Premiumisation Story: Titan set to launch an invite-only jewellery store with minimum ticket size of Rs 10 lakh
Titan Company Limited is all set to launch an invite-only retail store which will sell luxury jewellery with a minimum ticket size of ₹10 lakh.
The move comes as India's consumer companies rush to premiumise to tap into the strong demand at the higher end of the consumer discretionary market.
The company has taken 17,000 sq ft space in Delhi's South Extension market for the luxury store, said two executives aware of the development.
They said Titan is doing a pilot for this luxury format in the national capital and might replicate it in other parts of the country.
The Tata group company reported a double-digit growth in buyers and ticket sizes in the September quarter, indicating strong demand at higher price points.
«This will be one of the largest jewellery stores in the country, and Titan already has a store of about 10,000 sq ft across the road,» said one of the persons, who did not wish to be identified.
«The average rent in the area ranges between Rs 500-600 per sq ft per month.»
Titan as well as international property consultant Cushman & Wakefield, which acted as adviser for the deal, declined to comment.
The organised jewellery retail segment is growing faster than other consumer discretionary segments since April with buyers shifting away from smaller jewellers.
According to ICICI Securities, in the medium term, the jewellery segment can outperform other segments as it is relatively immune to general economic slowdown owing to factors including inelastic wedding purchases.
«Titan highlighted double-digit growth in buyers and ticket sizes. However, Titan continued investments in exchange programmes and consumer offers which helped maintain its momentum, implying pressure on margins,» it added.
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