Diagram 8: US Expansion Operating Model

Diagram 8

US Expansion Operating Model

This is the full picture of how the business operates across two countries. India is where the jewellery is made. The US is where it is sold. Between them sits a legal and logistics bridge that most businesses underestimate until it causes a problem. This model shows how all three layers connect, and what the path to a permanent US boutique looks like.

flowchart TD subgraph IND["India — Design, Production & Export"] I1[Design Studio: Concepts & CADs] --> I2[Workshop: Crafting & Setting] I2 --> I3[Quality Control: Hallmark & Gem Certs] I3 --> I4[Merchandising: Piece List & Pricing] I4 --> I5[Export Compliance: IEC · Shipping Bill · ARE-1] I5 --> I6[Freight & Packing: Insured Security Cases] end subgraph BRIDGE["Export & Legal Bridge"] B1[Marine Insurance India to USA] --> B2[US Customs Clearance: CBP · HTS 7113] B2 --> B3[Specialist Carrier: Malca-Amit / Brinks] B3 --> B4[FEMA: USD Repatriation RBI Timelines] B4 --> B5[Return Shipment: Unsold Pieces to India] B5 --> B6[India Re-import: Bill of Entry · Drawback] end subgraph USA["USA — Sales, CRM & Operations"] U1[Private Exhibitions: Phase 1 & 2] --> U2[Telugu Community Target Cities] U2 --> U3[CRM & Relationship Management] U3 --> U4[Order Management: Ready & Custom] U4 --> U5[Last-Mile Delivery to US Clients] U5 --> U6[Phase 3: NRI & HNI Broader Reach] U6 --> U7[Phase 4: Permanent US Boutique] end I6 --> B1 B3 --> U1 U3 --> I1 B5 --> I5 B6 --> I4 style I1 fill:#1B2A4A,color:#C9A84C,stroke:#1B2A4A style U7 fill:#2C5F2E,color:#fff,stroke:#2C5F2E style B2 fill:#2C3E6B,color:#fff,stroke:#3D5A8A style B4 fill:#2C3E6B,color:#fff,stroke:#3D5A8A

Notes

Stage by Stage

What each step means in practice

1

India Stays the Production Core There is no plan to manufacture in the US. The craftsmanship, the design identity, and the cost structure all come from India. The US operation is sales and relationship management. Keep it that way — at least through Phase 3.

2

The Export Bridge Is Where Problems Happen In practice, 80% of operational problems in an India-to-US jewellery business happen in the export bridge: documentation errors on the Shipping Bill, HTS code disputes at US customs, insurance shortfalls, FEMA non-compliance. Invest in a good customs agent in India and a specialist broker in the US. This is not the place to use a general freight forwarder.

3

FEMA Is Not Optional Every dollar earned from US jewellery sales must be repatriated to India within the RBI-prescribed timeline (currently 9 months from date of export). Leaving money in a US account because it's convenient is a FEMA violation. Your CA needs to track this with every shipment and every sale.

4

Target Cities in Phase 1 and 2 Edison, NJ and the surrounding area (highest concentration of Telugu diaspora in the US). Houston, TX (Sugar Land, Katy corridor). Atlanta, GA (Alpharetta, Duluth). Fremont and Sunnyvale, CA. These four markets alone represent the majority of the addressable Telugu HNI audience. Start here before going broader.

5

Permanent Boutique — Phase 4 Realities A permanent US boutique means: a US legal entity (LLC or C-Corp), a US bank account, US sales tax registration in the relevant state, import bonds, staff visas or US hires, and a retail lease. None of this is impossible, but it requires 12-18 months of preparation. Start Phase 4 planning in earnest once Phase 2 exhibitions are consistently profitable.

6

Returns Loop Is Normal — Plan for It Not every piece sells. On average, for a private exhibition, 40-60% sell-through is a realistic target in Year 1. The other 40-60% come back to India. Plan for this in your export documentation from day one. The return shipment is not a failure — it's a normal part of the model.

Checklist

US Expansion Operating Model

Stage by Stage

Operational Checklist