Indian jewellery brand Titan Company's sales grew 26% in the second financial quarter (from July 1 to September 30). The growth was mainly driven by plain gold jewellery, while gemstone jewellery underperformed.
The company said the increase in jewellery sales was primarily due to lower import duties on gold jewellery. In the first quarter of the financial year ended June 30Titan's gold jewellery sales increased 9%, while its watches and accessories sales increased 15% year-on-year.
"Jewellery operations grew... after a relatively soft first quarter," the jewellery brand said in a statement. "Consumer demand picked up significantly following the reduction in import duty on gold from 15% to 6%, leading to strong double-digit growth in plain gold sales during the quarter," the statement said. - The non-studded gold segment registered high double-digit growth, while the single stone jewellery segment performed well amid pricing uncertainty, light dynamics and supply in international markets."
Watches and wearables sales grew 20% year-on-year during the period. Titan saw further sales of high-end watches amid premiumisation, where jewellers are able to increase the price of their watches based on the increase in their perceived value as consumers and retail partners buy watches and jewellery ahead of the festive season. This year, the festive season starts on October 3, Navratri, and ends with Dhanteras and Diwali in late October. Titan, which also operates an eye care business, opened 64 new stores during the period, taking its total store count to 2,885.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
