Tanishq aborts overseas plans
Tata-controlled Titan Industries Ltd, which has a 4 per cent market share in the domestic gold jewellery market, has shelved all plans for taking its branded jewellery abroad.business Updated: Jun 03, 2010 23:06 IST
Tata-controlled Titan Industries Ltd, which has a 4 per cent market share in the domestic gold jewellery market, has shelved all plans for taking its branded jewellery abroad.
The company cites an unusually stiff mark-up rate on retailing of golden jewellery, especially in the US market, has prompted it to re-strategise its marketing initiatives in the future.
Titan Industries had taken its branded jewellery brand “Tanishq” to the US in 2008 and had opened two stores in New Jersey and Chicago in the hope that it would have a strong footprint in the world’s largest jewellery mart.
However, Titan had to close down the stores last year owing to recession when the tribulations on Wall Street had generally made such businesses unviable. The company had plans to open about 25 stores in the US. The company’s decision to close the two stores also followed failed attempts to bring in an investor for the US operations.
“We will not pursue our US plans, or for that matter any overseas plans, for at least the next five years. Jewellery has an astronomical mark up rate in the US, where there is a huge difference between wholesale and retail prices,” a highly placed Titan Industries official told Hindustan Times.
He added that Titan Industries would rather concentrate on the domestic market. Of late, the company has tweaked its retail plans to address particular segments of the Rs 1,00,000-1,10,000 crore Indian jewellery market. While it is running a pilot project with two “Zoya” stores in Delhi and Mumbai hawking studded jewellery aimed at high networth individuals, Titan has opened a series of “Gold Plus” stores catering to the mass market. “The growth drivers for us would be the mass market,” said Bhaskar Bhatt, MD of Titan Industry’s jewellery division.