Titan Company is pushing the boundaries of price for its flagship watch business, with the base price moving up to INR 3,000 per watch, from about INR 2,000 within two years. This move is part of the company’s strategy to premiumize its watch business.
Premiumisation has now reached deep – MD, Titan
While talking to ET Retail, managing director CK Venkataraman said, “Premiumisation has now reached deep; customers are buying a INR 50,000 watch even in small markets like Satna or Katni. If you look at every research study, they point to a rising share of income classes in the country…See the homes that are being advertised, the cars that are being advertised-you can see it there.”
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Consumer categories across India have been exhibiting divergent growth trends, with rising sales of premium goods across watches, smartphones, apparel, and cars compared to last year.
However, Titan reported a 23% drop in net profit from a year earlier in the September quarter at INR 704 crore. Profit took a toll from the jewellery business, which was impacted by a customs duty cut, leading the company to sell existing stocks at lower market prices.
Revenue grew 26% year-on-year in the quarter to INR 13,473 crore. The company’s watches and wearables division, which includes Titan and Fastrack brands, reported 19% year-on-year rise in total income at INR 1,301 crore in the September quarter.
“The stock markets are on fire and people are acquiring things that symbolise their success,” Venkataraman said. The company’s wearables segment includes Titan Smart and Fastrack smartwatches, fitness trackers, and smart rings which track health metrics such as body movement and sleep. A joint venture between Tata Sons and Tamil Nadu government’s TIDCO, Titan operates over 1,110 stores across retail formats such as Helios and Titan World and SF.
“We are there in the smallest of towns, not just in the malls. We are in the typical markets of Faridabad or Ballabgarh,” Venkataraman said.
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India’s watch market to grow up to $10.2 Bn by 2033
Meanwhile, the Indian watch market is expected to grow from $6.4 billion in 2024 to $10.2 billion by 2033, according to market researcher IMARC. The growth is driven by increased marketing investments by watch manufacturers, innovations, and the launch of customized watches. The mass watch segment, priced under INR 5,000, makes up 30% of the market, while the fashion segment, priced between INR 5,000 and INR 25,000, contributes nearly 21%.
The premium and luxury segment, however, is the biggest growth driver, accounting for about 49% of the market.
In India, watches made up 8% of Titan’s total sales of INR 47,624 crore in FY24.
