Tanishq to ramp up gold exchange programme to grow jewellery business

The brand is looking to ramp up the share of gold exchange in its sales to 45% in FY24 and 50% a couple of years down the line

Gold jewellery brand Tanishq is looking to use gold exchange as a growth engine in fiscal 2023-24. According to top officials in the company, Tanishq is looking to ramp up the share of gold exchange in its sales to 45% in FY24 and 50% a couple of years down the line. The company has completed 100,000 kg of gold exchange cumulatively over the last few years.

“Currently, around 1,097 people exchange their gold with us every day. So far, two million customers have done so over the years,” said Ajoy Chawla, CEO, jewellery division, Titan, “Around 85,000 brides have exchanged old gold to buy their wedding jewellery, and the exchange segment has been one of our strongest engines of growth comprising 40% of our sales in FY23.”

The focus on gold exchange programmes is part of several initiatives undertaken by the company to hit the 20% CAGR over five years that it has announced as a target. “We were at 6% market share in FY22, which grew to 7% in FY23, and we plan to grow 1% market share every year, hitting double-digit by 2027,” added Chawla.

The exchange and lightweight range are part of the company’s initiatives to grow in a scenario where gold prices have shot up 80% in the last four years. Tanishq’s share of lightweight jewellery sales was 24% in FY-22-23, and the average ticket size for exchange in FY-2223 was 1,99,384, up 8% compared to the previous year.

India typically imports around 800 tonnes of gold every year.

The exchange offer will unlock some of the estimated 20,000 tonnes of gold in Indian bank lockers. For Tanishq, though, it is an engine to acquire “new customers”, says Chawla. Typically exchange comprises 20%-25% of the sales of most organised jewellery brands in India.

Courtesy: The Times of India