Sales at India-based jeweler Titan Company increased in the second fiscal quarter as the reduction in import duty on gold products drove jewelry purchases.
Jewelry revenue jumped 26% year on year for the three months that ended September 30, the company reported earlier this month. The growth was primarily in plain gold products, while gem-studded jewelry did not perform as well.
“Jewelry operations grew…after a relatively soft first quarter,” the company noted. “Consumer demand significantly picked up momentum after the reduction in custom duty on gold imports from 15% to 6% leading to a strong double-digit uptick in plain gold for the quarter. The non-studded segment recorded growth in high double -digits, whereas the solitaire segment saw a decline amidst price uncertainty and demand supply dynamic in the international markets.”
Sales of watches and wearables rose 20% year on year for the period. Titan saw a continuation of high-value watch sales amid premiumization — where the jeweler can charge a higher price for its timepieces based on an increase in its perceived value — as consumers and retail partners purchase watches and jewelry ahead of the holiday period. This year that season began on October 3 with Navaratri and ends with Dhanteras and Diwali at the end of October.
Titan — which also operates an eyecare business, among other divisions — opened a net 64 new stores during the period, bringing its total to 2,885 stores.
Image: A Tanishq jewelry store in New Jersey. (Titan Company)
Stay up to date by signing up for our diamond and jewelry industry news and analysis.