Titan’s Jewellery Business Almost Back To Normal Ahead Of Festive Season

Sales of Titan Co.'s mainstay jewellery business rose nearly back to the year-ago level ahead of the festival and wedding season as India continues to reopen the economy after the lockdown.

Consumers are accepting the new normal and have been getting back to their routine activities, resulting in higher walk-ins and increased time spent in stores, India's largest branded jewellery maker said in its quarterly update filed with exchanges. Opening of malls improved footfalls even though walk-ins are still low at these stores, it said. The company's business through e-commerce has grown across all divisions.

The jewellery-to-watchmaker is seeing demand rise as gold prices remain near a record high despite falling from their peak. The company is betting on increased demand during the Diwali festival season, considered auspicious for buying the precious metal in one of the world's biggest gold-consuming nation.

Jewellery

The division witnessed a recovery rate of 98% in the July-September quarter compared to a year earlier on rising walk-ins and higher ticket size.

• Recovery rate in metros improving gradually.
• Non-metros have recovered substantially and many cities have recorded growth compared to last year.
• Sales in September were decent despite Shradh, a period considered inauspicious for buying.
• Studded ratio is yet to recover to previous year levels.
• The wedding jewellery segment did particularly well in the quarter.
• Sale of excess gold inventory resulted in the sale of Rs 309 crore of raw gold.
• The company net added 14 Tanishq stores during the ongoing fiscal.

Watches & Wearables

Recovery rate of around 55% in Q2 compared with the revenue in the second quarter of the previous fiscal. September saw that inch up to 70%.

• The recovery rate of watches steadily increasing month-on-month as walk-ins rose.
• E-commerce led the recovery.
• The conversion rate and ticket size are higher compared to pre-Covid levels.
• Walk-ins in shopping zones impacted as malls remained closed during the quarter.
• Stores around residential areas have done better.
• Work-from-home in metros and lower traffic around office areas impacted sales in after-office hours.
• Titan added seven World of Titan stores and four Helios stores and closed 3 Fastrack stores during the ongoing fiscal.

Eye Wear

Recovery at 58% of the July-September in the previous fiscal; 70% in September.

• Titan restarted selling its spectacles and sunglasses via Amazon and Flipkart.
• It added 15 new stores and closed 42 year-to-date.

Other Businesses

The recovery rate for fragrances and accessories was 50%, dragged down by slow recovery of trade and large format stores.

• Large-format stores have been impacted due to low walk-ins in malls.
• E-commerce channel has done well.
• All Taneira' stores re-opened post lockdown and were operational at the end of the quarter.

Subsidiaries

• Titan Engineering and Automation Ltd. saw its revenue decline 15% in Q2.
• CaratLane's sales rose 14%.