Tanishq will increase sales through the gold exchange
Jewellery retailer Tanishq, owned by Titan Co. Ltd, is encouraging customers to exchange their old gold for new collections of studded and wedding jewellery, amid the volatility in price of the yellow metal. The company’s move is aimed at attracting new customers to drive additional sales.
It expects the exchange programme to contribute 45% to its overall sales in the current fiscal year, surpassing the previous average of 40%.
“We had decided that gold exchange is a growth engine. And as part of that, we had targeted that 40% move to 45% for FY24, and in the next couple of years maybe we will be at 50%. We want to do more of this exchange for various reasons—it’s good for the consumer, because there’s no point in gold lying in the locker, we would love people to wear rather than accumulate. Second, it is good for the planet, because you’re mining less gold. It’s also good for the country as you are importing less. Approximately 20,000 tonnes of gold sits in lockers in India,” said Ajoy Chawla, chief executive, jewelleryretailers in India are trying out different strategies to spur demand amid the rise in gold prices to woo shoppers with offerings, including light-weight jewellery, lower caratage as well as exchange programmes.
High and volatile gold prices are challenging for consumers across markets, especially in India, which saw the weakest March quarter for jewellery sales since 2020, according to a 5 May report by World Gold Council. Q4 demand was 17% lower compared to a year ago. The council anticipates muted demand outlook in Q2 FY24.
Gold prices ended lower on Tuesday by ₹350 to ₹ 60,170 per 10g in the national capital following a decline in the precious metal’s prices globally.
Chawla said the exchange programme will draw in shoppers to buy jewellery for the wedding season. “May-June is wedding season and, during weddings, exchanges are anyway a big driver. A lot of people have accumulated gold in the long run. It allows consumers to complete purchases without anxiety around gold price.”
So far, Tanishq exchanged 100,000kg of gold; since 2011, around 1.8 million customers have exchanged their old gold with Tanishq.