Titan Company’s jewellery division CEO Ajoy Chawla announced that over 44% of Tanishq’s sales are derived from exchanged jewellery, and this trend is on the rise.
In a press conference held on August 28, Chawla discussed Gen Z’s growing interest in purchasing jewellery, stating, “More than 44% of Tanishq’s sales come from exchange jewellery—whether from Tanishq Exchange or non-Tanishq sources. This percentage is continually increasing. Last year, it nearly reached 50% in value, though it was 10-15% lower by volume due to higher purchasing frequency. This reflects an investment appeal, even for younger buyers.
He made these comments at a conference where Tanishq announced an exclusive three-year partnership with De Beers, the renowned UK-based diamond company known for its slogan, “Diamonds are Forever.”
This collaboration aims to enhance consumer engagement, improve the expertise of Tanishq’s retail staff in discussing natural diamonds, and educate customers about authenticity.
“This initiative will significantly bolster retail operations and positively impact revenue,” he stated. Chawla explained that to ensure transparency for customers exchanging diamond or gold jewellery, the company “buys it back at the current rate” after verifying the product’s authenticity. He noted that the market for exchanging genuine products has seen substantial growth, fostering trust in a sector with previously low penetration.
Last year, Tanishq achieved approximately ₹42,000 crore in jewellery sales, while CaratLane reported ₹3,000 crore in sales. According to Tanishq CEO Ajoy Chawla, diamond-studded jewellery accounted for 30% of the total ₹45,000 crore in sales.
Lab-grown diamond versus natural diamond
The increasing popularity of lab-grown diamonds, particularly among Gen Z due to their ethical production, has been noted. However, Tanishq’s CEO, Ajoy Chawla, has not observed a significant trend towards lab-grown diamonds at Tanishq, aside from customer inquiries about diamond authenticity. “While lab-grown diamonds are gaining traction, natural diamonds still hold their unique value in terms of rarity and investment,” Chawla stated.
He expressed surprise at the low prices of lab-grown diamonds, which can be as inexpensive as $50 per carat. Chawla emphasized that despite the lower cost of lab-grown options, the natural diamond’s investment value, rarity, emotional significance, and heritage make it more appealing.
Chawla acknowledged that the growing adoption of lab diamonds by fashion brands might make them more fashionable. Whether this trend will present an opportunity for Tanishq remains to be seen.