foreign [Music] [Music] [Music] what expected hold on foreign [Music] [Music] foreign [Music] [Music] group makes money by selling watches but in reality more than 80 percent of its revenue is generated by its jewelry business tanishq what's crazy is that Titan is way bigger than the 100 year old Tata steel which shows to say that in India's gold is much more valuable than the steel business when tanishq was first launched in 1996 things were far from perfect low sales and increasing losses LED Titan to consider shutting down tanishq once at for all I am achina Maya and in today's video I'm going to tell you the story of tanishq and how it went from almost being shut down to making three billion dollars last year Titan Story begins in 1984 when it launched its iconic watches which you can find in almost every Indian house sword they dominated the watch market and began exploring other relevant Industries to expand to Gold being one of them you see Indian households have stocked up to 25 000 tons of gold to put this in perspective it's 1.1 trillion dollars worth of gold and 11 of global deposits the love affair between Indians and gold is the stuff of Legends it's a very eminent part of worship and cultures We Buy Gold Jewelry as an investment it's a status symbol family stored generation and generations of gold and pass it on to their daughters when they get married for example when I was getting married right I didn't really want to adore too much jewelry because I was like I want to keep it a little minimal so tell my mom that mom I don't really want to need this jewelry and she was enraged she was like you have to wear this gold or I will not come on your Monday and I was like what the hell I was like okay damn mom don't stress anything to make you happy I'll wear it so just seeing this Obsession and love that Indians have a goal Titan made the decision to capitalize on this by establishing the brand tanishk up until that point the gold jewelry industry was very unorganized there were a lot of small local Jewelers with their customers trusted and they only went to them but these jurors they never really put the emphasis on the designs of the ornaments so Tanish did was they were like we're gonna break away from the norm and we're gonna create very pretty beautiful intricate gold jewelry now gold alone is a rather soft element and it wears out very easily so you always have to mix the goal with some other metals to make it more durable you would have often seen people discussing purity of gold and say 22 carat 18 karat gold so what 22 carat essentially means is 22 parts of gold mixed with two parts of other metals such as copper silver Etc so the very first Tanish store was opened in Chennai in 1996 and they launched the store with only 18 karat gold jewelry which is basically 75 gold and 20 five other matters because this 18 carat would make the jewelry even more sturdy and prevent scratches the store didn't make any sales but Titan was like okay it takes time for businesses to grow so they went on opening new stores but none of those new stores were also making any Revenue they finally diagnosed the issue and realized that even though they are selling jewelry but it's more than that for the buyer it is an investment so the buyer preferred buying 22 karat gold over this 18 carat beautiful gold jewelry despite this Titan persisted by absorbing Tanish losses which by the way mounted to 150 crores from 1996 to 2001. and things only kept going downhill to the point where Titan's talk was severely devalued and reached to an all-time low of 2 rupees in 2001. welcome to Thomas this is our collection of gold we have 18 carat as well as 22 karat gold this particular piece was found in 1963 by the France Emperor and the best part and this most Exquisite part of this deal is that you're getting original gold the intricacies that have been used in this gold is next level you've got copper you've got nickel you've got various different Metals which is mixed with this girl sir [Music] of course no problem at all a few moments later hey ah the tatas had had enough watching the business continue to lose money so they hired McKenzie to conduct a study on Tanish in the year 2002 and rafan Tata delegated the final decision the late Xerxes Desai CEO of Titan at that time workers made the decision to keep the jewelry company but he made multiple rectifications he opened all the stores with the 22 karat gold jewelry instead of 18 carat which Indians had always preferred this started giving Tanish some traction but it wasn't enough and they still had to get over a big obstacle so a majority of Indians prefer to get their gold jewelry from the trustworthy local Jewelers due to their concern over receiving impure gold like even my Nani and daddy right I remember they always had this one guy who they always went to for all their gold purchases and he also tend to form a relationship with the store owners if you're going to them again and again for a long period of time so most of the customers had little to no faith in the big players to combat this problem problem Titan made a huge decision that completely changed not just the niche but the Indian gold industry forever all the Tanish stores were going to get a gadget called a carrot meter it was a gold purity testing tool that was priced at 10 lakh Rupees per piece and imported from Germany yes it was extremely expensive but tanishq was hell-bent on winning the gold market Tanish backed by its innovative carrot meters ran several advertising campaigns encouraging its customers to bring their used jewelry into the stores for a free pure t-test customers are also very enthusiastic a lot of them went running to the store to get their juice checked and the stores began to see an increase in footfalls now the customers were able to try out tanishq's amazing service and new product offerings but they were still leaving the stores unhappy and disappointed now you'll ask me why right the reason being almost 60 percent of the jewelry tested with carrot meters was less pure than what the local Jewelers had promised the customers now just not just harm the trust that customers had in their local Jewelers over all these years but the customers also felt scammed so they were leaving the thunderstorms angry and betrayed whenever they found out this information foreign [Music] [Laughter] the CEO at that time attempted to delve deeper into the problem he himself started calling and speaking to customers one-on-one and after having thousands of conversations with customers he realized that Tanish was making the customer aware of the problem but never solving it for them now listen to this carefully okay there's a very important lesson here you see if you're someone who's running a business or thinking of starting one you need to realize the importance of talking to your customers in today there are Tech startups it's very tempting to sit behind and avoid this conversation but true customer Insight only comes from customers directly for example when I ran my startup and started speaking to my customers one-on-one I realized I had a lot of assumptions and preconceived notions about my end consumer which were all incorrect but when you start listening to these consumers a you'll find patterns with problems that could be recurring with a lot of consumers and B A lot of solutions for these problems will also come from consumers themselves during these conversations thought of Tanish consumers were like boss you told me my gold is impure but what do I do with this impure gold now you tell me now through this inside tanishq introduced the new impure to Pure scheme with this scheme if a customer brought jewelry which was less than 22 carats pure but greater than 19 carats pure he or she could exchange it for tanishq 22 carat jewelry by simply paying the making charges this was truly game changing and tanishq benefited greatly from this scheme I for a fact know that my mom met in exchange some of her old jewelry for this many stores began to sell nearly one crore worth gold every day kanishk gained a large customer base along the way who now trust the brand and Tanish could not be stopped after that wait this video is sponsored by us so two months ago we launched a video editing cohort and we picked up a very very small batch of students and we turned them into video editing ninjas now we are taking registrations for the second cohort the best part about the squad is this cohort is going to be placement friendly so we are conducting a free webinar for all of these students who want to join cohort too if you want to be a video editing ninja click the link in the description and sign up for the webinar right now we have limited slots available and now back to the video the company says continue to increase year over year and it soon eclipse the watch divisions earnings Tanish also introduced several sub Brands like Mia for working women rewa for wedding jewelry and Raga a watch made to seem like jewelry they also purchased carrot Lane a jewelry e-commerce site later in 2016. tanishq a loss making company up until 2003 generated 3 billion dollars in annual revenue last year even its stock has produced outstanding results going from Just 2 rupees in 2003 to 2700 Rupees at the moment the story of tanishq is truly amazing on how despite all the odds it Rose From the Ashes to customer insight and innovation