On demand trends at Tanishq
It has been five months since we opened our stores in May and we are seeing a steady uptick in demand month on month. Today almost all our stores are open across the country and we have seen a really encouraging response from consumers. There has been a positivity thanks to a lot of festivals from August onwards — be it Raksha Bandhan or Ganesh Chaturthi or Eid or Onam. We believe that as we head into Dussehra and Diwali, the sentiment should only improve.
On Tanishq stores & footfalls
What we are seeing both in stores as well as through the tracking of customer sentiment is that consumers want to reclaim their lives. They want to be safe and at the same time progress and we are seeing that both in smaller towns as well as the bigger cities. However, smaller towns’ recovery has been better and that of the larger towns and metros slower. In towns, where malls contribute to a larger part of our business, the recovery has been even slower but there has been a steady improvement month on month and that gives us confidence as we head into Dussehra and Diwali. Consumers are waiting to bring in positivity into their lives after months of being restrained and locked down and that is going to play out over the next two months — October and November.
On share of revenue from studded jewellery
We are enthused by overall recovery in the jewellery segment and also in studded jewellery. Initially, we did see greater improvement in plain gold and studded jewellery but we are seeing a steady improvement month on month on both. In between, in August, there was a period when we saw more investment buyers and a greater demand for gold coins. That was the time when gold rates were going up significantly for may be two weeks. But now that gold rates have cooled down, we find that recovery is pretty much even across both plain gold as well as studded jewellery.
We are fairly optimistic about this season for many reasons; one is deferred demand from wedding shoppers. Weddings have got deferred from quarter one of this year to November, December and some of them also to quarter four and we believe that those who have weddings in their families will be back to shop for jewellery.
Second, many consumers buy every year during this auspicious period and we know they will be back. In the last six months, we have had deep engagements with consumers directly and also through our stores on the ground and what we are hearing is that there is a lot of interest in buying jewellery, in breaking free and bringing in that positivity into our lives. Festivals add that cheer and extra optimism and people are really looking forward to Dussehra and Diwali this year.
On gold prices & consumer buying patterns
Like I mentioned, there was a period of about 10 days in August when there was a surge as people felt that gold rates will keep on soaring but since then gold rates have cooled off and we do not see a significant surge in demand led by gold rates. Consumers seem to have accepted that gold rates may remain range-bound or fluctuate, but there is a belief that at least till this festive season, they may not see a significant uptick.
On digital growth
It has been really exciting six months on the digital growth front. We are enthused by the speed with which consumers have adopted these new ways of engaging with us. We have had more than 13,000 customers who bought jewellery through video calls. Today you can buy jewellery from the comfort of your homes, sitting with your family, through video calls and you can make remote contactless payment. All the documentation and invoices can be emailed to you and you can get the latest catalogues on your phone or your device. You can buy jewellery from your nearest Tanishq store from the comfort of your homes. It is a whole new experience there with virtual try-ons and video calling. The way consumers have adopted that across metros and smaller towns has been really fantastic.