Titan is one of the most popular watch manufacturers in India with a revenue of 21,204 crore rupees as of 2020. This public company was established in 1984 and has expanded to be the fifth-largest watch manufacturer in the whole world and also the largest branded jewelry maker in India. More than 80% of its revenue comes from the latter.
The firm is a part of the Tata group and started its journey in a joint venture with TIDCO. The one thing that we should appreciate about Titan is its diverse revenue streams and the immense trust that its customers have in them. The firm changed its name from Titan Co to Titan Industries Ltd in 1993. This article will explore the business model of Titan.
Titan Business Model
Titan’s business pattern comprises a set of diversifications and a customer-first approach towards establishment across several consumer segments. Previously, the company was well known for quartz watches but has transformed itself into a premium and smart-watches company, while the jewelry vertical which is symbolized by Tanishq fetches approximately 82% of the total revenues. The company is further strengthened by Tanishq’s reputation for transparent pricing and high-quality gold and diamond jewelry.
The company has again opened up through eyewear products known to many customers with the Titan Eye+, and later to fragrances and fashion accessories further strengthening the company’s diversity. Titan has already established exclusive retail networks in over 1,300 stores across India. Titan thus captures all the market routes – physical, digital, and even e-commerce avenues – bringing services that offer customers better access and engagement with these availabilities. Strong brand trust, high pricing, and value-added services such as after-sales support and customization create durable relationships with customers.
Many advantages should remain with Titan in case it goes commercial because one drawback is the dependency on the Indian market, which limits its global reach, and the next is the fierce competition from domestic and foreign players in the jewelry and watch segments. On the other hand, the increase in disposable incomes gives a growth opportunity; further avenues of creating international reach with certain strategic alliances with global brands open up.
Key Activities of Titan
Titan is known for its quality manufacturing and sales. In 1984 it started manufacturing quartz analog watches and further diversified into various other products.
Today they manufacture watches, eyewear, perfumes, and jewelry. Their branches also cater to the requirements of people of all age groups. They provide the best experience to their customers.
Monetising Heritage
The biggest factor that multiplies the sales of Titan Company Limited today is the sense of the superior quality of craftsmanship associated with the firm. Their product quality is admired by most of the users. One of the main reasons for this is their people-centric vision of creating and elevating experience that impacts the world.
Their mission has always been to create a value-driven culture that nourishes innovation, performance, and the highest global standards in everything they do. Throughout their businesses, how they pitch themselves ensures that customers take precedence over anything else.
There is absolutely no doubt about the fact that it is in fact the people who made Titan the brand that it is today. They have reached a position at which they are capable of monetizing the heritage that they have proudly inherited through years of delivering quality products.
Shevaughn Pimenta
Channels of Titan
There are multiple platforms through which Titan makes its products available to the people. On the other hand, they have many exclusive outlets in the name of Titan across most of the cities in India. There are outlets in other countries too.
Some of these outlets sell all the products by the Titan group while most of them are exclusive showrooms that sell particular products like watches, eyewear, jewellery et cetera.
They also have exclusive online websites through which the customers can directly place orders and get them delivered to their doorsteps. Apart from that Titan has also partnered with most of the key platforms through which they make their products available.
In fact, Titan has done and is continuing to do everything possible to make their products accessible and affordable to all sections of society.
Customer Relationship
Customers are one of the biggest assets of the company. Hence they have enabled various options to give the best experience to the customers. As a part of this, they have devised a customer support service that can be reached at 18002660123. The customers can also raise their concerns by writing to customercare@titan.co.in.
Alternatively, the customers can also directly reach out to the offline customer care centers or showrooms with the product and its receipt.
Archana Karthikeyan
How Titan Makes Money | Revenue Model of Titan
The diverse product range is the revenue driver for Titan, with jewelry being a significant portion of its earnings. The jewelry division, which accounts for nearly 89.1% of earnings, has come under the banner of Tanishq, which reported revenues of around INR 10,696 crore (approximately $1.3 billion) according to the latest financials. The watches and wearables segment, on the other hand, reports 7.6% of total revenues at roughly INR 913 crore due to increased demand for both smartwatch and traditional watch acquisition. Titan Eye+ eyecare contributes 1.7% and generates INR 203 crore. Additional revenue streams from other business activities bring another 1.7% to the overall revenues, amounting to INR 199 crore.
Titan’s success in revenue is backed by several strategic advantages. The Tanishq brand is widely perceived as a marker of quality and trust and thereby also earns decent customer loyalty, as well as high sales volumes. Furthermore, its diverse segments in jewelry, watches, and eyewear mitigate the risk of market fluctuations in any one category. Titan has a deep and extensive retail network that ensures accessibility and presence towards driving sales. These vary from jewelry, but Titan enjoys income from the other segments as well, thus supporting itself through a very good brand reputation and extensive retail reach to ensure a foothold growth across several markets.
As far as the watch manufacturing is concerned they have multiple sub-branches that are titled FastTrack Helios, Xylys, Titan Raga et cetera. It might be a surprise that despite the watches being the most popular product of the company, it only contributes a small amount.
They are the primary growth drivers of the firm. It can be rightly concluded that all Titan is known for their watches it is their business that happens in Tanishq that drives the business forward.
Titan Company Limited Financials
| Fiscal Year | Operating Revenue | Total Expenses | Profit-Loss |
|---|---|---|---|
| FY22 | INR 27,210 crore | INR 25,037 crore | INR 2,173 crore |
| FY23 | INR 38,270 crore | INR 38,270 crore | — |
| FY24 | INR 47,600 crore | INR 44,298 crore | INR 2,816 crore |
Titan – Unique Selling Proposition
Titan Company has forged a unique lifestyle proposition that is all about quality, craftsmanship, and innovation in watches and jewels. With an ever-expanding range of immaculate materials and avant-garde designs, luxury and budget access market segments of watches, ornaments, and eyeglasses for the company. The technological advancements that bolster its competitive edge include Titan Edge, which is ultra-slim.
Backed by the Tata Group, Titan enjoys unquestionable consumer loyalty. The brand emphasizes experiential retailing where an engaging shopping experience is created and has a strong commitment to sustainability and corporate responsibility. Accessibility across price points and its reputation of being reliable make Titan’s value proposition about extraordinary customer experiences that set the standards and instill trust, thereby making Titan a leader in India’s lifestyle market.
Businesses by Titan – Iconic Brands of Titan
- Titan
- FastTrack
- Zoop
- Sonata
- Titan eye plus
- Mia
- Titan clock
- Taneira
- CaratLane
- Titan Raga
- Skinn
- Zoya
- SF
- Tanishq
- Helios
- Octane
- Xylys
- Nebula
- Fabre-Leuva
Titan SWOT Analysis
Titan Strengths
- Brand Equity: Titan enjoys a whopping brand equity due to its commitment to quality and innovative designs that have earned a loyal clientele.
- Product Diversification: It has been manufacturing a variety of products-from clocks and watches to jewelry with the Tanishq brand, eyewear, and perfumes. Market fluctuations are, therefore, not a major threat to this diversification.
- Widespread Distribution Network: Titan has a good network of retail outlets, including exclusive showrooms like ‘World of Titan’, giving it a presence in various segments of the market.
- Creativity and Design Excellence: Due to uniquely designed and technologically superior products, like smartwatches and high-end jewelry, Titan has been the most favored name in a sea of competitors.
Titan Weaknesses
- Heavy Dependence on the Indian Market: A significant share of Titan’s revenue comes from India, exposing it to economic downturns in that country. Although efforts are being made to expand abroad, the international footprint still remains limited.
- Vulnerability to Gold Price Fluctuations: The jewelry segment’s heavy reliance on gold exposes Titan to developments affecting fluctuations in gold prices, which can impact profit margins and consumer demand.
- Counterfeit Risks: The uniqueness of the designs of Titan products increases their counterfeiting potential, capable of undermining the brand’s value and sales.
Titan Opportunities
- International Market Expansion: Titan can invest in expanding territories abroad in adopting markets, such as countries with hefty Indian diaspora or love for Indian craftsmanship. This could be useful primarily for the Tanishq brand.
- Innovation in E-commerce: Titan must therefore harness eCommerce capabilities to propel itself further into the prospects of online shopping.
- Premiumization: With increasing disposable incomes expected from Vise economies and India, consumption demand for luxury items has increased. Titan now has the opportunity to thrift on the opportunity by manufacturing premium jewelry and watches.
- Sustainability Commitments: Titan will carry on with sustainable sourcing practices, along with ethical methods, particularly in terms of its jewelry, so that the company can attract customers who want to consume more socially and improve its position.
Titan Threats
- Economic Recession: Some unfavorable economic conditions would lead to less consumer spending, and it would consequently create an adverse impact on sales from all other segments.
- Stringent Competition: It is being burdened by tough competition with international luxury brands like Rolex and Swatch as well as domestic brands like Kalyan Jewellers which may be exerting pressure on their market share and pricing strategy.
- Changing Consumer Preferences: Sales are also susceptible to changes in the tastes and preferences of consumers, particularly those with regard to watches and jewelry which are fashion-sensitive.
- Regulatory Challenges: The implication of operating in a highly regulated industry is that changes in taxation or import/export-related government policies would unfavorably affect their operations.
Conclusion
From the looks of the business model of Titan, they will likely continue to thrive in the years to come. They have a knack for expanding their businesses to newer areas while retaining the quality of whatever was existing.
The very fact that Titan watches are the most preferred and popular among middle-class people in India is a testament to it. Heritage is something that we inculcate through commitment and passion. This is one thing that one should learn from the functioning of the Titan group.
FAQs
Is Titan an Indian brand?
Yes, Titan is an Indian brand that mainly manufactures fashion accessories such as watches, jewelry, and eyewear.
Does Titan own Tanishq?
Yes, Tanishq is an Indian jewelry brand and a division of Titan Company.
How was Titan Company formed?
Titan was formed between the joint venture of Tata Group & Tamil Nadu Industrial Corporation in 1984.
What are Titan Company products?
Titan Company offers watches (Titan, Fastrack, Sonata, Raga), jewelry (Tanishq, Mia, Zoya, CaratLane), eyewear (Titan Eye+), perfumes (Skinn by Titan), sarees (Taneira), accessories (belts, wallets, bags), and smart tech (smartwatches, fitness bands).
Who owns Titan?
Titan Company is owned by Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO). Tata Group, through Tata Sons, is the majority shareholder.
Is Titan a Tata product?
Yes, Titan is a Tata Group brand. Titan Company is a joint venture between Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO).
