The year 2001 did not begin on a happy note for India. The earthquake which took place on 26th of January 2001, in Gujarat affected the entire economy,. Nobody could think of Valentine’s Day in the face of such a calamity. This was the first setback for Gili on the other hand, the Shiv Sena and the RSS has stepped up their anti-valentine’s day campaign.
The need was felt to refocus. This called for a lot of soul searching and reorganization of the business to ensure that in terms of sales, a pattern of 45: 55 could be achieved. Extensive research was conducted to find out if there was any association between the brand and the consumer. It was necessary to find out what the brand meant to the target consumer. Sadly this association was lacking.
Gili embarked on emotional bonding exercise which continued over the next two and a half years. This will help create an association wit the brand and will tap the working woman and the mature market. The current campaign talks bout the fact that behind very piece of jewelry purchased there is a story. Thus the line; every Gili has a story.
From a time when branded gold jewelry was unheard of in India, the competition has started making its presence felt. Due to large number of independence operators who operate at the local level, it s difficult to estimate the size of the market. A few players have however, come up over the years and have adopted a pan-Indian model. Organized jewelry retailers are increasingly offering brand solutions to the demand for quality and value, as consumers move away from traditional family retailers.
The Tata Group started Tanishq in the year 1995. Tanishq challenged the age old jewelrys’ word with Tata’s guaranteed purity. It exploded the market with facts about rampant impurity across India and introduced technology backed challenge in a category completely governed by individual trust Tanishq introduced innovations like Karameter, the only on destructive means to check the purity of gold; machine made jewelry which offers far superior finish and value to the customer and beautiful handcrafted jewelry which is influenced by various jewelry traditions of India.
In the financial year 2006-07 Tanishq achieved retail sales of Rs 732 crore, and aims to achieve Rs 1025 crores in the next financial year. Tanishq marked the beginning of multiple stores (84 stores in 61 cities today) compared to the single store norm of the category. Customers can buy exchange jewelry and avail special services like the Tanishq Golden harvest savings scheme in any Tanishq store in the country.
The other key players in Inter Gold or Orra which is a part of the Rosy Blue group which has a presence in 14 countries across the globe. In India, it has a network of 34 stores across 20 cities in the country
Another player in the Indian market a Estelle, a product from Canada based Normak fashions, which was launched in India in 1999, largely retailed through 28 exclusive showrooms and over a 100 chain stores It has recently initiated a 12 month tie up with the Archie’s retail chain to sell its jewelry range through its outlets.
Future plans at Gili
The Gitanjali Group ha bought Nakshatra the premium brand of jewelry promoted by Diamond Trading Company (DTC) for approximately Rs 10 crore through its Dubai based subsidiary Gitanjali Ventures. This also includes the purchase of the former exclusive license of the brand in India, Brightest Circle. This also includes the purchase of the former exclusive license of the brad in India, Brightest Circle, Gitanjali Group earlier owned 33% stake in the company while the remaining stake was owned by Kirtilal Kalidas and Mahendra brothers. The group has acquired the reaming stake of the company from these two players.