I recently ordered a Pizza from Domino's as a delivery order but then thought of visiting the restaurant itself to have it fresh. With the formalisation of the economy, we can only expect this share to increase. At present, it has ~6% of the overall jewellery market. Tanshisq uses the cost advantage to hire best graduates from hashtag #iits / hashtag #iims and build a strong brand.įor any local jeweller, it's next to impossible to beat Tanshiq on these fronts, and that is how it's constantly taking away their market share. Gold being a capital-intensive business gives an edge to Tanishq. Titan borrows its capital at 4-5% whereas any local jeweller/ regional chain borrows at least 8-9%. Hence it operates at an overall negative working capital cycle. Once the jewellery is selected, people pay the full amount upfront( Tata's #trust ). They would generally ask you to download their app to get a 10-15% discount. Its store is half the size of any jewellery store with very minimal jewellery stock in their shops.Įach sales executive has an iPad where they give a complete jewellery overview for 1000+ SKUs. Carat Lane has a hashtag #startup style of operating in the jewellery industry. It acquired CaratLane - A Tanishq Partnership in 2016. Generally, others provide it on 90-95% of the gold weight. Tanshisq offers full exchange value on 100% weight on Tanishq jewellery. Gold has a life a few years after people mostly get it polished or exchanged. For local jewellers, even 1-2 #design throughout the year is a difficult task. They hire the top Bollywood actresses to endorse these. The #brand value of Tata also helps in assuring trust amongst customers.Įvery season Tanishq comes up with 3-4 new designs for every region(North, South, West, East). Here are the 5 levels where it creates a monopoly, and any local jewellery #business finds it difficult to compete.įrom the start, Tanishq introduced something called a Karatameter test that gives its customers assurance that they get the purest gold from Tanishq. Yet it is the one-stop solution for purchasing jewellery for most of the middle and upper-middle class in the country. Interestingly, Tanishq has the highest making changes in the whole jewellery industry. It has been generating a steady ROCE(Return on Capital Employed) of 25-30%(at par with Google, Amazon) for the last 5 years. ![]() In the last 5 years, its share price(Titan) has increased to ~3 times (from ~900 to ~3200). ![]() Tanishq by Tata Group has been emerging as a dominant player and formalising this fragmented industry. India's gold market is extremely fragmented mostly dominated by small/local gold and jewellery businesses. A whopping Rs 30,000 Cr worth of gold was bought during Dhanteras this season.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |