Titan which expanded its smart wearable devices in 2023 with the introduction of two segments under the smart wearable division – Titan Smart and Fastrack Smart, plans to clock a total income of Rs 4,000 crore by end of FY27, Adithya Raj, sales and marketing head wearables division, Titan Company Limited, told BrandWagon Online. In the wearables division of Titan Company Ltd, Fastrack Smart emerged as the fastest-growing brand, achieving significant gains. The division’s revenue has expanded by a remarkable 3.3 times compared to FY22,” Adithya Raj, sales and marketing head wearables division, Titan Company Limited, told BrandWagon Online. As per its Q1,FY24 filings, its watches and wearables posted a total income of Rs 890 crore by 13% as compared to Q1,FY23, backed by a strong growth of 81% in the wearables segment.
The company claims that both brands – Fastrack Smart and Titan Smart, cater to different market segments. Fastrack Smart focuses mainly on younger audience, aged between 18-28 years old, and has an average selling price (ASP) of Rs 4,000 while Titan Smart is targeted at premium side users between the age group of 30-50 years old. The premium watches have an average selling price of Rs 8,500, it stated. “The brand proposition for Titan and Fastrack are different from each other, Titan is more elegant, classy and premium. On the other hand, the price points of Fastrack are slightly lower. Thus, Fastrack accounts for 70% of the wearable category revenue and the rest 30% comes from Titan. During Q1, FY24, our EBIT stood at Rs 102 crore, with an EBIT margin of 11%,” Raj added. Further, the earnings before interest and tax (EBIT) for the watches and wearable category increased by 209% to Rs 413 crore in FY23.
Notedly, the smart wearable market in India is expected to register a compound annual growth rate (CAGR) of 23.91% over the forecast period 2022-2027, according to the marketing intelligence platform, Mordor Intelligence.
As per the Titan’s Q1,FY24 result, watches and wearables division posted a 13% year-on-year growth. This comprised eight percent growth in analog watches segment and 84% year-on-year growth in the wearables sector. The company further said that, “brand Titan and international brands saw strong buying momentum clocking handsome double digit growth.”
Titan Companies Limited, increased its advertising spends 55% to Rs 739 crore in FY23 from Rs 474 crore in FY22. Furthermore, the brand claims that it has upped its advertising spends by over 60% with a focus on the current festive season. “From a product perspective, the festive season is going to have launches across price segments. Additionally, demand is coinciding with the World Cup campaign as well with the cricket, football world cup happening around the same time. So, with a combination of extremely heavy promotions and odd advertising, we will present it along with new launches across channels and across price points,” he said.
Titan Company Limited, which has about fifteen brands, clocked a 40% increase in revenue from operations to Rs 40,575 crore in FY23 from Rs 28,799 crore in FY22 (consolidated), as per its annual report. The company’s net profit rose 48.9% to Rs 3,274 crore in FY22 from Rs 2,198 crore in FY21.
The company at the end of FY22 had 2,710 stores across 404 cites. Of the 26 new stores added in Q1, FY24 14 stores were in Titan World, nine stores in Helios and three stores in Fastrack respectively. It claims that its smart wearable category earns most of its revenue from offline channels, that is, through brand outlets and retail stores. “70% of our smart wearable category revenue comes from offline channels and the rest from online channels including ecommerce platform such as Amazon, Flipkart. But because we have launched multiple brands and sub-brands at various price points this year, the ratio has drastically changed. Now we see that the split between online and offline is 50-50,” Raj added.
Fastrack Smart roped in actor Ranveer Singh as the brand ambassador in July this year and unveiled the campaign ‘Follow Yourself’. The brand also introduced its new line of products in the name of ‘Evoke & Smart 3.0’. Currently, the brand has about 20 products in this segment and it further aims to launch around 30 to 35 new products this year. Among these, the company plans to launch 15 products in the festive season, that is in the next two months. “Instead of going to the traditional media, we decided to be digital heavy, because we wanted to talk to our audience, that is consumers in the age between 15-25 years old. This is also one of the reasons why we decided to appoint Ranveer Singh as brand ambassador,” he explained.
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