Large companies such as Titan, previously attracting customers of individual small jewelry stores with cleanliness, transparency, unrivaled product design and standardized approach, faced volatility in gold prices and restrictions on its imports. As a result, the prices for gold jewelry in small local stores were lower, Rapaport reported citing The Mint.
"Shopping at Tanishq stores is very costly, while jewelry shops in my area offer very attractive offers," said 34-year-old customer Suchita Bhanushali, who preferred to shop at a local jewelry store instead of a branded outlet of the Titan network.
In the meantime, Titan's management claims that changing customer preferences is imperceptible, and single, unorganized stores are more prone to volatility risks in the gold market.
"The offer does not affect demand in conditions of a bad market situation," said Sandeep Kulhalli, vice president of marketing and retail sales at Titan, adding that the decline in demand due to the weakening of the economy affected all jewelry companies.
"These restrictions affected organized retailers much more than unorganized sales channels," said Kulkhalli.
According to the executive and general manager of Tara Jewels Ltd. Vikram Raizada, in the jewelry sales sector through official channels, competition exists not only among local jewelers, but also with the participation of international jewelry companies, so there is a drop in sales to non-residents, which account for a significant portion of sales revenue.