Tanishq’s carat & stick method that exposed tarnished jewellers



It’s not easy to get consumers to change something they’ve been doing for generations – food they eat, temples they visit, jewellers they trust. But sometimes a brand can achieve the impossible, by spotting the gap in consumer fulfilment and offering a credible solution.

Just over 25 years ago, Tanishq started the journey that would transform the Indian jewellery business. The brand was launched in 1994. By 1998, it had 14 exclusive outlets in 12 cities. But the business was bleeding. Its losses were almost equal to the business it generated (about ₹25 cr).

A team was created under Titan veteran Vasant Nangia to explore options. The belief was that Titan knew watches, but jewellery was different. There were too many small jewellers in the market. Too trusting customers. What can break this link? The team was asked to think different. The first job for the team was to fix the basics: create 22 ct jewellery that looked bigger than their grammage. Then display them well so that they look attractive.

Was there another trick being missed? Nangia and Co. knew that the Indian jewellery business was plagued by ‘under-caratage’. What the customer bought from their family jeweller was not 22 ct.

I remember in 1993 showing a small gold bracelet to our family jeweller in Chennai since my better half wanted to convert it into a thin daily-use necklace. The jeweller took one look and asked me if it was from Dubai. Why? Well, it looked like it was 22 ct, he said with a smile.

How can consumers be made to understand the concept of under-caratage? How can this deep-rooted belief in the family jeweller be shaken?On a routine visit to the factory, Nangia and his team spotted an x-ray fluorescence machine that used spectroscopy to measure the caratage, or purity, of gold in a few minutes. What if this machine was taken to retail outlets allowing every consumer to test their gold ornaments? The machine was not cheap and would set Titan back by ₹1-2. Titan MD Xerxes Desai was a gambling man. He cleared the move.But how does one get consumers to break out of their inertia? Titan decided to use the power of the print medium. (Would it have worked as well in today’s social media, I wonder.) The campaign was tested in Indore in August 1998. The headline said, ‘Beware, there is a thief in the family’ – a classic ad that hooked the consumer to read further. The body copy explained that the family member cheating them was their family jeweller. Tanishq offered to test jewellery of any consumer who walked into their Indore store.

On the first day, the story goes, a lady walked in with 10 big bangles she had bought from her family jeweller. The instrument, now called the karatmeter, showed that the gold was only 13 ct. The woman broke down, and the news spread across the city. Local jewellers who were all in on the scam were furious. But consumers didn’t stop, turning the tide for Tanishq. The karatmeter became a key feature in all Tanishq outlets.

Let’s not forget that being a Tata company Titan/Tanishq came with a high level of trust. I wonder if a karatmeter from any other retailer would have worked as well. That aside, the business that was losing money was turned around rapidly. By 1999-2000, sales had grown to ₹125 cr and was now profitable.

Today, Tanishq is literally the crown jewel of Titan. And to think that a little over 25 years ago, it was almost dead in the water. A powerful consumer insight, a tool to tap this insight, a bold investment in tech, and unleashing the power of advertising – and the story changed, not just for Tanishq but also for the entire organised jewellery business.



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