indian retail jewellery industry

8/2/2019 Indian Retail Jewellery Industry

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INDIAN RETAIL JEWELLERY INDUSTRY

Retailers are also looking at mobile store concepts and thinking of innovative ways to connect to theconsumer. Brand building, and creating brand identity is the focus of every retailer in India at present. Indianretailers see a huge jewellery consumer market in India but there is a slight speculation that they might soonface stiff competition from within as well as from international brands who are rapidly setting up chain stores.

The Karatmeter is a scientific device launched by India based TATA Group which uses X-rays to give an

exact reading of the purity ofgold. It is an accurate, non-destructive means oftesting the purity of gold

and other related elements. Using this technique, the precise percentage by weight (ofkarat) in a solid

piece of jewellery can be determined in just a few minutes. It also accurately determines the element

composition of all types of gold, white gold, platinum, silver, palladium, rhodium and related alloys.

The Karat meter is a scientific device which determines the purity of gold jewelry.

This machine was first launched by India based TATA group which uses X-rays to

give an exact reading of the purity of gold. It is an accurate, non- destructive means

of testing the purity of gold. The machine has a fixed wave length on which it

determines the purity. It is rectangle in shape and very heavy. There is an opening

in the middle of the machine and a lid to cover. The machine is connected to a

computer. The monitor displays the jewel kept inside the machine. The jewel is

then kept on the small illuminating opening in the machine and the lid is closed.

The start machine starts the countdown for the X-ray to be released on the jewel

and back again in to the system to determine the purity of the gold.


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An Indian Brand, which can make big in the global market, is Tanishq from Tata Group of Industries.

Tanishq is India's largest, most desirable and fastest growing jewellery brand in India. Tanishq today

is India's most aspiration fine jewellery brand with an exquisite range of gold jewellery studded with

diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt pure gold.

Exquisite platinum jewellery and designer silverware is also part of the product range.

Though they faced with many difficulty in the early stages they for about six years they then came with

up with good strategies The Tanishq strategy for the coming couple of years relies on two things

increasing penetration in the domestic markets and going abroad in order to diversify its revenue

portfolio.

To push penetration in other markets, Tanishq will use the shop-in-shop concept that it already does

in 50 stores across different West Asian markets. This reduces distribution costs. Also, for the

consumer it remains a Tanishq store and helps us get a foot into the market.

Their main core competency is in designing a wide range of products. They were the first to come up

with the idea of karat meter, which proves the quality of the gold, to win the trust of the customer.

Tanishq is India's largest, most desirable and fastest growing jewelry brand in India. Started in1995, Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group,India's most respected and widely diversified business conglomerate.Tanishq has set up production and sourcing bases through research of the jewelry crafts of India.

jewelry atTanishq is crafted in one of the world's most modern factories. The factory complies withall labour and environmental standards. Located at Hosur, Tamil Nadu, the1,35,000 sq. ft. factoryis equipped with the latest and most modern machinery and equipment. Every product at Tanishqis painstakingly crafted to perfection. Diligent care and quality processes ensure that the Tanishq

finish is unmatched by any other jewellery in the country.

Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. It exploded themarket with facts about rampant impurity across India. It introduced technology-backed challenge


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in a category completely governed by individual trust. Tanishq introduced innovations likeKaratmeter, the only non destructive means to check the purity of gold.Tanishq also introduced professional retailing in the dis-organised Indian jewelry bazaar, wherewomen can shop with comfort and peace, without worrying about the purity of the jewelry they arebuying, as well as, select from the best jewelry collections available in the Indian market.

Tanishq today is India's most aspirational fine jewelry brandwith 91 stores in 64 cities, with anexquisite range of goldjewelry studded with diamonds or coloured gems and a widerange ofequally spectacular jewelry in 22Kt pure gold.Exquisite platinum jewelry is also part of the productrange.Jewellery is one of the last great commodity frontiersin India; it has remained so because this marketisvery fragmented, very unorganized. Tanishq hassuccessfully taken on the challenge oftransformingthis frontier into a reliable consumer space bybringing to it all the virtues and benefitsthatbranding offers".- Harish Bhat, CEO, Tanishq.

BRAND POSITION

Tanishq has been projected as an impeachable mark of trust by raising the awareness of the

people about unethical practices in the jewellery business and then measuring the gold purity by

caratmeter.

Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It

moves jewellery beyond investment to the fashion and adornment sector.

SEGMENTATION

Niche Marketing After its inception in 1995 focus on exports, Tanishq's designs had been

conceptualized for the Western markets and were introduced in India without any alterations. Tanishq

positioned itself as an international brand for the Indian elite. The brand was targeted at a niche

market (However they later on started targeting the mass marketing since 1997).

Psychographic SegmentationLife Style: Tanishq has found that 40% of the Indian women are working

and they targeted this segment wth a specific group of products called collection-G, a 9-to-5 jewellery

for the working women.

In the branded jewellery segment, Tanishq has established its leadership position

and builta persona which is premium, stylish, exquisite and pure


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"D iamonds are a girl's best friend!" sang Marilyn Monroe, seductively, in

the 1953 hit movie Gentlemen Prefer Blondes.

The convic t ion has no t changed s ince then . Think b i r thdays ,

anniversar ies , spec ia l moments and what a re i t tha t wi l l b r ing asparkle to a womans eyes? The flash of diamonds! The glitter of gold! The

glorious glint of jewels! An Indian woman's penchant for jewellery is perhaps

greater than that of women elsewhere. The love affair starts from the cradle. As a

baby, bangles dangle from her wrist and anklets tinkle as she moves. By the

t ime she i s a todd ler , she has added earr ings and probably nose

r ings to her jewel le rycasket . And when she ge ts marr ied , she

rece ives as g i f t s streedhan- wealth in the form of jewellery from her

parents. Adorning herself with jewellery is an everyday affair, not

restricted to occasions and festiva ls. No wonder jewellery has always been

big business in India. In June 1995, when Tanishq entered the segment, the market

was dominated by the neighborhoodsonars (goldsmiths)who would craft

designs in gold for women. Sometimes the finesse would be missing;

often the gold would not be pure. Tanishq, as the first brand of jeweler in the

Indianmarket, changed all that. It promised pure gold and offered elegantdesigns at transparent prices. Since then, Tanishq has built on its first mover

advantage and remained the market leader through the years, despite many

new ent ran ts to the business . The company has been growing a tthe ra te of 40 per cen t per year for the pas t f ive years and has

re gis te red turnover of over Rs 750 crore in 2005-06. The target now is to

achieve a turnover of Rs 1,000 crore in the current fiscal.

Innovation mantra

The most important factors spurring Tanishq's success are innovation

in the businessmodel, in design and in promotions and the trust the Tata name

evokes. Tanishq is no longer the only brand wooing the Indian woman; Nakshatra,Sangini, Asmi, Damas at all are also in the race. The difference is that

most of these are predominately prod uct br an ds, wh ile Ta nis hq is a

reta il bran d, givi ng c ust omer s a uniqu e s hoppi ng experience.

Govindraj, VP retail and marketing, explains, "Tanishq is available only at

e x c l u s i v e o u t l e t s a n d t h i s w a s t h e c o m p a n y ' s f i r s t


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i n n o v a t i o n. T o d a y w e ha v e 8 0 showrooms in 60 cities."This was not

the only weapon in Tanishq's arsenal. It won the trust of its customers by

installing karat meters in its outlets to check the purity of gold. Tired of not being

sure of the q uali ty o f gol d the y had bough t, w ome n were de light ed.

The karat me te r us es the principle of spectroscopy to test the purity of goldwithout damage to the ornament or loss of any of the gold.

Tanishq's unique designs are created with the Indian woman in mind. Aware that a

woman plays different roles at work and at home, and dresses differently for every

occasion, Tanishq has created specific collections that have set a new fashion in

jewellery. "We are aligning ourselves by contemporizing traditional jewellery and

making it relevant for them," says Venkataraman.

Tanishq offers you a wide range of gold jewelry in pure 22k. Our range ofgold

jewelry has been designed to suit all occasions from wedding to everyday

wear.From the traditional harams, mangalsutras and thalis to the more fashionable

earrings, chains, bracelets and rings, there is a lot to choose from at Tanishq.

In India Gold has always been associated with security and is the most valuable

form of investment. However, it has been observed that consumer is an easy target

to several malpractices like under karatage, under valuation of the gold sold and

unfair buy back policies due to the lack of awareness about these issues.

Tanishq propagates ethical practices not only by assuring the customer purity and

selling policies, but also fair policies to the karigars who craft the jewelry

Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's

individuality but each piece is subject to the intricate process of design, crafting

and stone setting with stringent quality standards at every point. At Tanishq, we

cater to every occasion. Our collections in gold abound from the grandiose

wedding collection to exotic kundan and polki, from the stunning Aarkacollections to the exclusive Nakashi work. We ensure that we have something for

everyone with our baby range, 9 to 5 for the working woman and high fashion,

men's wear, teen's collection and regional specific designs.

GOLD COIN


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Every Tanishq gold coin is precisely engineered with care using the latest state-of-

the-art facility and modern technologies to turn the solid gold into master crafted

coins.

Coins, available in 24K (9999 purity standard used by Swiss banks) and 22K Gold.

At Tanishq, gold coins an excellent form of investment and are available in various

denominations ranging from half a gram, one, two, four, five, eight, ten and 50

gms.

Gold Bricks of 1 kg and Biscuits or Bars in denominations of 100 and 500 gms are

also available

These coins are also available with images of Ganesha, Laxmi, Balaji, Saibaba,

Allah, Om, Ayyappa, Cross and any other motifs. We also undertake institutional

orders.

When you exchange any Tanishq gold coin with jewelry, you get the benefit of the

appreciated current gold rate and there is no deduction, a full value exchange is

done on the same.

indian retail jewellery industry

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