From a sharp decline immediately after the decision on demonetisation, sales through the retail stores of watch maker Titan are getting back on track. It would, however, be months, at least three, for things to improve in smaller towns and for its dealers.
The sales were impacted as much as 25 per cent in the week following the November 8 decision scrapping higher denomination notes. For the entire month, the drop was around five per cent, according to S.Ravi Kant, CEO - Watches and Accessories, Titan Company Ltd.
The impact has been felt more in smaller towns and on the network of around 800 dealers the company has, across the country, on account of cash being the preferred mode of payment.
In contrast, plastic card usage by customers had picked up at the retail stores, especially those in cities. From 50 per cent of the sales prior to demonetisation, card usage is over 70 per cent now, he said. The company has 460 exclusive stores in 190 towns.
Stating this, he said it could be three to four months before sales at dealerships and in smaller towns to gain lost ground. Overall, Titan expects the growth in turnover to be in single digit this fiscal. The company is leader in the country’s watch market estimated to be around Rs.6,500 crore, Mr.Kant said interacting with presspersons here on Wednesday at the opening of the company’s revamped store in Jubilee Hills. The new integrated store, over 3,500 sq ft, brings the retail chains of World of Titan and Helios under one roof and is the largest exclusive watch store for the company, a release said.
He said the focus, in the backdrop of many players entering the market, is on remaining the leader. On store network expansion plan, he said it would be a cautious growth. Product wise, the company would continue adding to the range with an emphasis on smart watches. It had also recently launched a watch, for women, with a safety alert feature.
