However, as has often been seen, consumers tend to delay purchases when gold prices spike and adopt a wait and watch policy. In India, much also depends on the festive and wedding season demand when jewellery sales tend to be robust. Nonetheless, a consistent improvement in gold prices augurs well for Titan, as it improves profit margin, said analysts requesting anonymity. What also remains to be seen is whether the current strength in gold prices persists. “We believe that a combination of macro tailwinds and micro-initiatives (such as new collections, its focus on wedding jewellery and value deals) is resulting in increasing consumer acceptance."

Source: Mint July 02, 2019 17:26 UTC