Having tracked most of their analyst calls, it became evident that for a company like Titan, it wasn't a significant proposition until there was substantial customer demand. Titan's positioning and branding have always centered around "Trust," which is a challenging feat for jewelry brands in India. Once this trust was established, Titan expanded to non-premium customers through Caratlane, Mia, and similar brands at lower price points.
From a customer perspective, the Titan-backed LGD option in jewelry is good news. For Titan, this means they are now covering the entire category, and many of these customers may eventually aspire to purchase Titan's studded jewelry. As an investor, Titan's experimentation is positive, Titan owning the category is positive, and if the affordability with current gold prices has decreased, it is good news for the customer. Even if the proof of concept (POC) doesn't work, it may only result in a small write-off.
Titan has insane making charges on the entire ornament. With huge variety of lgd being available, ridiculous gold prices and real diamonds loosing their value, titan had to enter this segment or risk loosing their premier positioning. The days of charging huge making charges in the name of premier services will soon be over as other well funded jewelery chains like kalyan senco png malabar joyalukkas score high on trust as well and charge lesser.
Excellent breakdown of Titan's strategic shift! The FOMO angle is probaly what tipped the scales, they watched competitors build market presence and realized sitting out much longer could mean ceding the "premium LGD" category entirely to new entrants. My cousin works in retail and she mentioned customers were starting to actively ask if Tanishq sold lab-grown, which is a shift from the defensive questioning you described. The IP challenge remains tho, curious to see if they try diferentiating through design or just lean on brand trust.
Good analysis. In my view titan is entering now to cash on their brand value , now as lab diamonds are popular, and to avoid missing out an opportunity in a growing segment of the market.
Deepti's perspective on LGD option/ positioning is investors point of view and practical too.
Titan,having established a Leadership position in its segment tapping with LGD with present challenges is a Bold steps and pave ways for others to follow.This is a healthy and positive trend.
Congratulations on your first anniversary.
Wishing you many more Anniversaries to come 🫴
Thank you :)
Dear Krishna,
Having tracked most of their analyst calls, it became evident that for a company like Titan, it wasn't a significant proposition until there was substantial customer demand. Titan's positioning and branding have always centered around "Trust," which is a challenging feat for jewelry brands in India. Once this trust was established, Titan expanded to non-premium customers through Caratlane, Mia, and similar brands at lower price points.
From a customer perspective, the Titan-backed LGD option in jewelry is good news. For Titan, this means they are now covering the entire category, and many of these customers may eventually aspire to purchase Titan's studded jewelry. As an investor, Titan's experimentation is positive, Titan owning the category is positive, and if the affordability with current gold prices has decreased, it is good news for the customer. Even if the proof of concept (POC) doesn't work, it may only result in a small write-off.
Brilliantly put :)
I guess this is one of the points that I should have put in my piece but I missed it. Thank you!
Titan has insane making charges on the entire ornament. With huge variety of lgd being available, ridiculous gold prices and real diamonds loosing their value, titan had to enter this segment or risk loosing their premier positioning. The days of charging huge making charges in the name of premier services will soon be over as other well funded jewelery chains like kalyan senco png malabar joyalukkas score high on trust as well and charge lesser.
Excellent breakdown of Titan's strategic shift! The FOMO angle is probaly what tipped the scales, they watched competitors build market presence and realized sitting out much longer could mean ceding the "premium LGD" category entirely to new entrants. My cousin works in retail and she mentioned customers were starting to actively ask if Tanishq sold lab-grown, which is a shift from the defensive questioning you described. The IP challenge remains tho, curious to see if they try diferentiating through design or just lean on brand trust.
Oooooh interesting! Thanks for sharing :)
Good analysis. In my view titan is entering now to cash on their brand value , now as lab diamonds are popular, and to avoid missing out an opportunity in a growing segment of the market.
Maybe :)
Deepti's perspective on LGD option/ positioning is investors point of view and practical too.
Titan,having established a Leadership position in its segment tapping with LGD with present challenges is a Bold steps and pave ways for others to follow.This is a healthy and positive trend.
Thanks
:)