Titan Eye+ erases accumulated losses, eyes expansion and profitable growth

In an interview with businessline, Saumen Bhaumik, CEO, Eyecare Division at Titan Company Limited, shares insights on Titan Eyeplus‘ expansion plans and the premiumisation of eyewear. 

Q: Can you elaborate on Titan Eye+ expansion plans in terms of growth? Titan has been entering the premium sunglass market. Will this not create dissonance with the Titan Eye+ brand? 

A: Over the past four years, Titan Eye+ has shown growth and established a financially robust model, eliminating accumulated losses from the past 12-13 years. We are currently net positive and entering an expansive phase of growth. However, last year we experienced a slowdown, with the first six months performing well. Quarter 3 experienced a slowdown, induced by an industry-wide trend. This forced us to go back to the drawing board and reassess our consumer preferences. The market research revealed that although Titan Eye+ is perceived as an expert, it is seen as expensive. Consumers also value Titan Eye+’s products for its customer service but they consider its fashion quotient lower than that of its contemporaries. 

Hence, we found ourselves delivering slightly less economic value, especially to the younger generation. To address this bottleneck, we identified two core pillars: expertise and empathy. We realised that without delivering superior economic value alongside expertise and empathy, we are at risk of falling short of consumer expectations. 

Q: Was the market research conducted through an internal survey or commissioned through an external agency to obtain these insights? 

A: We conducted market research using a third-party agency. In addition, we engaged in discussions with our existing customers, including those who have become less active recently. We also gathered insights from internal stakeholders. The competitive landscape was thoroughly analysed to understand our offerings in comparison to our competitors. 

Additionally, we’ve made a conscious effort to strike a balance between sourcing raw materials from China and local manufacturing. Initially, we focused heavily on local manufacturing to cater to the Indian market, which yielded positive results.  

However, this strategy limited our access to global markets, where China plays a central role as a fashion hub. Therefore, we’ve made a conscious decision to adjust our approach accordingly and have a balance of both. 

Q: Does this mean that you have recalibrated investments made in Chikkaballapur plant? Or will you be primarily sourcing it from China and rebranding and selling them? What is the thinking there?   

A: No, we are incorporating both strategies simultaneously. We have not reduced any expenses or investments made in Chikkaballapur plant; in fact, we are accelerating them. At the same time, we are also keeping our eyes and ears open about the developments in China. We must learn, bring, and develop simultaneously. Our goal is to make India the hub of eyecare. 

And, to get started, we differentiated the eyewear market into two- single vision market and a progressing vision market, which includes presbyopia. The single vision market has fixed lenses. Titan Eye+ has understood the importance of this market and decided to bring parity to its products. The strategy used here involves delivering single vision lenses as an affordable fashion segment. 

The second category, which includes presbyopia, is complex, and we have built our expertise over 15 years. People come to us and respect us; people value us for our ability to provide intricate solutions that not everyone can offer. This category also requires customisation as per the customer’s profession and needs. So, our optometrists are trained to customise and approach their work with sensitivity. This is one area we have built. So, therefore, we believe this is our natural domain to take a lead position.    The third is the sunglass market which is a part of the lifestyle segment business. We believe that we can have a far greater share of this segment like what we did with watches. So, you will see us playing across all the price points by selling this segment from a price point of ₹600 going all the way up to ₹3 lakh. 

The fourth market is the top 108 stores having achieved a revenue of ₹300 plus crore, which will accelerate the journey of premiumisation for Titan Eye+. 

Price parity in the single vision affordable segment, affordable fashion segment, lead in the progressive category, bigger share of sunglasses category and premiumisation are the four-pronged strategy that we have adopted to become a leading player in the eyewear retail market. 

Q: What is the CAPEX allocation for Titan Eye+ and how will these funds be utilized?  

A: Of the estimated ₹50 crore investment, 60% would be for front-end expansion and renovation. The remaining funds would be utilised for back end, which is for manufacturing capacity expansion, both in Chikkaballapur, and Calcutta. Additionally, we are considering the possibility of manufacturing capacity in Noida and the western part of the country. But that is still an evaluation...  

Titan Eye+ is an optical retail brand with 900+ stores across 350+ cities and towns. The brand has recorded earnings of ₹707 cr, EBIT of ₹85 cr, and a growth rate of 5% in FY24.