“We wouldn’t be dashing our growth as a result of we’re nonetheless a diamond-centric retail outlet and we’ll go by our expertise,” stated Saumen Bhaumik, CEO and managing director of CaratLane. “There’s a really strong system based mostly on how many individuals seek for us, what number of orders we get. Plus, we additionally began bodily roadshows. All of those assist us determine that are our subsequent markets. I take into consideration 40 to 50% of the shops will most likely be within the present cities.”
The retailer’s whole revenue elevated 23% year-on-year to ₹883 crore within the March quarter. Revenue from the studded class rose by 19%, whereas all different classes (gold jewelry, gold cash) collectively grew 44%.
Buyer progress got here in at about 5%, in keeping with Titan’s March quarter earnings launch. For the total yr, whole revenue grew 24% to ₹3,583 crore.
CaratLane added a internet 17 shops in India in the course of the quarter, bringing the overall retailer depend to 322 throughout 139 cities. For the total yr, it added 50 shops, consistent with the quantity added in FY24.
The retailer has confronted difficult months since December as a result of excessive gold costs spooked customers. Demand could enhance over the approaching months, however restoration shall be gradual, Bhaumik stated.
“We had a comparatively poor December i.e. after the marriage season. But we did just a few issues and consequently, January and February, we truly noticed progress in extra of 30%, which was fairly good, given the circumstances. March was a flattish month. We additionally wished to make use of the month of March to organize for the following 12 months,” he stated.
During the quarter, the corporate launched a Valentine’s Day assortment with items beginning as little as ₹3,999 for 9-carat gold ornaments.
High gold costs
Gold costs surged earlier this yr, reaching ₹1 lakh per 10 grams. While the corporate sells diamond-studded jewelry and solitaires, excessive gold costs affect shopper sentiment, Bhaumik stated
“Gold worth hikes do take successful on sentiment,” he stated. “Indulgence (purchases) comes underneath stress, subsequently we have to proceed to be really inexpensive… While gold does affect sentiment—our life will get rather less affected. The very first thing that involves my buyer’s thoughts is that diamonds aren’t an funding, not like gold. People purchase and put on it ceaselessly,” he defined.
Al Cook, the CEO of worldwide diamond dealer De Beers, not too long ago urged that India’s diamond market – estimated at underneath $10 billion at the moment – might double by 2030. Bhaumik stated that lower than 10% of jewelry customers in India at the moment purchase diamonds.
“There is a large quantity of headroom for diamonds in India. With the general publicity, orientation in the direction of adornment and self-gifting and so forth, my sense is that in India, diamonds might develop and develop for a big period of time,” he stated.
The retailer attracts 90% of its enterprise from shops.
Impact of competitors
Titan first acquired a 62% stake within the then-online retailer for ₹357.24 crore in 2016, making it a subsidiary of the corporate. In 2023, it elevated its shareholding in CaratLane Trading Private Ltd to 98.28% from 71.09%, paying ₹4,621 crore for the extra stake. Titan’s Tanishq is among the many largest gold jewellers in India.
Bhaumik stated the corporate has no plans to enter the lab-grown diamond market, which has emerged as formidable competitors to pure diamonds.
“Would it hold the diamond market unaffected? I don’t assume so. But net-net, pure diamonds will most likely have an extended lasting lifeline than we had been at the moment speaking about. My view is the diamond trade will develop,” he added
Bhaumik stated that whereas there’ll by no means be sufficient retail shops to handle a rustic of India’s dimension and spend, on-line buying would additionally proceed to play to its benefit.
“We are additionally urgent the button on rising on-line considerably,” he stated.
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