homebusiness Newscompanies NewsSenco Gold says its margins might be affected due to discounts and offers on jewellery
Senco Gold says its margins might be affected due to discounts and offers on jewellery
Suvankar Sen's insights offer a glimpse into the dynamic world of Senco Gold and Diamonds. Despite the challenges posed by quarter two and the margin impact of discounts and offers, the company remains focused on its long-term growth vision. The expansion plans and regional focus reflect the company's adaptability and determination to thrive in the competitive jewellery industry. However, it will be interesting to see how these strategies unfold and contribute to the company's continued success in the forthcoming quarters.
Kolkata-based jewellery chain Senco Gold Ltd is currently working on certain strategies that could counter an imminent sales decline, and as part of this, it started a variety of special offers and discounts to customers. However, the company has cautioned that it will see its margins dropping in the forthcoming quarters.
Suvankar Sen, the CEO of Senco Gold and Diamonds, in an exclusive interview with CNBC-TV18, said that the company is actively working to counter an anticipated dip in sales. While these measures may affect the margin temporarily, they are part of a larger strategy to keep the business vibrant during leaner periods, he said.
"We are giving offers and schemes and various discounts to our customers, so that the interest to buy jewellery continues to remain. So we don’t see too much of a growth in margins," he explained.
Touching upon the anticipated challenges in the upcoming quarter, Sen stated, "Quarter two will be a softer quarter. We don’t have too many weddings, the same time the festive season is not there, people wait for the monsoon to be good one for quarter two so that we see the results in quarter three."
However, Sen remains optimistic, saying that; "Quarter two growth may not be as robust as quarter one. At the same time, we are hopeful that quarter three, the sentiment looks positive due to the festive season. ”
When asked about the company's long-term vision, Sen was confident in his response. "The growth will be in the range of 15-20 percent," he said.
Senco Gold and Diamonds is also actively expanding its retail footprint. Sen disclosed, "The next coming one-two years, the number of stores that we would like to open would be in the range of 15-20 per year."
Elaborating on the choice of Eastern and Northern India, Sen explained, "Our focus has always been in Eastern India and Northern India".
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
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