Tanishq expects omnichannel sales in FY23 to double from the previous year

NEW DELHI: Titan Co. Ltd’s flagship jewellery brand Tanishq is on track to double sales via omnichannel route in FY23 with its omnichannel strategy reaping dividends. In FY22, it recorded sales of Rs 1,100 crore through a combination of orders placed on its site as well as leads generated online that were converted in stores. “Digital continues to be a strong story. We continue to get good traction and growth on our website visitors. Until last year or so we were seeing 2-2.1 million monthly unique visitors on our site, but now we are seeing 3 million,” said Ajoy Chawla, chief executive, jewellery division, Titan Co. While pure-play online sale accounts for 10% of all orders, 90% is leads generated online but concluded during in-store visits.

Titan’s jewellery division, comprising brands such as Caratlane, Mia, Tanishq and Zoya, reported sales of Rs 24,313 crore in the last fiscal year.

Chawla said omnichannel sales for Tanishq stood at Rs 1,100 crore in FY22. “We are on our course to doubling that number this year.” The company actively pursues online orders and directs shoppers to nearby stores to conclude purchases, he added.

Tanishq’s website generates 80,000 leads per month while around 1,000 chats are initiated daily on its platform. Consumers are encouraged to log on to live chats to choose from an array of products, and the information is passed on to its stores. Within 30-45 days, the customer can visit the store to conclude the purchase. “It’s actively managed and driven,” Chawla said.

As of September, Titan had 488 jewellery stores in India across its portfolio of brands. “Digital continues to be the big driver both for demand as well as for fulfilment—both online and omni. And we are continuing to see aggressive traction on that,” he added.

India is the world’s second-biggest gold market. However, online sales account for 3-5% of total jewellery sales in value, according to data by the World Gold Council.

Besides, Indian consumers typically buy light-weight and small-ticket jewellery on the internet, it added.

With the two years of covid prompting shoppers to turn to online purchases, retailers are also accelerating the adoption of omnichannel sales, according to a report by consulting firm Deloitte.

According to World Gold Council, most sales are driven by consumers aged between 18 and 45 years. However, interestingly, while online jewellery purchases have risen, the average ticket size remains flat and shoppers prefer jewellery pieces of 5-10 grams.

Courtesy: Live Mint