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START-UP Oyzterbay: 22-carat Dreams By Dilip Maitra
Cut to 2001. In the third week of February, Nangia-and five others from Tanishq-saw the coffee bean-inspired idea take concrete shape when the nine-month-old branded jewellery retailer launched its first outlet in Bangalore. By March 2002, Oyzterbay wants to puts its name on 50 more outlets across major cities. The idea? Become the first retail chain in the Rs 45,000 crore jewellery industry to target women between 16 and 30 with relatively affordable branded ware. Says Nangia: ''It's a huge industry with vast opportunities." Oyzterbay's (it means ''something precious'') business model is founded on the simple premise that jewellery fashion is changing and that a whole new segment of consumers (mainly college-going and working women) can be tapped if the right mix of price and style is offered. Claims Priyadarshi Mohapatra, Manager (Marketing), Oyzterbay: ''Women in this segment have just two options: one, wear their families' traditional jewellery, or go for poorly made 'fashion' jewellery. We are going to offer contemporary styles at attractive prices.'' Gem of an idea? For starters, the company-funded by the Bangalore-based ICF Ventures-is launching its products in four categories (18 carat, 22 carat, jewellery with precious stones, and silver) and pegging the prices below Rs 7,000. To make the products affordable, it plans to take a leaf out of Tanishq's book and use techniques that would allow it to, say, make a gold chain of standard length but weighing as little as 3 grams. Nangia will need as much innovation as he can lay his hands on. For, there are competitors like Carbon and Gitanjali Jewellers. Besides, since product purity is of the essence in jewellery, brand credibility is vitally important. An upstart like Oyzterbay will need to work on user experience and brand building (it's armed with a Rs 8-crore ad budget.) By the end of next fiscal, Nangia expects to rake in Rs 25 crore. Not a big number, given the industry's size. Ergo, the retailer plans to run a lean ship. Unlike Titan, which invested Rs 150 crore in manufacturing, Oyzterbay will outsource products. Accounting and infotech requirements have also been farmed out to Wipro, which will manage the information flow between the corporate office and its outlets and suppliers. The shoe-string operation is making Oyzterbay's investors happy. Says Vijay Angadi, Managing Director, ICF Ventures: ''They are experienced, have a good business plan and the right chemistry to make it happen.'' Now, it's a small question of making the customers agree. |
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It's a
warm but drowsy April evening on the fourth-floor office of Titan
Industries on Bangalore's Airport Road. Taking a break from the day's work
are six of the watchmaker's executives. The desultory conversation has
meandered its way to dotcoms and the so-called new economy's upstart
millionaires. ''There are so many opportunities around us, may be we
should do something on our own,'' a voice pipes up, almost wistfully.
''That's when,'' recalls Vasant Nangia, former CEO of Tanishq, Titan's
jewellery business, ''the urge to do something like Oyzterbay was born.''