How Tanishq HACKED the GOLD Market of India : Titan & Tanishq (A TATA Product) Business Case Study

Summary

The video script narrates the remarkable journey of Tanishq, a titan of the Indian jewelry market, from its inception to becoming a leading brand. It delves into the strategic moves that disrupted the traditional gold market, including the innovative Carrot Meter to ensure purity and the 1922 strategy to gain customer trust. The script also highlights the importance of market research, problem awareness, and empathy in product offerings, as Tanishq catered to diverse customer segments with collections like Mia and Zoya. Lessons learned from Tanishq's success emphasize thorough market understanding and the power of trust and customer-centric solutions.

Takeaways

• 📈 Titan Company's stock price has seen an incredible surge, increasing from 7.11 rupees to 2700 rupees over the past 20 years, largely due to the success of its jewelry division, Tanishq.
• 💎 Tanishq is the primary revenue driver for Titan, accounting for 75% of its total business, with net sales of 20,600 crores in 2021, making it one of India's largest jewelry sellers.
• 🌐 Titan initially struggled to penetrate the European watch market due to intense competition and eventually pivoted to selling jewelry in Europe to generate forex for importing watch components.
• 🔍 Mr. Desai and his team identified key opportunities in the Indian jewelry market, such as the passion for jewelry as an investment, mediocre designs, questionable gold purity, and high margins due to cheap labor.
• 🚀 Tanishq's entry into the jewelry market was initially challenging due to competition from unorganized local jewelers and the preference for 22-carat gold over the 18-carat jewelry Tanishq initially offered.
• 💡 The introduction of the 'Carrot Meter', a Swiss machine using spectroscopy to measure gold purity, allowed Tanishq to build trust by offering free purity checks and exposing the impurities in local jewelers' products.
• 🔄 The '1922 Strategy' allowed customers to exchange their impure gold jewelry for 22-carat Tanishq jewelry by only paying manufacturing charges, effectively acquiring new customers by addressing the trust barrier.
• 💰 Tanishq addressed the cost barrier by launching the 'Gold Harvest Investment Scheme', enabling customers to make monthly deposits towards the purchase of gold jewelry, making it more accessible to the middle class.
• 👩‍💼 The brand showed empathy by launching the 'Miya Collection' for working women who wanted affordable, elegant, and easy-to-wear jewelry, and the 'Zoya Collection' for the ultra-rich seeking unique, high-end designs.
• 🌐 Tanishq capitalized on the digital wave by investing in 'CaratLane', an online jewelry company, demonstrating an understanding of market trends and catering to diverse customer segments.
• 📚 The case study of Tanishq highlights the importance of market research, creating awareness of problems, and the power of empathy in building a successful brand that resonates with customers.

Q & A

What significant growth has Titan's stock price experienced in the past 20 years?

In the past 20 years, Titan's stock price has increased by 33,000%, going from 7.11 rupees to 2,700 rupees.

What percentage of Titan's total business does the jewelry division account for?

The jewelry division alone accounts for 75 percent of Titan's total business.

What was Tanishq's net sales in 2021?

As of 2021, Tanishq generated a net sales of 20,600 crores.

Why did Titan initially decide to sell jewelry in Europe?

Titan decided to sell jewelry in Europe to earn forex to import watch components due to the high demand for dollars to buy oil during the 1990s oil shock.

What was the impact of the 1990s oil shock on India's forex resources?

The 1990s oil shock led to a significant burden on India's forex resources, leaving the country with less than one billion dollars of foreign reserves by June 1991.

What was the initial challenge Tanishq faced in the Indian jewelry market?

Tanishq initially faced the challenge of competing with unorganized local family jewelers who had strong customer trust and loyalty.

What was the 'Carrot Meter' and how did it help Tanishq?

The 'Carrot Meter' was a machine from Switzerland that used spectroscopy to measure the purity of gold. It helped Tanishq establish trust by allowing customers to verify the purity of their jewelry for free, revealing the impurities in products from local jewelers.

What was the '1922 Strategy' and its purpose?

The '1922 Strategy' was a customer acquisition strategy where customers could exchange their impure gold jewelry for Tanishq's 22-carat jewelry by paying only the manufacturing charges, with Tanishq bearing the cost of gold.

How did Tanishq address the barrier of cost for middle-class families?

Tanishq launched the Gold Harvest Investment Scheme, allowing customers to deposit a fixed amount per month for 11 months, with Tanishq paying the 12th installment, making their products more accessible to the middle class.

What is the significance of the 'Miya' and 'Zoya' collections in Tanishq's strategy?

The 'Miya' collection addressed the needs of working women who wanted affordable, elegant, and easy-to-wear jewelry, while the 'Zoya' collection catered to the ultra-rich seeking unique, high-end designs.

What lessons can be learned from Tanishq's case study?

Lessons include the importance of thorough market research, making customers aware of problems before offering solutions, and the power of empathy in understanding and meeting customer needs.