The Hindu Business Line : Tanishq design to push diamonds this season

THE rising prices of gold have given jewellery brand Tanishq an opportunity to exploit. The brand is rolling out one of its biggest discount sales on diamond jewellery across the country from January 20 to February 28.

Speaking to Business Line, Mr Vincent Braganza, Head (Merchandising & Marketing), Tanishq, said the company hoped to give an incentive to consumers to buy diamond jewellery as diamond prices haven't risen in a while; the discount will provide the impetus for purchase, he said, adding that sales of diamond jewellery have been picking up in the third and fourth quarters of the fiscal year. This quarter, the studded jewellery business is expected to contribute about 50 per cent of Tanishq's turnover.

This sale offers 5-25 per cent discount on all the diamond jewellery sold in the store. In previous sales, only a certain portion of the range, especially slow-moving stock, was sold at a discount, Mr Braganza said.

The timing also coincides with the season of "metro weddings" when diamonds are sold in larger numbers as against the first and second quarters which see "rural weddings" and occasions such as Akshaya Tithi when the preference is for gold, he said.

Further, sales pick up as this season is when NRIs visit India. Occasions such as Valentine's Day in February also fuel demand.

Tanishq is also launching a special advertising campaign on TV for this purpose. Ad agency Lowe has devised a campaign featuring puppets and shadow play in keeping with the brand's "promise to revitalise Indian tradition," Mr Braganza said. The campaign is part of a multimedia strategy that includes press, outdoor and FM radio.

Diamond jewellery contributes 30-35 per cent of Tanishq's turnover. However, solitaires (diamonds valued at over 47 cents), are sold loose and set in the store to consumer preference, and are still a growing category in the branded diamond jewellery business, Mr Braganza said.

According to him, Tanishq has been growing at 30-40 per cent over the past few years, outdoing the jewellery industry whose growth rate is in single-digit. The branded jewellery market is growing at 15-20 per cent. Of the Rs 60,000-crore jewellery market, branded jewellery accounts for about Rs 2,000 crore but is set to grow as more players have entered the market and begun advertising aggressively.

Tanishq now has 79 stores in 59 towns and cities but plans to have a 100 in place by March 2008 as per its five-year plan, Mr Braganza said.