Titan’s jewellery business reports 15% growth on festival-linked demand
- India’s key festival season is significant for jewellery retailers, as buying ahead of Diwali and on Dhanteras boosts demand. The festival season also coincides with the onset of the wedding season that further aids jewellery purchases.
Watch and jewellery retailer Titan Company Ltd., saw good traction across all its businesses during India’s key festival season with its jewellery business reporting a 15% growth during the 30-day period.
“The Jewellery business witnessed a mid-teens growth (around 15%) for the 30-day festive season starting from Dussehra till Diwali over the corresponding period last year, with a decent recovery in studded Jewellery sales,” the company said in a business update to the exchanges on Thursday.
Titan’s jewellery segment revenues declined 2.3% year-on-year in the September quarter, but improved from the first quarter—jewellery revenues adjusting for bullion sale had fallen as much as 70.8% during the June quarter.
India’s key festival season is significant for jewellery retailers, as buying ahead of Diwali and on Dhanteras boosts demand. The festival season also coincides with the onset of the wedding season that further aids jewellery purchases.
Indian consumer’s appetite to buy jewellery shrunk this year due to covid-induce disruptions and higher gold prices. According to a 14 November Bloomberg report, fewer consumers returned to stores during Dhanteras. The report projected poor business for jewellers during the October-December quarter this year. Businesses, on the contrary, are finding comfort in festive-led buying after months of lockdown related disruptions.
In its update, Titan reported that its watches and wearables business also performed well. “The Watches and Wearables business also did quite well in the festive season with recovery close to last year levels. Eyewear business has also witnessed good traction,” the company said. In the September quarter, revenue from watches and wearables was down 44% but the business reported significant recovery from the June quarter.
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First Published:19 Nov 2020, 12:49 PM IST
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