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Titan Predicts Boost from India’s Crackdowns
Apr 10, 2018 6:57 AM
By Rapaport News
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RAPAPORT... Titan Company expects to reap the benefits of increased
regulation in the Indian jewelry market, the retailer said after reporting a
jump in quarterly sales.
Stricter credit conditions and a crackdown on illegal
behavior — which have come under focus since the Nirav Modi fraud scandal
emerged in January — will help jewelers that have better structures in place,
it said. The nation’s goods and services tax (GST), which went into effect last
July, will harm small businesses, but more established companies will gain
market share, it added.
“Regulatory developments like GST implementation, [the]
continuous drive against unaccounted wealth, and the more recent developments
related to the credit situation of the jewelers, will pose serious challenges
for the jewelry industry in India,” the company said in a statement Friday. “The
same situations will prove to be tailwinds for organized corporate jewelers
like Titan Company with strong balance sheets.”
Titan’s jewelry sales grew by a percentage in the
“mid-teens” in the fourth fiscal quarter, which ended March 31. The company
noted a successful attempt to promote its diamond jewelry, and benefited from
positive changes to its gold-exchange program.
The retailer has set a five-year target of increasing its
jewelry revenue 150% versus the fiscal year that ended March
2017, and is in a strong position to meet that goal, it said. It aims to
achieve this by developing its sales of bridal jewelry and high-end diamond
products, and growing its share in key markets where it is currently weak. It
also plans to enlarge its network and expand its “Golden Harvest” discount
scheme.
Titan’s watch division also noted solid sales during the
quarter, with growth especially strong at stores that carry multiple brands, as
well as in its e-commerce business.
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Tags:
diamond, Golden Harvest, Indian jewelry market, Nirav Modi, Rapaport News, Titan, Titan Company
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