Jewelry Giants Clash: Titan and Kalyan Jewellers’ Asset-Light Strategies Compared
The jewelry sector is dominated by several key players, among which Titan and Kalyan Jewellers stand out for their asset-light business models. This approach allows both companies to maximize profits without substantial capital investment. Business Models Kalyan Jewellers operates new showrooms under a franchise-owned and company-operated (FOCO) model. This means while the showrooms are owned by franchisees, Kalyan manages the business operations. This model allows Kalyan to expand rapidly without heavy capital expenditure. Titan, on the other hand, leases gold, designs jewelry, and sells the finished products. After the sale, Titan returns the leased gold, thus avoiding the need for large capital investments. This strategy ensures a steady cash flow and reduces financial risk. Financial Performance in Q2 The Q2 results for both companies highlight different strengths. Titan’s sales grew by 36% year-on-year in September, compared to a 27% increase for Kalyan Jewellers. This indicat...