Jewel Trading caters to Gen Z and millennials who will prioritize community-driven brands: Jay Patni

With millennials and Gen Z anticipated to fancy community-driven brands, the brand emphasizes the need for establishing a strong presence within various communities to remain relevant and competitive in the future

Dubai: Jewel Trading is a second-generation family business that has thrived for 35 years in the UAE. What started as a modest retail outlet for silver jewellery in 1991 has blossomed into a multi-vertical enterprise, encompassing diamond jewellery wholesaling and retailing, gold jewellery retail, and even commodity trading. Headquartered in the Gold Souq, the brand has established a strong presence in the retail landscape, with stores spread across the city. In an exclusive conversation with The Retail Jeweller MENA, Jay Patni, CEO, Jewel Trading, Dubai shares his brand’s journey from silver to diamond and gold retail.

How has your brand’s silver business evolved and how has the demand pattern changed?

Over the last decade, the silver business has evolved significantly, especially in terms of designs and styles. Silver jewellery has become trendier, featuring updated fashion styles that are experimental and relatively inexpensive. It often serves as a sample line for what would later be developed in diamonds. This evolution reflects the changing preferences and demands of our customers, who are increasingly looking for unique and fashionable silver jewellery options. We offer a comprehensive range of silver jewellery and articles, catering to both locals and tourists. Our designs reflect both traditional and Western influences.

What is the scale of your operations?

Silver is a major part of our business, constituting 50% of our operations. Diamonds make up 40% of our business, with a niche in bridal necklaces. Gold, a more recent addition, accounts for 10% of our business. We currently have 8 stores, all located in Dubai, with plans to expand to Abu Dhabi, Kuwait and Qatar. Each store is strategically segmented to offer a distinct shopping experience, with one store dedicated to silver, another to gold, and two specifically for diamonds. We also have a boutique in our head office catering to our VIP and elite clientele.

How did Jewel Trading move into gold jewellery retail?

In 1999, we ventured into diamond jewellery and our specialty lies in Middle Eastern and European bridal necklace sets. We have been wholesaling this product throughout the Middle East, America, and other countries. In 2017, recognizing the shifting trends in the market; we decided to diversify into gold jewellery retail which solidified our presence in Dubai’s competitive jewellery market. In 2020, amid global challenges, we entered into commodity trading which was a strategic vertical integration into our business, particularly stemming from our existing relationships in the diamond and gold jewellery sectors. Dubai’s platform facilitated this expansion, allowing us to leverage our connections for successful exports.

How does Jewel Trading’s customer base vary across its different jewellery categories?

Our customer base is diverse, thanks to our range of silver, gold, and diamond jewellery. Silver jewellery and articles has a global appeal, attracting customers from around the world due to its wide range of options, from Indians seeking traditional Indian articles for gifting and home purposes to jewellery enthusiasts worldwide. In terms of diamond retail, the customer base includes Middle Eastern clients as well as tourists from Europe and America. Our gold jewellery attracts mainly Southeast Asians, including Indians, Pakistanis, and Bangladeshis, with some customers from Iran, Iraq, and neighbouring regions.

How does change in customer behaviour impact jewellery industry trends?

Earlier, customers in their 60s, 70s and 80s wielded purchasing power, influencing design trends, distinct from those favoured by customers born between the 1980s and 2000. Today’s brides in the Middle East, for example, prefer smaller, more versatile necklaces over large, traditional pieces. This change reflects a broader trend across the industry. Gold jewellery trends remain somewhat traditional, especially among mass-market consumers, who still value traditional pieces for weddings and other significant occasions. However, there’s a noticeable shift towards modern designs, including Turkish, Italian, Kuwaiti, and Bahraini styles. Silver jewellery trends mirror those of diamond jewellery, with a focus on everyday wear.

Brand consciousness is also on the rise, with customers gravitating towards established brands like Cartier. This shift poses a challenge for smaller jewellers, who struggle to compete with established brands.

We anticipate further changes driven by the next generation, particularly millennials and Gen Z. These groups are expected to prioritize community-driven brands, favouring brands that resonate with their values and community affiliations over large, established brands. This shift underscores the importance for brands to establish a strong presence within various communities.

What are the major challenges and opportunities for jewellers in the Middle East market?

One major challenge is competing with bigger, more established brands. However, opportunities abound. By understanding the changing consumer behaviour, particularly the importance of community-driven brands, we can differentiate our products effectively. Small retailers have the advantage of being more agile and responsive to these trends, which can lead to significant business growth, even compared to larger corporate structures.

What innovative approaches have you implemented that transformed your business?

In our business, we recognize the pivotal role of technology. We use the latest technologies, with an aim to innovate and create something personal for each customer. Incorporating AI into our operations has revolutionized various aspects of our business, from financial analysis to marketing strategies, while significantly improving our productivity and reducing costs.

By Bushra Satkhed

Retail Jeweller World Exclusive