Titan Bets Big On Budget Perfumes As Thrifty Shoppers Upgrade From Traditional Deodorants
According to Titan's Manish Gupta, demand for perfumes priced under Rs 2,000 has been robust and is driven by the youth.
Titan Co. has entered the affordable perfume market, offering products under Rs 2,000, as consumers increasingly shift from mass-market deodorants to more sophisticated fragrance options.
The Tata Group company has rolled out 'Skinn 24Seven' for a sticker price of Rs 1,745, which is 63% cheaper than its existing range. The company will also launch an additional option in the Rs 500–1,000 price point under the Fasttrack brand next week, Manish Gupta, chief executive officer of the fragrance and fashion accessories division of Titan told NDTV Profit.
According to Gupta, the Rs 10,000-crore fragrance industry in India is witnessing remarkable growth post pandemic resembling a "hockey stick" curve. "The demand for perfumes priced under Rs 2,000 has been particularly robust, driven by a younger demographic who are price-sensitive yet seeking quality fragrances," he said. "Furthermore, various direct-to-consumer brands are becoming increasingly accessible through online platforms, making this transition easier for shoppers."
Titan currently commands a 40% market share in the masstige segment.
About a decade ago, the penetration in the Indian fragrance market was substantially low, said Gupta. "When we started our journey in fragrances in 2013, the consumer penetration in perfumes was around 5–6%. Now, it is growing 20–25%. So, the opportunity is very large. On the other hand, there are a lot of options available in the marketplace from international brands, imported, grey market products. But there was no strong Indian player to seize this opportunity. We identified a white space in the market and decided to cater to people looking for affordable options between Rs 1,000 to Rs 4,000 price point," he explained.
Titan had adopted "e-commerce first" approach to expand into this segment and Gupta views quick-commerce as a "game-changer" with the channel currently accounting for 10% of online sales.
Gupta added that general trade is seeing a slowdown. "This channel is seeing a slowdown due to increased online penetration. But they have a crucial role to play, and I expect this channel will bounce back, especially with the upcoming festive and wedding seasons," he added.
The company plans to roll out 100 Skinn kiosks within one-and-half years.
Titan product portfolio ranges from watches and perfumes to eyewear, jewellery and fashion accessories. It has set ambitious targets, aiming to achieve Rs 1,500 crore in sales from its fragrances and bags segments in the next three years. "We are targeting Rs 500 crore from fragrances and Rs 1,000 crore from bags segment by FY27," said Gupta.
Shares of Titan closed at Rs 3,748 apiece, down by 0.93%, on the BSE on Wednesday. The stock rallied 0.52% to hit an intraday high of Rs 3,803.2 apiece, compared to its previous close of Rs 3,783.25 per share, on the BSE.
