Titan and Kalyan Jewellers are shining brighter than ever, riding on the back of a remarkable growth trajectory in the jewellery sector, driven by robust demand as well as changing consumer preferences.
From a modest 8 percent year-on-year growth in the first quarter of FY25 to a festive-fuelled 25 percent surge in the third quarter of FY25, Titan said that the jewellery division is not only buoyed by traditional gold purchases, but also burgeoning demand for lightweight, versatile jewellery that aligns with the lifestyles of modern Indian consumers.
It's studded segment, which entails pieces embedded with diamonds and other precious or semi-precious stones such as rings, pendants, bracelets and earrings, grew 21 per cent YoY, recording its highest quarterly print, till now, for FY25, the company said in an exchange filing on January 6. This growing prefernce towards lighter, affordable jewellery has sparked uncertainty about whether 18-karat gold will be replaced by 14-karat gold as the dominant choice, according to analysts.
Similarly, Kalyan posted a 41 percent Y-O-Y revenue growth in the third quarter of FY25 led by very strong festive and wedding demand across both gold and studded categories, the company said in an exchange filing on January 7.
"Studded has been strong, majorly because maybe there are only a few markets where solitaire is looked upon as a commodity, wherein they just buy it for an investment, predominantly in Delhi and Punjab," said Executive Director of Kalyan Jewellers, Ramesh Kalyanaraman, during the company's second quarter earnings call.
Studded or daily wear jewellery accounts for 30-35 per cent of the Indian jewellery market, according to a Motilal Oswal note from last year. The rising preferance towards this segment has led players to strategically focus on manufacturing lightweight pieces to cater to the preferences of younger consumers, especially those who desire daily wear gold jewellery that complements western-style attire, according to analysts.
"There is actually enough evidence, especially in the northern region and the western region, the high-value jewellery of diamond has moved to 14 carat and it has happened over a period of time and it is actually a substantial segment of the higher end of diamond jewellery," said Saumen Bhaumik, Chief Executive Officer at CaratLane. CaratLane is Titan's omnichannel jewellery brand in India known for its innovative designs and focus on lightweight and contemporary jewellery.
Meanwhile, the company also flagged that wedding jewellery demand started picking up post the custom duty reduction.
Demand for wedding jewellery also picked up once customs duty was reduced. There were buyers waiting for the announcement and for the elections to get over. Once the prices of gold corrected, buyers came in, said Ajoy Chawla, CEO of the Jewellery Division at Titan Company, during the company's second quarter earnings call held in November last year.
Robust consumer traction during Diwali translated into high single-digit buyer growth along with double-digit ticket size growth. Gold (plain) exhibited particularly strong momentum growing at 24 percent YoY benefiting from increased gold prices, festive and wedding purchase, Titan added.
Its gold coin sales grew at 48 percent YoY reflecting consumer preference for gold as an investment avenue and customary purchases during the festive occasion of Dhanteras.
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