 "Titan's Taneira looks to expand market share with focus on metro cities")
The Titan Company’s ethnic wear brand, Taneira, plans to increase its market share to high single digits within the next three years by expanding its product range and offering value-focused products in Tier-I and metro cities.
With these value offerings, Taneira aims to become the most preferred destination for women’s ethnic wear. To this end, the brand has ventured into categories like pashmina stoles, dupattas, ready-to-wear kurtas, unstitched kurtas, and lehengas.
“The contribution from these new categories is increasing, and we are expanding our footprint. This will allow us to capture a larger share of the ethnic wear segment, growing our market share from 2 per cent to 8-10 per cent in the next three years,” said Ambuj Narayan, chief executive officer at Taneira.
Saris will continue to be the brand’s mainstay, helping differentiate its offerings from competitors in the ethnic wear market. “With the launch of kurtas, lehengas, and ready-to-wear products, we want to attract younger customers and eventually encourage them to explore saris as well. Ready-to-wear serves as a complement to our saris,” Narayan added.
The brand has seen success with its cotton saris, priced between Rs 1,299 and Rs 5,000. It plans to add five more textile clusters to its value segment. Currently, Taneira offers saris priced up to Rs 3 lakh, sourced from over 100 textile clusters. “Around 60 per cent of saris, in terms of value, are purchased during the wedding and festival seasons, making wedding dates particularly significant,” Narayan said.
Taneira aims to close 2024-25 with 85 stores and plans to add 15-20 stores annually, targeting 125 stores by 2026-27 (FY27). While management has set a revenue target of Rs 1,000 crore for FY27, sluggish demand in the first (Q1) and second quarters (Q2) of 2023-24 (FY24) may affect this year’s revenue.
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“We are hopeful of reaching the Rs 750-1,000 crore range by FY27. We expect strong growth in 2025-26, with growth rates in Q1 and Q2 potentially exceeding 40-50 per cent due to the base effect and a higher number of wedding dates,” Narayan said.
Titan Company’s emerging businesses segment, including Taneira, fragrances, and fashion accessories, recorded a total income of Rs 106 crore in the July-September quarter, a 14 per cent increase compared to the same period last year. Taneira’s sales grew by 12 per cent year-on-year, driven by growth from new stores, according to the company’s Q2 results.
For the next two years, Taneira’s focus will remain on metro and Tier-I cities. “There are a lot of advantages and cost optimisation we can drive from our focus on the bigger cities, where we see headroom for growth. These markets not only have an appetite for more stores but also offer cost optimisation advantages. Once we establish a strong foothold in metro cities, we will consider expanding into Tier-II and Tier-III cities,” Narayan said.
According to a CRISIL 2024 report, ethnic wear accounted for roughly 30 per cent of India’s overall apparel market.
“Women’s ethnic wear is currently valued at Rs 1.3 trillion (FY24). The growth in the market can be attributed to growth in the sari segment as well as other ethnic products. The market is projected to grow to Rs 2 trillion by 2028-29 (FY29), implying a compound annual growth rate of 8-9 per cent between FY24 and FY29,” the report said.
It added, “Consumers are drawn to brands offering innovative designs, superior fabric quality, and reliable buying experiences. The entry of prominent players into the ethnic wear industry has helped in increasing the popularity of saris. These conglomerates bring expertise, resources, and marketing prowess that expand the reach and appeal of saris. This association with reputable brands has positively influenced the market's growth.”