Tuesday, May 18, 2010

Tanishq rediscovers the shine of platinum


Soaring gold prices have increased consumer interest in platinum, according to Tata’s jewellery chain Tanishq. Initially introduced in 2004, platinum had almost vanished from Tanishq stor­es a couple of years back due to continuous decline in sal­es. But the chain is now relaunching the white metal, mainly in its city stores.

Around 250 platinum je­wellery designs are being la­unched in select stores in a phased manner. In the first phase, the new collections will be launched in 11 stores. By the end of the year, 25 to 30 more stores will have th­em. Next year, the platinum jewellery will be launched in large town stores too.

“Thirty per cent of the new collection will be plain jewellery and the rest diam­ond-studded ones,” Sande­ep Kulhalli, VP, retail and marketing, Tanishq, told Fi­nancial Chronicle over pho­ne. “We will be investing aro­und Rs 10 crore on the inve­ntories, which will be procu­red from vendors,” he said.

Tanishq has also aligned itself with Platinum Guild India, the trade body that pr­omotes platinum sales in India. According to the Platinum Guild, the white metal sales have been registering year-on-year growth of 30-40 per cent.

“Unlike soaring gold pric­es, platinum prices are less volatile. Most jewellers now provide buy-back guarantee and purity assurance which increases the metal’s resale value,” said Rajesh Rajendran, trade manager (south) of Platinum Guild India

According to Kulhalli, the jewellery market in India is now mature enough for plat­inum. “Though we launch­ed platinum jewellery in 2004, sales went on declining every year and we almost withdrew the collections. There was some leftover sto­ck in a few stores,” he said.

The jewellery chain that clocked an annual turnover of Rs 3,600 crore last year, however, has not set a sales target for the white metal this year.

No comments:

Post a Comment