Ahead of the festive season, Titan Company Limited launched 12 offline retail stores of Titan World and Helios across Delhi and NCR with an investment of Rs 15 crore.
With this launch, the company’s store count across India for Titan World stands at 640+ and for Helios at 200+.
“The marathon store opening in Delhi NCR spans across prominent locations in Delhi, Noida, and Ghaziabad with 4 standalone and 8 combination stores. Out of these 12 stores, 3 are company-operated and company-owned and the rest 9 are franchise-owned and franchise-operated,” Ajay Dwivedi, retail head – watches and wearables division, Titan Company Limited said.
At present, 90 per cent of the stores of the company are franchise-woned and franchise-operated and the rest 10 per cent are company-owned and company-operated.
The CAPEX involved in opening company-owned company-operated stores stands at Rs 2.5 crore.
“Keeping in view the success of what we did in Delhi NCR, we are planning to replicate it in Mumbai and Bengaluru in October-November,” he said.
The company is planning to open 10-12 in both cities.
“We had a pretty good Q1 and plan to keep up the momentum. However, overall there has been some slowing down of demand across a lot of discretionary categories for the companies that are in the lifestyle space. With the onset of the festive season, we are looking at double-digit retail growth in festive watches and triple-digit for smartwatches,” stated Suparna Mitra, CEO – watches and wearables division, Titan Company Limited.
“We are looking at close to 25 per cent growth from these stores and overall city growth of close to 20 per cent,” Dwivedi added.
Recently, the company has added two new brands – Ernst and Borel, and Milus – to Helios portfolio and plans to add 2 more by this October end.
“By this fiscal end, we plan to take the total brand count, which currently stands at 45, to close to 50 under the Helios portfolio,” he explained.
For Titan Company, 75 per cent of the revenue of the brand comes from Titan World and the rest 25 per cent is contributed by Helios.
“For both the brands, 18 per cent of the revenue comes from digital and the rest 82 per cent comes from the offline stores,” he said.
At present, the contribution from the omnichannel business for Helios stands at 7.5 per cent and Titan World at 1.5 per cent and the company sees it as a big growth driver going ahead.
“For the company, the biggest region is the South, which contributes to almost 35 per cent of our business followed by the West at 28 per cent, then East at 20 per cent and the remaining 17 per cent comes from the North,” he said.
Future Plans
Going ahead, Titan Company plans to add 150+ stores including both the brands – Helios and Titan World – in 50 new towns in FY2024.
“We will be opening 90 stores of Titan World and 60 stores of Helios with a focus on tier II. Most of Helios stores will be opening in tier I and tier II and most of Titan World will be opening in tier III and tier IV,” he said.
The average store of Titan World spans across 600-800 sq ft and for Helios, it is around 800-1,000 sq ft. Whereas, the destination store, which houses both Titan World and Helios, spans across 1,200-1,400 sq ft.
“We have close to 250 destination stores. And this fiscal year, we are planning to open another 50 destinations,” said Dwivedi.
In Q1, the company opened 30 new stores and Titan World grew by 8 per cent and Helios by 38 per cent.
“By the end of this fiscal, we are expecting double-digit growth for Titan World and 30-40 per cent for Helios,” she added.
