Responsible sourcing is one of the core tenets of our operations: Shamlal Ahamed, Malabar Gold & Diamonds

The brand is meeting evolving customer preferences in the Middle East market with ethical, trendy, lightweight jewellery, and strategic initiatives, including 100% traceable gold sourcing

Malabar Gold & Diamonds is navigating the ever-evolving landscape of the Middle East market with strategic insight and customer-centric approaches. In an exclusive interview with The Retail Jeweller MENA, Shamlal Ahamed, MD-International Operations, Malabar Gold & Diamonds talks about the dynamic jewellery market, strategies to deal with changing market trends and future expansion plans for the brand, which has a retail strength of more than 120 showrooms in the MENA region across the UAE, Qatar, Oman, Kuwait, Bahrain and Kingdom of Saudi Arabia.

What are the shifts in the Middle East market that Malabar has seen over the past year? How do you stay attuned to current trends?

While traditional jewellery buying has remained largely unchanged over the years, there has been a steady increase of millennials and Gen-Z amongst our customer base, preferring to buy trendy and lightweight jewellery in the lifestyle category as opposed to heavy pieces. Diamond jewellery is also growing in popularity among jewellery enthusiasts, owing to which we are providing a 100% value on diamond exchange, aligning the investment value of diamonds with their aspirational appeal. Design preferences are continually evolving, prompting us to regularly introduce new designs. Notably, customers are increasingly prioritizing sustainability and ethical sourcing. Responsible sourcing is one of the core tenets of our operations. We recently partnered with Rand Refinery to source 100% traceable gold.

How has the rising price of gold affected the brand? What strategies have you adopted to deal with the current market?

Rising gold price is testament to the value-appreciating nature of the asset. With ease of access being one of gold’s most attractive features, anyone searching for a reliable store of value – be it a beginner or an experienced investor – need not think twice about investing in gold. Gold’s appeal is increased manifold by the fact that unlike other investment avenues where the capital requirement is high, one can buy gold even with modest amounts. We are providing our customers with the gold rate protection facility, allowing them to block the gold rate by paying just 10% /50%/100% of their planned purchase value as an advance, allowing them to secure the best gold rate for their purchase up to 3 months or 6 months, regardless of price fluctuations. If the price increases, the customer pays only the blocked rate and if the price reduces on the day of purchase, they pay the lower rate.

What are the brand’s marketing and advertising spends in the MENA region, and which mediums have proven most effective?

Marketing and advertising play a pivotal role in our brand strategy and we use a combination of both digital and traditional mediums to engage effectively with our target audience. While digital platforms allow us to precisely target and engage with our audience, we have also seen outdoor and radio to be highly effective mediums in the MENA region. Online, we engage in various activities including social media marketing and influencer collaborations while our offline efforts include events alongside traditional advertising. Overall, our marketing strategy is dynamic and adaptive, continuously evolving to stay relevant and effectively engage with our audience both online and offline.

What are Malabar Gold’s future expansion plans?

We have over 350 showrooms across 13 countries, including GCC, Singapore, Malaysia, USA, UK, Canada, Australia and India. Encouraged by the support of our customers, shareholders, employees and stakeholders, we remain committed to strengthening our foothold in markets where we already have a presence as well as venturing into new territories. We have plans to set up our retail presence in countries like New Zealand, Bangladesh, South Africa, Turkey and Egypt. Through our international hub at Dubai Gold Souk in the UAE, we are driving operational efficiency and strategizing global expansion which is in line with our vision to make in India and market to the world. Our aim is to become the No.1 jewellery retailer in the world.

By Bushra Satkhed

Retail Jeweller World Exclusive