Brands
Titan’s Q3-2014 higher q-o-q advertising spend helps improve income
BENGALURU: India’s largest specialty retailer, Titan Company (Titan), formerly known as Titan Industries, reported a 25.11 per cent increase in ad spends to Rs 118.04 crore in Q3-2014 as compared to the Rs 94.35 crore during the immediate trailing quarter that resulted in a 15.74 per cent jump in operating income to Rs 2650.46 crore as compared to the Rs 2290.02 crore in Q2-2014.
Titan has three revenue segments – watches with five major brands – Titan, Xylus, Nebula, Sonata and Fastrack; Jewellery (the largest segment in terms of revenue and consequently profits) with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Others’ that include eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.
Facing a slowdown in the economy along with inflation resulted in weak consumer demand. Titan says that its jewellery segment witnessed a sharp decline in demand. The other factors that affected the jewellery segment’s performance included: average gold price during the quarter was 10 per cent lower than previous year level; RBI’s ban on gold-on-lease facility continues even today; Issues with gold supply in the market persist – premium on gold was above 10 per cent of gold rate in the quarter; Sale of gold coins was discontinued to help the government’s efforts to reduce CAD.
During the nine month period that ended December 31, 2013, Titan’s ad spend was up by 2.13 per cent at Rs 317.06 crore as compared to the Rs 310.46 crore during the corresponding period of last year. Operating revenue for the current nine month period was 8.26 per cent higher at Rs 8028.77 crore as compared to the Rs 7415.92 crore during the corresponding period of last year. Titan had spent Rs 377.09 crore during FY2013.
However, the company’s Q3-2014 operating revenue was 13.64 per cent lower than the Rs 2962.89 crore in Q3-2013. PAT for Q3-2014 at Rs 165.57 crore too was 11.29 per cent lower than the Rs 186.65 crore in Q2-2014 and lower by 18.81 per cent than the Rs 203.92 crore during the corresponding quarter of last year. Its nine month PAT for the current period at Rs 534.70 crore was 1.2 per cent lower than the Rs 540.21 crore during the corresponding period of last year.
Let us look at the percentages of total revenues spent towards advertising by Titan…
Last fiscal (FY2013) Titan spent Rs 377.09 crore or 3.73 per cent of its total revenue of Rs 10112.67 crore.
During the nine month period in the current fiscal, Titan’s ad spend was 3.91 per cent of total revenue of Rs 8112.41 crore, while during the nine month period of the previous fiscal, its ad spend was 4.14 per cent of revenue of Rs 7415.92 crore.
During Q3-2014, Titan spent 4.41 per cent of its total revenue of Rs 2675.77 crore; in Q2-2014, ad spend was 4.05 per cent of total revenue of Rs 2328.97 crore, while in Q3-2013 it spent 3.6 per cent of total revenue of Rs 3017.8 crore.
The watch segment revenue during Q3-2014 at Rs 455.58 crore grew by 2.97 per cent as compared to the Rs 442.36 crore during the immediate trailing quarter and 7.54 per cent more than the Rs 423.53 crore in Q3-2013. The result from this segment at Rs 51.3 crore was 10.49 per cent more than the Rs 46.43 crore from Q2-2014 and 0.29 per cent more than the Rs 51.15 crore in Q3-2013.
Titan’s jewellery segment had revenue of Rs 2126.67 crore for Q3-2014 which was 18.28 per cent higher than the Rs 1798.07 crore in Q2-2014, but 15.45 per cent lower than the Rs 2515.24 crore in Q3-2013. Its result for Q3-2014 at Rs 216.9 crore was 9.96 per cent lower than the Rs 240.89 crore in Q2-2014 and 12.03 per cent lower than the Rs 246.57 crore in Q3-2013.
The ‘Others’ segment of the brand reported revenue of Rs 116.52 crore during Q3-2014 which was 2.15 per cent more than the Rs 114.07 crore in Q2-2014 and 18.58 per cent more than the Rs 98.26 crore in Q3-2013. This segment returned a loss of Rs (-1.68) crore in Q3-2014; loss of Rs (-0.25) crore is Q2-2014 and a profit of Rs 1.7 crore during Q3-2013.
Brands
Uniqlo India signs Jasprit Bumrah as brand endorser
Cricketing star fronts new LifeWear campaign highlighting comfort and simplicity.
MUMBAI: Jasprit Bumrah just bowled a perfect yorker into fashion because when the fastest bowler in the world picks Uniqlo, even off-field style gets a pace attack. Uniqlo India has roped in Indian cricket icon Jasprit Bumrah as its brand endorser, kicking off the partnership with a fresh campaign that brings the brand’s LifeWear philosophy to life, clothing engineered for simplicity, quality and effortless comfort in daily routines.
The 30-second film shows Bumrah in relaxed, everyday moments away from the crease highlighting how the AIRism Oversized T-shirt slips seamlessly into his off-field life. The narrative quietly mirrors his journey as a fast bowler, built on consistency, instinct and the kind of fit that feels right from the first wear and only gets better with time.
Jasprit Bumrah said, “In my day-to-day life, I prefer clothing that feels comfortable and effortless, especially when I’m spending time off the field. That’s why I’m happy to be partnering with Uniqlo, the brand’s approach to everyday clothing feels like a natural extension to my personal style.”
Uniqlo India marketing director Nidhi Rastogi added, “We are proud to partner with cricket world champion Jasprit Bumrah and welcome him to the Uniqlo family. His focus on excellence, authenticity and quiet confidence reflects the essence of Uniqlo’s LifeWear philosophy.”
The campaign is now live across digital channels, social media, in-store displays and outdoor platforms, with the film and imagery rolling out alongside the announcement.
In a world where pace often means rushing, Bumrah and Uniqlo are reminding everyone that the best things in life and on the body come from calm, consistent comfort that simply shows up every day and gets the job done.
