TMJL intends to capitalize on its strategic location to develop into a market leading jewellery operator in India. In order to grow its business volume and strengthen its market position in India, the company has in place, the following strategies:
a. Increasing retail presence in India
Each Thangamayil store should strengthen the brand and offer local customers the best possible shopping experience. The company’s policy on expansion strategy would basically speak upon providing impeccable quality, plenty of choices in vogue and excellent customer service to inculcate the focal point of inviting repetitive customers to our retail showrooms. Moreover, effective marketing of our brand through various local as well as premier channels including satellite television, extends the reach of our brand throughout Tamil Nadu and where retail showrooms are yet to be established in the years to come.
Furthermore, the company has also devised various sales concepts that revolve around customers and aim at providing them complete satisfaction in choosing ornaments. This enables them to have a relaxed atmosphere and induces the customer to enjoy the overall shopping experience.
From the year 2010 - 2011 onwards we have expanded our horizon in the Southern region of Tamil Nadu. Since then, we have been meticulously planning our retail expansion program to establish retail showrooms in both Tier 2 and Tier 3 towns, catering to the needs of customers in this region. Accordingly, we have expanded to 31 branches in a period of 2 years from the time of obtaining our status as a public limited company. Our policy on expansion reiterates the important aspect of covering small towns to major cities. TMJL also has in store an ambitious plan of expanding further in the near future, establishing its showrooms in the Indian metropolitans.
b. Backward expansion
In order to facilitate growth on such a scale, backward expansion becomes essential. Such an expansion would ensure both the quality of the products produced and aid the company to reduce the level of inventory it holds, as products can be produced as and when required. It also helps the company to cope up with sudden increases in demand, which is induced by rising or falling of prices. Keeping in mind the fact that setting up of a production unit requires huge investments, the company is looking forward to strike trade partnerships with its manufacturers to satisfy the current needs. This method enables us to create a win-win situation for both the company as well as the manufacturer.
c. Future prospects
Our future business plans are to establish our brand in the Southern region as well as the metropolitan cities, in the years to come, by which time the company would enjoy sustained penetration into rural markets. The company also intends to strengthen its high value product lines which include diamonds and platinum, in major cities, to cater to the elite customers.
Going forward, the business model as demonstrated by the company can easily be replicated in various towns. With consumer awareness improving year after year, our quality parameters on one hand and effective polarization taking place in the supply chain on the other, ensure the future prospects of the company. Though operating in a competitive environment, the uniqueness of the model ensures a comfortable level of net margin availability to the company. The improved visibility of our stores in existing towns coupled with expansion to new branches and cities will ensure a growth momentum is experienced by the company in coming years.