Titan, a part of Tata Group, India’s largest conglomerate, experienced a slowdown in jewelry sales during the quarter ending 30 June, largely due to soaring gold prices affecting consumer demand.
Compared to an 18% increase in the same quarter last year and a 23% rise the year before, Titan reported a 9% year-on-year growth in sales. However, the company does not disclose specific revenue figures. During this period, Titan expanded its footprint by opening 34 new jewelry stores, bringing its total count to 699.
In contrast, Titan’s watches and wearables division saw a growth of 15% in the quarter, up from 6% in the previous three months.
Despite challenges, Titan noted strong double-digit growth in secondary sales of its Tanishq brand during the auspicious Akshaya Tritiya week compared to the previous year. Nevertheless, the significant rise in gold prices, approximately 20% year-on-year, and their sustained high levels dampened overall consumer sentiment, compounded by a decrease in wedding occasions.
Titan’s quarterly update highlighted the impact of these factors on consumer behavior, reflecting a cautious market environment amidst economic uncertainties.
