Tanishq sparkles as buyers snap up premium products

Titan Co.’s jewellery division is witnessing a surge in demand for premium pieces, priced above ₹5 lakh, indicating a growing appetite for top-tier consumer goods. These high-end studded pieces now constitute 13% of its flagship jewellery brand Tanishq’s portfolio (excluding solitaires). The contribution was under 7% about five years ago, said a top company executive. Besides, Titan is also expanding its higher-end jewellery brand Zoya to keep up with the demand for luxury goods.

While Zoya currently has eight stores nationwide, it is actively looking to add retail outlets in existing and untapped markets.

The company’s move aligns with the broader trend of premiumization across India, spanning categories such as automobiles, real estate, timepieces and jewellery.

“Tanishq has done a lot of work at the premium and high-end and has grown significantly in the ₹5 lakh-plus category, which is now contributing to 13% of the brand. This is huge. It has been growing at a very rapid clip if I look at the last three to four years,” said Ajoy Chawla, chief executive, jewellery division, Titan.

Growth is also aided by the sale of Tanishq’s pricey solitaires apart from celebrity-backed, high-end collections in its portfolio. “We will continue to launch collections because our headroom for growth in high-value studded space is very high,” Chawla added.

India is among the largest consumers of gold globally. While small independent retailers still dominate the market, jewellery chains have significantly raised their market share in the last 10 years. Share of organized retail chains rose from 5% in 2016 to 35% by 2021, as per a report by the World Gold Council.

Chawla said at the top end of the market, the retailer faces stiff competition from local independent stores across Indian cities. The absence of a national luxury jewellery chain presents a “huge opportunity” for Tanishq, Chawla said.

“Between Tanishq, which caters to certain design language and Zoya offering a different design language, the opportunity is huge. Big players there are independents,” he added.

Titan’s jewellery division comprises Tanishq, Zoya, CaratLane and Mia by Tanishq. In FY23, its jewellery division reported revenues of ₹31,897 crore (excluding bullion sales), up 37% from a year ago.

Earlier this year, Mint reported that Titan is also increasing its focus on premium watches priced above ₹25,000. The company is seeking to cash in on the growing demand for such time pieces among fashion-savvy consumers.

Zoya’s store count could double within a year, Chawla added. Zoya sells jewellery for an average price of ₹6 lakh- ₹6.5 lakh.“Zoya has been growing its footprint as well as its top line and the number of customers year-on-year. If we go back to FY20, the Zoya business was about ₹65 crore, and about ₹240 crore in FY23. This year, we are hoping that it will grow 40-50%. We have been adding stores…” The company follows the fiscal year to report its financial results.

“In Bengaluru, we added. Chennai, Pune, and Kolkata are works in progress. Ahmedabad we opened new stores, in Hyderabad also we have added, and hopefully in Chandigarh also in some time…besides we are looking for one store each in Mumbai and Delhi. We are at eight stores now, with the work going on...hopefully by next Diwali we should be at 14 or 15 stores of Zoya,” he said.