 "Premiumisation, retail trends to drive Titan's expansion strategy")
Banking on the premiumisation trend and increased opportunities in travel retail, Titan’s multi-brand retailer Helios has plans to open six exclusive outlets this financial year and grow them to over 30 in the next two years.
Helios Luxe – a boutique destination offering from the brand will only house merchandise over Rs 25,000, including both international brands and Titan timepieces, like the newly launched limited-edition Unity watch, inspired by the 40th anniversary of Wing Commander Rakesh Sharma's voyage in space priced at Rs 35,000.
“As part of our expansion strategy, we are also now focusing on curated, premium destination stores. By the end of this year, we will six Helios Luxe stores, which we hope to expand to 35-odd stores in the coming year,” says Rahul Shukla, vice president and chief of sales and marketing officer, Titan Watches.
Each of these Helios Luxe stores will attract an investment of Rs 3.5 crore and will open at destinations like T1 Delhi airport, Goa airport, Hyderabad airport and Koramangala in Bengaluru.
“It is going to be a top 10 city phenomenon. There is a lot of growth in the travel retail segment and we want to capture that opportunity with these airport stores,” he adds.
Within the Helios portfolio, growth in the premium segment is three times more than the fashion segment, he points out. Helios, he adds, has recorded a compound annual growth rate of 25 per cent.
To capitalise on this premiumisation opportunity, Titan’s FastTrack brand will also be coming out with premium offerings, he adds.
Also Read
The 40-year-old company’s watches and wearables segment, says Shukla, has grown faster than the category. According to its annual report, revenue from the watches and wearables division rose 18.4 per cent in FY24 to Rs 3,904 crore.
“We have in fact seen an increase in analogue watches, which grew by 26 per cent in the second quarter, far above the overall watches and wearables segment which grew at 19 per cent. Within analogue too, we saw Titan watches grow at 32 per cent. There is a clear premiumisation seen also in Helios’ performance, which grew by 43 per cent in the same period. The market, obviously, is not growing at that rate,” says Shukla.
The growth, he says, is coming not just from urban centres but also beyond them.
“While 25 per cent of our footprint is in the metros, 75 per cent is outside the metros, the business contribution is interesting. While metros contribute 35 per cent the business, the balance comes from non-metro cities,” Shukla says
The expanding middle class, increased purchasing power, and international brands working towards creating desire are all leading to this increased demand,” he adds.