How Tanishq, Titan's flagship jewelry company, became a leading jewelry brand in India despite struggling in its initial years. Initially, Tanishq faced challenges due to selling only 18 karat gold jewelry, which was not preferred by Indian customers who preferred 22 karat gold. Additionally, people trusted local jewelers more than brands when it came to buying jewelry. To address these challenges, Tanishq introduced 22 karat jewelry and a gold purity testing device called Parameter in all their stores, which helped increase customer trust. Tanishq also introduced the "Impure to Pure Skin" scheme, where customers could exchange their old jewelry for 22 karat gold jewelry by paying only the making charges. This scheme helped Tanishq gain a lifelong customer base and increase sales. Today, Tanishq has a 3.2% market share and is ranked 22nd in the list of hundred Global Powers of Luxury Goods.
Titan's Flagship jewelry company Tanishq is today one of India's most prominent Jewelery sellers Financial year 2028 it had a record revenue of 23 268 crore rupees in fact it accounted for more than 80 percent of Titan's Revenue that's a massive chunk of Revenue share but do you know that at one point of time Tanishk was a loss making company and was almost shut in 2000 2001 Titan the parent company lost 150 crore due to tennis poor performance but today Tanishq has become tata's Crown Jewel so how did this change happen What strategies with Tanishqs to become the successful and India's popular jewelry brand let's check out started in 1994 but it did not take off well sales were low and losses were mounting primarily because of two reasons reason number one 18 carat gold jewelry Tanishq started its business by selling only 18 karat gold jewelry which is supposed to be more durable and scratch resistant but we Indians consider gold not just as an ornament but also as an investment hence higher the carrot bigger the investment because of this thinking Indians always preferred 22 carat over 18 carat products reason number two foreign [Music] was highly unorganized people trusted local Jewelers rather than Brands when it came to buying jewelry so Tanishq struggle in the initial years and it mounted a loss of 150 crore to Titan in 2000 2001. in 2002 Titan got Mackenzie on board to study Tanishq failure and after making this presentation the then CEO of Titan reserves Desai decided to make some changes the first change Mr Desai made was introducing 22 carat jewelry in all tennis stores this move did help Tanishq but this was not enough Tanishq needed to win customers trust so kanishk introduced a device called parameter in all their stores to make that happen it was a gold purity testing device Tanishq Grand ad campaigns asking people to bring in their old jewelry and get it tested for free as usual goal keep Purity checks [Music] fail were not increasing and the lack of sales were due to parameter idea itself although many customers visited the Tanishq stores for the gold purity test most were disappointed after realizing that their goal was less pure than the local Jewelers promised so Tanishq was making the customer aware of the problem rather than solving the problem so to increase sales Tanishq came up with impure to Pure skin as for this scheme the customer brings less than 22 carat and more than 19 carat jewelry Tanishq will offer the customer 22 karat gold jewelry in exchange for the old jewelry the customer will be needed to pay just the making charges this scheme hit the bullseye for Tanishq customers love the scheme and who would when you are getting additional carat of gold there too for free but wait a minute customers were getting additional carrot of gold for free which meant Tanishq was bearing all the cost so then how was this Kim profitable to them check this out in 2003-2004 when this game was introduced the cost of 10 gram 24 karat gold was 5600 rupees that means the cost of 10 gram 22 karat gold was 5133 rupees now Tanishq was upgrading gold between 19 carat to 22 carat so let's assume customer wanted to upgrade his gold from 20 karat gold to 22 karat gold so the cost of 10 gram of 20 carat gold was 466 so the cost Tanishq had to Bear is 467 rupees so by bearing the cost of 467 rupees Tanishq was able to get a lifelong customer so with his team's help punished sales increased yearly it was able to win the trust of the customers today Tanishq holds a 3.2 percent market share led by Kalyan Jewelers with 3.7 percent of the market share but as per the world gold Council Tanishq today has the maximum number of change stores in 209 Indian cities not just that Tanishq has been ranked 22nd in the list of hundred Global powers of luxury goods other competitors like Kalyan Jewelers Joya Lucas PC dwellers and three balloon thus BMG zaveri has been ranked 37th 46 57th and 92 respectively once a loss making company Tanishq has now become Titan's primary revenue generator riding on the performance of sun Ishq titles share also gave great returns so that's how Tanishq with the help of his strategies became one of the biggest jewelry brands in India.
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