 "Titan readies own brand in premiumisation bid")
Titan Industries plans to launch its Swiss watch brand Favre Leuba this fiscal (2013-14). Even though the company refused to put a date to it, Titan will re-launch the acquired brand to drive its premiumisation of its portfolio. India's largest organised watch retailer bought Favre Leuba for euro 2 million in 2011 (approx. Rs 13.8 crore then).
"The work is in progress. We are planning to launch it sometime this year," says Ronnie Talati, vice-president & chief marketing officer, watches & accessories, Titan Industries. Favre Leuba, created in 1737, was one of the first watch-making companies in Switzerland and will become the first Swiss brand under Titan. It currently sells Xylys, which is made in Switzerland.
Titan Industries, which controls 55 per cent of the Rs 5,000-crore organised watch market, is targetting a growth of 20-25 per cent in value in the current fiscal. The company also plans to expand its product offering under its other premium brands such as Edge, Raga, Octane and HTSE to coincide with the imminent festive season. The company achieved a turnover of Rs 300 crore from premium watch brands in 2012-13, accounting for 18 per cent of its yearly revenue.
Along with moving up the consumption ladder with its own brands, it has also initiated a concerted play with its licensed watch brands. With fashionable premium brands such as Tommy Hilfiger, Hugo Boss, French Connection, and the recently-added Timberland and Police, it is poised to tap the upper end of the watch market like no other Indian watch player. Its multibrand watch retailing chain, Helios, will further stock brands such as Guess, Fossil, Esprit, DKNY, Gucci, Versace, Emporio Armani, Tag Heuer and Raymond Weil.
"It is not only about making watches in this price range. It is about building desire and aspiration for these watches. So, we made a decision to focus on our premium brands, as it will be a very significant percentage of the turnover as we go forward," Raghunath adds.
Titan said its watch division grew 11 per cent in value and 3 per cent in volume during the first quarter of fiscal 2014. In 2012-13, it had brought in about Rs 1,687 crore (unaudited), a 9.6 per cent year-on-year increase. But to fuel further growth, increasing sale in the premium segment is crucial. It is not price sensitive and is also immune to the obsolescence that wristwatches have suffered by way of utility, brought on by cellphones.
"It is important to move forward in the pyramid of the Indian watch market. The middle class is growing in size and becoming more ambitious to transition to the upper-middle class. The premium watch category strives to be of relevance to the consumers in this segment," Raghunath says
The company plans to add 50 Titan One, 80 Fastrack and 15 Helios stores this year, though it won't be aggressive with expansion of its World of Titan stores. Titan currently has over 900 showrooms.
"The work is in progress. We are planning to launch it sometime this year," says Ronnie Talati, vice-president & chief marketing officer, watches & accessories, Titan Industries. Favre Leuba, created in 1737, was one of the first watch-making companies in Switzerland and will become the first Swiss brand under Titan. It currently sells Xylys, which is made in Switzerland.
Titan Industries, which controls 55 per cent of the Rs 5,000-crore organised watch market, is targetting a growth of 20-25 per cent in value in the current fiscal. The company also plans to expand its product offering under its other premium brands such as Edge, Raga, Octane and HTSE to coincide with the imminent festive season. The company achieved a turnover of Rs 300 crore from premium watch brands in 2012-13, accounting for 18 per cent of its yearly revenue.
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In its premiumisation drive, Titan will be up against the likes of DKNY, Espirit, Tissot and Armani. H G Raghunath, CEO of the company's watches and accessories division, says the company is focusing on watches in the range of Rs 8,000 to about Rs 15,000 (premium watches in India can cost upto Rs 25,000), in a premium segment that has grown at 65 per cent for the last five years.
Along with moving up the consumption ladder with its own brands, it has also initiated a concerted play with its licensed watch brands. With fashionable premium brands such as Tommy Hilfiger, Hugo Boss, French Connection, and the recently-added Timberland and Police, it is poised to tap the upper end of the watch market like no other Indian watch player. Its multibrand watch retailing chain, Helios, will further stock brands such as Guess, Fossil, Esprit, DKNY, Gucci, Versace, Emporio Armani, Tag Heuer and Raymond Weil.
"It is not only about making watches in this price range. It is about building desire and aspiration for these watches. So, we made a decision to focus on our premium brands, as it will be a very significant percentage of the turnover as we go forward," Raghunath adds.
Titan said its watch division grew 11 per cent in value and 3 per cent in volume during the first quarter of fiscal 2014. In 2012-13, it had brought in about Rs 1,687 crore (unaudited), a 9.6 per cent year-on-year increase. But to fuel further growth, increasing sale in the premium segment is crucial. It is not price sensitive and is also immune to the obsolescence that wristwatches have suffered by way of utility, brought on by cellphones.
"It is important to move forward in the pyramid of the Indian watch market. The middle class is growing in size and becoming more ambitious to transition to the upper-middle class. The premium watch category strives to be of relevance to the consumers in this segment," Raghunath says
The company plans to add 50 Titan One, 80 Fastrack and 15 Helios stores this year, though it won't be aggressive with expansion of its World of Titan stores. Titan currently has over 900 showrooms.