Instead of pouring money to set up new shops, jewellery retailer Tanishq plans to expand majority of its 117 outlets in 75 cities as the company sees growth in gold and diamond jewellery market in India despite of slowdown. While Tanishq will have four new outlets ready in some time, it will increase its annual average sales per outlet to more than Rs 80 crore against the present figure of more than Rs 58 crore.
The firm has recently launched diamond purity check campaign, which would be held at Tanishq outlets in 10 different cities like Mumbai, Pune, Indore , Ahmedabad, New Delhi , Kolkata, Bhubaneshwar, Lucknow , Varanasi and Chandigarh , which are major markets for gold and diamonds. The campaign, launched on May 16, has so far assessed purity of more than 12,000 products and issued certificate from HRD Antwerp, a global diamond assessment institute.
Speaking to Business Standard, Tanishq brand manager Calvin John said, “The economic slowdown has not hit the jewellery market in India the way it has hit other markets. All our stores have maintained their sales figures and some have also increased the revenue. This year, we will add more retail space to our stores to offer more variety of products.”
While smaller Tanishq outlets register annual revenue between Rs 31 crore and Rs 45 crore, few of its bigger stores sell jewellery and diamonds worth Rs 180 crore to Rs 220 crore in a year.
“With gloomy market conditions, we are not planning to open new stores on a larger scale. We will have four new outlets in near future while expansion of a large number of existing stores is on cards,” John stated.
While western and northern regions contribute a larger revenue chunk for Tanishq, the firm seems to be taking a safe approach towards expansion. “Addition of retail space will boost sales with lesser input costs. This will help us increase profit margins,” he stated.
Source: Business Standard