Bengaluru: Titan Co. Ltd, maker of watches and accessories, said it is consolidating its jewellery portfolio by merging its Gold Plus brand with larger brand Tanishq.
The evolution of the customer and of Tanishq along with the need to “focus all energies and resources in today’s circumstances" were listed by the company as reasons behind the decision in a filing with the BSE on Monday.
Earlier this month, Titan said its December quarter was a mixed bag that started off very well due to the festive season and a resurgence in consumer sentiment but was dented somewhat by demonetisation. While sales of watches via trade channels or multi-brand outlets were yet to recover, sales of jewellery are back at pre-demonetisation levels, it said in a BSE filing earlier in January.
Titan launched its Gold Plus brand in 2005 for small towns in South India so it could cater better to the more traditional needs of customers in those areas, it said in the latest filing. It has 30 stores under the brand spread across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Maharashtra.
In the last decade, the tastes and aspirations of consumers in some of these cities have evolved and Titan’s main brand Tanishq has kept pace with that evolution, the company said, explaining its decision to merge the two.
Jewellery revenue typically makes up a major portion of Titan’s overall sales and grew 0.24% year-on-year in the September quarter to Rs1,987.51 crore. Total revenue fell marginally by 0.1% to Rs2,659.83 crore during the period.