New Delhi, Titan expects a correction and stabilisation in gold prices to bring back consumers who postponed purchases amid elevated prices, as the company seeks higher customer acquisition to sustain growth in its branded jewellery business.The leading jewellery maker, which has brands such as Tanishq, Mia and Zoya under its fold, has put a margin guidance at around 11 per cent for the current fiscal year, the company’s top management said in the latest earnings call.“If gold prices remain corrected and stable, the chances are we will see many more customers coming into the market, especially those who had stayed away,” Titan Managing Director Ajoy Chawla told analysts after the company’s September quarter results.In October, gold prices saw a sharp correction of around Rs 7,300 per 10 grams, falling from Rs 1,49,300 per 10 grams on September 30 to around Rs 1,42,000 by the end of the month, a drop of nearly 5 per cent.On November 11, Gold prices fell for the second straight session, declining Rs 800 to Rs 1.45 lakh per 10 grams in the national capital.In global markets, spot gold traded marginally higher at USD 4,047.71 per ounce and silver rose nearly 3 per cent to USD 52.86 per ounce.Titan expects that if gold prices remain stable, it could bring back customers who had stayed away from the market due to affordability concerns, thereby supporting buyer growth even as the benefit of higher gold prices on average ticket sizes moderates.“I would bet on much healthier buyer growth than what we have seen in the past, perhaps compensating for some of the ticket size-related issues that you might be anticipating because gold prices remain subdued,” Chawla added.Titan is strengthening its affordable jewellery portfolio, particularly in price segments below Rs 1 lakh and Rs 50,000, with “a lot of product choice” to attract first-time buyers and younger consumers.“I would say new buyers typically enter in the lower price segments because they are below Rs 50,000, or below Rs 1,00,000, and that is where you will start seeing the spurt whenever gold prices correct or whenever we are able to attract that customer with appropriate products in our catalogue. It could be across Mia, CaratLane, or Tanishq,” he said.Its strategy includes expanding offerings in lightweight jewellery, 18-carat gold and 14-carat studded jewellery, said Titan’s jewellery division CEO Arun Narayan.”I think in the long run, it will help us be accessible; it will help us gain customer share, help us gain buyer growth,” he said, adding these initiatives were aimed at making jewellery more accessible and providing consumers with greater product choices rather than responding to short-term movements in gold prices.The company is also leveraging its gold exchange programme, expanding its retail network and upgrading existing stores to attract more customers.“I believe we should brace ourselves for continuous improvement or increase in competitive intensity. And it would be very theoretical to say whether last year was more or this year is more. Assume it is going to keep increasing,” he said.On profitability, Titan remains committed to maintaining its jewellery EBIT margin at around 11 per cent in FY27, despite increasing competitive intensity and volatility in gold prices.”There are conflicting opinions that gold might again start its upward journey. Given all those environment, we are saying that it looks like that we can confidently deliver margin which is anchored around 11 per cent , and we do not want in a hurry to either change that,” said Titan’s CFO Ashok Sonthalia.
