As gold prices hit record high, Tanishq rethinks wedding jewellery strategy

“Going forward, 18 carat will become a way of life not just for us, the industry will also move in that direction because customer budgets are not infinitely extendable,” AjoyChawla, CEO of Titan’s Jewellery Division, said in an interview with Mint.

This move signals a shift in consumer preferences amid budget pressures as the precious metal hit record price levels recently. On Tuesday, gold hit the psychologically important level ofRs 1 lakh per 10 grams in the retail market, ahead of Akshaya Tritiya, which is the auspicious day for purchasing gold in India.

Companies are rushing to roll out offers, slashing charges, and offering 100% buybacks on old gold. Late last quarter, Tanishq rolled out 18-carat gold jewellery for the first time in wedding collections for specific markets like north and east India. Several local retailers already offer wedding jewellery in 18 carat gold.

Tanishq is part of Titan Company Ltd, and is among the country’s largest organized jewellery retailer with over 500 stores pan-India.

While the current contribution of 18-carat jewellery to Tanishq’s overall sales is described as “low single digits” and “very, very small,” the company anticipates significant growth in this segment.To be sure, the retailer already sells 18 carat pieces for both modern and everyday designs.

Indian families typically prefer 22 carat gold for wedding jewellery, with 18 carat being less popular among these buyers.

“18-carat helps solve budget-related issues—modern gold jewellery pieces in 18 carat havedone well for us and we are ramping it across our stores. We have done a lot of work on 18 carat gold, especially in the north and east (India), which are more open to 18 carat gold jewellery for weddings. Consumers in the south are stickier towards 22 carat. We think customers are ready for it,” he added.

India is a major gold market—weddings account for approximately 50% of gold jewellery demand, and beyond its cultural significance, gold is also valued as a store of wealth.

Purchases also typically rise during festivals like Diwali, Akshaya Tritiya, Onam, Ugadi, and Gudi Padwa.

Continued rise in retail gold prices is expected to reduce the sales volume of organised gold jewellery retailers by 9-11% in fiscal 2026, Crisil said in a report released Wednesday. However, with prices and realisations expected to be significantly higher on-year, revenues will still grow 13-15%.

“The recent jump in prices came just before the start of the festive and marriage seasons in the first half of April 2025, limiting the impact on demand thus far. However, as ticket sizes for buyers are likely to remain constant, caratage and grammage may reduce, as seen in the last four fiscals, impacting volumes,” said Himank Sharma, Director, Crisil Ratings.

Elevated gold prices resulted in sluggish consumer demand at lower price points, leading to buyer growth in single digit, while demand at higher price bands sustained resulting in a high double-digit growth in ticket sizes, Titan Company said in its March quarter update released last week.

In the March quarter, gold prices increased by 11% quarter-on-quarter and 33% versus a year ago period.

During the quarter the company’s domestic jewellery business grew 24% year-on-year on the back of significant increase in gold prices. Plain (gold) jewellery sales grew at 27% year-on-year and coins grew 65% year-on-year, respectively.

“Given high gold rates, it is a good idea to reduce carat and launch at more affordable prices. Titan (Tanishq) has been proactively addressing this. Gold demand will be a function of prices, wedding days, sentiments as well as competition. Current high prices are a challenge but market share gains by organised players like Titan from unorganised will continue,” said Abneesh Roy, executive director, Nuvama Institutional Equities.

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Coins on a roll

Chawla also pointed to a substantial increase in gold coin sales, indicating a strong inclination towards gold as an investment. Simultaneously, the retailer continues its focus on lightweight jewellery.

Sales of gold coins have been “on a roll” for the last one-and-a-half years, Chawla said. “By and large coins are leading the growth significantly in terms of buyers both in volume as well as value. Gold jewellery also has seen growth independent of coins but the bulk of growth in Q4 has come on the back of ticket size and higher grammage categories,” he said, commenting on consumer demand.

Customers purchasing lower-value gold are more economically sensitive to gold prices and general inflation. Interest in gold jewellery at ₹2 lakh and above remains strong, he said.

To cater to customer uncertainty, Tanishq has slashed making charges from the earlier 8% to 4.5%, 5%, and now 3.5%.It has also strengthened its “Best Gold Rate” offer. This allows customers to either buy immediately or later, benefiting from the lower of the two rates. The retailer is also actively promoting its gold exchange policy, offering 100% value for 22-carat and above purity.

Whether the shift in consumer preferences and volatile prices will reshape the jewellery market remains to be seen but for now, jewellers like Tanishq are betting on flexibility in caratage and pricing.