New Delhi- Oct 15, 2016. Rednewswire/-
Titan will now be launching a women's ethnic wear segment, will be setting up a few stores in the next 12 months
Titan is not just India's biggest watchmaker, the company is also the world's fifth biggest watch maker company. Well, this is not enough for the company. Titan now wants to foray into women's ethnic clothing segment. From 30 years, the company has been selling watches and gold jewellery under brand names like Sonata and Tanishq.
The company is owned by Tata Group in association with Tamil Nadu Industrial Development Corporation (TIDCO). The company started its operations with quartz watches in 1980s and edged out the then dominant government owned HMT. Today the business covers watches, jewellery and eye-wear with jewellery being the company's biggest revenue generator.
The company which makes about 15 million watches annually says that it is seeking for “opportunities in personal lifestyle categories,” when it filed with BSE on October 12. “One such category is special occasion ethnic wear for women,” the company said.
Titan will be opening up a few stores within a 12 month time period before deciding the segment's future course. The company is not sure whether it will be selling clothes under the same brand name or will launch a separate brand.
According to a pdf released by Titan, consumers in Asia are now moving on from once popular quartz to smartwatches. Though India is the world's second largest gold consumer the demand for gold is declining due to price variations and low consumer confidence.
After it has been made mandatory for customers to use PAN card for cash transaction exceeding RS 2 lakh, the sale of the company has been hit by 10%. Also, the company is facing severe competition from Kalyan Jewellers and Joyalukkas that provide customers with better deals to enhance shopping along with better brand loyalty.
Not just local retailers, the company is also facing competition from foreign watchmaker brands such as Fossil, Timex and Swatch who have captured India's market pipping Titan. Companies like Apple and Samsung have also launched wearable gadgets which are taking a toll over the company's business.
After facing a decline in revenue, the company took a conservative action and tied up with HP in order to launch smartwatches. Titan also acquired a majority share in online jewellery retail company Caratlane to strengthen its online business. The company now keeps its hopes pinned to the new clothing segment.