We’re expecting 15-20% growth in H2 of 2024: Amit Pratihari, MD, De Beers India

Tanishq, India’s largest jewellery retail brand from the Tata Group, and De Beers Group, the world’s leading diamond company, have announced a long-term strategic collaboration to connect more Indian consumers with the rarity and preciousness of natural diamonds and amplify the growing opportunity in the Indian market.

The collaboration will focus on building extensive consumer outreach, deepening capabilities of Tanishq’s retail staff to communicate about natural diamonds, educating consumers about authenticity, and shaping customer experiences as they explore their desire for natural diamonds and studded jewellery. This will also be supported by a compelling 360-degree marketing campaign to build awareness and target expanding the customer base in the country, including first time buyers.

The new collaboration builds on the existing relationship between Tanishq and De Beers, with Tanishq already using De Beers’ proprietary diamond verification technology to support the assurance of the authenticity of its products. The two parties are also in talks regarding opportunities to collaborate on traceability, how Tanishq’s diamond supply needs can best be met and further opportunities to use De Beers’ proprietary technologies to support pipeline integrity.

In an exclusive conversation with Adgully, Pelki Tshering, Chief Marketing Officer, Tanishq, and Amit Pratihari, Managing Director, De Beers India, share insights into the latest collaboration, strategies for the upcoming Onam and wedding season, the evolving trends in the Indian jewellery market, what to expect in the second half of the year, and much more.

Tanishq consistently stays ahead of the curve: Pelki Tshering

Tanish has a strong presence in the Indian market. How does the Onam and the wedding season impact your market strategies and collections? Could you share your special plans for this season?

When we look at the jewelry market, it is heavily tied to the festival calendar throughout the year. No matter which festival we're talking about, depending on the customer or the region they belong to, we design and launch collections specifically for that market. For example, one of our most popular campaigns during the year is for Diwali. Each year during Diwali, we focus on understanding what excites the consumer, what is modern and trendy, because, at the end of the day, we're catering to a traditional yet modern Indian consumer.

Using this as an anchor, we create deeply designed story collections. Recently, for example, in Tamil Nadu, we launched the Arpunam collection during the Adi festival. Similarly, for Onam, we identify key pieces that we believe resonate with consumers, balancing traditional jewelry with modern elements. Both of these festivals are heavily gold-focused, so it’s essential to consider not only what the consumer wants to wear but also where she is in her jewelry journey. Does she prefer diamonds, or is it a traditional festival that calls for something more elaborate?

Whether it's Onam, Adi, Varalakshmi, or Diwali, we keep the consumer at the heart of our designs, launching collections or pieces that are rooted in the festival's significance yet aligned with modern sensibilities.

 Tanishq’s collaboration with De Beers is a significant move. How do you plan to leverage this partnership in your marketing efforts? What are the key messages you aim to convey to your audience?

At the end of the day, this is not just a marketing collaboration—marketing is just one of the elements. However, if we look at it purely from a marketing perspective, what are we really saying? We're saying that modern Indian consumers today still desire diamonds. They aspire to wear diamonds, but they may need some guidance to make the right choice and get what is best for them.

A large part of our marketing activities will likely focus on this, where we continue to sell what she desires and aspires to own through beautiful jewelry pieces that she likes. At the same time, we'll be doing major outreach and education, ensuring that consumers know exactly what they are paying for and what they are being told about the product. This is particularly important given the confusion between natural diamonds and other options. So, while we continue to build desire, education will be a key element in our strategy.

Tanishq has a strong retail network across India. How do you plan to address the needs and preferences of customers in Tier 2 and Tier 3 cities through this collaboration?

In both tier-two and tier-three markets today, we're increasingly observing a significant trend. One of the key factors we've discussed is market penetration. This penetration and expansion are happening in tier-two and tier-three cities. The beautiful thing is that with the proliferation of media, this phenomenon is no longer confined to metros; it's spreading across segments. It’s now a tier-one, tier-two phenomenon where everyone aspires to have a diverse repertoire of jewelry.

Unlike in the past, when it was predominantly a gold market, various kinds of jewelry, including diamond jewelry, are now becoming popular among consumers, whether in cities or smaller towns. For occasions like weddings, people are experimenting more with the materials they use—be it gold jewelry, diamond jewelry, polki jewelry, or emeralds incorporated into diamonds.

So, even in tier-one and tier-two markets, one of the biggest outcomes of this collaboration will be education. While consumers generally understand gold better than diamonds, we've introduced tools like the karat meter for gold many years ago. With diamonds, we've educated consumers about the four Cs and how to assess the kind of diamond they want. However, given the noise in the industry today, we believe that an association like this will help us explain the importance of natural diamonds and guide consumers on how to buy the right natural diamond if they wish to do so.

From Tanishq’s perspective, what are the major trends or shifts you anticipate in the diamond jewelry sector in India? How do you plan to stay ahead of these trends?

When it comes to Tanishq, we've always believed in creating deeply meaningful design stories. For instance, our latest collection, Enchanted Trails, wasn't just designed on a whim. We've drawn inspiration from what resonates with the modern Indian consumer. Enchanted Trails is inspired by flora and fauna, like the Sundarbans and the forest. Last year, we introduced Tales of Mystique, which drew inspiration from royalty. Due to these deep design stories, each piece sometimes takes us eight to nine months to craft. This commitment to design is how Tanishq consistently stays ahead of the curve.

From a trend perspective, there's a beautiful balance emerging. When we talk about high-value jewelry, people are increasingly seeking intricate design stories combined with modern, versatile pieces. For example, if someone purchases a large piece, they want to be able to wear it with both ethnic and modern attire. On the other hand, diamonds being worn on a daily basis has become a significant trend. Whether it's a small pair of earrings or a simple pendant, like the one I'm wearing today, these pieces have become essential. The focus is on versatility, modern aesthetics, and creating designs that are deeply rooted in tradition while being adaptable to contemporary styles.

How has the H1 been for the entire jewelry industry? What are the key and notable trends and changes that you have observed?

At the sector level, we've all been discussing this from the company's perspective. For the industry as a whole, there might have been a bit of a slowdown, especially in gold, mainly due to the high gold rates, which led people to postpone their purchases. The wedding season, for instance, wasn't as robust as last year. Factors like the elections, the heat wave, and people simply not coming out to shop contributed to this. However, the beauty of the situation is that recently there's been a significant shift. People are either catching up on their postponed purchases or even preponing their shopping because the wedding season is around the corner. So, exciting times are ahead, and we're feeling very positive and upbeat about the way things are going.

What are the notable shifts in consumer behavior that you observe for the H2?

I don't think consumer behavior changes so quickly between the first and second halves of the year. What might change is when they choose to buy. So, when consumers buy, there are two lenses through which they make their purchase decisions: adornment and investment. The investment conversation and factors can impact what happens in the first half versus the second half of the year. However, when it comes to trends related to adornment, it's a slightly longer-lasting phenomenon, so it will remain consistent. But, of course, in the second half, you do have a very heavy wedding season approaching, along with Diwali.

In terms of growth ad spends, what are your expectation from H2?

I think the growth is already evident. There’s significant growth that will continue in the second half of the year. Quarter three has always been a crucial period for the entire jewelry industry, especially because of Diwali, weddings, and other events. So, there will definitely be ad spend and investment, aligned with how the yearly calendar unfolds.

Amit Pratihari

With the festive season of Onam and the upcoming wedding season, how do you see these occasions influencing diamond jewelry trends in India? Are there any specific collections or promotions that De Beers is focusing on during this time?

In India, when it comes to jewelry, we naturally find reasons and occasions to buy and celebrate with it. Jewelry, as a category, is a symbol of happiness, prosperity, and all the good things it can bring to life. The festive season of Diwali and the New Year is a significant time and a big business opportunity for brands. We have some exciting plans in the works, and we will be launching our collections in the coming months to cater to the Diwali season.

De Beers is renowned for its marketing innovations. Can you elaborate on how you plan to market this new collaboration in India? What strategies will be used to reach the target audience?

I believe this collaboration has been executed in a very thoughtful manner. As the leading jeweler in the country, Tanishq represents trust. If I may take the liberty to say, Tanishq is truly India’s jeweler—every Indian loves to buy from Tanishq and trusts it for the value it brings. Of course, the product is paramount, but the transparency with which Tanishq sells its products is equally important.

On the other hand, De Beers is the world’s largest diamond mining company, holding the top position for more than 130 years. This collaboration is not just about increasing the diamond business; it’s a partnership that happened because both companies share the same philosophy. Both Tanishq and De Beers believe in transparency, a consumer-first approach, and a commitment to giving back to society. These shared values are what brought us together, beyond just business opportunities.

Imagine two great companies coming together—it will not only benefit the business but also elevate the entire category. This association is a reinforcement of both companies' commitment to natural diamonds, bringing transparency to the end customer. It ensures that when they purchase a product from Tanishq, it is responsibly sourced, possibly through De Beers. This partnership serves as a great confidence booster for the end customer.

How does De Beers plan to engage with consumers in Tier 2 and Tier 3 cities in India? Are there any specific initiatives or strategies designed to cater to these markets?

For this collaboration, our approach is centered around leveraging Tanishq's extensive reach to connect with all customers. Tanishq will serve as the face of the entire communication effort, and we will work in parallel to ensure that the message is clearly conveyed and well-understood, thereby building consumer confidence. We will utilize Tanishq's platform to effectively build and reinforce this narrative.

What do you believe will be the key trends shaping the future of the diamond jewelry industry in India? How is De Beers preparing to adapt to these changes?

I believe there is a noticeable shift happening from purchasing large, one-time jewelry pieces to opting for everyday jewelry. This partnership with Tanishq represents a unique story. When you visit a Tanishq store, you'll find jewelry for every occasion. With this new association, we will ensure that these offerings are communicated more effectively, allowing us to better capture the opportunities present in the market.

How has the H1 been for the entire jewelry industry? What are the key and notable trends and changes that you have observed?

I believe the first quarter has been very positive for most retailers in the market, and as a company, we see it as a strong start. However, the last couple of months have been somewhat slow due to seasonal trends. Despite this, we are looking forward to the upcoming season with optimism, and I am confident that we will achieve double-digit growth.

What are the notable shifts in consumer behavior that you observe for the H2?

I mentioned earlier the types of jewelry that customers are now seeking. They are increasingly looking for pieces with a more meaningful design language. This is a new trend—people no longer want to buy just any jewelry. They want to purchase jewelry that matches their personality and reflects their emotions. This is where the focus is shifting, and work is being done to cater to this emerging preference.

In terms of growth ad spends, what are your expectation from H2?

As I mentioned, we are expecting around 15% to 20% growth in the second half of the year, and the outlook appears positive.