Titan’s accessory division, which retails bags under brands like IRTH and Fastrack, aspires to dominate the Rs 6,000 crore market in the coming years on the back of rapid expansion. The company aims to clock Rs 1,000 crore revenue from the women's handbag business in the next three years (FY28) and another Rs 500 crore from the fragrance business where it is already a market leader, Manish Gupta, Chief Executive Officer, Fragrances and Accessories Division at Titan told TNIE in an exclusive interaction.
“We anticipate the women's handbag market to be about Rs 6000 crore annually. About Rs 2,600 to 2,700 crore would be organised and the balance is something which we don't know. And this Rs 2,600-2,700 crore consists of all international brands, domestic brands, D2C brands and so on,” said Gupta.
He added, “It's a very fragmented market and so if you look at the brands, the average size of the brand may not be more than Rs 200-300 crore at most. This reflects that this category has not matured, is underserved, underpenetrated, and needs a strong player to come and start transforming the industry.”
Titan expects Rs 600 crore to be contributed by the IRTH brand, while the balance Rs 400 crore to come from the Fastrack portfolio of handbags. To increase its presence, Gupta said that they would be ramping up their online as well as retail presence. As of now, 60-70% of the revenue for Fastrack brand comes from online channels while for IRTH brand, this number is smaller at about 10%. Titan is also looking to rope in franchises to expand the retail presence of IRTH.
“We expect the brand’s first franchise store to open in the next four months. Overall, we are looking to have 100 stores for the brand by FY28. Currently, we have seven company-owned stores. Our key focus in the first phase of this retail expansion will be the top ten metros,” said Gupta.
He informed that while most leather bags are made in India, the PU bags are mainly imported from China. “We are evaluating the options to make PU bags in India…Once we get to a scale where it becomes lucrative for us to make these bags in India, we will consider it,” said Gupta.