Tanishq has established itself as a leader in the Indian branded jewellery segment.
A large part of this success can be credited to the exquisite gold jewellery and the impeccable standards the company maintains when it comes to aesthetics, purity and quality.
Over the last few years, the company has been going from strength to strength with an aggressive growth strategy that targets niche markets. It is as part of this strategy that Zoya – a line of luxury jewellery boutiques that cater to the fine taste of the upper-class customer and meet the international standards that they expect – was launched earlier this year.
Here, C Venkatraman, COO, Tanishq, speaks about the launch of the Zoya boutiques and the plans the company has for the brand.
Tanishq recently launched the Zoya line of luxury boutiques in Delhi and Mumbai. Tell us about the strategy behind the launch.
The discerning upper class customers in India expect a certain exclusivity in all the things they buy or experience. This applies especially to jewellery; this segment is one of the larger contributors to industry sale. To such people, the current Tanishq experience is not attractive enough, since they are used to the customised treatment of the large jewellers or individual designers / boutiques.
Zoya was created to offer an exclusive experience for them: design-differentiated products in traditional and contemporary spaces, elegant, world-class ambience and presentation, and a totally indulgent service. While the same characteristics are to be found in competing stores, our dream for Zoya was to offer a very sophisticated and professional version of those.
In what way is Zoya different from the Tanishq stores in terms of product range, price range and customer experience?
Zoya price points start at around Rs25,000, while at Tanishq it starts as low as Rs2,500. The ambience in Zoya is boutique-like, with significant emphasis on individual product display, story-telling, private zones for customer interactions and a host of refreshments, served with panache. The experience in Tanishq is warm and professional, with no significant emphasis on exclusivity.
How have the stores been received so far?
The response of customers to Zoya is very positive, on all aspects where we are seeking to differentiate the brand. Our customers have appreciated our collection through their feedback.
Our personalised service has also helped us build our brand equity. Some of the comments we received were: 'The staff is super-efficient, the way they explain everything, it seems you are on a guided tour’; 'What I liked most was the willingness to show and try the jewellery; very friendly staff and service’; 'The experience and service matches the craftsmanship and the Tata brand’.
What is the kind of investment Tanishq is looking at for the Zoya line of boutiques and what are the company’s future plans for it?
Each store costs about Rs15 crore to set up. We have two stores today, one each in Mumbai and Delhi. We plan to make these successful first and look at more stores after that.
While Zoya is aimed at the premium jewellery segment, GoldPlus launched back in 2007 was designed to cater to the mass market. Tell us a bit about the product range that is on offer at GoldPlus outlets. How have the stores been faring since their launch?
So far, 30 stores have been set up since 2005, and the business has done quite well; it has been making profits every year. We are in the consolidation phase in GoldPlus during 2009-10 and are not looking at any expansion now.