Chennai: gold jewelry trademark tanishq is looking to use the gold exchange as a powerful growth engine in the 2023-24 financial year. According to top officials in the company, tanishq is looking to increase the share of gold barter in its sales to 45% in 2024 and 50% in the next few years. The company has just completed the exchange of 100,000 kg of gold accumulated over the past few years.
“There are about 1,097 people trading gold with us every day. To date, two million customers have done so for many years,” said Ajoy ChawlaCEO, jewelry assignment, giant.
“About 85,000 brides have exchanged their old gold for all their wedding dresses jewelry and the exchange segment is one of our strongest growth engines, accounting for 40% of our sales in fiscal year 23.”
The focus on gold exchange programs is part of several initiatives undertaken by the company to achieve a 20% CAGR over 5 years that the company has announced as a target. “We have 6% market share in 2022, 7% market share in 2023, and our plan is to grow 1% market share per year to double digits by 2027,” Chawla added.
The exchange range and light weight are part of the initiatives the company is using to grow as the price of gold has surged 80% in the past four years. Tanishq’s share of light jewelry sales was 24% in fiscal year 22-23 and the average ticket size for exchange in fiscal year 2223 was 1,99,384, up 8% year over year.
Typical India import about 800 tons of gold per year.
The exchange offer is aimed at unlocking some of the estimated 20,000 tons of gold sitting in Indian bank lockers. For Tanishq, though, it’s a tool to get “new customers,” says Chawla. Usually the exchange covers 20%-25% of the sales of most of the organized jewelry brands in India.
