Tara Jewels is relying on a cluster strategy for expansion, targeting cities and towns with higher mid-income segment after analysing the demography, nature of occupation, literacy and income levels, says Vikram Raizada, Executive Director, Marketing, Retail and Business Development, Tara Jewels.
He said: “We position ourselves in jewellery clusters, since we believe that jewellery is not an impulse purchase and consumers tend to be pre-disposed towards jewellery buying in jewellery clusters. Adoption of standard formats for our retail stores has led to our brand establishment and identification among our customers which will increase our base of loyal customers. In pursuance of this, we have adopted standard parameters for retail-store planning and establishment. For ensuring standardised formats of our retail stores, we consider various factors, such as internal and external décor and colour schemes, allocation of retail store space, stock mix and pricing, and accounting methods.”
Raizada further added that with changing demographics, the branding of jewellery, and the retail revolution, shoppers falling in the age group of 20-40 years prefer buying jewellery for fashion rather than investment. He said that branded jewellery has been a relatively recent phenomenon in India. Consumers have become more informed about the quality and certification of gold jewellery and now insist on certification. The change has led to a much higher growth in the branded and, therefore, also organised jewellery market.
Tara Jewels has company-operated retail stores across 19 cities in North, Central, and West India. It plans to add 20 outlets across India by December 31 in Mumbai, New Delhi, Gurgaon, Noida, Lucknow, Allahabad, Kanpur, Varanasi, Jaipur, Udaipur, Kota, Mohali, Chandigarh, Amritsar, Ludhiana, Jalandhar, Raipur, and Dehradun.
To introduce its products, the company analyses previous trends, past year sales, demographic details, and buying patterns. As per Raizada, analysis of existing trends in respective markets help in planning the merchandising efforts effectively. He stated that Tara Jewels particularly emphasises on entry level price points in each category while ensuring that its products offer greater perceived value and adhere to the quality standards.
Raizada said that historically, purchase of diamond jewellery in India has suffered from significant perception barriers. For example, diamond jewellery purchase is considered to be an expensive affair and often requires knowledge about stones and metals, which is complex. He mentioned that the apprehensions of a retail customer can be addressed by educating customers about diamond jewellery at retail stores as a platform to impart basic knowledge about diamond jewellery. According to him, Tara intends to involve customers in various customer education programs through partner organizations like GIA, India at its retail stores. Raizada added that the company is engaged in creating brand awareness through print, audio, video, and electronic media.
He said: “A customer service experience can change the entire perception the customer has of the brand and can eventually play a pivotal role in instilling a sense of reliance and loyalty in the long run. At Tara Jewels, we have a series of services designed to enhance the level of customer satisfaction. These, we believe, help our customers meet their expectation.”
The company offers services such as jewellery customisation, visible workshop for free jewellery repair and cleaning, and polishing of old jewellery in every store for jewellery purchased from Tara Jewels or any other jeweller, complimentary purity-testing of metals through X-ray Fluorescence Spectrometers, and educating customers about diamonds based on clarity, cut, carat, and colour coupled with appropriate certification.
Sharing his assessment of the Indian jewellery market, he said that gems and jewellery have been culturally imbibed within the Indian civilization for both aesthetic and value-based qualities. “The increase in disposable income of the Indian populace coupled with the willingness to spend has marked the rise of the Indian luxury market. The mall culture is fast catching-up in tier-II and III cities in the country and the organised jewellers are planning to capture a greater share of the growing organised retail pie through increased store presence. Increasing affluent and middle class population, rising income with urbanization, and increasing savings level have all contributed to the jewellery industries growth in India,” he concluded.
Tara Jewels offers jewellery under four categories namely fashion, bridal, charms, and gents. It also launches collections for festive seasons like Diwali, Navratra, Akshaya Tritiya, and Christmas and for celebrations like Valentine’s Day, Childrens’ Day, and Mother’s Day.
The company entered the Indian jewellery retail market in January 2010 by opening a store in Thane, Mumbai and opened a total of 26 stores in the same year. Currently, it has 29 stores; 5 in Delhi; 6 in Mumbai, 1 each in Ahmedabad, Ahmednagar, Aurangabad, Baroda, Bhopal, Indore, Jabalpur, Jalgaon, Kolhapur, Margao, Nagpur, Nashik, Panaji, Rajkot, Solapur and Surat; and 2 stores in Pune. The retail space for the existing stores is on a leasehold basis. All the retail stores are company managed and based on smart-stores format, with an estimated average area of approximately 1,000 sq.ft.
Incorporated in 2001, Tara Jewels manufactures, exports, and retails jewellery with manufacturing facility or distribution offices in China, the United States, and India. The company has also filed an application to SEBI for an IPO.
