We had recently carried an article about how online jewellery is becoming popular online with heavy discounts being offered to consumers. It seems like this product category is getting more and more popular. According to reports, Tata Group Company Titan will soon be investing $30 million (Rs 187 crore) in online jewellery retailer Caratlane in exchange for a 15 per cent equity stake. This will improve Caratlane’s valuation to become Rs 1,200 crore.
However, it seems like this is just a financial operation and does not indicate any kind of retail collaboration with Titan. Titan’s chief financial officer, Subramaniam explains, “Titan has its own website where it sells products across all categories. We are not otherwise doing anything else now and will not otherwise comment on market speculation.”
Earlier, Tata Sons’ chairman emeritus Ratan Tata has also personally invested in BlueStone, another online jewellery retailer.
According to one investor, this engagement between Caratlane and Titan could benefit from the synergy of new-age designs and branding and time-tested and experienced marketing and sale strategy, with both the companies respectively have.
Is there something more important happening with this investment? Tata Group which owns Titan, also owns Tanishq Jewellery, which has always been synonymous with gold shopping in India. Could it be possible that this investment in Caratlane actually signifies that the traditional gold retailer sees Caratlane as potentially fatal competition? In either case, this clearly indicates that the sale of precious jewellery online is gaining some serious mileage!
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