The Hindu Business Line : A twist to the traditional tale

TRADITIONAL management theory owes its origin to the West. Theories like `core competence' and maxims such as `stick to your knitting' owe their beginnings to the environment in which they were conceived. They have been conceptualised in mature economies that struggle with minimal growth. And they have considerable relevance there too. And yet India (and China too) is different. These economies are booming. To succeed here, one needs thinking and execution that are significantly different. Insights into the consumer in nations with over a billion people. While mature economies were losing their fascination with brands and branding, India in the Nineties was just savouring the pleasures and reassurances of quality that branding provided. Commodities such as salt, sugar and rice were being branded and Titan said, "Why not jewellery?" and that led to the launch of Tanishq. Ten years later, Tanishq is a Rs 725-crore brand, growing cumulatively at over 30 per cent over the last few years. And if that isn't a fairy tale success story, one wonders what is.

The Tiffany's of the East

Tanishq did not have a great start, though. It was party wear, nightwear, for liberated women, well-designed certainly, but ahead of its time. The market reaction was lukewarm. But Tanishq, all said and done, was from the Tatas.

The cornerstone of the Tata brand has been, and will always be, trust. In an industry which had jewellers who were capitalising on the consumers' gullibility, Titan realised it could capitalise on its own ethical practices and expose some of its less ethical competition through its karat meter and its advertising which planted doubts in consumers' minds, with ads like, "Are you sure your gold is pure?" That definitely created a stir in the market and more significantly in the consumer's mind. The consumer stopped to think, and more importantly, buy - Tanishq.

Nor was this all. Tanishq quickly used its knowledge of the Indian consumer and retailing to extend its franchisee network through the length and the breadth of this country.

The traditional jeweller dominated his neighbourhood and hometown. Some jewellers have moved out of the safety of their own loyal set of local consumers. Tanishq also believes that retail consumer experience could be the key. Traditional jewellers, even as they display scepticism about this strategy, are quietly and quickly improving the ambience of their own stores.

Nor has this been all. Tanishq has constantly improved its collection and jewellery range. Aria, a range inspired by the traditional seven-stone floral motif, Hoopla (diamond hoops), Lightweight Colours, Aamra and Aarka have followed each other to increase market share and lighten the consumers' wallet.

And yet, it is important to remember that the jewellery market in India is Rs 55,000 crore and Tanishq, despite its healthy growth and high profitability, is a small player. This, of course, is the typical case of the glass being half empty or half full and how one views it.

Tanishq, one believes, views the situation extremely positively and believes that it is sitting on a potential gold mine.

The changing consumer

One of the key questions any brand needs to ask is, "Who is our key consumer? To whom are we talking?" Tanishq has clearly realised that the Indian woman is changing. And how! She is far better-educated, is working, lives in a nuclear family in a structure that is far more liberal and leads a high wattage life. She has legitimate space for herself.

She is no longer satisfied with playing pre-defined rigid roles of sister, mother, wife but is choosing her own role and playing it the way she wants to. As a consequence she is retrieving space (that she believes genuinely belongs to her) without conquering it. She is using tradition rather than being used by it.

Yes, the `I factor' works for the Indian woman and this is what Tanishq attempts to address in its advertising and its product offerings too. And that's the twist to the traditional Indian woman. She is traditional alright ... will act out multiple roles that are required of her - but is an individual in every sense of the word. She will do her own thing - quietly. And this is the potential bus that the traditional Indian jeweller might miss, used as he is to people buying jewellery coming to the outlet in a large group - mother-in-law, father-in-law, daughter-in-law, husband, children in tow - diffusing the power of the individual. But Tanishq believes in the power of the individual. And probably that is the way to go.

Back to tradition

Perhaps the most significant shift in Tanishq's marketing strategy has been in its product line. From what was essentially `western wear' it moved to `party wear' and then to `jewellery watches' and now has progressed to more serious, traditional stuff. Because of the realisation that when it comes to jewellery, the Indian woman, despite all her modernity is pretty traditional. She prefers gold and will buy it, like her mother did before her. But unlike her mother who might have bought it as an investment, she buys it as an adornment. She knows the value of festivals such as Dhan Teras and the importance of weddings in the Indian milieu. She will know that she is going to be watched and evaluated. She cannot afford to be seen as flippant. This is the subtle change in Tanishq's product offering. It's a lot more traditional - like the line created for the movie Paheli. Tanishq also realised that India buys heavily during the wedding season. And its collections and range are gearing up for this great, big opportunity in the Indian market.

Twist and turns ahead

Notwithstanding its success, people continue to buy from traditional jewellers. Jewellers such as GR Thanga Maligai, Krishniah Chetty, Ganjam and Tribhovandas Bhimji Zaveri have their own set of loyal customers who buy regularly and in large volumes. Their strength is that they know their consumer intimately, for generations. This, they believe, is their distinctive difference.

Tanishq knows its limitations. It is easier to have an overview of broad consumer trends and capitalise on opportunities that present themselves rather than worry about a small group of customers, as valuable as they may be, as they are reasonably loyal too. And yet the pot of gold could be in the young `double income and no kids' Indian family which doesn't think twice about buying expensive designer jewellery for Rs 20,000. Advertising and imagery helps, though a contemporary product line doesn't hurt either.

And one suspects that while Tanishq may currently be scoring in the smaller towns where its competition is not so well entrenched, it must win share and customers from the big traditional jewellers in Mumbai, Delhi and Chennai. Yes, people will continue to buy jewellery and with increased affluence - lots of it. Tanishq, a decade after its founding, is poised to do even better. And the pampered Indian consumer is just waiting, wallet open, to be served.

(The author is CEO of Brand-comm.)

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