Titan to benefit from sound demand for jewellery in the current wedding season

In the second half of the current financial year, factors like the the bygone festive season and the upcoming wedding have boosted demand for jewellery brands

Bengaluru: Marriage and festival season to boost demand for jewellery in the second half of the current financial year with Titan emerging as one of the major beneficiaries of the uptrend. Though jewellery demand remained subdued in October owing to Shradh, it recovered post that period. “Titan is nurturing multiple growth engines led by jewellery network expansion, regional thrust and sub-brands like Mia, Zoya and Caratlane,” Brokerage firm Prabhudas Lilladher wrote in a note.

During the second quarter, the average bill per buyer witnessed double-digit growth year-on-year basis. Tanishq added 10 stores, taking the total count to 445 stores during this period. The new buyer proportion remained at around 48%, which was healthy. Gold exchange programme contribution through non-Tanishq came at 33% while overall exchange sales were at 40% in Q2 of the ongoing financial year.

As part of the international expansion, the company continues with its focus on shifting to non-Indian diaspora catchments with a target to achieve 25 stores by FY24. Within the watches and wearables, premium brands continued their strong performance with Helios showing double-digit growth during this period. Wearables posted a strong growth at around 131% year-on-year basis during the second quarter.

In the eyewear segment, revenue grew by 12.6% with international brands growing ahead of in-house brands. Gold prices in the current year have remained high owing to the uncertain economic environment globally. Currently, gold prices are hovering around Rs 62,000 per 10 grams. Owing to the high prices of gold, experts are of the opinion that demand for gold jewellery may not reach a record high in the current fiscal year. Jewellery accounts for around 88% of Titan’s revenue as of now with the rest contributed from other segments.

Courtesy: bizzbuzz.news