Old gold exchange dominating Titan’s jewellery business transactions

First, it was soaring gold prices, then the Prime Minister’s appeal to the nation not to buy gold unless it was really necessary: Adversities open up new opportunities as well as push organisations to innovate. Arun Narayan, CEO, jewellery division, Titan Company , says that even before the Prime Minister’s appeal, the company had launched its campaign with Sachin Tendulkar, encouraging consumers to exchange their old gold. Today, over 50% of the jewellery business’ transactions are happening through exchange of old gold. “That's really what we have been also telling our customers since October of last year, that your old gold can strengthen India. The PM’s appeal was a clarion call for us to restart the campaign and double down on that message.”

Narayan says even its luxury jewellery brand, Zoya (high-end luxury demand is largely price inelastic), is seeing considerable number of sales being driven through exchange of old gold. Most Indian families have heirloom jewellery as well as gold bars and coins sitting in their lockers. “The typical consumer code in India has been to accumulate gold. We don't really exchange gold. We encouraged consumers to repurpose their old, unused jewellery instead of buying gold. After all, 99% of the gold you buy is imported,” Narayan explains.

Making Jewellery Accessible

Narayan’s tagline is to make gold jewellery accessible. “We are doing whatever it takes to ensure the category stays relevant and exciting to consumers across segments.” From lightweight 22-karat jewellery to 14 carat and 9-carat jewellery in brands such as Mia to adding alloy into gold jewellery, Titan’s jewellery division is trying hard to innovate.

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The old gold exchange scheme, according to Narayan, has helped in getting footfalls back into the stores. “The gold exchange in all our stores happens in front of your eyes. The gold is melted and weighed, and that whole process gives a lot of confidence to consumers. It has really helped people to transact without any fear.”

Zoya Story

While the company tries to offer jewellery at accessible price-points across brands – Tanishq, Mia by Tanishq, and Caratlane, Narayan says its luxury brand, Zoya, has registered a 30% CAGR growth in the last three years. Zoya, he claims, is on the verge of crossing the Rs 500 crore revenue mark.

India is the jewellery sourcing hub for most global luxury brands, but there aren’t too many Indian luxury jewellery brands which are wooing global audiences. So, how is Zoya different from Tiffany or Cartier? Narayan describes Zoya as not just quintessential Indian with global standards, but also ‘quiet and warm’ luxury.

“It's not luxury which is intimidating, neither is it maximalist and on the face. Even the way we have designed our stores is like an oasis of calm. It is understated.” Zoya, which has 14 boutiques across the country and Zoya galleries within Tanishq stores, celebrates the journey of a woman. “The brand is about a woman re-discovering herself and her sense of purpose. She has kind of completed her responsibilities in life,” Narayan explains.