Tanishq Competition Analysis
Tanishq has established itself as the most desirable and trustworthy jewelry brand in India. The product portfolio includes jewellery for everyday wear and for occasions, in 22-carat gold, diamonds and precious gemstones. Tanishq grew by 57 per cent to Rs. 2,028 crore during financial year 2008 on the back of retail expansion and improvement in per-store growth. There is an immense scope for further growth as Tanishq comprises a small share of the overall Rs 70,000-crore Indian jewellery market i. e. 2. 89%. But in the organized retailing it has a whopping 40% market share. Among the branded jewellery players in the Indian market, Tanishq is considered to be a trendsetter.
Accordingly, the company’s ad campaigns emphasised the purity aspect of all Tanishq ornaments. In November 2002, Tanishq introduced a new collection of jewellery called ‘Lightweights. ‘ The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices starting at Rs 1,100. Tanishq focused not only on urban markets, but small town markets as well. Carbon’s focus had always been to move jewellery from the vault to the dressing table and bring the selling of jewellery out of heavily guarded jewellery stores. This was achieved by persuading a few lifestyle stores to add branded jewellery to their vast array of products.
Besides selling from lifestyle stores, Carbon also sold its products as gift items over the internet. Diamond was the preferred precious stone, but other colored stones were also used. Comprising items of everyday use, (rings, chains, bracelets, ear studs, tie-pins and cuff links) Carbon items were an impulse purchases. While the cost of traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform. GILI Gili was launched in 1994, targeting mainly the youth who wanted to celebrate Valentine’s day. Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group.
The company’s products were also made available through a mail-order catalogue. All Gili products came with a guarantee of diamond and gold quality. In 2000, Gili launched its ‘diamond heart collection’ targeted at teenagers and priced between Rs 500 and Rs. 2500. The collection was promoted at college campuses with banners, pamphlets and a few advertisements targeted at teens. Gili soon realized that just pushing its product was not enough; it also had to customize its products for special occasions. Following this, it launched a Diamond Heart Collection specially designed for Valentine’s Day. Gili also made special promotional offers during festive seasons like Christmas and Diwali.