Expansion Of India's New Rich Fuel For Tata's Jewelry Division
About 90% of Titan's revenue comes from selling jewels, making it the largest jeweler in India.
The jewelry division of Indian conglomerate Tata Group plans to increase the number of Zoya-branded stores it has by 2027 because of the anticipated rise in wealthy clients in India.
According to Ajoy Chawla, the head of Titan Co.'s jewelry section, "there is a lot of latent demand for luxury from India, and high net-worth individuals are going to erupt." "Luxury is only getting started."
The largest jeweler in India, Titan, derives 90% of its income from selling jewelry and the remaining 10% from selling watches, eyeglasses, and fragrances. Four jewelry companies fall under its umbrella: flagship Tanishq, a platform for working women-focused Mia, online sales portal Caratlane, and Zoya, which is aimed at affluent customers.
According to Chawla, it would cost roughly 300 million rupees ($3.64 million) for each boutique to increase the number of Zoya boutiques to 15 over the next five years. Revenues at the brand have increased up to five times from pre-pandemic sales numbers, and the business anticipates that growth will continue at this "aggressive rate," he added.
India is now the second-largest market in the world for gold used in jewelry, and demand is not expected to decline given that, according to Knight Frank research, the number of ultra-high net worth individuals with assets of at least $30 million would increase by 11% from 2021 to 2022. In contrast, the number of people with at least $1 million in wealth is projected to rise roughly 39% in 2026.
To establish a recognized premium brand internationally, Titan also plans to accelerate its international growth in Zoya.
We just traveled abroad with Tanishq to the Middle East and the US; we will draw on this experience as we prepare to relocate Zoya internationally, added Chawla. The ultimate goal is to become a worldwide brand with an Indian heart.
According to Chawla, the Zoya brand has the potential to outpace the growth anticipated for Tanishq. With the help of its sibling firm Indian Hotels Co.'s Taj Hotels Resorts & Palaces and customized jewelry created in collaboration with the design team and artisans, Zoya has been able to attract wealthy clients.