Tanishq thinks local to woo overseas market

Tanishq, the jewellery division of Titan Industries, plans to replicate its robust domestic growth in the international markets. The jewellery brand expects a 50 per cent growth from its international operations this fiscal.

Apart from foraying into the US, the largest jewellery market, Tanishq is also eyeing Malaysia as part of its international expansion.

Touted to be one of the successful Indian jewellery brands, Tanishq is adopting a country-specific strategy while entering the overseas market.

Explaining the rationale behind this approach, S Ravi Kant, COO, international business, Titan Industries, said, "About seven years ago, Tanishq made its overseas foray by entering the competitive and price-sensitive Dubai market. Initially, we launched the so-called Indian collection in plain gold jewellery. But we realised that there was a need to introduce exclusive designs to compete with the international brands."

For instance, last month it entered Saudi Arabia with 21-karat gold jewellery "� a preferred item among the Arabs "� and the company will introduce diamond jewellery for its US foray, catering to the American population. The brand will adopt a similar strategy for its marketing and retail rollout as well.

"Presently, Tanishq is present in seven countries with 55 outlets through the shop-n-shop concept. In Singapore and West Asia, we are looking at a presence in jewellery shops with higher customer traffic, while in the US the thrust would be on exclusive retail outlets," Ravi Kant said.

Tanishq plans to roll out its US retail operations in the first quarter of the next calendar year with two pilot stores in Chicago and New Jersey. The company is looking at a retail format of 1,800-2,000 sq ft in premium shopping malls. Kant said the US market calls for exclusive retail stores as margins are better.

Presently, Tanishq's production is handled in India. But the brand did not rule out the possibility of strengthening the supply chain outside India. With its recent entry in Saudi Arabia, Tanishq is also eyeing the Malaysian market.

Last fiscal, Tanishq's international operations registered 40 per cent growth and it aims to achieve a 50 per cent growth in fiscal 2007-08.

During the last financial year, the share of jewellery sales in the company's international business was 38 per cent, which is expected to touch 43 per cent this financial year. Domestic jewellery sales registered 63 per cent growth to Rs 1,292 crore last financial year.