L’azurde for Jewelry announces its revised strategy to grow and expand into selling gold jewelry by piece, at affordable prices, through its new jewelry brands and collections Miss L’ and L’azurde Instyle in KSA and Egypt markets. 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 behavior and the high gold price level. The Company also successfully launch of its E-Commerce Platform with Miss L’ so far and is about to undertake a major online expansion through more brands and entry into the leading market places.
This is a significant development in the company’s strategy which in the past relied mainly on selling gold jewelry by weight in the traditional gold Souks markets.
The new brand Miss L’ is currently sold in the existing L’azurde stores and kiosks in KSA and Egypt in addition to some 3rd party retailers in Malls. The Company intends to open dedicated Miss L’ retail locations in KSA and Egypt in the year 2021. The financial impact of opening new stores and kiosks will be reflected starting the first quarter of the year 2021 but it is difficult to quantify at the moment.
The new collection L’azurde Instyle will be sold by piece in the traditional gold souqs markets through a large network of 3rd party retailers. There are no plans at the moment to open dedicated stores for L’azurde Instyle collection. The financial impact of introducing and selling L’azurde Instyle products will be reflected starting the first quarter of the year 2021 but it is difficult to quantify at the moment.
The Company will pursue developing its traditional wholesale business selling jewelry 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 gold markets to modern markets in malls and the shift from buying heavy weight jewelry by weight to buying fashionable and classic affordable gold jewelry by piece. This will help the L’azurde Company to reduce its working capital and its associated high cost of financing.
The E-Commerce platform was successfully launched and it is being further developed. So far it is mainly selling the new brand Miss L’ and few other products. The contribution of the E-Commerce in revenues and income is still not significant but is growing fast. The company will continue to expand and grow the development of its E-commerce and presence on regional market places given the significant change in shoppers’ behavior towards purchasing online.
L’azurde has a very solid brand name, strong heritage, jewelry industry knowledge, an experienced management team and a strong diverse highly skilled Board of Directors to successfully transform the Company.