Titan, part of the Tata Group, said that the outlook for its jewellery segment in the ongoing fiscal, and the medium term, is "positive", with "excellent" development opportunities in the wedding market, momentum for its gold exchange programme, and network expansion.
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The company is striving for significant expansion across all markets, particularly in the category of Indian ethnic wear, fine fragrances, and women's bags. The group intends to establish a wholly owned subsidiary in the US, with the opening of the first Tanishq store in North America scheduled soon, according to the latest annual report of the company.
The company added 78 new stores last financial year, bringing its total to 582, and plans to expand to 700 outlets over the next few years. The group is pursuing a combination of company-owned outlets and a franchisee model with few assets, ensuring business growth and reducing operational risk.
Tanishq, Mia by Tanishq, and Zoya are three of Titan's jewellery-related brands. In the fiscal year that concluded on March 31, 2022, the jewellery segment was responsible for nearly 88 percent of the company's overall sales, which totaled Rs 27,456 crore.
“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.
After two years of pandemic-related lockdowns, the forecast for the upcoming year is "good," which should result in a first quarter without disruptions due to Akshaya Tritiya and a robust wedding season, it added.
Regarding the jewellery division's foreign business, Titan stated that it has launched Tanishq stores in Dubai and Al Barsha, which are proving to be quite popular, with discerning consumers continuing to promote the high-quality goods and selections.
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.
Additionally, World of Titan & Helios stores are being rechristened as Titan World Store chain, with 40 Titan World Stores renovated to this new format in FY22.
Venkataraman further added that ”I am sure by the end of FY23 we will become a prominent name in this category. The wearable product pipeline for the upcoming quarters is brimming with intriguing products from both brands."
In the eyewear front, the company is investing in significant store expansion across both big cities & smaller towns, and managed to add 134 new Titan Eye+ stores to its chain, the largest expansion by the EyeCare division to date.
It also intends to add 250–300 outlets, bringing the total number of stores to 1,000 by the end of FY23.
Titan has also ventured into the market for ethnic clothing. "We aim for significant growth in every business segment. And particularly so in Indian ethnic clothing, high-end perfumes, and women's bags," said Venkataraman.
(With inputs from PTI)