Titan Company’s jewellery brand Tanishq is offering not only new collections to customers this year, but also innovative retail experiences. Vaishali Dar speaks with Ajoy Chawla, CEO, jewellery division, Titan Company, on trends and sales this season. Edited excerpts:
The new Tanishq festive collection, Dharohar, is available on a Metaverse store too. What’s the idea behind this?
Such innovations excite people and build excitement around the brand. The products are relevant for both traditional and modern customers, so Metaverse is great in terms of innovation for the brand, which is offering virtual try-ons too. Metaverse drew a good response last year when we launched our Romance of Polki collection. The new collection is a tribute to heirloom artifacts, and is available both online and offline.
What is the growth expected in the festive season?
The festive season together with the wedding season is set to bolster growth this year. We see a good opportunity in the wedding market right after Diwali. Gold rates have stabilised to a new normal and any amount of stability in price is a big trend-setter. So we expect good traction in the segment.
How has the premium-luxury market contributed to growth?
We are seeing traction in higher ticket size – greater than Rs 5 lakh – purchase in gold and diamond jewellery. Premium and luxury space is growing faster as the customer in this segment has been less impacted by fluctuations in the economy. With the crossing of $2,000 per capita, which is expected to grow even further in the next five years, we see people with disposable income and willingness to spend across segments like fashion, travel, lifestyle and not just jewellery. We have added high-value zones in Zoya and Tanishq stores. We have expanded retail transformation with specific zones to cater to the premium and luxury segments.
What does the new-age consumer demand?
Newness is trending. The customer wants to buy new products, something that they can not only invest in, but also translates into value. Women want to buy products that they can wear, products that last for years. There is a desire for colour in polki, uncut, semi-precious and precious wear. We see a good response in experimentation in colour.
Is gold exchange gaining momentum this time of the year?
Yes, it is very big. This festive season we have seen 40% of non-Tanishq gold contributing to exchange and another 15% of Tanishq gold contributing to exchange, perhaps because of high gold prices. If one can recycle gold, why not. It’s good for the customer and the planet too.
How much is omnichannel marketing contributing to sales?
Over 10% of sales come from omnichannel with an average ticket price of Rs 1.3 lakh. This figure was less than 1% three years back. But customers feel comfortable in a physical store environment, where they can touch and feel the product. Today 95% of omnichannel sales are concluded in physical stores. For instance, Caratlane, which is a digital store, has more than 40% sales coming from physical stores.
Are you planning an invite-only jewellery store with a minimum ticket size of Rs 10 lakh?
We have no plans to launch any such store. That’s not Titan, Tata or Tanishq. We have always been looking at expansion and setting up stores in larger spaces. We do have high-value zones in our stores, but they are open to all and we want everybody to visit our stores. Zoya is a luxury brand but very much accessible to all. We are an inclusive set of brands.
