Tata group’s jewellery-to-watches company Titan aims to surpass the Rs 500-crore sales milestone and reach 6 million customers in the next two years for their fragrance category, a senior executive told Moneycontrol in an interaction.
“In the next two years, we want to accelerate growth and I think we will acquire 2-3 million consumers minimum at attractive price points the company has to offer,” said Manish Gupta, CEO, fragrance and fashion accessories division at Titan Company Limited.
Titan’s fragrance category constitutes the brands Skinn and FastTrack perfumes. In Q4FY24, fragrance sales grew by around 9 percent year on year (YoY) in key segments.
Titan's 'emerging business' segment, comprising fragrances and fashion accessories, and Indian dress wear, clocked a growth of 26 percent YoY in total income to Rs 97 crore in Q4 FY24.
The company plans to place products in all commercially viable channels nationwide, allowing consumers to choose, said Gupta, while speaking about distribution channels.
“Unlike brands that target only online or physical retail, our strategy is clear: be available wherever potential customers are,” he said.
“Titan aims to create an omnichannel presence, ensuring that consumers don't need to search for the best price because every price we offer is the best. Titan’s fragrances are placed in more than 3,000 multi-brand outlets,” he added.
E-commerce contributes to about 25 percent of the segment’s sales and has been the fastest-growing channel in the past two years.
New rollouts
Talking about new launches, Gupta mentioned that the company is focusing on expanding Skinn Nox Oud, priced at Rs 3,500-Rs 5,000, which has been in Mumbai for a month, across the country. “This is one of our big blockbusters,” said Gupta.
In September or October, the company will launch a new, affordable line, targeting consumers upgrading from deodorants, with price points of Rs 599, Rs 699, and Rs 799. “This launch is timed for Diwali. Additionally, we have another major launch planned for March or April next year,” Gupta added.
Commenting on competition in the category, Gupta noted that he is still searching for competition in this category.
“I don't consider deodorant brands as my competition,” he added. International brands are priced two to three times higher than Titan products, with an average price of Rs 2,500, compared to their Rs 3,000 to Rs 12,000 range. In this space, Titan holds about 40 percent market share. Currently, the focus isn't on competition but on growing and unlocking the category, providing ample opportunity for everyone to thrive over the next 5-10 years, Gupta added.
Plans for the bags category
Talking about their bags category, which consists of brands like IRTH and FastTrack, and falls under the fashion accessories segment, Gupta said that the company plans to reach Rs 1,000 crore in the next three years, targeting 4-5 million women consumers. This year, the company is chasing a million women customers and is likely to achieve it, he added.
The company said that there are clear market segments, young women aged 18-24, and a larger group of women from their first job onward. Fast Track targets young women who value brand recognition, while IRTH offers functional solutions priced between Rs 3,000-6,000 for women seeking better quality. In Q4FY24, women’s bags clocked 97 percent growth YoY (on a small base of Q4FY23).
Gupta said that both fragrances and bags are growing at a great pace. In Q4FY24, fragrances and fashion accessories revenues grew by around 13 percent YoY.
Titan Company, on May, 3 reported a standalone net profit of Rs 786 crore for the March quarter of FY24 -- a growth of 7 percent from Rs 734 crore in the year-ago period.
The jeweler and watchmaker's revenue came in at Rs 10,047 crore, rising 17 percent from Rs 8,553 crore in the year-ago quarter, the company said in a regulatory filing.
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