Tanishq bets big on gold exchange program to attract consumers amid volatile gold prices, ET Retail
tanishqTata Group, a jewelry brand of multi-industry conglomerate Tata Group, is betting big on a gold exchange program to drive growth in the 23-24 fiscal year.
While talking with ETRetail, Ajoy ChawlaCEO – jewelry division, Titan said that currently the jewelry exchange contributes up to 40% of our sales and for this financial year the brand is aiming to bring it to 45 %.
When compared to other institutional players in the industry, the gold exchange policy contributes 20-25% of their total revenue.
“The gold exchange policy helps us gain new customers and bring back old customers. To date, we have exchanged 100,000 kg of gold from about 2 million customers,” he explained.
“We are also aiming to unlock 20,000 tonnes of gold lying in the lockers of Indian consumers,” he added.
Geographically, consumers from states like Bihar, UP and Delhi are still reluctant to exchange gold, however, consumers from Maharashtra, West Bengal and South India are used to it.
Compared to the previous year, the brand saw an 8% increase in the average ticket price of gold jewelry exchange.
Currently, India is importing 800 tons of gold per year.
While talking about the impact on demand due to price fluctuations, Chawla said, tanishq has also seen volatility in demand amid volatile gold prices and fluctuating consumer wallets, however, the brand is shying away from opening 30-40 stores a year.
“Along with opening new stores, we’re expanding our existing stores in terms of square feet. Our average store size ranges between 4,000-5,000 square feet,” he said.
For Tanishq, 90% of digital influencer sales take place inside the store.
In addition, the brand’s market share has also increased from 6% to 7% last year.
“We expect to hit one percentage point each year in a row and aim to hit double-digit market share by fiscal year 26-27,” he said.
From fiscal year 22 to fiscal year 27, the brand has set a target of 2.5 times revenue growth as desired, implying a compound annual growth rate of 20% over 5 years.
