Titan Company’s luxury jewellery brand Zoya is aiming to clock ₹400 crore revenue this fiscal as the brand has emerged as a leader in the luxury jewellery industry in India.
Overall luxury jewellery segment is doing very well, and Zoya, which has been nurtured over 15 years, has become a leader in the segment in the country by far. Even in comparison to Western luxury brands which are here, Zoya is significantly ahead, said Ajoy Chawla, CEO, Jewellery Division, Titan.
“We are also well entrenched across many cities now. We are present in Mumbai , Delhi, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad and Pune. Luxury is doing well. The market is evolving at a rapid pace. We have got about eight lakh High Net Worth Individuals (HNIs) today, who are relevant for luxury. So the prospects look good,” Chawla told businessline.
The luxury jewellery industry in India is presently about ₹70,000-75,000 crore. Titan expects it to double in the next four or five years. Chawla said the company expects the CAGR to be much higher for it in this segment.
“The market is fragmented. Last fiscal, Zoya was around ₹300 crore. This fiscal, we are aiming for ₹400 crore revenue under the brand,” he said, adding there were multiple growth drivers for the brand, the House of Tata’s exquisite diamond boutique.
“One is the segment and the customers are going up at a certain pace. Secondly, we are also expanding our stores. Five years back, we had three stores, today, this is the 12th store. We keep launching new collections, for Diwali, we did a mega launch. We have been continuously launching new collections, and that is another big growth driver,” said Chawla, who was in Kolkata on the occasion of the opening of Zoya’s first store in the city.
Apart from Zoya, the company’s jewellery division has brands Tanishq, Mia by Tanishq and CaratLane.
Asked about brands positioning, the jewellery division CEO said, Zoya is luxury, while Tanishq is premium. “So Zoya is sitting above Tanishq. While Tanishq may have products which are even ₹10 lakh and ₹50 lakh, but the average ticket size in Zoya, for example, is about five times the average ticket size that we see in a Tanishq store,” the addressable number of customers for Tanishq is over 10 million, while for Zoya it is less than a million.
Currently, Zoya contributes less than 1 per cent of the total jewellery business in Titan. “That is not the bigger piece. Actually, it is the jewel in the crown, if you think of it. Zoya is an exquisite brand which appeals to very discerning customers and is highly specialised. The rest of the Titan Company is not into luxury. Most of it is in lifestyle and branded lifestyle, but in the mid-premium to premium space, whereas Zoya is the only brand in the luxury space,” Chawla pointed out.
On the company leveraging The Tata Group’s hospitality arm IHCL for Zoya’s business growth, he said the brand already has two stores inside Taj Hotels, one in Mumbai and another in Chennai.
“We see that there is a lot of synergy sitting there. We do work very closely with the Taj when it comes to a lot of events and hospitality. When it comes to creating curated services and curated experiences for customers, we work closely with the Taj. And, there are also a lot of overlaps between the Taj Chambers and some of our customer profiles, etc. So there are opportunities to work together, and we do work closely with them,” Chawla added.
Titan’s jewellery division posted a revenue growth of 20 per cent at ₹38,352 crore (excluding sale of bullion of ₹3940 crore) for the last financial year.
Speaking at the company’s analyst call in November after the Q2FY25 results, Chawla said, studded jewellery demand has been good and buyers growth has been in healthy double digits across price bands.
“Wedding jewellery demand started picking up post the custom duty reduction announcement, because there were many fence-sitters which we believe from the first quarter and elections and all of those factors which impacted the first quarter. Once gold prices corrected, many people came in. And we think it is a good run ahead for the next two quarters,” he said.
Notably, Union Finance Minister Nirmala Sitharaman proposed to reduce the customs duties on gold, silver and platinum on July 23 while presenting the Budget for 2024-25.
