Tanishq Diamond Jewllery: Audit Choice Report

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• Organization Overview

o Origin of Tanishq

Origin of the word ‘Tanishq’:

A product that sparkles and a brand that spells love.

The word Tanishq was conceptualized from a combination of Tan, meaning body and Ishq, meaning Love. It is also Tata/Tamil Nadu and Nishq (meaning a necklace of gold coins) and also from. The word was coined by Xerxes Desai, the Vice-Chairman and Managing Director of Titan.

How Titan fathered Tanishq:

The jewellery business in India was ruled uncontested by the local jewellery merchants and family owned jewellery shops. There was no national level player that offered a serious competition to the local market players. At about the same time Titan was looking to diversify into the jewellery segment. Being a watchmaker it made business sense to diversify into the jewellery segment since most international houses stock watches and jewellery under one roof. To wean the Indian buyer away from the local merchant was an uphill task. It required a reorientation of the Indian jewellery buyer’s mindset who up until then invested in gold for solely asset accruing purposes and the promise of a unique product offering coupled with the guarantee of genuineness. It’s major challenge, however, was to cut into the market share of the next door jeweler.

Subsequently, Titan set up its fully integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture 4 tonnes of gold in a year. Tanishq was launched in 1994 as a range of with a target customer segment of European & American markets. It was set up as a division of Titan.

• However the west was soon stepping foot into a slowdown of economy and recession was looming large. Suddenly Tanishq’s prospective target market no longer seemed a fertile selling ground. Thankfully however for Tanishq the Indian market saw an upsurge and was being inundated with foreign currency. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country.

Tanishq, therefore, changed its strategy and realigned its focus on the Indian market to give the Indian consumer the elitist experience of buying jewellery on par with the international jewellery shopping experience. Foreign currency was non issue and import licenses were easier to obtain. The Indian consumer’s relationship with jewellery had also grown beyond an investment. It had become the modern Indian woman’s lifestyle statement – a brand extension of herself.

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Source of Image: Tanishq Website

o Growth of Tanishq

Initial Challenges:

Tanishq’s initial foray was far from easy. It faced a lot of initial resistance on all fronts. Eventually, however, Tanishq proved its critics wrong. Today, Tanishq is the only major Tata brand with a strong appeal for women. Tanishq brought to the jewellery market a potent mix of business ethics and product reliability, and a radical transformation to the jewellery buying mindset of the Indian consumer. Initial Launch:

Tanishq opted for a well-publicized launch. Tanishq’s initial product offerings were in the 'studded' jewellery segment. Soon however opted for a fusion design approach blending the contemporary and the traditional designs. This revised strategy was initiated in the year 2000. This was also the year that Tanishq saw a new leadership take over and bring about a reversal of its fortunes

Shift in Strategy:

Besides catering to Indian consumers, Tanishq diversified into other geographies as the US, the UK, the Middle East, Singapore and Australia. This is testimony to the brand's ability offer product to a wide variety of consumer preferences.. With unique initiatives like the karatmeter - the only non-destructive means to check the purity of gold - Tanishq introduced technology-backed guarantee in an industry which, priorly, was solely governed by trust stemming from years of association with a tried and trusted local jeweler and also...
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