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Titan Warns of Stagnant Indian Jewelry Demand
Oct 9, 2016 10:03 AM
By Rapaport News
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RAPAPORT... Titan Company said demand was weak in the second fiscal
quarter as consumers suffered from “consumption fatigue."
The quarter that ended September 30 started off with
expectations of improvement because of a “bountiful” monsoon season. But in the
end, sales of gold jewelry were sluggish even as studded-jewelry sales beat
expectations.
“The sentiment, much like monsoon itself, remained patchy
and unpredictable,” the India-based retailer said in a preview to its
forthcoming full results. “While the customers walked into the stores for good
deals or new products and collections, the base demand remained weak.”
Aiming to capitalize on consumer demand for specific ranges,
Titan’s Tanishq brand launched its ‘Queen of Hearts’ collection of diamond
jewelry. These items are higher-value than other products such as gold jewelry
so will improve gross margins, the company said.
The collection also was part of an effort to launch
“compelling” products above $3,003 (INR 200,000) to restrict the impact of new
rules requiring customers to present their permanent account number (PAN) card
when making a jewelry purchase of that amount or more. Items in the Queen of
Hearts are priced above $3,754 (INR 250,000).
“While studded jewelry sales surpassed expectations, sales
of gold jewelry remained subdued, affecting overall revenue growth,” Titan
said.
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Tags:
India, Monsoon, Queen of Hearts, Rapaport News, retail, Titan, Titan Company
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