The Tata Group firm Titan Industries today said it has revised downward its watch sales target by half a million units for the fiscal following weak economic sentiment and a slowdown in the sector.
"At the beginning of the year, we were thinking about 16.5 million units, but now we are thinking of only 16 million," Titan Industries chief operating officer Harish Bhat told reporters here.
The country's largest watchmaker had last year sold 13.5 million units across all its brands with 4 million sales in Titan, 7 million from Sonata and 2 million from Fastrack.
Titan is a leader accounting for 65 per cent volume share in the market. About 17-18 million watches are sold in the country ever year.
The company is eyeing a revenue of close to Rs 2,000 crore during the fiscal from its watch segment.
"By 2015 we expect the volume turnover to be around Rs 3,500 crore, with sale of at least 25 million watches. This year it is between Rs 1,800 and 2,000 crore," he said.
The Bangalore-based firm which has nearly 10,000 points of sales in the country plans to expand its reach with its own stores in the next four years.
"We will grow our network through franchisee route for Titan and Fastrack and in Helios it will be a combination of both company-owned stores and franchisees. Over the next four years, we will add 100 World of Titan showrooms to the current 340 stores, and 150 Fastrack stores to the current 100. For Helios, we will add 50 to take the total to 75," he said.
The company invests normally about Rs 1 crore to set up a multi-brand Helios store, he added.
The company that sells watches, jewellery and eye-wear under brands like Titan, Xylys, Sonata, Tanishq and Fastrack is aiming to become a total lifestyle company and is trying to be more youth centric.
"The youth approximately contributes to about 45% to the revenue and five years ago it used to contribute about 25% of revenues. India is a young country and demography is not likely to change till 2020," he said.
The firm has its presence in 27 countries, with the latest being Indonesia. The overseas market accounts for 7% of the firm's revenue.
The belts and bag segment accounts for 5% of the revenue and the firm is bullish on the accessories range and recently launched belts and wallets under the brand Titan.
"About four months ago we launched Titan belts and wallets in Chennai and Bangalore. The national roll out should happen in the next 12 months," he said.