The Hindu Business Line : Premium’s the watchword

Titan hopes the overall buoyancy in the economy, combined with heightened awareness about design, will affect buying patterns this festive season. The watch brand hopes to see some big-ticket purchases and is betting big on premium watches.

With heritage as inspiration, Titan makes a line of watches designed to capture attention. Featured above is the watch that draws from the Taj Mahal.

Swetha Kannan

The discerning new Indian consumer is waking up to the wonder that is design. She’s increasingly conscious of what’s around her, what’s she’s wearing and the story it tells. She is beautiful and wants to be surrounded by beautiful things and moments. An emerging trend that Titan — as a watch brand that takes pride in its designs — hopes will catch on more in the times to come.

However, don’t all good things come with a premium price tag? But elegance and the need to own something that is sheer “spectacular beauty” will score over price this festive season, says Harish Bhat, Titan Industries’ Chief Operating Officer. An observation that predicts a good festive season ahead for premium brands, which pride themselves on their design and elegance.

Titan hopes the overall buoyancy in the economy, combined with heightened awareness about design, will affect buying patterns this festive season – from functional to flaunting. The watch brand hopes to see some big-ticket purchases and is betting big on premium watches.

The company has ushered in the festival season with six new collections (totalling 250 designs), mostly in the premium category, backed by a series of offers and advertising campaigns.

Says Bhat : “The mood all around is upbeat, the economy is looking up. The stock market is booming. Real estate prices are looking up. We just won the 20-20 World Cup. An Indian is the richest man in the world. We hope this tide will lift the buying mood as well. With affluence and buying power increasing, our prognosis is a brilliant festive season, especially in the premium watches segment. We already had a good take-off in the Puja season. We expect 40 per cent of our sales this festive season to come from premium watches alone.” (Premium watches are estimated to be 20 per cent of the Rs 3,000-crore overall watch market in India )

The festive season (beginning with Dussehra, followed by Diwali, and going on till Christmas and New Year) is, not surprisingly, the highest contributor to Titan’s yearly sales.

Bhat said, “The festive season alone contributes about 35 per cent to yearly sales. Last year, watch sales were Rs 784 crore (eight million watches sold). This year too, we expect a 35 per cent contribution from the festive season.” Titan hopes to post a sales turnover of Rs 1,200 crore this year, selling 10 million watches.

So, what’s new this season from Titan? Out of the six collections launched, five are in the premium category. And Titan claims to have something in store for every kind of customer with the accent, obviously, on design. Whether it is the shimmering crystals singing a sensuous raga, the Kurukshetra war brought to life on the dial or the imposing chariot of Konark intricately embedded as backdrop, Titan’s offerings are steeped in design.

Titan Heritage, inspired by Indian heritage and architecture, is priced between Rs 3,750 and Rs 8,000. Titan has teamed up with Swarovski for Raga Crystals. In the Nebula Pearl range, it’s offering solid gold watches studded with precious stones for both men and women who want as much an accessory as a watch (Rs 30,000-50,000) as this is close to jewellery. There’s the European-design Laurent collection and a new collection from Tommy Hilfiger (Titan’s licensee brand) as well.

Only the Sonata Yuva collection, aimed at the youth, is in the mass market category. Yuva is for the aspirational youth. It is trendy, colourful and reflective of the energy and confidence of a young India, says Bhat. A young India that will no doubt move on to premium brands in no time!

While TV campaigns are on air for Raga Crystals and Yuva, other collections are hogging print and outdoor space. Offers for Diwali included gold coins along with Nebula watches, Mont Blanc perfumes with Xylys watches, 20 per cent discount on Regalia, and messenger bags free with Tommy Hilfiger watches. The festive season will see more such freebies and offers, promises Bhat.

Titan is also using this festive season to revive its Nebula brand. The Nebula watches are made out of solid 18k gold; and with a price range of Rs 20,000-50,000, they cater to a niche consumer segment – for those who have “achieved in life” and are looking for “a sense of satisfaction,” as Bhat puts it.

Traditionally, Titan has trodden the direct marketing route to target these high-profile consumers. However, this festive season, it has decided to intensify awareness for the Nebula brand through an aggressive marketing campaign across print and outdoor media. This is the first marketing campaign in the last three years, says Bhat.

Bhat believes this 10-year-old brand will do well this festive season, considering that this year has seen some prosperity, and also asince buying gold at this time is considered auspicious. This festive season, the total marketing spend on Nebula is expected to be around Rs 1.5 crore.

As per the last annual results, Nebula saw sales of Rs 12.8 crore. It has been growing at 20 per cent for the last few years. Post a new marketing campaign, the brand is expected to grow 30 per cent in value terms. Says Bhat: “Nebula’s revival will see many new collections in future. We will interplay gold with many other substances.”

Along with Nebula and other premium brands, Titan hopes to make a pile this festive season. But, it is only the start of things to come as far as premium watches are concerned. Things are set to only get better.

Nikhil Vora, FMCG analyst at IDFC SSKI Research, says in a report that Titan’s core operations of watches and jewellery continue to maintain high growth momentum as both are a perfect play to the India consumerisation story.

With watches penetration in India at just 27 per cent, Titan’s strong stable of brands across price points and retail presence assures its watches business growth at over 15 per cent CAGR. With a view to tap the emerging top end market, Titan is adding premium product lines, says Vora, adding that Titan too is best placed to capitalise on the organised jewellery opportunity.

Titan’s business model driven by multiple growth edifices and ability to consistently pioneer new business opportunities will drive the business, he points out. Titan’s time could well have come.

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