Tanishq sparkles as buyers snap up premium products

livemint.com:

NEW DELHI : Titan Co.’s jewellery division is witnessing a surge in demand for premium pieces, priced above ₹5 lakh, indicating a growing appetite for top-tier consumer goods. These high-end studded pieces now constitute 13% of its flagship jewellery brand Tanishq’s portfolio (excluding solitaires). The contribution was under 7% about five years ago, said a top company executive.

Besides, Titan is also expanding its higher-end jewellery brand Zoya to keep up with the demand for luxury goods. While Zoya currently has eight stores nationwide, it is actively looking to add retail outlets in existing and untapped markets. The company’s move aligns with the broader trend of premiumization across India, spanning categories such as automobiles, real estate, timepieces and jewellery.

“Tanishq has done a lot of work at the premium and high-end and has grown significantly in the ₹5 lakh-plus category, which is now contributing to 13% of the brand. This is huge. It has been growing at a very rapid clip if I look at the last three to four years," said Ajoy Chawla, chief executive, jewellery division, Titan.

Growth is also aided by the sale of Tanishq’s pricey solitaires apart from celebrity-backed, high-end collections in its portfolio. “We will continue to launch collections because our headroom for growth in high-value studded space is very high," Chawla added. India is among the largest consumers of gold globally.

While small independent retailers still dominate the market, jewellery chains have significantly raised their market share in the last 10 years. Share of organized retail chains rose from 5% in 2016 to 35% by 2021, as per a report by the World Gold Council. Chawla said at the top end of the market, the retailer faces