Titan watches to open standalone small-format stores in tier-II, III towns

Smaller towns to contribute around 3-5 % of World of Titan's TO in the next two to three years

The World of Titan, India's largest watch retail chain, is eying to expand presence in the tier II & III towns with small format stores, that would not only boost the company's retail sales but also its brand presence.

"There are around 400 towns with the population range of 1,00,000 to one million people. We are planning to come up with smaller format stores, around 400 square feet in size, in these towns. By the end of this year, we would open such stores in 40 new towns, and over the next two to three years we plan to be present in around 200 to 300 such small towns across the country," said Ajoy Chawla, vice president, global business head, Titan & Retail, Titan Industries Ltd. In the coming years, these small-format stores would contribute around 3-5% of 'World of Titan' turnover. In 2011-12 it posted a turnover of around Rs 780 crore.

Calling it the 'middle India' Chawla added that the company already had presence in these towns through multi-brand outlets, but in order to strengthen the brand presence and create a brand aspiration amongst customers, the company is planning to come up with stand-alone stores. "There are buyers for premium segment watches (those above Rs 10,000) in these small towns. While the number is still less compared to metros, it is definitely growing," he said. Titan has 357 World of Titan retail stores across the country.

While the mid-segment watches between (Rs 5,000-10,000) is clocking a 20% compounded annual growth rate (CAGR), the premium range (Rs 10,000-20,000) is growing at 25% and the luxury segment (Rs 20,000 and above) is growing at 20-25%, informed K S Ghai, business head, west, Titan Industries Ltd.

The company, which enjoys a 60% market share in the organised watch market (approximately Rs 4,000 crore), plans to launch sub-segments at  regular intervals. It launched the Spring Summer Collection 2013 in the Octane range of sporty styled watches for men here today.