Titan Company Ltd, a significant player in lifestyle accessories, is set to phase out its presence in the belts and wallets category, which it entered over a decade ago, by next year.
The company, primarily known for its operations in the jewellery, watches, and eyewear sectors, has expanded its portfolio to include wearables, Indian attire, fragrances, and fashion accessories. This expansion includes the launch of brands such as Skinn, IRTH, Taneira, Bags by Fastrack, and Titan Belts and Watches.
Manish Gupta, CEO of the Fragrance and Fashion Accessories division at Titan Company Ltd, explained, “Titan Belts and Wallets are currently stocked in all major retailers such as Lifestyle and Shoppers Stop, where we hold a 40% market share. However, our primary aim is to showcase these products in our own stores like Titan World and Fastrack. Unfortunately, space limitations hinder this goal, and furthermore, this category is not our core focus. While it has been a successful venture over the past decade, considering the commercial viability and relevance for our Excel Branded Outlets (EBOs), we have decided to discontinue this category.”
As per company data, the perfume market in India is valued at approximately INR 2,500 crore, with Titan fragrances capturing a market share of 10 to 12 percent. Additionally, the segment contributes around INR 200 crore to the company’s revenue, serving a customer base of 2 million consumers.
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By the fiscal year 2027, the fragrances division of Titan aims to achieve a brand value of INR 500 crore, combining the sales of Skinn and Fastrack fragrances, and catering to approximately 5 million customers.
Gupta added, “Over the past two years, we’ve observed a notable surge in customers opting for premium products priced between 3k to 5k, as well as those embracing luxury items priced at 8k and above. This growth outpaces the rate seen among consumers purchasing entry-level products.”
Titan perfumes are sold in Titan World, Titan’s flagship watch store with around 670 locations across 300 cities. Additionally, they are distributed through more than 200 Fastrack standalone stores and are available in 11 prominent retail chains throughout India.
According to the company, approximately a quarter of the fragrance business is generated through e-commerce platforms. Titan fragrances are currently offered on six platforms besides its own brand website. Additionally, the company is in the process of partnering with three more platforms, expected to be operational within a month.
The company provides a Skinn discovery kit, which includes tester vials of five fragrances, priced at INR 395. These tester kits can be purchased online through platforms such as Nykaa, Myntra, Amazon, Smytten, and Flipkart.
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Gupta explained, “We emphasize testing and trial at all our locations, incurring considerable expenses for it. However, we believe that once customers experience Skinn, the likelihood of conversion increases significantly. Currently, our customer acquisition costs stand at approximately INR 150.”
In the company’s bags category, IRTH was introduced in 2022, while Bags by Fastrack have been available in the market for over a decade.
Titan aims to reach a revenue target of INR 1,000 crore for IRTH and Fastrack bags by the fiscal year 2027. Over the past two years, the company has sold approximately 100,000 IRTH bags and intends to inaugurate five flagship stores by November 2024.
During the brand’s launch in 2022, the company announced plans to establish exclusive outlets and flagship stores for IRTH in three metro cities by March 2023. However, these plans have been postponed.
Gupta explained, “Launching flagship stores has been delayed by six months. Since November 2023, we’ve been striving to secure suitable locations. It’s been challenging to find adequately sized stores in well-positioned malls. However, we’re actively working on it. Nonetheless, we’re committed to having five flagship stores operational by Diwali.”
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