Recently Damas Jewellery headquartered in Dubai changed hands. Doha based Mannai Corporation along with an Egyptian investment bank bought 85% of the shares from Abdullah Brothers who owned the company previously. Its business model fetched a valuation over US Dollars 1.3 billion. Let me give you a brief description of business model of Damas jewellery:
In describing the bizmodel, I am following an easy framework introduced by Gary Hamel in his book “Leading the Revolution”. The business model is chiselled in, in four parts: core strategy, strategic resources, value network and customer Interface as identified by Hamel:
1. Core Strategy
Business Vision: To strive to be a leading multinational in the jewellery and fashion industry and a house to international brands
Business Mission: To delight customers by offering luxury wrapped in trust with the help of a team of dedicated professionals
Products: In order to delight discerning customers Damas showcases jewellery embellished with diamonds, gemstones and pearls or plain gold jewellery. In addition watches and corporate gifts are sold. Jewellery articles include anklets, bangles, bracelets, brooches, earrings, necklaces, pendants and rings. In the watch segment we find Damas brand items such as Chalyano, Talos and Visetti together with Les Exclusives brands from European luxury houses such as Armin Strom, Parmigiani and Vacheron Constantin. Finally corporate gifts including awards, trophies and objects of art complete the array of products.
Market Scope: Main strategy of Damas is to remain as key player in the retail jewellery market with a regional spread in the Middle East as home turf and faraway regions, Turkey to its west and Thailand to its east as outer wings. About 300 store networks is located in about 12 countries making Damas the Middle East’s leading international jewellery and watch retailer. Consequently, the company has succeeded in making “Damas” almost a global brand name prompting Super Brand council of UAE to award Damas the Superbrand status.
Customer Segmentation: Primarily high-end market is configured to those who relish Jewellery designs that are unique and authentic conforming to norms and standards reflecting quality and exclusiveness. Secondly, fashionable and contemporary jewellery is retailed with an affordable price to youth and middle-end market.
2. Strategic Resources: Leveraging internal strategic resources is an easy going for Damas as it has built up exquisite jewellery designing as key forte in its 95 years of existence. Huge financial resources from its present owners are at hand for financing current level of business activity and to take it to the next level. Human resource pool consists of a team of designers, craftsmen and sales people along with dedicated management. Brand name of Damas is yet another strategic resource in the company portfolio.
3. Value Network: Leveraging external value network is carried out by securing supply, partnering with celebrities and collaborating with prestigious organizations. Initialling agreement with high quality diamond supplier Kristall from Russia ensures steady supply and the chance to distribute Kristall products in the middle-East. Joint venture with Tiffany in the new entity “TCO Damas Associates” allows for the first time, Damas to wholly manage Tiffany's operational activities in the Middle East. Appointment of Nancy Agram a Lebanese singer as brand ambassador is cited in the financial press with an approving nod. Collaboration with the World Gold Council based in Dubai in promotional activity has given added fillip.
4. Customer Interface: Damas retails jewellery and watches through four type of stores in order to satisfy different customer segments: Les Exclusives Stores offer high-end luxury products while Semi-Exclusives Stores offer stylish and sophisticated products for the discerning consumer. High Profile Damas 22K and 18K Stores offer trendy, fashionable and stylish products and brands at competitive prices. Exclusive watch stores and Mono – Brand boutiques cater to specialised requirements of customers.
All these stores are staffed with customer care officers who are well trained to educate customers and help them to choose the right articles. Friendly attitude of sales people and the excellent after-sales service have received customer accolades. Fulfilment of customer needs is the first duty of a business. Considering Damas as a jeweller and watch retailer placed in personal luxury goods, its growth potential is tied irreversibly with utmost customer satisfaction. The fact that Damas recording adequate growth rate consistently proves it is just doing that. More than that, its business model is worth the valuation.
Muthu Ashraff
Business Adviser
Mobile: +94 777 265677
E-mail: cosmicgems@gmail.com
Web: http://www.cosmicgemslanka.com
Blog: http://cosmicgemslanka.com/blog/
No comments:
Post a Comment