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Saudi Arabia’s L’azurde Company for Jewellery has announced its plans to open new outlets and kiosks in the Middle East next year.
In a bourse filing on Monday, the gold and jewellery designer, maker and retailer said it intends to sell gold jewellery by piece at affordable prices, a major shift from the traditional wholesale approach of selling jewellery based on weight.
“This is a significant development in the company’s strategy, which in the past relied mainly on selling gold jewellery by weight in the traditional gold souks,” L’azurde said.
“This follows the company’s efforts to diversify and expand its revenue streams by adding new brands and entering new channels to address the latest changes in consumers’ preferences, shopping behaviour and the high gold price level,” it added.
The firm said it would be selling jewellery by piece through its recently added new label and collection, dubbed “Miss L” and “L’azurde InStyle”, respectively, in Saudi Arabia and Egypt. It has so far launched an e-commerce platform for its “Miss L” brand, and plans are underway to unveil more brands.
“[The company] is about to undertake a major online expansion through more brands and entry into the leading marketplaces,” said L’azurde.
“The company intends to open dedicated Miss L’ retail locations in KSA and Egypt in the year 2021,” it added.
It also clarified that it will still “pursue developing its traditional wholesale business” of selling jewellery by weight.
“It is expected that this business will have over time a lower share of the company’s revenues and profits. This is a reflection of the move of consumers’ buying trends from traditional markets to modern markets in malls and the shift from buying… jewellery by weight to buying fashionable and classic affordable gold jewellery by piece,” L’azurde said.
“This will help [the company] reduce its working capital and its associated high cost of financing,” it added.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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