Tata group firm Titan said the outlook for its jewellery division in FY23 and mid-term is “positive” with “excellent” growth opportunity helped by multi-pronged efforts within the wedding market, momentum behind its gold exchange scheme and network expansion. In the jewellery division, Titan is also expanding its brand Tanishq to the global markets and opening stores in West Asia and North America markets targeting the Indian diaspora.
It has plans to open a new store in the US market this fiscal, besides adding more in the domestic markets, said the latest annual report of the company.
Titan operates in the jewellery segment through brands Tanishq, Mia by Tanishq and Zoya. The jewellery division accounted for over 88 per cent of its total sales of Rs 27,456 crore in the financial year ended on March 31, 2022.
“The opportunity for the jewellery division during Financial Year 2022-23 as well as over the medium term is excellent. Apart from the low market share, increasing competitive advantage and brand preference, the jewellery division is continuing to push many levers for growth,” said Titan.
The outlook in the coming year is “positive” which shall hopefully see a disruption-free first quarter that has Akshaya Tritiya and a strong wedding season after two years of pandemic-led lockdowns, it added.
“Apart from the low market share, increasing competitive advantage and brand preference, the Jewellery Division is continuing to push many levers for growth,” it said.
On the international business of the jewellery division, Titan said it has opened Tanishq stores in Dubai and Al Barsha, which are very successful, with discerning customers continuing to recommend the excellent products and collections, it said.
“The expansion into more stores in the UAE and the GCC countries will continue. The Jewellery Division through the Company’s subsidiary, is also looking forward to opening its first Tanishq store in the USA during the Financial Year 2022-23,” said Titan.
The Indian diaspora jewellery opportunity “is very large” to make this a meaningful part of the entire international business portfolio in the near future, Titan added.
Addressing its shareholders, Titan Managing Director C K Venkataraman said:” We are also ratcheting up our thrust behind the Indian Diaspora opportunity for jewellery. The Tanishq Flag will soon fly in multiple locations in West Asia and North America.”
Besides jewellery, Titan operates in the segments such as watches and eyewear. It has also entered into the ethnic wear business.
“We are gunning for big growth in every category we are in. And especially so in the Indian ethnic wear, fine fragrances and women’s bags,” said Venkataraman.
As Indians inexorably march towards the USD 5000 per capita GDP, their desire for lifestyle products will explode, he said. “Our low market share in many of our categories combined with the increasing affinity for Trust will accelerate this further.”
Moreover, Titan’s deep penetration of smaller Tier III, IV & V towns will unlock the real potential.
The “breakthrough momentum” is seen in Zoya, a luxury brand offering exquisite jewellery in diamonds and precious stones and Mia by Tanishq brands, selling contemporary jewellery “also looks promising and both are expected to scale greater heights in the next few years,” the annual report added.
While in watches and wearables, its second large segment, Titan said it has made huge inroads in the Wearables category in the last six months under the Titan and Fastrack brands and are becoming a player to watch, said Venkataraman adding “I am sure by end FY23 we will become a prominent name in this category.”
“The pipeline of wearable products for the coming few quarters is packed with exciting products from both brands. The W&W Division is also planning more products in the rapidly exploding hearables or audio accessories space,” it said.