Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company) and Tamil Nadu Industrial Development Corporation Limited (TIDCO).
In 1995, Titan changed its name from “Titan Watches ltd” in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer.
Titan later ventured into the jewelery businesses.
In 1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan Industries Ltd.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer.
In 1995, Titan Industries, India's leading manufacturer of watches, launched the Tanishq range of gold watches and jewelery.
Tanishq, an entirely new concept in the Indian market and had to struggle hard to be accepted by the customers as Indian jewelery manufacturers were largely unrecognized market .Industry watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects.
Tanishq began by offering jewelery in the 18-carat gold range, with designs borrowed heavily from contemporary European brands. The company justified its decision saying that it wanted to be 'different' from the traditional Indian offerings.
PROBLEMS FACED BY TANISHQ
Western design vs. Indian design:
In order to be different, Tanishq introduced westernized designs of jewelery into the Indian market, the same designs that it used to export. The sleek and contemporary designs offered by Tanishq did not go down well with the Indian costumers, who preferred heavy traditional designs.
Perception of jewelery as an asset and not as a fashion accessory: Jewelery in India had predominantly been used as an investment rather than adornment. Hence, a change in the perception of jewelery from an asset to a fashion accessory was extremely difficult to bring about.
Unorganized Indian market:
The Indian market was highly unorganized, localized. The concept of branded jewelry did not exist. Hence Tanishq was not well accepted in the market.
Consumer perception of going to family jewelers:
People generally bought gold from the same family jeweler they had trusted implicitly for generations. Moreover, these jewelers made the jewelery to order and often bought back their products at the prevailing market rates. Thus, from the very beginning, Tanishq found it hard to overcome the Indian consumer's preference for buying traditional jewelery only from family jewelers.
Only 18 carat gold:
Tanishq offered gold in 18 carat while the Indian consumer was used to 22-24 carat gold. Hence they found it difficult to sell 18 carat jewelery.
Multi brand stores:
When Tanishq was launched, it sold most of its products through multibrand stores. This did not help the Tanishq brand to make its mark.
Tanishq should shift its emphasis from modern designs to more ethic traditional ornaments. It should focus on seasonal plus localized promotions based on Indian festivals. Taniqsh gave full freedom to the retail outlets to pick up designs, which they thought would sell in retail stores. Taniqsh used karat meters with x-ray to give an accurate reading of gold thus introducing the concept of gold purity for the first time in India. They have also started 22 -24 karat jewelry in order to increase the net value of jewelery. They introduced 3500 new designs based on current trend of market. They also started focusing on feedback from stores.
Taniqsh set up its own retail showrooms in 1998.
They started 47 Taniqsh boutiques in 31 cities (12 metros) in 2001. Taniqsh increased their promotional budget from 65 million to 100 million Taniqsh started low entity level prices for pendants (600 onwards). The company’s corporate gold gift scheme launch in December1998, which was proved to be a major success. Taniqsh delivered 50000 customized gold wins to 0.25...