Titan Company Limited is a major part of the TATA Group. The company is instrumental in the watch and jewelry industry. Titan is also known as a lifestyle brand.
Let’s read more about the SWOT analysis of Titan with its thorough report of profit margins and strategies.
About Titan
Titan being a lifestyle brand is a dynamic player in manufacturing and creating marvelous products. These products include fragrances, smart wearables, eyewear, etc. Titan has a large customer base across the globe due to its modern design and brilliant values.
Titan emphasizes sustainable strategies and has also intelligent partnerships that elevate its market presence. The company holds measure expertise in offering precise insights into the changing global market landscape.
Titan at a Glance
| Founder | Xerxes Desai |
| Key People | Arun Roy – Chairman
C. K. Venkataraman – MD Ashok Sharma – CFO |
| Year of Establishment | 1984 |
| Annual Revenue (as of FY24) | US$6.2 billion |
| Total assets (as of FY24) | US$3.8 billion |
| Total equity (as of FY24) | US$1.1 billion |
| Origin | Bangalore, Karnataka, India |
| Type of Company | Public |
| Total no. of employees | 8,680 |
Top Products by Titan
- Watches
- Jewellery
- Bags
- Perfumes
- Belts
- Wallets
- Eyewear
Brands Under Titan
- Titan Eyeplus
- Taneira
- Fastrack
- Tanishq
- Sonata
- Skinn by Titan
SWOT Analysis of Titan
SWOT analysis aids companies in analyzing their strengths, weaknesses, threats, and opportunities to grow further in the future.
Strengths of Titan
The strengths of Titan include –
-
Strong distribution network
Titan holds a very broad distribution network with more than 7000 employees. The company has more than 10 other branches with approximately retail stores in India. The Titan products are easily accessible across the country due to its strong network that appeals to numerous customers.
-
Supreme quality and design
Titan is a well-established brand that offers supreme products with excellent design and quality. The company has different types of customers and the masterpieces of the company can be luxury watch companies across the globe. The company’s consistency in offering quality in its products makes it an essential factor to expand its clientele.
-
High caliber position
Titan has an exemplary reputation in the watch industry due to its world-class products and has maintained a sturdy market position being a subsidiary of Tata Group. It is a very well-known brand in India and globally as well.
-
Brilliant customer service
Titan prioritizes customer satisfaction from the beginning and offers excellent customer service. The experienced staff of Titan promptly answer customer questions whenever required. It also gives a particular warranty period for replacements or repairs to build loyalty and interest among its customers.
-
Dynamic advertising & merchandising
Titan emphasizes visual merchandising. Every showroom of Titan has beautiful displace that improve the shopping experience of customers. It effectively displays its product variety and elevates its sales with properly executed graphic visualization.
Moreover, the company’s successful advertising strategies are the pillars of its huge success. The company has so far increased its awareness as well as sales by collaborating with popular celebrities in its promotional advertisements.
-
Diversified products
Titan has an amazing product line including watches, eyewear, jewellery, accessories, etc. This diversified portfolio meets different demands of the customers and this makes the companies stay ahead of the intense competition. The brand also incorporates elements like Swarovski crystals in some of its designs, adding a touch of elegance and luxury. This diversified portfolio meets the different demands of the customers and helps the company stay ahead of the intense competition.
-
Tech-adoption & SCM
Titan is constantly upgrading its technical background to cutting-edge technology and even offering smartwatches at great prices. Also, the company’s supply chain management is excellent and offers on-time delivery and product procurement.
Weaknesses of Titan
The weaknesses of Titan include the following –
-
Water resistant concerns
The wristwatch collection of Titan has a few models that have zero water resistance. This is the biggest disadvantage for the company as a lot of customers are demanding waterproof timepieces.
Since the company has very few models that are water resistant, the company should innovate and bring standard practices to cover the market position.
-
Usage of mobile phones
Today the increase of mobile phones has reached the pic. This has reduced the Reliance of conventional wristwatches to track the time. This is a great weakness as well as a challenge for Titan to expand products and bring intelligent technology to stay ahead of the system
-
Lag in technology adoption
The trend of the smartwatch was on a buzz and Titan’s entry into the smartwatch market has been very slow. Its rivals Samsung and Apple put Titan behind in this segment where smart technologies and watches took over a huge market position. This is the greatest weakness of a Titan.
-
Reliance on Indian customers
Titan gets a big portion of its revenue from Indian markets. However, economic downtimes or difficulties may impact the profit margins of Titan.
The company can still lower the risk and get regular income from global showrooms by expanding its market base.
-
Volatile gold prices
The financial performance of Titan is highly affected by fluctuations in gold prices since the company is also involved in the jewelry industry.
Therefore, the company needs to implement strategic planning to cover the price changes and keep its profit margins high in terms of instability.
-
Seasonal discounts
Throughout the year, Titan gives discounts to its customers. Most of the discounts and sales are around the holiday or wedding seasons.
To maintain the profit margins the marketing and sales methodology should be agile and maintain a consistent revenue platform.
-
Limited smartwatch products
Titan made its debut a bit late as compared to its rivals. Still, the company’s products lag behind the global brands in terms of technology. This requires aggressive market expansion of Titan along with the latest technology upgrade.
-
Cultural diversification & high functional costs
In terms of the jewelry industry, various cultural interests as per their regions exist. Titan faces the difficulty of matching the variety without losing its company’s values and mission.
Moreover, the company’s retail sector includes high operating costs due to which the store operations may not be improved and digital transformation could not be achieved.
Opportunities for Titan
Below are the opportunities for Titan –
-
Customer-oriented uniqueness
Titan has a great opportunity to customize products and develop innovative styles as per the customer choices. The company can manufacture personalized watches as they have become a fashion element nowadays.
Today is the trend of sports watches, luxury designs, and water-resistant watches.
-
Worldwide expansion
Titan has a very strong presence in the Indian market but it should also expand its footprints. It can enter a market where customers may use watches as a fashion element.
Customers in foreign countries value quality and style. This is a huge opportunity for Titan to offer its world-class products in foreign countries and increase its revenue stream.
-
Better online presence
In today’s digital age, companies should be proactive in terms of online presence. This is exactly where Titan can take an advantage.
The company should do appealing promotions and aggressive internet marketing to get success. Moreover, the online strategy should also offer immediate customer service.
-
Diverse products
Titan can make a move beyond manufacturing watches. It can also try offering high-end items that match their brand position in the market while also improving its product lines.
-
Wearable technology
Today, wearable technology is getting highly popular and Titan can expand into this segment. It can focus more on spending on research and development for inventive variables, including wearable application development, to stay ahead in the market.
-
Rural market entry
India has a considerable amount of rural population. Therefore penetrating into the rural market can help Titan build a substantial market share while expanding its reach outside the cities.
-
Economical luxury products
Titan can also produce luxury products at an economical price so that middle-class people can also be able to buy them.
In short, the company has a great opportunity in manufacturing and offering affordable luxury products to its customers with economical pricing.
-
AR technology
Air technology is continuously changing the online purchasing experience of customers. The company integrates Augmented Reality technology in terms of virtual try-on features in its application and website as well.
This improved customer experience and also increased the profitability of the company.
Threats to Titan
Titan should be aware of these threats to stay ahead of the race –
-
Severe competition
The company faces high competition from well-known brands like Tissot, Rado, Rolex, Citizen, etc. Therefore, Titan should innovate and keep itself distinctive to hold its market share.
-
Counterfeit products
Another measure of threat to Titan is the counterfeited products. Titanium is very well known for its simplicity and elegance but these qualities are open to imitation. The customer trust and market presence of Titan may be eradicated by counterfeited products that resemble the parents and the design of the brand having low quality.
-
Changing customer choices
Smartphones have made a huge impact on the profitability of wristwatch manufacturers including Titan. This kind of change in customer preferences forces Titan to continuously innovate and adapt as per the transforming trends.
-
Economic downtime
Economic contraction or expansion method is the behavioral pattern of consumers specifically buying segments. For instance, in the scenario of recession, people won’t be able to afford to purchase luxury jewelry or watches which may hurt the presence of the company in India and the world as well.
-
Regulatory problems
The pricing and operations of Titan may be influenced by government limitations. These regulations may include hallmarking needs or any particular taxes on luxury or jewelry items.
-
Supply chain disturbances
Climatic conditions like pandemics, disasters, or any political fluctuations may usually disturb the supply chain. It can affect the on-time deliveries of Titan products which in turn impact customer satisfaction and sales.
-
Cyber security threats
Sturdy cyber security elements should be incorporated by Titan as a lot of online activities are being executed by the customers. Any kind of threat to this can steal its customer confidence system.
-
Reliance on limited suppliers
Titan should diversify its supplied connections as it can be exposed to supply chain problems like shortages of products, quality concerns, or price increases.
Top Competitors of Titan
Here are the top 5 Competitors of Titan –
- Timex: It is a popular watch manufacturing company that competes with Titan in the wristwatch sector. Its watches are quite durable and affordable.
- Casio: It’s a Japanese electronics brand competing directly with Titan in the watch segment. Its uniqueness and brand strength make it a strong competitor of Titan.
- Fossil: It’s an American brand and manufacturer of fashion products and is the strong competitor of Titan in the products and watches segment.
- Swatch: It is a Swiss multinational company that is a competitor of Titan in the high-end to mid-end watch segment.
- Raymond: It is another competitor of Titan in the accessories and apparel space.
Conclusion
The globalization in 1990 introduced branded switch companies that give Indian customers the introduction to global brands. Due to this, Titan started analyzing various brands’ prices as well as their styles.
During the process, the expensive nature of Swiss watches was compared to the Indian brands, specifically Titan which offered excellent quality at a low price.
Since its inception, Titan has shown its uniqueness in the industry with its customers’ entries that help it get a huge customer base.