Titan Co. Accelerates Diamond Focus as Gold Market Shows Instability
Titan Co., India's largest jewellery retailer by revenue, is strategically ramping up its efforts to boost the adoption and consumption of both natural and lab-grown diamond jewellery. This move comes as prices for precious stones and gold continue to exhibit significant volatility in the global markets.
Driving Growth in Diamond Jewellery Portfolio
Arun Narayan, Chief Executive Officer of Titan's jewellery division, emphasized the company's commitment to expanding all aspects of its business. In a recent statement, Narayan highlighted the goal to "really drive adoption and consumption of diamond jewellery and overall growth of the portfolio, consumer confidence and love for the brands." This initiative is part of a broader strategy to capture a larger share of the Indian jewellery market, where diamonds currently represent only about 12% of total sales, with the majority still dominated by gold purchases.
The company operates 30 stores internationally in regions such as the Middle East, Singapore, and North America, with plans for further expansion in these key markets. Narayan noted that Indian consumers are increasingly viewing lab-grown diamonds as an indulgent, guilt-free option for frequent purchases, while reserving natural diamonds for special occasions and milestones.
Enhancing Consumer Trust with Diamond Expertise Centres
To build market trust similar to what its gold karatmeters achieved, Tanishq, Titan's flagship brand, has been launching Diamond Expertise Centres in its showrooms. These centres are designed to authenticate diamonds and assure customers of quality. The management aims to increase the number of such centres from 50 to 200 by March, reflecting a significant investment in consumer confidence.
At a meeting in Andheri's flagship store, located opposite a newly launched lab-grown diamond outlet, Narayan explained that Indian consumers perceive lab-grown diamonds as an additional choice rather than an either-or alternative, unlike trends observed in the US market. Titan introduced its lab-grown diamond initiative, beYon, in January, aiming to tap into this growing segment.
Market Dynamics and Strategic Initiatives
Analysts at Nomura have noted that Titan's entry into the lab-grown diamond market could help retain customers interested in this category and expand its total addressable market. This strategic move is seen as positioning the brand at an early stage of category development, potentially driving long-term growth.
Recent market developments include De Beers, the world's largest rough diamond producer, cutting its official prices in January for the first time in over a year, influenced by soft Chinese luxury spending and US tariff pressures. Concurrently, the lab-grown diamond market, after nearly a decade of price declines, is showing signs of stabilization in early 2026, according to industry reports.
In response to price volatility in both gold and diamonds, Tanishq has innovated its product offerings. The company has launched 9-carat diamond jewellery under the Mia brand and has maintained 14-karat pieces since inception. Narayan stated, "So that learning now we are bringing into Tanishq. We have 14-karat diamond jewellery in Tanishq," indicating a transfer of expertise across brands.
Financial Performance and Future Outlook
Titan's jewellery business has been a key growth driver, with a 41% year-on-year increase in the December quarter, largely fueled by higher average selling prices of gold. However, spot gold prices declined by 2.5% to $4,838.81 per ounce recently, underscoring the ongoing market fluctuations.
As Titan continues to bet on wedding seasons and festive periods to sustain momentum, its focus on diamonds represents a calculated shift to mitigate risks associated with gold price volatility and capitalize on emerging consumer trends in the jewellery sector.
