We are expecting a U-shaped recovery: Titan Company's Ajoy Chawla

Titan’s jewellery division, which accounts for 80 per cent of the company’s total revenue, saw strong growth momentum in the March quarter — only to witness a lull since mid-April. AJOY CHAWLA, chief executive officer of jewellery division at Titan Company, tells Samreen Ahmad that the company will not hold back its expansion plans. The jewellery division also expects remote sales to climb to 15 per cent over the next two-three years, from the current 9 per cent. Edited excerpts:

Has the second wave of the Covid-19 pandemic hit business harder than the first wave?

Consumer sentiment may be more impacted this time around. While a bulk of the stores was shut after mid-April, 40-50-odd stores still managed to stay open in May in some states.

When is demand likely to bounce back?

Last year saw V-shaped recovery. This year, it is expected to be U-shaped. This means slower recovery because of lives and livelihoods lost. We will have to gauge the pent-up demand - people have missed milestones like birthdays, anniversaries, and skipped buying during Akshaya Tritiya. Wedding demand may be muted for now and will revive in the second half of the year. 

Unlike local jewellers who may be dealing with hallmarking issues for the next few months, we will have 100 per cent hallmarked jewellery, as well as stronger safety protocols. 

What are some of the newer protocols, in addition to the innovations on virtual shopping?

We are using an antimicrobial coating on our jewellery, in partnership with a European health care company. The coating is self disinfecting, preventing the growth of viruses and bacteria. It is a water-based solution with active parts made from modified silicon dioxide. These active molecules bind themselves on a nano level with any surface and erect a positively charged molecule, which in turn attracts the negatively charged cell membranes of bacteria or viruses and in a way punctures that membrane after which the DNA of the microbe is no longer able to reproduce. The coating is absolutely safe and does not change the tone and look of the jewellery. 

We are opening up only those stores - 270 so far - where 100 per cent of our staff has been vaccinated. We have already vaccinated over 97 per cent of our workforce, 90 per cent of franchisee staff, and over 65 per cent of our karigars.

What kind of sales have you seen online?

 Around 9 per cent of our sales is from remote shopping. This will steadily climb to 15 per cent over the next two-three years. Last year, we added virtual try-ons. We will continue to explore ways and means to expand the space of ‘from-home’ shopping. We will continue to invest more in the digital shopping experience in terms of processes, newer features, pain points, and improving the overall user experience.

Is Tanishq going to hold back its expansion plans this year?

Last year, Tanishq opened 26 stores. This year, our original goal was to open 35 stores, some of which may get delayed because of time lost in Q1.  We will actively pursue network expansion. Our outlook for India in the long run — especially in tier III and IV towns — continues to be robust. We will not consciously hold back our expansion plans.

Will the segment look at any new strategy changes, apart from remote selling?

 Weddings are an important growth driver. Given our penetration in that area is low, we are bullish on weddings. Typically for jewellers, weddings contribute anywhere between 40 and 60 per cent of their annual sales. For us, it’s only around 23-24 per cent. The second biggest opportunity is gold exchange. We get about 33 per cent of non-Tanishq gold coming in as exchange.