RAPAPORT... Pure Gold Jewellers was founded in 1989 and has grown to currently operate 125 stores in 10 countries.
 Name: Karim Merchant
From: Dubai, UAE
Company: Pure Gold Jewellers – CEO & Managing Director
Rapaport News: What prompted you to pursue a career in the jewelry industry?
KM: My family always had its own business so it’s given me an entrepreneurial spirit. My father Firoz Merchant started Pure Gold Jewellers in 1989 in Dubai. Growing up, I was fascinated by the jewelry business and my interest became a career. Today, I cannot imagine doing anything else. Being in the family business, I learned the nuances of the trade early on, whether it was the sourcing of diamonds, grading or retail.
Rapaport News: Do you have a business philosophy that guides you in your work?
KM: My father instilled in me the importance of ethics and transparency in our business so that our customers have confidence in us. I believe in working hard, doing business ethically, being persistent and always taking the tougher option. As a company we are motivated to work together to achieve greater heights.
Rapaport News: Can you outline Pure Gold’s growth and expansion strategy?
KM: We have a very unique mid-market business model which has worked well for us. We bring diamond jewelry to the common man without compromising quality or design. We guarantee our customers the best prices in the market without cutting corners. All our diamond jewelry pieces are certified by internationally-renowned grading companies. We also offer free lifetime repair and unique exchange and buyback policies.
We believe in keeping things simple, sticking to the fundamentals, and focusing on customer service. Because of this commitment, we have been able to set new benchmarks in customer service in the UAE and have won several Dubai Service Excellence awards.
We plan to double our store count to over 250 by 2018 and we will be opening over 25 stores this year. We expect sales growth of 15 percent to 20 percent in 2014.
Rapaport News: How has the Middle East jewelry market evolved in the past few years of global economic caution?
KM: The Middle East is one of the few regions not considerably affected by the crisis. Strong oil reserves helped the region to withstand the storm and now, with Dubai winning the Expo 2020, there is new hope and excitement. The Middle East’s proximity to countries like China and India also makes it a hub for the gold and diamond jewelry industry.
Rapaport News: It is understood that the Middle East is a strong market for gold jewelry. How important are diamonds to consumers and to Pure Gold’s product offering?
KM: The value of diamond jewelry is emotive as it is linked to love, wealth and affection. Diamonds are quite popular in this region. Diamond jewelry in the last few years has also proved to have residual value and is now looked upon as a great investment.
More than 50 percent of our business comes from diamond jewelry sales and I expect that demand for diamonds will continue to grow in this part of the world.
Rapaport News: How important is branding for Middle East jewelry consumers?
KM: Branding plays a great role in attracting a younger generation of customers because brands create aspirational value. I think going forward, branding will play a key role in the jewelry business.
Rapaport News: What are the biggest challenges you face in the current market environment?
KM: Getting the right location for our stores is the greatest challenge at the moment. As the gulf region is a very sought-after retail market internationally, being in the right locations is crucial to the success of a business like ours.
We try to build long-term relationships with major mall operators in the region based on our current success and the relevance of our product offerings.
Rapaport News: If you could make any change to the industry, what would it be?
KM: I would increase the awareness and importance of online jewelry sales because it has great potential. As the internet and mobile phone penetration grows, ecommerce is going to play an important role.
Rapaport News: What advice would you give to someone starting out in the jewelry sector?
KM: It is a tough business but with the right attitude toward customer service and the ability to gauge customer needs, it is possible to succeed. As the gulf market is dominated by tourists and expatriates, many jewelry companies are not investing enough here to build a loyal customer base. Marketing and branding, if done prudently, pays back tenfold and should not be disregarded.
It is important to have a clearly-defined unique selling proposition that is tangible and easily understandable by your target audience.
Rapaport News: How do you envision your business 10 years from now?
KM: In the future, I see us as a well-run professionally-driven retail operation, managing over 500 profit-making stores with a strong team and loyal customer base.
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