Senco Gold & Diamonds is tightening its inventory strategy, increasingly relying on analytics and AI-driven tools to track design performance and selling cycles across its network.
“With the gold price going up, it is not just about the quantity of gold you are keeping in the store. It is equally about the exact quality of the design and the kind of products you are stocking,” said MD & CEO Suvankar Sen.
“We do not want to increase unnecessary stocks. We are analysing those stocks that are not selling beyond a certain number of days, and we are focusing on recycling them and fulfilling those stocks that are selling. Going forward, the inventory days are likely to remain in the range of up to 180 days,” he said.
The strategy reflects a broader shift in jewellery retailing. As prices rise, every additional gram purchased impacts working capital and increases financial exposure. Retailers are therefore closely monitoring how quickly each product category moves — whether bridal sets, lightweight daily wear, festive collections, or plain gold investment pieces.
Slow-moving designs are identified through data analysis and either redesigned or melted and recycled into newer collections that better match customer preferences. This not only reduces capital blockage but also keeps store displays fresh and aligned with current trends.
High gold prices have also influenced consumer behaviour. Buyers are becoming more selective, often favouring lighter, design-focused jewellery rather than heavier pieces. That makes design innovation and merchandising discipline as important as bullion procurement.
By tightening stock controls and prioritising fast-selling designs, Senco aims to maintain profitability despite volatile gold prices. The emphasis is clear: smarter inventory management over stock accumulation.
“Our focus is how we can keep growing, keep producing designs and products that we can serve customers in these times, and to reach out to Tier 2, 3 and 4 towns and cities,” Sen said.
On the acquisition of Bengaluru-based Melorra, Sen said that Senco, as an 88-year-old brand serving customers across four generations, sees the move as part of a broader strategy to connect with Gen Z and millennial consumers. Melorra fits into Senco’s efforts to strengthen its appeal among younger buyers seeking contemporary, lightweight designs.
Senco has also been among the early jewellery brands to introduce 9-carat gold jewellery, including in diamond collections.
“Our forte is to create lightweight jewellery and cater to the needs of consumers. We have been masters of creating lightweight, affordable jewellery across various ranges. That is our USP, and that is what is helping us grow in these challenging, uncertain markets,” he said.
Currently, Senco operates 196 stores and expects to reach 200 stores by the end of March. Next year, the retailer plans to open 18 to 20 stores, with an equal split between franchisee-owned and company-owned outlets.
Management has guided for conservative revenue growth of over 25% in Q4, supported by the upcoming wedding season and Akshay Tritiya demand. For FY27, Senco is targeting revenue growth of over 20%.