Differentiated value proposition

We are an electronic retailer of fashion jewellery, gemstones, lifestyle products and accessories in US, UK, and Germany, with access to approx. 124 million households through our TV home shopping networks and digital platforms. The group has reported a track record of consistent growth in digital retailing of jewellery, gemstones, and lifestyle products over the years. We take pride in being a value player by offering compelling values to customers enabled by our direct sourcing and an asset-light business model. Our focus on expanding our channel footprint along with widening the product portfolio has broad-based market share gains across US and UK over the years and we are confident of continuing this momentum.

What helps sustain margins

A fully integrated supply chain is our moat, and we manufacture the majority of our jewellery products which allows bulk sourcing and better price negotiations. Recently, we also ventured into manufacturing apparels. Apart from China, India, Thailand and Indonesia, we have a strong sourcing arrangement from several countries. This strong supply chain mechanism allows a strong value proposition to the customers and sustains gross margins above 60%. Our vertically integrated supply chain has worked favourably for us till date. Even during the recent period when the freight prices went up sharply along with air freight capacity constraints, we were able to tide over these challenges with relatively reduced impact. Besides costs, our vertical model also help reduces delivery time and better control over the quality of products.

Expanding non-jewellery categories

We understand the potential of being an omni-channel retailer with cross-category selling potential. With the intent of deepening our customer engagement, we continue to introduce new non-jewellery products regularly. TJC Beauty, our dedicated beauty channel, expanded its reach in UK by launching on SKY - UK’s largest pay-tv broadcaster. Non-Jewellery products provide synergistic adjacency to its fashion jewellery portfolio at similar price points, allowing us to target a larger wallet share of customers. This also helps us improve retention and repeat purchase by customers.

Brand: Deep Discounting Focused Retailing

Our key focus of the year has also been to consolidate our branded products to enhance customer trust and loyalty. Today, our in-house brands contribute 25-30% of group revenue. Further, during the year, we acquired global online brand rights of ‘Rachel Galley’, a UK based jewellery designer brand. It is a multiple award-winning brand which focusses on the principle of ‘exceptional jewellery at affordable prices. Also, we launched ‘TAMSY’, a new female fashion apparel brand targeting customers above 40 years of age. We believe that wider brands presence across multiple sales channels allows higher recall therefore better customer retention and repeat sales opportunities.

Innovation facilitating business efficiencies

At Vaibhav Global Limited, we constantly nurture a culture of innovation across products as well as processes. In product innovation, we have created multiple programmes such as ‘Innov8’ for employees and family members, ‘Draw a Design’ for college students, ‘SPARK’ for entrepreneurs, ‘Idea Labs’ for customers, ‘Catapult’ for outside Innovators. We are proud to share the fact that revenue from our innovation products contributes ~5% to our global revenue. Similarly, on the processes front, we encourage our employees to share their process ideas. During the year, we received more than 2,000 innovative process ideas, out of them 246 ideas have already been implemented. Process innovation is expected to provide operational synergies and cost optimisation across the organization.

Committed to sustainability

We have consistently believed that value creation and sustainable business practices are complementary goals. Renewable energy is a key focus area in VGL’s strategy for mitigating climate change risks. As the world races towards Net Zero, we have set a target to become carbon neutral in Scope 1 & 2 emissions by 2031. We remain committed to using responsibly sourced material. Our solar power capacity of 3.23 MW is addressing 100% of our energy requirements in Jaipur. Our two office buildings in the US are also using 100% renewable energy. During the year, we developed 2nd Miyawaki forest in Jaipur and planted ~13,000 saplings there. We compost all our biodegradable waste and safely dispose off our plastic and e-waste in our India units. Efforts are already underway to follow the same at other group units too. Under our flagship one-for-one meals initiative ‘Your Purchase Feeds…’, we served 13 million meals to school children in India, US and UK during FY22. With this, we have served 63 million meals till date.

Moving forward

Our differentiated value proposition through the deep discounting model presents an opportunity to grow faster organically (US and UK) and through our foray into the new territory of Germany. We are on the right course, in the right direction and the Company would continue with its tireless efforts to improve returns for its shareholders, delivering quality products, and taking customer centricity to the next level. We are also proud to be a company with highest level of corporate governance and transparency.

As we look ahead, on behalf of the Board of Directors, I take this opportunity to express my sincere appreciation to our Customers, Partners, Employees and Shareholders for your support and trust. I seek your continued support to grow and progress our Company to greater heights.

With My Best Wishes,

Harsh Bahadur

Chairman