Jewellery demand has bounced back, but it is highly volatile Jewellery demand has bounced back, but it is highly volatile Jewellery demand has bounced back, but it is highly volatile While the overall demand for jewellery has bounced back post-pandemic, consumer demand has turned more volatile than it was pre-pandemic, according to Ajoy Chawla, CEO Jewellery Division, Titan Company Limited.
“We crossed the pre-pandemic sales long back. So, the trend is good. But volatility in demand is high, maybe due to high gold and diamond prices, maybe due to different sectors opening up at different times such as travel,” Chawla told Business Today on Monday, on the sidelines of the launch of a high-street Tanishq store in Mumbai’s Powai area.
Consumers’ wallet share towards jewellery is volatile as discretionary spending gets diverted to various areas, such as travel, which has opened up in a big way after the pandemic, he said. “It is finding its level, but we cannot complain about the quantum of demand."
The Tata Group company added 11 new Tanishq stores during the January-March quarter and plans to add 40-plus Tanishq stores in FY24. The latest Powai store, spread across 4,500 sq foot and targeting an upscale and well-heeled customer base, was inaugurated by Noel Tata, Chairman of Trent and Vice Chairman of Titan Company Ltd. The store is expected to generate Rs 50-150 crore sales.
Chawla said the fine jewellery category, which includes everyday-workwear jewellery, is an emerging segment. “This fine jewellery segment is largely of the sub-Rs 1 lakh. That customer base is really growing and the segment is coming into its own.”
Besides, digitally influenced sale has been on the rise where customers check out jewellery pieces online but complete the purchase at the store, he said. “This phygital is a fast-growing segment. People still prefer buying offline because jewellery is a high-ticket value buy, unless it’s a sub-Rs 25,000 sale in which case they don’t mind buying purely online.”
Titan's standalone net profit came in at Rs 734 crore for Q4 FY23, a 50 percent rise over Rs 491 crore posted a year ago. Total revenue came in at Rs 8,753 crore, rising 25 percent over Rs 6,977 crore reported in the year-ago quarter.