Titan's Foray into the Prescription Eyewear Market in India*

Details

Case Code : CLBS086
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

Prescription eyewear, Titan, Titan Eye+, Lawrence & Mayo, GKB, lenses, opticals, TIDCO, Tata Group, spectacles, jewelry, watches

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* This caselet is intended for use only in class discussions.
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Abstract:

This caselet discusses Titan's foray into the prescription eyewear market in India. Titan announced in early 2007 that it would open new stores under the Eye+ name to sell spectacle frames and lenses, contact lenses, and sunglasses. The stores would not only sell eyewear under Titan's own brand, but also carry several international brands. Titan hoped that its foray into branded prescription eyewear would meet with the same success as its foray into branded watches and jewelry had done.

Introduction In early 2007, the prescription eyewear market in India was estimated to be worth between Rs 18-20 billion, with around 30 million pieces (frames with glasses) being sold every year. It was also one of the fastest growing consumer segments in the country in the early 2000s, recording an average annual growth rate of around 25%. This segment however, was largely dominated by the unorganized sector, which accounted for 95% of the prescription eyewear business. Firms like Lawrence & Mayo and GKB Opticals were some of the well established representatives of the organized sector in the business, but their presence was limited to only a handful of stores in a few big cities.

In early 2007, Lawrence & Mayo had 41 stores in 17 cities across India, while GKB opticals had 31 stores in 9 cities. Most of these stores were located in big cities like Delhi, Kolkata, Mumbai, Chennai, Bangalore, Hyderabad, Pune and Visakhapatnam.

In March 2007, Titan Industries (Titan), a joint venture between the Tata Group, a major industrial conglomerate in India, and the Tamil Nadu Industrial Development Corporation (TIDCO), an industrial investment body set up by the Tamil Nadu state government, announced its venture into the prescription eyewear business...