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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.
Tags: India, Monsoon, Queen of Hearts, Rapaport News, retail, Titan, Titan Company
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