Tanishq aims to attract customers with ‘digital gold’

The Covid-19 pandemic has accelerated the digital initiative at Tanishq, a Titan company, with ‘digital gold’ being the latest. The company started digital transformation five years ago and spent so far nearly ₹100 crore.

“This helped Tanishq move into the digital mode quickly,” said Ajoy Chawla, CEO, Jewellery Division, Titan Company Limited.

Fast transformation

With hardware, software and integration of data in place, Tanishq was able to move quickly off the block.

“We were already moving in that direction. It just got accelerated with Covid being the trigger. Otherwise, the investment was done in hardware and software. Off the ground, the ecosystem had yet to adapt and it happened during Covid. More than investment of money, it is investment of energy, effort, training and getting people excited about it. Necessity is the mother of invention,” he said.

In the last one year, Tanishq has implemented a number of digital features across its 200+ stores focussing on experiential commerce, ‘phygital’ features and strengthens the omnichannel presence.

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The new ‘phygital’ features, a technology stack that’ll bridge the gap between bricks and clicks includes video calling; endless aisle; virtual jewellery try on; real time live assisted chat and book an appointment powered by augmented reality in over 200 stores.

“We see digital initiative as a convergence not a divergence. One is complementing the other. About 80 per cent of the transactions get completed offline. The low-ticket size of say products of less than ₹30,000 may happen online. Above that value, people prefer the offline mode. Even with remote sales like video calling, we see people complete nearly 90 per cent of the process remotely but want to try it at the stores,” he said.

On digital gold, Tanishq being the only jewellery brand that offers it in India, Chawla said that it provides guaranteed safety, enables one to sell anytime, convert into physical gold and one can buy gold for as low as ₹100. “This targeted more towards youngsters,” he added.

SafeGold

Tanishq digital gold offers ‘SafeGold’ which is 24 karat gold. Customers have the flexibility to purchase jewellery at the time of redemption. “The digi gold customers will automatically get enrolled in the ‘Encircle loyalty program’ at Tanishq,” he said. It is too early to tell how it will evolve.

On Tanishq’s performance in the first quarter of this fiscal, Chawla said it was very good with the jewellery division doubling 100 per cent but the base was low as the corresponding period of last year was hit by the pandemic. “We are 65 per cent to 68 per cent of the pre-Covid level (corresponding quarter two years ago),” he said. “So far, so good. We have nothing to complain about,” he added.

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