How National Jewellery’s in-house manufacturing powers its capabilities in pricing and customization 

In this exclusive interview with The Retail Jeweller ME, Jay Dhakan, Director, and Anukul Gandhi, Vice President, of National Jewellery, delve into the strategies that have made their brand one of the leading names in the Middle Eastern jewellery market, with a particular focus on their in-house manufacturing capabilities and how it gives them a competitive edge in pricing and customization.

WINNING COST & CRAFT

Established in 1957, National Jewellery has grown from a local retailer to a vertically integrated powerhouse, offering everything from traditional gold designs to high-end diamond jewellery, with a strong focus on in-house manufacturing. This capability not only ensures faster turnaround times for custom orders but also allows them to maintain stringent quality control. As Dhakan aptly puts it, “At the end of the day, it’s all about making sure the customer leaves happy”—and in an industry as competitive as jewellery, it’s a philosophy that can’t go wrong.

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Maithili Patange: National Jewellery has been in the industry since 1957. How has the business evolved over the years?

Jay Dhakan (JD) : When we started in 1957, our primary focus was on catering to the local market with traditional Arabic designs and 22k gold jewellery. Over the years, we’ve seen an enormous shift in consumer preferences. Today, we offer a wide range of products, including diamond jewellery, coloured gemstones, pearls, and even lab-grown diamonds serving a diverse customer base with an extensive range of products, ensuring that every customer finds something they love.

The key to our longevity has been our commitment to customer satisfaction. My grandfather instilled the value of transparency and relationship-building, and that remains at the heart of our business today.

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MP : What are the key turning points that have shaped National Jewellery into the brand it is today?

JD : One of the biggest turning points was our decision to move from being a retailer to a manufacturer. This allowed us to have greater control over our production processes, reduce costs, and offer more customized options to our customers. Another key milestone was our expansion across the UAE. We now have over 10 stores, including locations in the Gold Souk and other prime areas. Our ability to adapt to changing market trends and customer preferences has been crucial to our growth.

MP : You mentioned that in-house manufacturing has been a game-changer for National Jewellery. Can you elaborate on how this has impacted your business?

JD : In-house manufacturing has been a significant advantage for us, especially in a market like Dubai, where a large portion of our customers are tourists with limited time. When customers come to us with custom orders, we can fulfil them quickly because we have the ability to manufacture jewellery on-site. This has not only improved our efficiency but has also reduced our production costs by 20-25 per cent.

Currently, 65 per cent of our jewellery is manufactured in-house, while the remaining 35 per cent is sourced from external suppliers. This balance allows us to maintain a wide variety of products while keeping our costs competitive. Our factories are equipped with the latest technology, including 3D modelling and casting machines, which enable us to produce intricate designs with precision.

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MP : How does this in-house capability translate into better pricing for your customers?

Anukul Gandhi (AG): Because we control the entire manufacturing process, we can offer our customers the best value for their money. Our making charges are very competitive, and we don’t need to rely on external suppliers for every piece, which reduces overhead costs. This allows us to pass on the savings to our customers, making our jewellery more affordable without compromising on quality.

MP : Dubai is a melting pot of cultures. How do you cater to such a diverse customer base?

AG: Dubai’s tourism market is incredibly diverse, and we’ve made it a point to offer something for everyone. For example, Arabic customers tend to prefer traditional gold jewellery, while Indian customers often look for 21k-22k gold pieces. European and other international tourists, on the other hand, are more inclined towards 18k gold with diamonds or coloured gemstones. We also cater to the growing demand for lightweight jewellery, which makes up about 70 per cent of our collection.

MP : What about high jewellery? Who are your primary customers in this segment?

JD : High jewellery is a mix of different nationalities. For gold-heavy pieces, our primary customers are Arabs and Indians. However, when it comes to high-end diamond jewellery, such as large diamond necklaces, we see a lot of interest from Europeans and Chinese customers as well. Dubai’s status as a global tourist destination means that trends are constantly shifting. In the early 2000s, we saw a lot of Russian customers, but in recent years, the market has become more diversified.

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MP : How has technology played a role in your business, especially in terms of design and manufacturing?

AG : Technology has been a game-changer for us. We’ve invested heavily in the latest machinery, including 3D modelling and casting machines, which allow us to create intricate designs with precision. We also have in-house designers to bring our customers’ visions to life. This combination of traditional craftsmanship and modern technology enables us to stay ahead of the curve in terms of design innovation.

MP : What about lab-grown diamonds? How do they fit into your product offering?

AG : Lab-grown diamonds are still a small part of our business, accounting for less than 1 per cent of our sales, but we keep it as we have a demand for it. However, we’ve seen a growing interest in this category, especially among younger customers who are looking for more affordable options. That said, natural diamonds still hold a strong emotional value, particularly for customers who are buying jewellery for special occasions like weddings or anniversaries.

MP : How do you market your brand in such a competitive market?

JD : Our current marketing strategy is focused on digital approaches. We’ve started focusing more on digital marketing, particularly through Instagram, where we showcase our products through reels and videos. I appear on these reels myself giving it a bit of a personal touch. This has helped us reach a younger audience and generate inquiries that often convert into sales. Currently, about 95 per cent of our sales come from physical stores, while 5 per cent are from online channels. However, we’re constantly looking for ways to enhance our e-commerce presence and explore new technologies like AI to improve the customer experience.

MP : Do you have any plans for expansion outside the UAE?

JD : For now, our focus is on enhancing our presence within the UAE. Dubai is an ideal market for us because of its status as a global tourist destination and the government’s supportive regulations.

MP : How do you see the jewellery industry evolving, and what role do you see National Jewellery playing in that evolution?

JD : The future of the jewellery industry, especially in Dubai, is closely tied to tourism. As long as Dubai continues to attract tourists, there will be opportunities for growth. However, the key to staying ahead is innovation. We’re constantly visiting exhibitions and keeping track of global trends to ensure that our designs remain relevant. Our goal is to provide a world-class customer experience, whether it’s through personalized service, custom orders, or innovative designs.

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MP : What advice would you give to other jewellery businesses looking to succeed in this competitive market?

JD : My advice would be to focus on customer satisfaction and stay adaptable. The jewellery industry is constantly evolving, and businesses need to be willing to embrace new technologies and trends. At the same time, it’s important to stay true to your brand ethos and maintain a strong relationship with your customers. For us, that means ensuring that every customer leaves our store happy, whether they’re buying a 100-dirham piece or a million-dollar necklace, that’s what National Jewellery stands for.

By Maithili Patange