Tanishq bets big on wedding jewellery segment; witnesses lower traction in small ticket size

Tanishq had witnessed about 15 per cent growth during the Dussehra to Dhanteras period of one month, he said adding that in terms of categories wedding jewellery has done well. He said the sluggishness in the lower price band is mainly due to product gaps and also the purchases in these ranges are casual where the customer is not in a hurry and can wait for the price to settle down.

Even as the pandemic continues to remain challenging for the jewellery industry, Tanishq has witnessed a gradual recovery, especially in the price band of Rs 1-5 lakh range, Ajoy Chawla, CEO, Jewellery Division at Titan Company, said on Tuesday. "I think we have seen fairly good recovery in the Rs 1-5 lakh range and even in the Rs 5 lakh plus category. However, the lower ticket sizes continued to be a little sluggish especially in the sub Rs 50,000 segment because the gold prices itself have shifted upward significantly," Chawla told reporters at a virtual press conference to introduce 'Rivaah Aashirwaad' -- a flexible purchase plan ahead of big Indian wedding season. Tanishq had witnessed about 15 per cent growth during the Dussehra to Dhanteras period of one month, he said adding that in terms of categories wedding jewellery has done well.

He said the sluggishness in the lower price band is mainly due to product gaps and also the purchases in these ranges are casual where the customer is not in a hurry and can wait for the price to settle down. Recently during the festivals Tanishq has introduced a range of light weight jewellery under its 'Ekatvam collections'.

Chawla stated that keeping in mind the rising price of gold, the company had introduced light weight products through design innovation and production engineering that will accommodate the higher price of gold by giving a lower weight for the same look, however, there has not been traction in that price band. "So far, we have not yet seen a huge thrust towards lightweight jewellery. We did introduce several lightweight products through Ekatvam, which, in a way, enabled people to remain within their regular budgets. As of now, we simply have not seen traction in that price band," he added.

Online, it has worked out well for the company, as Caratlane deals largely in the sub Rs 1 lakh segment where lightweights continue to do well, he stated. Going forward, Chawla opined that as there will be a rise in the number of rural weddings from March-April, this segment expects to witness more demand in the 50-200 grams segment.

When asked if the company has plans for collaborations in the wedding segment, Chawla stated that Tanishq is open to collaborating with other platforms. "We have internally also talked about collaboration within the group company with the Taj group of hotels among others and we have informal conversations with them as to how we can collaborate in terms of marketing promotion. That is, we are going to be promoting 'Rivaah Aashirwaad' during the next few months, quite strongly as a campaign for wedding jewellery for brides and different communities," he added. Rivaah Aashirwaad plan is a move to assist consumers in buying jewellery for weddings and related occasions in a structured and systematic manner.

Under this, families can plan wedding purchases well in advance by enrolling in a secured monthly purchase plan which is structured in a way that offers better value for money compared to spot purchase. Rivaah Aashirwaad will give customers the flexibility to plan their purchase in terms of the quantum, duration and benefits which are transparent, Chawla added..

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