Tanishq, the jewellery brand of The Titan Company, plans to innovate and further expand its light weight range of jewellery amidst economic uncertainty and rising gold prices. Gold prices have increased in the second half of 2018 and reached its peak this August due to the pandemic and tepid global economy. Despite the rise in prices, there is continued interest in gold, says Ajoy Chawla, CEO, Jewellery Division, The Titan Company.
"As we are talking to the customers they are telling us they think gold prices will rise further and therefore they are buying," he says. They are also buying not just for festivals but for anticipated celebratory events in the family, such as weddings.
Also, as other spends on travel, food have reduced, consumers continue to spend on jewellery to celebrate their personal milestones such as birthdays and anniversary. "Customers don't view jewellery as 'fizul ki karchi' because the product is precious and gains in value overtime. Even if it doesn't gain substantial value, it doesn't lose value," he says.
The brand is positive about the demand. "The customer we are targeting is not economically stressed and budget is not so much an issue though they are affected on sentiment," adds Chalwa. However, as gold prices have jumped by as much as 60% over last year, customers may not increase their budget in proportion to that. "To serve them better we want to offer products close to their budgets," he says.
"Customers may increase their budget by 10-20% so we need to bring down the weight of the products by 20-30% so it matches the 60% increase in gold prices and they get equally desirable, beautiful products at those weights," he says. "That is something our design team and manufacturing team and vendor team have worked very closely for," he adds. The jewellery brand is also experimenting with material innovations, such as with different kinds of alloys, to create same designs in lighter weights.
The brand says that products, in gold and studded jewellery, in the price range between Rs 1 lakh -3 lakhs continue do well. "Below Rs 1 lakh we are seeing sluggishness in demand may be because that customer is not seeing this as an important purchase and there might be certain customers who are economically stressed," says Chawla. There is sluggishness in demand even in high-end jewellery.
Chawla was speaking at the virtual launch of their festive collection 'Ekatvam'. Starting at Rs 40,000, the collection has 160 products each of which has a fusion of design techniques from different regions of the country, says Revathi Kant, Chief Design Officer, Titan Company Limited.
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