Tanishq, the jewellery arm of Tata group, is eyeing a larger pie of the country’s gems and jewellery market as it expands its presence by opening number of new stores. It plans to provide an alternative to established local jewellers.
The company commands an over 50% marketshare in branded jewellery. It feels providing an alternative to established local jewellers would help it grab 8% marketshare in the total domestic jewellery market by 2015. The jewellery market in the country is estimated to be around R90,000 crore, of which branded jewellery accounts for R10,000 crore.
“We are targeting the non-branded jewellery market as our new growth driver,” said CK Venkataraman, chief operating officer of Tanishq. “Migrant consumers with a penchant for jewellery look for a credible option and with the kind of trust associated with Tanishq, we can indeed provide a credible alternative,” he said.
He said the company would cash upon its brand image and would add 15 to 20 stores every year. “The new stores would be spread across 4,000 sq ft.” At present Tanishq has 120 stores across 75 cities.
Tanishq is unperturbed over soaring gold prices. Its volumes grew by over 14% and sales by over 40% during the last six months. “We expect to see similar growth in the future," Venkataraman said.
Research and advisory firm CARE Research expects gems and jewellery market to grow annually by 10-12% up to 2015. “The key drivers for growth will be people with higher disposable income, rising young population with the urge to spend, higher number of working women and conscious marketing efforts of companies,” it said.