Thanga­mayil Jew­ellery

VM&RD - - CONTENTS -

From hum­ble begin­nings of a small store in the streets of Madu­rai, Thanga­mayil Jew­ellery, a fam­ily run business, has grown over the years to stand­out in the com­pet­i­tive jew­ellery re­tail sec­tor in Tamil Nadu. With the launch of 30 stores across the state in just three years, the brand is de­ter­mined to reach greater heights.

B ack in 1947, a small store Balu Jew­ellery was set up in Madu­rai with the pro­pri­etor­ship in the name of N Balusamy Chet­tiar. The business was then trans­ferred in hered­i­tary to his sons Balarama Govinda Das, Ba. Ramesh and N.B. Kumar, who have been penned down as the founder mem­bers of Thanga­mayil Jew­ellery. It was in 1991 that the con­cept of a brand seeped into Thanga­mayil Jew­ellery. With a younger gen­er­a­tion at the reins, a stronger business fo­cus and ap­proach came into place. There was ex­po­sure to the re­tail sce­nario and modernist meth­ods of mar­ket­ing were em­ployed, while qual­ity was kept on a pedestal. The business has wit­nessed steady growth and to­day stands as a 4000 sq ft store.

The Rise

After ac­quir­ing the name Thanga­mayil, there was no stop­ping. In the growth chart, if we read be­tween the lines, there’s a will­ing­ness to keep up with times and em­ploy strate­gies which would have the company stand neck to neck with its com­peti­tors. The in­flu­ence of the world out­side the streets of Madu­rai was quite ap­par­ent. The jew­ellery brand’s aware­ness to­wards a dig­i­tal world was seen in 2004 with their first step of em­ploy­ing soft­ware to ren­der bet­ter POS so­lu­tions.

The Cel­e­bra­tion: The High Point

In 2009, Thanga­mayil Jew­ellery was de­ter­mined to be­come a listed company. Their data, the re­tail sce­nario and their pas­sion, was all geared up. By 2010 they opened three stores- the pre req­ui­site of be­com­ing a listed company. Come 2011, they were on the list and vi­ola, in 2014 the store count went upto 30 across Tamil Nadu. “We faced gov­ern­ment re­stric­tions like the 80-20 pol­icy and cus­toms duty. Oth­er­wise we would have opened 20 more stores by now. But this also gave us time to look back, con­sol­i­date and fine tune all pa­ram­e­ters and then look at next level,” said Yadeen­thranathan SK, Ex­ec­u­tive In­for­ma­tion Of­fi­cer, Thanga­mayil Jew­ellery.

The Cus­tomer

The brand fo­cuses on the C and D sec­tion of the so­ci­ety and the business plan is formed ac­cord­ingly. The Tamil cus­tomer is their pri­mary look­out, where a Thanga­mayil cus­tomer pri­ori­tises price over any­thing else. The brand plans to soon open a store in Chen­nai which would be its first in a Tier-I city but the strat­egy re­mains the same as the TG re­mains the same. A solid tar­get cus­tomer fo­cus draws up the rep­e­ti­tion mod­ule for stores.

The Strat­egy

For the price con­scious cus­tomer, the brand has al­ways done all in its power to give the cus­tomer low costs. Ear­lier they used to work with a mar­gin on 6-18%. With tech­nol­ogy which can mon­i­tor their prod­uct inventory, each par­tic­u­lar store now has only rel­e­vant stocks which brought the mar­gin down to 3-12% of­fer­ing lower prices to cus­tomers. “If you want qual­ity and de­sign, you have to pay a price for it- but in an af­ford­able range,” said Yadeen­thranathan. For the sale of gold, cus­tomers rely on the trust fac­tor and the brand’s main job is to cre­ate a rap­port with the cus­tomer based on trust and hence qual­ity as­sur­ance be­comes pri­mary. It is be­cause of trust that the best form of mar­ket­ing even to­day is word of mouth.

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