Golden Harvest Scheme: How Tanishq increased its sales
Tanishq is a well-known jewellery brand in India that was founded by the Tatas, one of the most prominent business families in the country. The company was established in 1994 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO).
The idea of starting a jewellery brand was conceived by Ratan Tata, the then-chairman of the Tata Group, who wanted to create a brand that could offer high-quality, beautifully designed jewellery to Indian consumers. It was named Tanishq for: "tan" meaning body, and "nishk" meaning gold ornament.
Tanishq is among the top five organised jewellery retailers in India. According to a report by the World Gold Council, Tanishq's market share in the organised jewellery segment in India was around 5% in 2020. In 2021, the company said that its market share had grown to 6%.
The scheme
In recent years, Tanishq has introduced a new scheme called the "Golden Harvest" scheme, which has been a game changer for the brand. The scheme acted as a Save Now Buy Later offering, allowing customers to invest or save money in instalments over a specified period of time. At the end of the scheme, customers could then buy gold jewellery using the saved amount and even receive a discount on the purchase.
Despite it being discontinued for brief periods many times, Tanishq continued to relaunch its Golden Harvest scheme because the scheme was a popular investment option for customers and was a significant source of sales for the company. The scheme was also popular because it offered customers the opportunity to accumulate gold, which is widely seen as a safe and stable investment in India.
Comparing its turnovers from when GHS was discontinued to when it was active, Tanishq found that the GHS caused a 42% increase in sales. Moreover, the scheme had a 54% contribution to Tanishq’s revenue. They also observed a 100% increase in average order value of people who used the GHS.
Although the pandemic affected consumer habits and slowed down figures, the GHS has helped a brand like Tanishq, which offers expensive products, recover.
How it helped
The Golden Harvest scheme (GHS) helped Tanishq generate more revenue in several ways:
Increased Customer Base: The scheme has made it possible for more people to own high-quality jewellery, attracting customers who might not have been able to buy jewellery otherwise. This has helped Tanishq reach new markets and expand its customer base, which has led to increased sales and revenue.
Improved Customer Loyalty: The scheme has also been well received by Tanishq's existing customers, many of whom have become loyal customers after taking advantage of the scheme. This has helped Tanishq build a strong customer base and maintain customer loyalty, leading to repeat sales and increased revenue.
Better Cash Flow: The flexible payment options offered by the Golden Harvest scheme have improved Tanishq's cash flow, as customers can choose to pay in small, affordable instalments, or they can opt to pay a lump sum at the end of the scheme. This has helped Tanishq manage its finances more effectively, and has contributed to increased revenue.
Increased Sales: The scheme has made it possible for more people to own high-quality jewellery, and this has led to increased sales. As customers see the quality of Tanishq's products and appreciate the convenience of the Golden Harvest scheme, they are more likely to buy more jewellery, which has helped Tanishq generate more revenue.
Increased Accessibility: By offering a "Save Now, Buy Later" option, the scheme made its products more accessible to a wider range of customers, including those who might not have been able to afford jewellery otherwise. This helped it reach new markets and increase its customer base, which can lead to increased sales and revenue.
In conclusion, Tanishq's Golden Harvest scheme has been a huge success for the brand and has helped it increase sales significantly. The scheme has reinforced the brand’s reputation among customers by acting as a bonus to the brand’s commitment to quality and innovation. It has also served as proof of the brand assessing its customer’s needs and providing the right solution, thus effectively maintaining its position as one of India's leading jewellery brands.
Sparkaufen offers a Save Now Buy Later option similar to the Golden Harvest Scheme. Sparkaufen enables e-commerce founders in Germany (Jewellery, Furniture, Baby Products/ other high value products) to add Save Now Buy Later as a payment option and increase sales like Tanishq. Reach out to hari@neosave.club if you are interested.