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India’s Titan Weathers Demonetization Storm

Jan 2, 2017 9:56 AM   By Rapaport News
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RAPAPORT... Titan Company said jewelry sales rose in the fiscal third quarter even as India’s demonetization policy weakened consumer demand.

The Mumbai-based retailer’s revenue increased “reasonably” in the three months to December, with its flagship Tanishq brand growing about 15 percent, Titan said. This jump in sales came despite the liquidity squeeze resulting from the Indian government’s decision to invalidate INR 500 and INR 1,000 currency notes.

Retail sales took a hit in the aftermath of tighter cash policy that came into effect November 8, even as consumers rushed to buy gold at Tanishq stores in the hours before the select currency denominations went out of use.

In the weeks following the dramatic policy move, most segments of the company's business returned to a normal level of operations, with only the watch division still suffering as most transactions are in cash, Titan explained. The company is in the process of introducing a variety electronic payment methods across all its stores to mitigate the problem. Almost all Titan sales are now either funded by electronic spending or advanced payments made by customers before demonetization came into effect, the company pointed out.

Ahead of the policy’s introduction, the Diwali festive season was one of Titan’s best on record, with Tanishq sales soaring 40 percent over the 30-day period. This was driven by new collections and consumer schemes and a more attractive exchange program, the company said.
Tags: Demonetization, India, Jewelry, Rapaport News, retail, Tanishq, Titan Company, watches
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