Titan Jewelry Bets on Exchange, Diamonds Amid Gold Volatility

Titan Company's jewelry division remains optimistic about demand despite fluctuating gold prices. The company is actively implementing strategies such as promoting gold exchange programs and offering a wider array of price points to stimulate growth. Arun Narayan, CEO of Titan's Jewellery business, noted that significant gold price swings have altered consumer behavior rather than reducing demand. Wedding shoppers are accelerating purchases due to concerns about further price increases, while foot traffic in stores rises when prices dip.

Elevated gold prices have notably boosted the exchange of old jewelry for new, with approximately half of all Tanishq purchases now involving some form of exchange. This initiative is credited with re-engaging hesitant customers and sustaining jewelry demand even at higher gold valuations. To enhance accessibility, Titan is introducing monthly gold purchase plans, lightweight designs, and a broader selection of diamond jewelry.

In its long-term growth strategy, Titan is increasing its focus on natural diamonds. Plans include establishing diamond expertise centers within Tanishq stores equipped to authenticate natural diamonds and educate customers on quality. The company is also introducing unique products like the "Soulmate Diamond Pair" engagement rings, designed from a single rough diamond, to foster trust and emotional connection within the natural diamond category.

Retail expansion continues with a plan to open 30-40 new stores across India each year. Concurrently, Titan is prioritizing the upgrade of its existing retail network, with 50-70 stores slated for renovation annually. These upgrades aim to enhance store size and customer experience, which management views as a key growth driver. Internationally, Titan operates about 30 stores, primarily in North America and the Middle East, and intends to expand cautiously in markets with a significant Indian diaspora.