Tanishq Relies on Late Festive Season and Wedding Demand to Drive Growth

Jewellery major Tanishq is banking on a late festive-season pickup as softer gold prices encourage consumers to return to jewellery stores after a brief purchase pause, according to Arun Narayan, CEO of the Jewellery Division at Titan Company.

The brand expects the final stretch from Dhanteras to Bhai Dooj to drive growth, with wedding demand providing additional support. Gold exchange has also emerged as a key purchase mode, featuring in more than 50 percent of transactions at Tanishq stores.

"While the first phase was good, we did see a few days of softness in between when gold rates were volatile. However, after they settled at a new low last week, we saw a good pickup over the weekend. A lot rests on the next four-five days. This Friday is Dhanteras, followed by a weekend, so these five-six days matter a lot. We are hoping and optimistic that this momentum sustains and we end the festive campaign on a new high," Narayan stated.

Meanwhile, analysts expect like-for-like (LFL) growth in gold jewellery to moderate to 22 percent from 33 percent in the previous quarter, as gold price inflation eases to 45 percent from 55 percent. The shift of Navratri to October this year is also expected to affect the base, with Kotak Securities estimating that the calendar shift could shave 400-500 basis points off growth.

Narayan noted that the company was not witnessing any significant pressure on demand, although consumers were keeping a close watch on gold prices amid volatility.

"We are seeing customers being very watchful of gold rates because they have been volatile. If gold rates were steady or range-bound at a particular level, we may not have seen this kind of interest in tracking them," he added.

Ahead of Dhanteras, Tanishq launched Adhyantara, a collection featuring more than 100 designs across 18-carat and 22-carat gold jewellery.

Narayan expects softer gold prices to further support buying sentiment, particularly among wedding shoppers.

"If gold rates stay soft during this period, we expect to see very strong buying sentiment. Those with weddings even in the fourth quarter, in January-February, may prepone their purchases to take advantage of lower gold prices. There are only benefits when rates are low. It gives consumers confidence to make their purchases now, given the uncertainty around where prices could head. Many may prefer buying now rather than waiting," he said.

Gold exchange has also become an important part of Tanishq’s sales mix, with more than half of transactions involving an exchange component.

"Over 50 per cent of transactions in our stores have an element of exchange. Either customers who bought from Tanishq come back to exchange, or those who bought gold or jewellery elsewhere come to us. It is a good thing. It is good for the nation because we are repurposing and circulating existing gold, which is important in these times," Narayan concluded.

"Consumer behaviour in retail is heavily influenced by price volatility, particularly in high-value categories like gold jewellery. Tanishq's reliance on a late festive pickup highlights the importance of adaptability during fluctuating market conditions. Furthermore, the high volume of transactions involving gold exchange indicates a practical consumer shift toward repurposing existing assets, which serves as a steady revenue buffer for established brands during periods of price uncertainty." — Dr. Shishir Gupta, Founder & CEO, StartupLanes