Currently, about 15% of the total revenue of Titan watches (Titan brand only) is generated through overseas business. Titan also plans to take on fashion brands globally.
MUMBAI: Titan plans to make a foray into Thailand, South Africa and Iran soon, through a franchise model. Currently, about 15% of the total revenue of Titan watches (Titan brand only) is generated through overseas business. Titan also plans to take on fashion brands globally.
S. Ravi Kant, chief operating officer - International Business, Titan Industries, DNA Money:
“A new international range has just been launched, called Titan Noctura and we have positioned it as a fashion collection. This is Titan’s first attempt to take on the fashion brands internationally. We are now in competition with all fashion watch brands in the mid and upper price segment.”
However, Titan doesn’t have any plans to enter US market with watches.
“We are not looking at entering the US market with watches in the near future. However, we are working on the launch of Tanishq - the jewellery brand in US,” Ravi Kant said.
The company will beef up its international marketing and promotional activities budget by 55%. Although its international business is growing, there are a few factors of concern.
“International markets like Dubai and Singapore, where there are more than 250 brands, are very competitive. Key players have a single digit market share in such fragmented markets. The challenge is to create space for itself in a store as well as in the consumers’ mind. Secondly, people have apprehensions about made in India products as not many ‘brands’ from India have graduated as prominent international players. In that sense Titan is trying to make a place for itself and the country in overseas markets.”
Over 35 millions watches, including cheap Chinese imports, are sold in the domestic market which has a size of about Rs 2,000-2,500 crore. Out this, about 3.8 million watches are above the price segment of Rs 1,000 and the rest below it. Titan sells about 2.5 million watches and has about 75% market share in the above Rs 1,000 segment.
In the domestic market, the ladies brand Raga is the current revenue driver for Titan. The brand has grown by about 46% over the last year, about three to four times the growth of the gent’s watches. The Compounded Annual Growth Rate (CAGR) of the watch market in terms of volume is about 5%. Analysts believe that mobile phones have captured a significant portion of the watch market, because of the time display feature.
However, Ajoy Chawla, business head, Titan Industries, said this is a misconception, adding the watch market continued to grow.
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