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TANISHQ: POSITIONING TO CAPTURE THE INDIAN WOMANS HEART

BMITTED BY Y.SAI SHANKAR

SU

TPS-B

18-101

Summa !
India is the largest consumer of gold in the world to be followed by China and Japan. India is emerging as world's largest trading centre of this commodity with a target of US$ 16 bn. set for !1!. "laced against targets to achie#e 6$ percent of the international mar%et by !1!& India's gem and (ewellery industry has registered an impressi#e 1.)) percent growth in e*ports India dominates the world's cut and polished diamonds +C",- mar%et. In #alue terms& the country accounts for appro*imately $$ percent of global polished diamond mar%et and nearly . percent of the (ewellery mar%et. /ccording to 0J1"C's pro#isional estimate& cut and polished diamonds registered 1..!6 percent growth in e*ports at US$ 2.11 mn. India accounts for 3!43$ per cent of the world's C", mar%et in #olume terms& $$46! per cent in #alue terms and about .! per cent in unit terms. 5ther ma(or players in the global C", mar%et are 6elgium and Israel. Surat contributes .! percent of India's total diamonds e*ports. India's domestic branded (ewellery mar%et is estimated at US $1$! bn. 7here are 1) bullion importing ban%s in India. India's 0em and Jewellery 1*ports "romotion Council +0J1"C- is aiming at turning India into an International ,iamond 7rading Centre. Since India already en(oys 3!43$ per cent of the world C", mar%et& scope for further growth in diamond e*ports is limited. 8ence& if India's gems and (ewellery sector is to substantially increase e*ports& the best bet lies in the (ewellery sub4sector. 0i#en the fact that the global mar%et for stone4studded (ewellery is e*panding& there is scope for e*pansion in India's diamond4studded (ewellery e*ports as well. 9ith or without diamond4studding& gold (ewellery is a mar%et where India has tremendous scope for e*port growth. India is the world's biggest consumer of gold according to 9orld 0old Council Statistics. 8owe#er& India's e*ports of gold (ewellery +1) per cent of its total gem and (ewellery e*ports- are negligible: less than per cent of the US$ 3! bn global mar%et. ,ecades of insulation from the world mar%ets has also not helped (ewellery design e#olution in India. India is by far behind 8ong ;ong& Italy

and 0ermany in terms of (ewellery design. 7his is another roadbloc% to e*ports. 90C has therefore introduced international (ewellery designing competitions among the Indian artisans. 0J1"C e*pects 1! per cent annual growth in India's (ewellery e*ports in coming years. 7his is the only area in the gems and (ewellery sector where e*port growth potential e*ists since& as said abo#e& India's C", e*ports already accounts for 3!43$ per cent of the global mar%et& thus reducing the scope for further e*pansion. Customs duty on rough diamonds and coloured gem stones& semi4 processed& half4cut and bro%en diamonds has been abolished while that on cut < polished diamonds and coloured gemstones has been reduced from 1$= to $=. 7he reduction in the customs duty on imported gold to >s 1!! +US$ - per 1! grams from >s $! +appro*. US$$- is a step in the right direction& so thin%s the industry. C"m#a$! O%& %'&(: In 1.3?& @uestar In#estments Aimited +a 7ata group company- and the 7amil Badu Industrial ,e#elopment Corporation Aimited +7I,C5- (ointly promoted 7itan 9atches Aimited Initially in#ol#ed in the watches and cloc%s business& 7itan later #entured into the (ewellery businesses. In 1..$& 7itan changed its name from '7itan 9atches Atd.' to '7itan Industries Atd.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same year& it also started its (ewellery di#ision under the 7anishC brand. /mong the branded (ewellery players in the Indian mar%et& 7anishC is considered to be a trendsetter. 9hen it was launched in 1..$& 7anishC began with 134carat (ewellery. >ealiDing that such (ewellery did not sell well in the domestic mar%et& the 134carat (ewellery range was e*panded to include and ?4carat ornaments as well. 9hen 7anishC was launched& it sold most of its products through multibrand stores. In 1..3& 7anishC decided to set up its own chain of retail showrooms to create a distincti#e brand image. 6y !! & 7anishC retailed its (ewellery through $) e*clusi#e stores across ?1 cities. 7o meet increasing demand& 7anishC planned to open 1 $ stores by the end of !!. and offer a range of 'wearable' products with prices starting at >s. ?!!. 7anishC is India's largest& most desirable and fastest growing (ewellery brand in India. 7anishC today is India's most aspirational fine (ewellery brand with an e*Cuisite range of EpicFgold (ewellery studded with diamonds or colored gems and a wide range of eCually spectacular (ewellery in ;t pure gold. 1*Cuisite platinum (ewellery and designer sil#erware is also part of the product range. 7anishC promises superior Cuality (ewellery with purity in gold. 7hey claim and deli#er the e*act carats and weight that they promise. Impurity in gold and not deli#ering what was promised is one of the main problems the consumers face when going for gold purchase. 7anishC eliminated this

and has built its brand in trust. 7anishC now stands for Cuality and purity. 7hey e#en ha#e gold meters where one can chec% the purity of gold. It is first and only (eweler who guarantees the purity of its gold (ewellery and certifies the Cuality of its diamonds and colored gems in writing. 7hus it has established itself as a highly ethical player in a mar%et that was rated as ha#ing the highest incidence of under%aratage +6ureau of Indian Standards-. 9idely ac%nowledged as a design leader& 7anishC is %nown for its ability to de#elop specialiDed design collections. 7anishC is the only (eweler that houses a full4fledged design studio with a team of se#eral international award winning Indian designers. 7anishC was recently ad(udged the Gost /dmired Jewellery brand +for the third consecuti#e time- EpicFin India at the Images Hashion awards. It has also been (udged as the Images >etailer of Iear in the fashion category. ,istincti#e positioning and customer e*perience. Iet another aspect of 7anishC that sets it apart is a whole new (ewellery buying e*perience offered by its e*clusi#e retail showrooms. 7anishC has not only de#eloped a national retail chain with uniform and transparent practices and policies but also maintained consistency of retailing standards across all these showrooms on an ongoing basis. It has a distincti#e positioning EpicFin India as it is %nown for its high Cuality and (ewellery with international standards. /lso& since they ha#e many stores across the country they gi#e guarantee on their (ewellery and also offer to repair it free of cost anywhere across the country. Cu)*"m& O%& %'&(: 7here was always lac% of trust among the consumers for their (ewellers. 7anishC remo#ed that with a promise of purity. 8ence what it did EpicF in India it can replicate across the globe. 5ffer a totally new perspecti#e to Jewellery buying especially when it comes to e*Cuisite oriental (ewellery. 5riental Jewellery across the world is usually found in flea mar%ets or place li%e China 7own or Indian Gar%ets. 0oing into the main mar%ets in the 9estern world will gi#e 7anishC the edge. 7he mar%et can be segmented into two categories of customers: J Customers who by gold for in#estment J Customers who buy gold for embellishment

SWOT A$a+!)')
S* &$,*-) Capital Hle*ibility

Inno#ati#e Godern Style 1*cellent < outstanding ad#ertisement strategy

W&a.$&))&) KBot for me' 0old "urchase >ituals 0old "ercepti#e Aimited 5utlets

O##" *u$'*'&) 7/7/ Support 7he 9edding Gar%et 0lobaliDation 7he >ural Gar%et

T- &a*)

0old "lus Aocal Jewellers 0old Significance 0o#ernment >egulations.

K&! '))u&)
8ea#y Competition Hailure of 0old watches Hailure to tap wedding Gar%et KKBot for Ge'' perception

Internal conflicts between 7anishC and 0old plus

S"+u*'"$)

7anishC < 0old "lus& complement each other Understand their mar%et territories < Characteristics CapitaliDe their strengths Cross 6randing the mar%et to own a larger share 0oing 0lobal and teaming up with Indian entertainment products internationally