Titan on Monday unveiled a new brand in the women’s handbag segment called IRTH and targets to earn `1,000 crore in revenue from it over the next five years. This will encompass revenue from both the newly launched brand and its range of bags in the Fastrack portfolio.
Manish Gupta, CEO and VP for the fragrances and accessories division at Titan Company, noted that while the Fastrack consumer would continue to be younger women and college-going girls, the target consumer for IRTH would be more mature women over 23 years of age, leading an active lifestyle yet not limited to working professionals. Gupta estimates that the handbags industry is currently `4,500 crore and the organised segment, which is at around `1,500 crore is poised to grow to `3,000 crore in five years. Titan is eyeing a third of that market and is banking on both its brands.
“We anticipate that by 2027, `600 crore of the revenues will come from IRTH and `400 crore will be from Fastrack. With our new launch, we now have handbags across various price points and consumer needs,” said Gupta. While Fastrack’s bags start at a price point of around `895, IRTH will offer over 90 designs, including totes, clutches and shoulder bags, priced between `2,595-5,995.
Titan has already made its new brand available at Shoppers Stop outlets and will soon sell on other fashion e-commerce platforms. It is also launching its brand website for IRTH, and will have a Vibes Store, which allows shoppers to connect with the brand via video for any queries or requirements.
“We will launch our first flagship store in Bengaluru by March or April next year. From next year onwards, we will ramp up the brand’s presence and reach 100 stores in over 30 cities in the next five years,” Gupta stated.
He pointed out that within the organised segment, around 40% of handbag sales comes from e-commerce. Roughly about 18-20% each comes from departmental chains and from exclusive brand outlets. “General trade penetration is relatively low in the organised sector, unlike the unorganised segment,” he observed, adding that general trade could potentially be a big growth opportunity.
While the organised market is still largely under-penetrated, IRTH will face stiff competition from established Indian brands like Lavie and Baggit, as well as international labels. But Gupta is upbeat about the new launch’s prospects, thanks to its “superior design and product functionality”. The new launch is positioned as IRTH from the House of Titan, so as to build on the brand value that comes with the Titan name. He explained, “Titan has evolved into a lifestyle company today, offering everything from watches and jewellery to eyewear and fragrances. The brand has already earned tremendous consumer trust and love.”
The launch will be followed by a high decibel campaign across digital and print media.
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