NEW DELHI : Titan Co.’s jewelry division is witnessing a surge in demand for premium items, priced above ₹5 lakh, indicating a rising urge for food for top-tier client items. These high-end studded items now represent 13% of its flagship jewelry model Tanishq’s portfolio (excluding solitaires). The contribution was underneath 7% about 5 years in the past, stated a high firm government. Apart from, Titan can be increasing its higher-end jewelry model Zoya to maintain up with the demand for luxurious items.
Whereas Zoya presently has eight shops nationwide, it’s actively trying so as to add stores in present and untapped markets.
The corporate’s transfer aligns with the broader pattern of premiumization throughout India, spanning classes comparable to vehicles, actual property, timepieces and jewelry.
“Tanishq has finished a whole lot of work on the premium and high-end and has grown considerably within the ₹5 lakh-plus class, which is now contributing to 13% of the model. That is enormous. It has been rising at a really speedy clip if I have a look at the final three to 4 years,” stated Ajoy Chawla, chief government, jewelry division, Titan.
Progress can be aided by the sale of Tanishq’s expensive solitaires aside from celebrity-backed, high-end collections in its portfolio. “We are going to proceed to launch collections as a result of our headroom for development in high-value studded area could be very excessive,” Chawla added.
India is among the many largest customers of gold globally. Whereas small unbiased retailers nonetheless dominate the market, jewelry chains have considerably raised their market share within the final 10 years. Share of organized retail chains rose from 5% in 2016 to 35% by 2021, as per a report by the World Gold Council.
Chawla stated on the high finish of the market, the retailer faces stiff competitors from native unbiased shops throughout Indian cities. The absence of a nationwide luxurious jewelry chain presents a “enormous alternative” for Tanishq, Chawla stated.
“Between Tanishq, which caters to sure design language and Zoya providing a special design language, the chance is large. Massive gamers there are independents,” he added.
Titan’s jewelry division includes Tanishq, Zoya, CaratLane and Mia by Tanishq. In FY23, its jewelry division reported revenues of ₹31,897 crore (excluding bullion gross sales), up 37% from a yr in the past.
Earlier this yr, Mint reported that Titan can be rising its deal with premium watches priced above ₹25,000. The corporate is looking for to money in on the rising demand for such time items amongst fashion-savvy customers.
Zoya’s retailer rely may double inside a yr, Chawla added. Zoya sells jewelry for a median worth of ₹6 lakh- ₹6.5 lakh.“Zoya has been rising its footprint in addition to its high line and the variety of prospects year-on-year. If we return to FY20, the Zoya enterprise was about ₹65 crore, and about ₹240 crore in FY23. This yr, we hope that it’s going to develop 40-50%. We now have been including shops…” The corporate follows the fiscal yr to report its monetary outcomes.
“In Bengaluru, we added. Chennai, Pune, and Kolkata are works in progress. Ahmedabad we opened new shops, in Hyderabad additionally we now have added, and hopefully in Chandigarh additionally in a while…in addition to we’re on the lookout for one retailer every in Mumbai and Delhi. We’re at eight shops now, with the work happening…hopefully by subsequent Diwali we ought to be at 14 or 15 shops of Zoya,” he stated.
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Up to date: 14 Nov 2023, 12:33 AM IST
Supply: Live Mint