuwait, Bahrain, and Doha, with a potential venture into Riyadh, Saudi Arabia.

Our strategy varies by market—Doha will have a diamond jewellery store, while Kuwait will feature both silver and diamond jewellery. Saudi Arabia is also a key focus for both segments. We’re also exploring opportunities in new markets such as Australia and New Zealand by participating in more exhibitions there to get a good idea about the market. Currently, we’re steering away from expanding gold boutiques due to high competition and investment requirements.

By Maithili Patange