Thread by @deepakj_tweet

This #Tata co. is leveraging the Tata Brand REALLY WELL to transform this shady market 👇

#SomeStats

👉 Annual gold demand in India is ~800 tonnes (60 Bn USD) - India is second largest consumer of Gold

👉 Indian families hold an estimated 25,000 tonnes of gold (~2 Trillion$)

👉 Unorganised market with families buying from small jewellers trusted across generations

#IssuesWithJewelleryMarket

❌ Dishonest jewellers selling low quality (carat) gold at high rates. Example: They would charge for 22 carats and hand over 18 carat gold

❌ Non transparent refund and return policy

❌ Small jewellers cannot afford to stock higher number of designs so consumer needs to settle for what's available

❌ Small jewellers also do not have the technical expertise for producing high quality finishes and designs

The main characteristic of Gold Jewellery market is that the parents buy for their daughter/son and then nobody looks to get the jewellery tested or is looking to sell for decades.

In fact, the son/daughter, generally, passes the jewellery on to the grandchildren.

So, essentially, the jewellery comes back into market after decades and by then nobody remembers WHAT CARAT THE GOLD WAS OR WHERE IT WAS PURCHASED FROM.

SO THERE IS NO REAL ACCOUNTABILITY OF THE JEWELLER

And even if the consumer comes back in 0.1% of the cases, Jeweller can buy back the 18 carat gold for 22 carat rate and nobody knows. 😂

THE PONZI SCHEME GOES ON. 💰💰💰💰

#EntersTanishq

TANISHQ JEWLLERYS has been systematically attacking the Gold Jewellery market and has been able to corner a good 4-5% of the market

Its revenue was 23,000 Cr in FY22 and it has grown ~5X in last 11 years.

The company is truly leveraging Tata brand in a market where TRUST is the biggest differentiator.

And frankly, Tanishq has been able to break the Jeweller - Family tie in a manner which nobody could have envisaged.

ALL ON THE BACK OF ITS TATA BRAND NAME AND GREAT EXECUTION.

#Execution

With Tata Brand trust - consumers are definitely keeping Tanishq in the buying mix depending on:

1. Consumers being aware of the brand: Tanishq is advertising heavily both in mass media (TV/Print/Digital) and in Outdoor media around their stores

2. Is Tanishq store available in their locality/city: The company is already present across 250 cities in India and is looking to grow to more Tier 2/3/4 towns.

3. Does Consumer likes the designs and is it affordable: Tanishq has variety of designs + Titan has launched/acquired multiple brands (Mia/Zoya/Caratlane) across price range.

We, ourselves have shifted to buying from only Tanishq once we understood the value addition.

For Example: I bought a ring and now I realise that half of the weight was in small stones which was priced at GOLD PRICE.

What do you think of Tanishq's execution? Have you shifted to Tanishq? Any story where the jeweller swindled you?