NEW DELHI : Jewelry retailer Tanishq, owned by Titan Co. Ltd, is encouraging prospects to alternate their previous gold for brand new collections of studded and wedding ceremony jewelry, amid the volatility in worth of the yellow steel. The corporate’s transfer is geared toward attracting new prospects to drive extra gross sales.
It expects the alternate programme to contribute 45% to its general gross sales within the present fiscal 12 months, surpassing the earlier common of 40%.
“We had determined that gold alternate is a progress engine. And as a part of that, we had focused that 40% transfer to 45% for FY24, and within the subsequent couple of years perhaps we will likely be at 50%. We need to do extra of this alternate for numerous causes—it’s good for the patron, as a result of there’s no level in gold mendacity within the locker, we might love individuals to put on fairly than accumulate. Second, it’s good for the planet, since you’re mining much less gold. It’s additionally good for the nation as you’re importing much less. Roughly 20,000 tonnes of gold sits in lockers in India,” stated Ajoy Chawla, chief govt, jewelry sivision, Titan Co. Ltd. Jewelry retailers in India are attempting out completely different methods to spur demand amid the rise in gold costs to woo buyers with choices, together with lightweight jewelry, decrease caratage in addition to alternate programmes.
Excessive and risky gold costs are difficult for customers throughout markets, particularly in India, which noticed the weakest March quarter for jewelry gross sales since 2020, based on a 5 Might report by World Gold Council. This fall demand was 17% decrease in comparison with a 12 months in the past. The council anticipates muted demand outlook in Q2 FY24.
Gold costs ended decrease on Tuesday by ₹350 to ₹60,170 per 10g within the nationwide capital following a decline within the treasured steel’s costs globally.
Chawla stated the alternate programme will attract buyers to purchase jewelry for the marriage season. “Might-June is wedding ceremony season and, throughout weddings, exchanges are anyway an enormous driver. Lots of people have gathered gold in the long term. It permits customers to finish purchases with out anxiousness round gold worth.”
Thus far, Tanishq exchanged 100,000kg of gold; since 2011, round 1.8 million prospects have exchanged their previous gold with Tanishq.
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Up to date: 25 Might 2023, 11:05 PM IST
Supply: Live Mint