Thangamayil Jewellery strikes gold with its DigiGold savings scheme

DigiGold makes a small but significant contribution to the company’s overall turnover, despite being a relatively new offering

Thangamayil Jewellery Limited from Madurai, Tamil Nadu recently introduced the DigiGold scheme to offer customers a convenient and flexible way to invest in gold. “We recognized the growing popularity of digital payments and the increasing use of smartphones in India, and saw an opportunity to combine these trends to create a digital gold savings scheme,” says R Sivakumar, Head – Operations, Thangamayil Jewellery Limited.

Thangamayil DigiGold has received a positive response from customers since its launch. According to Sivakumar, over 30,000 customers have enrolled in the scheme, and this includes new customers who may not have previously considered investing in gold.

CONVENIENCE ABOVE ALL

Traditionally, gold savings schemes have been popular in India, especially in South India, as they allow people to save small amounts of money regularly and accumulate gold over time. However, these schemes have some limitations such as the need to physically visit a jewellery store to make payments and redeem gold. Thangamayil DigiGold allows saving in gold through a mobile application, with the ability to make payments and track savings anytime and anywhere. With DigiGold, customers do not need to visit a physical store to make payments or redeem gold, making the process more convenient, accessible and secure. The gold purchased through the mobile application is stored in a secure vault and can be redeemed as gold jewellery at any of Thangamayil’s stores. The scheme also offers transparent pricing, and customers only have to pay for wastage charges, marking charges, stone charges and hallmark charges, if applicable, at the time of redemption.

IMPACT ON SALES

On how sales has been impacted by DigiGold, Sivakumar says, “Thangamayil Jewellery Limited had a total turnover of Rs 2850+ crore in the current fiscal year, and DigiGold customers have contributed 1% to this amount. DigiGold customers have made additional purchases worth 60% of the savings value.”

These figures suggest that Thangamayil DigiGold is making a small but significant contribution to the company’s overall turnover, despite being a relatively new offering.

DigiGold has also allowed Thangamayil to engage with customers in new and innovative ways. The company can not only build a stronger relationship with its customers, but also expects to see an increase in customer retention rates. “Customers who have enrolled in the DigiGold scheme are more likely to remain loyal to the brand, as they have a vested interest in continuing to purchase from Thangamayil in the future,” says Sivakumar.

Moreover, the launch of the DigiGold app has helped to increase Thangamayil’s brand awareness among a wider audience. The company has been able to reach new customers who may not have previously been aware of Thangamayil’s offerings, thereby expanding its customer base and increasing its visibility in the market.

The DigiGold app has also helped Thangamayil to improve its operational efficiency. By offering a digital platform for customers to save in gold, the company aims to reduce the administrative burden associated with traditional savings schemes, such as handling physical gold and maintaining paper records. The Thangamayil DigiGold mobile application can be downloaded from Google Play Store or Apple App Store.

Written by Janhavi Ganguly

RJ Exclusive