TBZ's Vision for the Future: e-commerce, franchising and changing jewellery trends
Parina Sood, TFW Bureau
Aug 09, 2024 -
7 min read
How do you view the journey of the Indian jewellery market in the last five years?
The Indian Jewellery market has been moving towards more national, organized players vis-à-vis traditional local jewellers in the past few years. Consumers are also continuously evolving and following trends in social media reflecting in choice of jewellery. Diamond jewellery is also becoming a regular consumer preference for jewellery that they can wear and not just keep in locker.
What are TBZ’s expansion plans for FY25?
We will continue to expand strategically in select geographies. We are keen to partner with like-minded franchisee partners in this growth.
What is the brand’s vision for the next 5 years?
TBZ is a unique brand in the Indian Jewellery landscape with a rich legacy since 1864, and many pathbreaking practices to its credit. Our Vision statement is to be the brand of choice for the woman of today offering innovative and thoughtful designs that are easily available and make them look their best.
How does TBZ envisage India as a jewellery market?
India has one of richest legacies culturally, and at the same time is one the fastest transforming markets with consumers well-travelled, having international exposure, abreast with social media and breaking barriers with their professional careers. The consumer today is deeply rooted, yet modern, which TBZ understands well and is well positioned to cater to. As a market, there is still tremendous potential to grow, as the new consumer prefers a trusted national brand with legacy like TBZ. We have seen a tremendous response in whichever geographies we have entered.
How do you envision the jewellery market five years here on?
The market is evolving quite rapidly, so five years hence may be a completely different landscape. Having said that, rise of e-commerce across devices and platforms will surely rise. Emergence of more national players and international players in the jewellery market, offering more choice for the consumer may be the way the industry evolves. However, jewellery in India is an emotion and that will not change.
Why have you chosen franchising as your mode of expansion? How is it helping the brand?
We believe in partnering with like-minded franchisees in our growth story. Our existing franchise model has worked well for us, and we are fortunate to have partners who bring in valuable local insights and expertise. In a country as diverse as India, you cannot ignore the local flavour, local traditions, and local choice/preference for Jewellery. As we expand into newer geographies, we see our partners being key aides in bringing the TBZ experience in a manner which will appeal to customers in their respective regions.
What are the challenges that TBZ is facing right now and how do you plan to overcome them?
We are facing the same challenges that every other player in the industry faces – Gold rate fluctuation due to commodity pricing, dealing still in a largely unorganized sector, etc. Our organization has been at the forefront in many pathbreaking practices – such as 1st to offer buyback guarantee way back in 1938, 1st to launch light weight jewellery, introduced 100% pre-hallmarked jewellery before it become a norm, and amongst the first ones to list publicly on the bourses and be transparent on our financials. Going forward, we will continue to offer best practices for consumers as a leader in this industry.
Three prevalent trends in the jewellery retail industry at present.
How has franchising brought about a change in the business scenario?
Franchising has helped not only us, but the entire industry manifold. The expansion of national players at the scale, has been possible only due to franchising model. It has helped the industry consolidate amongst national players and catering to customer needs who prefer known brands.
How does TBZ support its franchise partners?
TBZ has developed a complete Franchising playbook to quickly onboard any new partner, even though they may not prior Jewellery experience. From setting up backend systems to complete on the floor training to staff, selection of the finest jewellery especially curated for the market and Marketing support, we leave no stone unturned to make our partner comfortable and confident of running the business.
What does TBZ look for, while selecting its franchise partners?
Being a brand trusted with a rich legacy of more than 159 years, we look for like-minded partners who share our values and respect customer’s needs. Our values are deeply ingrained since our first store in 1864, and we believe in Trust, Integrity, Exemplary craftmanship and Innovation. It is these values which have carried the Brand so far and our customers patronize us. We are seeking partners who value and cherish these principles as much as us, with a deep customer focus.
How has technology contributed in the franchise management and administration? What role does AI play in jewellery industry?
Technology has played a key role in the transformation of the industry, and its role will only become more critical in an evolved Omni-channel landscape.
How important are audits and daily stock taking in jewellery industry?
We have implemented many systems in our backend to ensure correct stock taking and inventory control. As we are dealing with High value inventory, these safeguards are must and allow us to focus on smooth business operations.
What are the loopholes that franchisors need to be aware about in this industry?
It is an industry which has been dominated by traditional local, single store jewellers for a long time. As a leading organized retail player, we have to set benchmarks and best practices in many cases, and potential investors in the business need to prepared for the long haul
What is the most common purchase price bracket that you observe / which piece of jewellery is generally most in demand?
Our customers typically enter in the 1 lakh+ price bracket. Both gold and diamond jewellery are key drivers in getting customer footfalls.
According to you, what are the three key elements necessary in a franchise biz model from a long-term perspective?
Tips for beginners in the jewellery industry.
Better to partner with established, known brands in the industry, as it’s a complex industry and customer preferences are shifting towards recognizable brands.
Quick facts:
o Total countries where TBZ is present – Presently only India
o Total number of outlets in India – 34
o Total company owned outlets – 30
o Total franchise outlets – 4
o Investment reqd – Depends on store format and partner comfort. A small format store may start at Rs. 15 cr investment, and go upwards as per format and market
o Break-even period – Cash flow positive from Year 1 itself
