(Bloomberg) – India’s expected rise in affluent consumers is pushing Indian conglomerate Tata Group’s jewelry unit to triple its Zoya-branded luxury stores by 2027.
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“There is a lot of latent demand for luxury from India and wealthy people are going to explode,” said Ajoy Chawla, general manager of the jewelry division of Titan Co., in an interview. “This is just the beginning of luxury.”
Titan, India’s largest jeweler, derives around 90% of its revenue from the sale of jewelery and the rest from watches, eyewear and perfume. It has four jewelry brands under its umbrella: flagship Tanishq, Mia focused on working women, online retail portal Caratlane, and Zoya, which caters to wealthy customers.
Increasing the number of Zoya stores to 15 over the next five years would cost around 300 million rupees ($3.64 million) per store, Chawla said. The company also plans to add Zoya galleries in select Tanishq stores, aiming to more than double those to 15 by the end of next year, he said.
The brand’s revenue has increased fivefold from pre-pandemic sales figures, and the company expects this “aggressive pace” of growth to continue, he said.
India is already the world’s second-largest market for gold used in jewelry, and demand is unlikely to falter with a Knight Frank report showing the number of ultra-high net worth individuals with assets of $30 million or more. growing 11% in 2021 from a year earlier. This figure is expected to jump by around 39% in 2026, while people with wealth of at least $1 million are expected to increase by around 77% over the five-year period, he said.
Demand for luxury goods shows growing inequality in India
Titan also aims to accelerate Zoya’s overseas expansion with the aim of building a global luxury brand.
“We recently made an overseas foray with Tanishq in the Middle East and the United States and will use that experience to plan a global move for Zoya,” Chawla said. “Ultimately, the plan is to create a global brand with an Indian soul.”
Chawla said he was optimistic about the potential of the Zoya brand to outperform expected growth at Tanishq. Zoya has been successful in attracting wealthy clients by arranging experiences such as romantic dinners at sister company Indian Hotels Co.’s Taj Hotels Resorts and Palaces and by providing bespoke jewelry by working with the design team and artisans.
(Updates with additional expansion plans for the galleries in the fourth paragraph. An earlier version of the story corrected the designation of Ajoy Chawla)
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