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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.
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Tags:
Demonetization, India, Jewelry, Rapaport News, retail, Tanishq, Titan Company, watches
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