Cover-story- About Watch Industry

COVER
STORY
INDIA WATCH
ON TIMEWEAR
From one watch per wrist to a clutch
of exquisite, sportywear, gold-plated,
silver-gold strapped, diamond encrusted
watches per wrist – man, woman or child –
time tolls a different chime today. From one or two
brands to oh-so-many brands to choose from, the India
timewear market has undergone a rapid change, be it the
brands on offer or the shopping experience of buying
watch. The organised timewear market is estimated to
be beyond a thousand crores. IMAGES BoF looks
into the size and scope of the business as
brought out in the IMAGES-KSA India
Retail Report 2005. Anil Prabhakar
scans the market and F&R
analyses the consumer-retailer
perspective.
P
eter Henlein of Germany invented the world's
first pocket watch in 1500s and from there it
has been a long journey starting with the
ordinary wristwatch to water resistant watches
and now watches with precious diamonds on
the dial, casing and straps. The growing popularity of
mobile phones is fast eroding the functional aspect of
watches and it is only logical that watch manufacturers are
concentrating more on the watch that ,makes a fashion
statement.
Size and scope
The IMAGES-KSA India Retail Report 2005 estimates that
about 28 million units are sold every year, and the off take
is growing at the rate of 30 per cent per annum. The
growth is mainly on account of the fact that watches are
increasingly becoming a function of fashion rather than
mere functionality. The frequency of watch purchases is
growing and so is consumers' desire to own different
timepieces for different occasions.
The Indian watch market is estimated to be in excess of
Rs 2,800 crore, of which the organised segment
constitutes nearly 40 per cent of the total retail market
(ie Rs 1,110 crore) and the remaining 60 per cent of the
highly unorganised segment caters to the low end market.
On the basis of pricing, the Indian watch market can be
segmented into six sub-groups as shown in the table
below:
Contrary to general expectation, maximum volumes sales
happen in the economy segment (8,310 units) in watches
that are priced between Rs 501 and Rs 1,250, which is
higher than the units sold in the extremely low end
timepieces priced at Rs 250 or below. But in value terms,
the medium and premium segments contribute most; this
share is sure to increase in the years ahead.
The sub-Rs 1,000 segment generates majority of the
demand. With the overall timewear industry growth rate
pegged at close to 8 per cent and a penetration level of 20
pieces per 1000, the Indian market presents an ocean of
opportunity and potential for watchmakers and brands
from across the globe.
As of now, men buy more than two-thirds of the watches
sold in India, although the trend is likely to get balanced
out with more and more women joining the workforce,
and women being more specific on the fashion aspect of
lifestyle products, coordinating everything they wear with
their attire. The topmost end luxury watch market is
estimated to be Rs 210 crore and with growing fashion
consciousness and the advent of many foreign brands,
the high end market is likely to grow faster in the years
ahead. With sales worth realisation in excess of Rs 815
crore from just 23.3 lakh units sold in 2004, the premium
segment is already the second highest contributor in
terms of value.
Product Price Range Average Price Market Size Market Size
(INR)
(INR)
('000 units) (INR millions)
Segments
Super
>5,001
7,500
280
2,100
Premium
Premium 2,500-5,000
3,500
2330
8,155
Medium
1,750
1,251-2,500
4940
8,645
Economy
750
501-1,250
8310
6,233
Low
400
1,716
251-500
4290
Extremely
150
<250
7850
1,178
low
Total
28,000
28,026
Source: IMAGES-KSA India Retail Report 2005
Volume&Value
Timewear Market Size By Product Segments: 2005
India Watch Market
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
8155
8645
8310
7850
6233
4940
4290
2100 2330
1716
1178
280
Super
Premium
Premium
Medium
Volume ('000 units)
Economy
Low
Value (INR millions)
Extremely
Low
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STORY
The watch market
Out of the 28 million pieces (80 per cent of these below Rs
1,000) that are sold annually, 18 million are in the
unorganised sector. These watches are known as IMFQ or
India made foreign quartz. In the organised sector, there
are more than a hundred players and it is not possible to
estimate the market share or quantity sold by each of
them.
Bulk of these are either:
1. Officially imported.
2. Assembled in India from imported components.
The IMFQ players are regional and some of the known
players are:
• Classic • Lamex • Rochess • Cizer • Cenzer • Sigma
• Corona • Arrow • Timegold • Riviera
The countries of import are usually China or Korea. The
characteristics of IMFQ segment are:
a. Very low price as compared to brands.
b. Designs similar to branded watches.
IMFQs offer high margins to traders and the goods are
usually on consignment.
These watches are, therefore, sold mainly on the basis of
dealer push rather than customer pull. There is also a
huge market for watches smuggled from China or Korea.
IMFQ and smuggled watches are sold in large numbers in
rural areas and also in B & C category dealers in urban
areas.
Organised players
TITAN
There is no story on watches without Titan. The market
leader in the timewear sector, Titan offers its products
under two major brands – Titan and Sonata. The
Bangalore-based company accounts for about 22 per cent
share of the total domestic market, which is more than
three times the share of its nearest competitor and close to
a 50 per cent share among nationally recognised brands.
The company will make and market over 7 million watches
in 2005, making it the sixth largest global player in the
category of manufacturer brands.
Brand offerings
Titan has eight sub brands: Edge, Steel, Fastrack, Raga,
Regalia, Technology, Nebula and Bandhan. Besides these,
Sonata is another major watch brand, positioned more on
the value-for-money mass segment. It is targeted at
consumers seeking durability and value, with a clear
positioning of ‘No compromise watch’. Sonata comes with
the backing of being a Tata product with five clear
functional attributes. It is also India's largest selling watch
brand in terms of volumes, with sales exceeding 30 lakh
units. Sonata offers over 400 designs/models in the price
range of Rs 395 to Rs1,250.
Retail initiative
The entire range of flagship brand Titan, the timepieces
and its accessories are available at the classy World of
Titan stores. With regard to exclusive brand outlets, Titan
Faking it
With the opening up of watch imports, the menace of fake watches in India has
increased. Another problem faced by brands is lookalikes.
Fakes as fakes: These are available at a fraction of the price that one would
pay for an original. For example, genuine Rado Oval Diastar watches are
available at Rs 24,000. The fakes on the other hand are available at Rs 3,000.
The buyer of the fake watch knows that he is buying a fake product.
Fakes as originals: The quality of fakes in the market has improved
considerably. Most of these fakes are made in China or Korea. It is very difficult
for a lay consumer to make out the difference between a fake and genuine
watch. These products are available at 20 per cent discount and are passed off
as originals. The consumer is cheated as he feels he is getting a discount on
the genuine product. It is, therefore, advisable to buy Swiss watches only from
authorised dealers.
Popularity of watches is directly proportional to the percentage of fakes in the market. Rolex is one example. Imitation is the best
form of flattery. However, the brands can do without such flattery as it affects their credibility, reputation and revenue. Sometimes
second hand watches are reconditioned and sold in the market. In such cases also the customer is taken for a ride.
Lookalikes: Product and design patents are not prevalent in the watch industry. Hence the fast moving designs and styles are
copied by lesser known brands. HMT copied Rado Diastar Oval designs in the Indian market. Guess has introduced watches that
look like Audemars Piguet's Royal Oak. While a Royal Oak costs a couple of lakhs, Guess watches are available at Rs 10,000.
Replicas: These watches are available on the internet. For example, on www.baazee.com, one can get Rolex and other Swiss
watches. It is declared that the watches are replicas and there is no attempt to cheat watch collectors. It's the faux crowd that
loves to flaunt such watches and it is the eye of a connoisseur that can differentiate the replica from an orginal.
COVER
STORY
has 180, Fastrack has 150 and Raga again 180 outlets.
These brands are also available in over 3,000 multibrand
outlets.
The company too has set up a chain of multibrand outlets
branded as Time Zones, where all leading watch brands
rub shoulders with Titan offerings, thereby presenting to
customers an opportunity to choose from the best. More
than 142 Time Zones conveniently located in 89
cities/towns not only offer the complete watch shopping
experience but are also backed by an efficient after-sales
service. Sonata has its exclusive Sonata showrooms. Then
there are the Value Marts where surplus stocks of Titan
watches are available at discounted prices.
Titan's product folio has the following sub-brands:
Price range (In Rs) Avg price (In Rs)
Sonata
395-1,250
670
2
Fastrack
500-2,000
1,200
3
Steel
1,650-5,000
3,000
6. Introducing diamond studded watches (Crown
collection) priced over Rs 1 lakh
4
Raga
1,500-5,000
2,200
7. Tie-up with LVMH for servicing their watches in India.
5
Nebula
8,000-70,000
34,000
6
Regalia
2,000-5,750
3,500
7
Edge
5,595-7,150
6,200
8
Bandhan
2,495-8,000
3,400
9
Technology
7,000
7,000
10
Classic/Karishma
995-2,495
1,300
11
Royale
995-1,995
1,850
Titan has successfully overcome the midlife crisis which it
faced in 1999-2002. This was the period when imports of
finished watches were liberalised. A lot of new players
entered the Indian market offering a wide choice to the
Indian consumer. Titan's jewellery division Tanishq was
losing money and Titan was slow in introducing new
products. Its communication to the consumers was also
ineffective. It has since bounced back well and has, of late,
displayed aggression and an adventurous streak. Tanishq
is in the pink of health and growing faster than the watch
division. The turning point was when it launched the World
Watch collection which was very well received by
consumers. Its exchange offer in 2004 was a huge
success and an encore in 2005 also received a good
response.
In the last three years Titan has been in the news for:
1. Launching new brands – Tommy Hilfiger.
2. Launching new products/variants – Flip, Raga, NebulaRohit Bal collection.
3. Association with glamour world – Akshay Khanna,
Soha Ali Khan for product launches.
4. Appointing Aamir Khan as brand ambassador.
5. New ad campaigns – Aamir Khan making a dig at
Rado Diastar.
Titan has regularly been rated as one of the most admired
marketing companies by various publications. The credit
goes to the dynamic duo, Bhaskar Bhatt and Bijou Kurien,
who have been with Titan for two decades. Titan's strength
has always been its people. Ravi Thakran, president, Asia
Pacific is ex-Titan and so is G Kannan, country head
Swatch group.
MAXIMA
In terms of volume it comes a distant second with a
production of 1.8 million watches. It shot to fame in the late
Nineties with its ad campaign and launch of waterproof
watch for Rs 250. The brand's
association with stars like Malaika
Arora Khan, Saif Ali Khan and
Yana Gupta, aimed at selling
watches at higher MRP value
has met with limited success.
HMT
HMT Watches Ltd started
manufacturing wrist watches
in 1962 and today has four
integrated production units
churning out more than 7
million timepieces every year
in about 1,500 different
models/designs, in
mechanical as well as quartz.
The technology has been
acquired largely from Citizen of
Japan and the products cater to all
segments of the market, from
economy to premium and young to
the old.
Maxima
Sub brand
1
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STORY
HMT
Once
considered a
jewel in the
crown, HMT is
passing through
a transition
phase. While the
company as a
whole is on a
revival track, the
watch division is
a laggard. HMT
a market leader
of the Seventies
and the early
Eighties has
become just a fringe player today. HMT had everything
going for it – pioneer status, good technical collaborator in
the form of Citizen, good distribution, etc. Its collections
had typically Indian names like Sona, Kanchan, Janta, and
the like. People fondly remember the popular TV
commercial Desh ki dhadkan. Serpentine cues outside
HMT shops on festive occasions were common. There
used be waiting lists for popular models and consumers
were even paying premiums. What went wrong?
Firstly, it failed to keep pace with the changing times.
HMT's entire portfolio consisted of mechanical watches
when the world over it was the quartz technology that had
taken over. Besides, the near monopoly situation and the
fact that HMT is a PSU led to bureaucracy and
complacency. Titan launched quartz watches in 1984 and
created a retail revolution. HMT underestimated Titan.
Titan had contemporary products, excellent distribution
and a professional team – more than a match for HMT.
HMT did introduce quartz watches and as an answer to
Titan, exclusive chain stores launched HMT exclusive
showrooms under the name Timeart. Both the initiatives
were perceived as doing too little too late. With watch
imports being liberalised, new players emerged on the
scene. Falling volumes resulted in increasing production
costs.
Allwyn was in the same boat. It tried to sell its production
units but there were no buyers. This resulted in its closure.
The current status in the market is the fact that most of the
old distributors have quit.
HMT has filed a suit against them for recovery of old dues.
Distributors on the other hand blame it on the company.
They say the company has not issued credit notes for
advertisement expenses, trade discounts, incentive
schemes, etc. In short, for the watch division, there are
messy times ahead.
TIMEX
America's most popular watch brand started business in
India in 1991 through a joint venture with Titan Industries
and by 2000 had established its independent sales and
marketing team across the country.
Timex was very successful in attracting the young age
group of customers with its easily replaceable casings and
straps. In India, Timex offers watches in the price range
between Rs 1,000-5,000 and claims to control about 22
per cent of the market share. Digital, Chronograph and
Dress Fashion are some of the popular Timex sub-brands
that sell from 21 exclusive brand outlets and 2,500
multibrand outlets across the country. It has had a
turnaround and declared operational profit in 2004-2005.
CITIZEN, CASIO, SEIKO
The performance of Japanese watch brands in the Indian
market has been lacklustre. Citizen set up its Indian arm in
1997. Trade and consumers alike were disappointed as
Citizen committed the same mistake as its brethren
Panasonic and Sony by launching outdated products at
exorbitant price. To make matters worse, the watches were
assembled in India and the watch straps were sourced
from India mentioning
the manufacturer's
name. It learnt from its
mistake (but lost five
precious years) and
has now launched
contemporary
products that are
available through its
exclusive chain of
outlets and other
channels. The
company has set up a
chain of exclusive
stores manufacturing
261 by the name of
First Citizen. It has
also tied up with
Kareena Kapoor to
endorse its products. With the launch of contemporary
products and innovations such as Femme collection (for
ladies) and diamond studded collection, things are looking
up for this brand. To tap the premium end of the watch
market a new concept store Eco-Drive boutique has been
announced. The first such boutique was launched at Gold
Souk in Gurgaon. Besides, the brand is also available in
50 shop-in-shops within department stores and 200
multibrand outlets across the country.
Casio has had a low key presence in the Indian market
and has neither made blunders nor any breakthroughs.
Seiko made a halfhearted entry in the Indian market by
appointing dealers in Delhi who imported watches directly
Citizen
A significant chunk of HMT timepieces are exported to
countries in the Middle East and South East Asia. HMT
sub brands include: Sangam, Lalit, Swarna, Shreyas,
Chandan, Pace, Chandan and Braille.
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STORY
from Seiko. The company did not have any office in India.
This strategy failed and Seiko is available only in Mumbai
and some Shoppers' Stop outlets.
Brand
Positioning
Distribution mode
1
Breguet
Prestige
Subsidiary
2
Blancpain
Prestige
Direct import
3
Girard Pirragaux
Prestige
Distributor
4
Audemars Piguet
Prestige
Direct import
5
Vacheron Constantin
Prestige
Distributor
6
Jaeger Le Coultre
Prestige
Distributor
7
IWC
Prestige
Direct import
8
Ulyssey Nardin
Prestige
Distributor
9
Bovet
Luxury
Distributor
10
Chopard
Luxury
Distributor
11
Piaget
Luxury
Distributor
12
Harry Winston
Luxury
Distributor
13
Cartier
Luxury
Direct import
14
Omega
Luxury
Subsidiary
15
Rolex
Luxury
Direct import
16
Corum
Luxury
Direct import
17
Frank Muller
Luxury
Distributor
18
Tag Heuer
Luxury
Subsidiary
19
Ebel
Luxury
Distributor
20
Carl F Bucherer
Luxury
Distributor
21
Mont Blanc
Luxury
Distributor
22
Jean Richard
Luxury
Distributor
23
Bulgari
Luxury
Distributor
24
Panerai
Luxury
Distributor
25
Dubey & Schaldenbrand Luxury
Distributor
26
Maurice Lacroix
Distributor
Luxury
27
Raymond Weil
Super premium
Distributor
28
Candino
Super premium
Distributor
29
Bell & Ross
Super premium
Distributor
30
Rado
Super premium
Subsidiary
31
Longines
Super premium
Subsidiary
32
Tissot
Super premium
Subsidiary
33
Charriol
Super premium
Direct import
34
Fredrick Constant
Super premium
Distributor
35
Baume & Mercier
Super premium
Distributor
36
Breitling
Super premium
Direct import
37
Movado
Super premim
Distributor
Post-1999, the Indian market has witnessed a new
segment of fashion watches. With changing lifestyles,
people owning more than one watch to match one's attire,
mood and occasion has become more the norm than an
exception. Just as in apparel, new styles/models are
introduced every season. Large chunky cases with
colourful dials are in vogue. This market is fragmented and
large, the contribution to sales coming from department
stores. As many as 25 brands are available in this
segment. Fastrack is the undisputed leader followed by
Esprit and Tommy Hilfiger.
Titan recently launched Fastrack Masala collection with
price points as low as Rs 500. Its television commercial
'How many you have?' is aimed at promoting multiple
ownership of watches among variety-seeking youth.
These watches are innovatively styled, boldy designed,
and distinctly provocative. Several new designer labels are
expected to be launched in the fashion segment. Apparel
brands like Provogue and Arrow are toying with the idea of
launching watches to complement their product portfolio
of shirts, trousers, and accessories.
Esprit is currently available through five exclusive brand
outlets and exclusive counters in the country's major
department store chains like Shoppers' Stop, Lifestyle,
Westside and Ebony. The watches are priced in the range
of Rs 2,250-6,950. Lancer (300 MBOs), Longines, Omega,
Christian Dior, Rado and Tommy Hilfiger are among the
other notable premium brands.
Swiss brand Movado is considered among one of the
world's top luxury timewear brands. Sunglass Palace Pvt
Ltd is the exclusive distributor in India and the brand is
presently available in 40 select outlets in the major cities.
The range is priced between Rs17,000-.5 lakh. Corum,
Gucci, Tag Heuer are among the other top-end brands.
With Indian fashion arriving on the international scene and
Indians arriving young in life on the
economic front, the market for
luxury watches in India is
certainly buoyant. Indian
customers have started
considering watches a
fashion statement and are no
longer apologetic about
paying a premium for a
classy watch.
Even while premium ranges
have a good market in India,
the mid-priced ranges are
also doing well with their
Tommy Hilfiger
Citizen, Mumbai
Fashion watches
trendy, sporty,
fashionable, yet
affordably priced
(Rs1,500-3,000) watches
and are poised for a
significant growth.
The removal of
Quantitative Restrictions
has paved the path for
international players to enter
India. With low penetration level and
the large size of the Indian
population, India has become the
target of international players and this
brings forth a new and formidable
challenge for Indian watch manufacturers to
compete and outshine, the IMAGES-KSA India
Retail Report 2005 notes.
International brands in the super premium, luxury and
prestige segments are officially represented in India either
through subsidiary, distributor or authorised retailers. By
conservative estimates the market size of these segments
is estimated at Rs 500 crore. The Swiss watch industry is
together shy of sharing numbers. However, globally the
following brands appear among the top five:
1. Rolex 2. Omega 3. Cartier 4. Tag Heuer
5. Rado
Cartier
Rolex has occupied the top slot for several years. The
ranking of the remaining four varies from year to year. In this
fragmented market Rolex occupies top of the mind recall in
India and is the most aspired for brand. However, unlike
LVMH and Swatch group Rolex has not subsidised its
watches in India. As a result, Rolex watches are available at
an Indian MRP that is higher than the Swiss MRP by 20 per
cent. The difference is substantial as Rolex's average price is
in the region of Rs 3 lakh. Leading retailers are of the opinion
that if the company
works out a special
price the sales would
double, as there
would be no incentive
to the consumer to
get his watch from
abroad or from the
grey market.
Most of the leading
brands have been
launched and the
market is eagerly
awaiting the launch of
Patek Phillipe known
for its solid gold and
diamond-studded
watches.
Retail watch
Watches in India are retailed through the following formats:
1. Branded chain outlets
2. Multibrand outlets
3. Department stores
4. Exclusive brand shops
In the last two decades the retail environment for watches
has undergone a sea change. The credit for this goes to
Titan. Back in the Eighties, watches were available in dusty
watch shops. There was no ambience or choice as the
only brands available then were HMT, Allwyn (both
belonging to public sector undertaking), and Timestar, etc.
The quality of service to the consumer was also poor.
Titan revolutionised the Indian watch market with its
professional approach. It offered quality watches in a wide
choice and in a good environment. Titan focused on
quartz watches that were lighter, sleeker and did not
require maintenance (apart from battery change every two
years) as they had fewer moving parts. Titan also
pioneered the concept of branded exclusive watch
showrooms. Today, Titan has more than 170 showrooms
branded as The World of Titan. These shops offer to a
consumer watches ranging from Rs 500 (Sonata) to Rs
35,000 (solid gold Nebula watches) in an air-conditioned
environment.
Necessity as they say is the mother of invention. Titan
realised this when initially it tried to influence the traditional
watch shop owners to modernise. The traditional
multibrand watch owners resisted. Titan, therefore,
approached traders from other industries that led to the
birth of The World of Titan showrooms. Once the model
became successful, multibrand watch shops began to
take Titan seriously. Titan then came out with a concept of
multibrand watch showrooms that were branded as
Timezones.
The exclusive watch store concept became very popular
and even public sector undertaking HMT came out with a
Ro
lex
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STORY
The watches sold from department stores are to a large
extent fashion watches matching the profile of youth who
frequent these places. Today's youth own multiple watches
matching their wardrobe and also look for accessories like
sunglasses, belts, etc. To tap the growing fashion
conscious youth branded chain of stores like Just In
Vogue and Watches & More have been launched. Watches
& More outlets have come up in Mumbai, Bangalore,
Chennai and Raipur, retailing brands like Esprit, Mexx,
Pierre Cardin, Carrera, etc in addition to
jewellery and sunglasses.
Just In Vogue also retails watches,
jewellery, writing instruments and other
accessories. JIV is a part of The Central
(seamless mall) promoted by
Pantaloons at Bangalore, Hyderabad
and Pune. It is also has an outlet in
New Mumbai (Vashi) and has plans
to take up the tally to 11 by the
yearend.
Rado
Swatch has an innovative format
whereby watches are retailed
from kiosks set up in high traffic
atria of shopping malls.
Guess, an American fashion
label, has set up two stores in
Mumbai and Bangalore respectively,
which sell leather goods, sunglasses
and watches.
Super premium and luxury watches
It all began in 1996. It was in this year that the Indian
government, according to an agreement entered with the
World Trade Organisation (WTO) lifted the ban on import of
finished watches. It was now possible to import watches
above US $ 1000 CIF in the country. Watches below US
$1000 were still banned. The limit of US $1000 was known
as QR (Quantitative Restriction). Later in 1999, the QR
was also lifted and the import of watches was allowed
irrespective of the value limit. Post 1999, the watch market
has witnessed the launch of many premium brands like
Rado, Omega, Longines, Tissot, Cartier, Piaget, Rolex,
Baume & Mercier, etc.
Popular brands like Rolex, Omega, Rado, etc have always
been available in the grey market in limited quantities and
only in metros like Mumbai or New Delhi. However, after
the liberalisation of watch imports these brands have been
available throughout India at authorised retail outlets.
The Indian consumer today has a wide choice of brands to
choose from and the price can be as high as that
of a Mercedes car or a one bedroom flat in
Mumbai. The credit of changing the dynamics
of premium watch business goes to the
Swatch group. Spotting the opportunity early,
they took the following initiatives:
• Launched contemporary products
available internationally.
• Set up a liaison office in India,
appointed distributors and eventually
set up an Indian subsidiary.
• Adopted a strategy of appointing
celebrities from the film world as
brand ambassadors. Shahrukh Khan
and Sonali Bendre for Omega, Lisa Ray
for Rado and Aishwarya Rai for Longines.
• Invested heavily in visual merchandising
and product display. Authorised retailers
were provided with fixtures such as
counters, towers and backwalls. In counter
Tag Heuer
While department stores have provided an excellent
platform to brands to showcase their collections, the
retailing of watches and jewellery has proved to be
profitable for stores. In most department stores, the area
occupied by apparel and garments is almost 50 per cent
or more. Watches and jewellery occupy a small space but
provide a higher profitability per square foot. As a result all
the branded organised retail chains offer watches and
jewellery as fashion accessories to their consumers. The
changing dynamics has resulted in market growth. Growth
in sales is partly due to the increase in supply, increase in
demand as well as cannibalisation. Traditional watch
retailers in the vicinity of a department store have reported
stagnant sales or de-growth. The share of market leader
Titan from the main large department stores is roughly 2.5
per cent of the total turnover in the watch category but is
the highest growth channel, growing at over 50 per cent
last year.
Omega Boutique
chain of watch stores branded as Timeart (now closed).
Timex and Citizen (branded as First Citizen) have a chain of
exclusive stores. Apart from the exclusive and multibrand
stores, watches are retailed from large format organised
retail chains like Shoppers' Stop, Lifestyle, Pantaloons, etc.
One major beneficiary of the proliferating organised retail
chains is watch/jewellery/accessories industry.
COVER
STORY
displays, trays, props, signages imported from
Switzerland were provided. In some cases painting
charges were subsidised or borne by the company.
This ensured prominent space in watch shops and
uniformity in terms of retail outlets all across India.
Similar strategy has been followed (more aggressively) by
Tag Heuer. While Omega has two boutiques in Mumbai,
Tag Heuer has set up nine boutiques/shop-in-shops in
cities like Chandigarh, Pune, Mumbai, New Delhi,
Hyderabad and Ahmedabad.
These are owned and managed by franchisees in most
cases.
The market for luxury and super premium watches has
grown and will continue to grow in the short term. In the
last two years the number of Rado dealers in the country
has more than doubled from 50 in 2003 to 120 in 2005. As
a matter of fact, Titan had approached Swatch group for
retail tie-up for its brands in India. However, Swatch group
management decided to set up its own subsidiary. Titan
then had talks with various other brands including Charriol.
Some of the high profile watch outlets (including jewellery
accessories etc) that have contributed in changing the
retail landscape of luxury/super premium brands are:
Brand shops
1. Louis Vuitton boutiques in New Delhi and Mumbai.
2. Mont Blanc boutiques.
3. Omega boutiques in Mumbai.
4. Charriol boutique at Grand
Hyatt.
5. Bvlgari boutique in New Delhi
Omega
Multibrand outlets:
1. The Regent in Mumbai
and New Delhi: Providing
worldclass products and
shopping experience in a 5star ambience. Brands such
as Vertu, Blancpain, Gerald
Genta, Bell & Ross and
Techno Marine are exclusive to
The Regent
2. Watches of Switzerland,
Mumbai
3. Time Avenue, Mumbai
4. Johnson Watch Co, New Delhi
5. Kapoor Watch Co, New Delhi
Citizen, Mumbai
• Event marketing: Traditional print and electronic media
for niche products are expensive and ineffective. The
brands from Swatch group conducted events initially at
five star venues and subsequently at point of sales.
This motivated the retailers, generated positive PR and
drove relevant crowd to the retail outlets.
6. The Helvetica, Chennai
7. Ethos at Mumbai, Chandigarh and Bangalore
8. Prime Watch World, Kolkata
9. Popley La Classique, Grand Hyatt, Mumbai
10. The Golden Time, Ahmedabad
11. Pallazzio at Mumbai, Pune and Ahmedabad
Regional players like the Maru group (they have 18 outlets
in Mumbai) also sell luxury brands from four of their
outlets.
Some of the deterrents for setting up a national chain of
premium watches are:
1. Watch market in India is scattered and fragmented.
2. High cost of real estate.
3. High import duties.
The response to chain stores is encouraging. While it is
easy to sell Rado and Tissot, the market for high end
watches like Omega, Rolex, Cartier, etc is small. As a
result, most outlets also stock and sell Citizen and Esprit to
survive.
A nationwide branded chain has an opportunity to grow
the market by retailing in luxury brands. Titan has launched
a watch brand developed and manufactured in
Switzerland. The name of the brand is Xylus and the price
points will be between Rs 9,000 and Rs 35,000. The brand
initially will have 50-60 variants and the company has also
signed up two celebrities. The company it is learnt has
allocated substantial funds for this launch and a TV
commercial shot is South Africa is also ready.
Damas of Dubai through its Indian joint venture (with a
chain of 240 stores in the Middle East, Europe and the US)
is planning to set up a chain of high end watch and
jewellery (Jewels & Time) outlets across major Indian
cities. The first flagship store of around 9,000 square feet
will be inaugurated soon. The entry of new players will
drive growth as supply creates its own demand.
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STORY
THE BRANDING OF TIME
It is rather difficult to describe in one piece what each
brand stands for and its core values. An attempt therefore,
BRAND BAROMETER
Interbrand-Business Week conducts an annual survey on Best Global
Brands. The list includes 100 top brands. In the listing for 2003, three
brands from LVMH Group, viz. Louis Vuitton, Hennessey and Moet &
Chandon are featured. While Louis Vuitton is known for its accessories
than watches, one of the Swatch or Richemont group watch brands
find a mention. Rolex is the only watch brand listed and ranked 68th in
the list.
has been made to compile and share some interesting
tidbits of each brand .
The Swatch group
The Swatch group (earlier SMH) was formed in 1983 by
the merger of Swiss watch manufacturers ASUAG and
SSIH. These companies had faced liquidation and it was a
challenge to turn them around. The Swiss
watch industry at that time was undergoing
a crisis due to the Japanese onslaught of
cheap quartz watches. The formation of
SMH group and launch of Swatch brand in
1983 remains a landmark in the history of
Swiss watch industry.
Swatch group highlights:
CEO: Nicholas Hayek.
Present in 50 countries.
Swatch
Owns 18 watch brands covering various
price points in prestige, high price, mid price
and basic price segments.
Largest manufacturer and distributor of
watches in the world with a market share of 25
per cent.
BREGUET, 1775
Bearing the name of A Louis Breguet, the greatest watch
maker ever known, the Breguet brand cultivates prestige
and exclusiveness in its various watch lines. It makes
exclusive top of the line mechanical watches. It boasts of
such renowned patrons as Napolean Bonaparte, Queen
Victoria and Churchill among others.
BLANCPAIN, 1735
To Jehan Jacques Blancpain goes the credit of creating
the world's oldest watchmaking brand. It only makes
mechanical watches as it believes that unlike quartz
watches mechanical watches have a soul. A mechanical
watch will never die. An example is given of the clock in
the St Mark's square in Venice, which is running for almost
1,000 years.
During the last 400 years master watchmakers created six
masterpieces, namely the ultra slim movement, moon
phase calendar, perpetual calendar, split second
chronograph, torbillion and minute repeater. Blancpain is
the only brand that combined these six complications into
one watch epitomising the avant garde of wristwatch
micro-technology.
GlASSHUTTE, ORIGINAL, 1845
The brand derives its name from the German
town in Saxony known for its quality precision
and reliabilty. Continuing the 150-year-old
legacy the brand is once again creating
mechanical masterpieces in accordance with
the strict rules of old German art of
watchmaking.
JAQUET DROZ
JD watches are sold mainly in Far Eastern
markets. Besides luxury watches the brand is
known for highly complicated automata,
“androids”.
Longines
Globally the big three viz. the Swatch group, Richemont
and LVMH dominate the luxury goods sector. They have
altogether 35 watch brands in their portfolio including big
names like Omega, Cartier and Tag Heuer. Many of the
brands have a heritage extending to 100 years and more.
They have independent identities and unique positioning.
The groups have acquired these in the last decade.
Preserving the brand's cultural heritage and at the same
time making it contemporary and exciting to the modern
consumer is a challenge.
Prime Watch World
Watches have long ceased to be mere timepieces. As
brands they have assumed a personality of their own. A
brand is much more than a mere logo or a name. It
represents an attitude, a way of life, set of values and
much more.
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STORY
Kapoor Watch Co, New Delhi
was formed with the objective of producing watches of
good quality at significantly affordable prices. ‘Universal
watch of 1901’ is the most complicated watch ever
manufactured in Glasshutte. It has seven additional dials
with 13 hands. At the heart of a Union watch is automatic
movement Caliber 26.
LEON HATOT
The brand takes pride in being referred to as “innovators
by tradition”. Some of the innovations are:
• First pocket watch
• First antimagnetic watch
• First wood watch
• Rock watch using granite from the Alps.
• Pearl watch made by using mother of pearl.
• First plastic watch.
• T touch or the 7 functions tactile watch.
This brand is described as the one conceived for a
woman, an essence of a woman, feminine in substance. It
has exclusive collection of prestige jewellery and watches
for the discerning woman.
The movie Lara Croft Tomb Raider: The Cradle of Life
features the T touch.
OMEGA, 1853
CK, 1997
This is the most glamorous brand in the Swatch group
portfolio. Throughout its history of 150 years the brand has
been associated with fashion, sporting events and space
exploration programmes. Shahrukh Khan, Cindy
Crawford, Michael Schumacher, Anna Kournikova are
some of its brand ambassadors. It's Speedmaster is the
watch that has been worn on the moon.
Some of the attributes of this brand are a pure, minimal,
contemporary design, an exceptional price/performance
ratio and youthful spirit. Models like Kate Moss and now
Eva Herzigova have promoted CK.
LONGINES, 1832
Longines is the oldest registered trademark in the world.
All Longines watches offer a unique combination of
precision and elegance. Its ad campaign featuring the
tagline 'Elegance is an attitude' draws upon the charisma
of legendary filmstars like Audrey Hepburn, Humphrey
Bogart and our very own Aishwarya Rai. The brand has
also been associated with the history of aviation and
navigation. It timed the first solo flight across the Atlantic
ocean by Lindberg and subsequently developed the Hour
Angle watch which was designed by Lindberg
himself.
RADO, 1957
Introduced world's first scratchproof watch
Diastar – The Original in 1962. It is known
for its innovative designs and
unconventional materials like high tech
ceramics and high tech diamonds.
UNION, 1893
Johannes Durrstein formed Union in
Glasshutte known as the birthplace of
German exquisite watchmaking.
Traditionally, watches made in
Glasshutte were expensive and Union
Rado
TISSOT, 1853
CERTINA, 1888
Two brothers, Alfred and Adolf Kurth founded the company
Certina in Grenchen. The brand name Certina which
means “safe, reliable” in Latin was introduced in 1948. It
joined the Swatch group in 1983.
MIDO, 1918
George G Schaeren, an experienced and ingenious Swiss
watchmaker, founded this company in Biel. Mido (which in
Spanish means, I measure) from the beginning has
become synonymous with technical innovation and
timeless design.
HAMILTON, 1892
Hamilton symbolises the evolution of “American time”
since 1892. The first airmail pilots navigated their flights
with Hamilton watches because of their accuracy. During
World War II Hamilton became the main supplier for
military watches to the US armed forces.
The brand is closely associated with Hollywood. Its love
affair with Hollywood began in 1965 when Elvis sported
The Ventura in the movie Blue Hawaii. Recent film credits
include MIB I & II, You've Got Mail, Independence Day,
Lethal Weapon and Pearl Harbour.
BALMAIN, 1914
Balmain watches are synonymous with elegance and
refinement. A very specific feature of the brand is the
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STORY
FLIK FLAK, 1987
PIAGET, 1874
Flik Flak is more than a colourful toy for kids. These
watches have been specially designed and developed
with the help of psychologists to make it easier for children
to read the time.
The brand Piaget
captures the spirit of the
times and its watch and
jewellery creations are signs of a timeless quest for
technical mastery, driven by audacity, expertise and
imagination. It makes hand crafted watches in precious
metals only. It, however, launched for the first time in 2001
Civilized Steel. The ultra thin 12P caliber developed by
Piaget appeared in the 1959 edition of the Guiness Book of
World Records.
SWATCH, 1983
Flik and Flak are the names of the two hands of the watch.
They also denote the characters of brother-sister duo. Flik
is blue in color and is the minute hand Flak is red in colour
and is the hour hand.
ENDURA, 1966
Endura is the private label design of the Swatch group. It
offers a comprehensive service ranging from concept and
prototypes to production, distribution and worldwide after
sales service.
RICHEMONT
Highlights:
Formed in 1988. The luxury goods division was earlier
known as Vendome luxury goods SA/ PLC
Deals in only luxury products such as watches, jewelry,
accessories, perfumes, lighters & clothing.
Number of brands:18.
CEO: Johann Rupert
Sales in 2003: Euro 3651 mn
Cartier
CARTIER, 1847
A leading name in the world of
jewellery and luxury watchmaking, it
was once hailed as “the jeweller of
kings and king of jewellers”
by King Edward VII. The
brand is very well known in
India. In 1920 the flamboyant
Maharaja of Patiala entrusted
Cartier to design the most brilliant
parade necklaces ever made. The
original necklace included 2930
diamonds weighing 962.25 carats.
VAN CLEEF & ARPELS, 1906
This enterprise started as a jewellery store
IWC
Swatch denotes a way of life for the young. It denotes fun.
The designs are daring and pricing aggressive. It also
signifies innovation and creativity. Designers and artists
merge their efforts with the high-tech of a truly
revolutionary watch.
in Paris was a partnership
between two brothers Julien and
Louis Arpels with their
brother-in-law Alfred
Van Cleef. Today, it
is known
worldwide for its
prestigious
salons retailing
watches and
jewellery.
BAUME & MERCIER, 1830
This enterprise was started by the Baumes brothers to
make reliable, high quality and creative watches. In 1918,
third generation William Baume, a disciplined traditional
man along with the visionary and creative businessman
Paul Mercier officially registered Baume & Mercier as a
company in Geneva. Together they developed the brand
on an international level as a perfect balance between
tradition and modernity.
IWC, 1868
The brand derives its name
International Watch Company from
the fact that an American engineer,
Florentine Aristo Jones started it to
supply the USA with movements.
IWC is the only watchmaking
company in Schaffhausen in
northwestern Switzerland. He
was supported by Johann
Heinrich Moser, who
provided hydroelectric
power to the factory.
JAEGER LECOULTRE,
1833
JLC is known for the
development of
Reverso watch with a
swivel case, which
was developed for
polo players to
protect the watch dial
Jaeger Le Coultre
beautiful and famous Arabesques dial (produced in
Switzerland exclusively by Pierre Balmain) The inspiration
for this dial is derived from handmade embroideries
enhancing the haute couture dresses.
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STORY
during their sporting exploits. It is also known for its other
technological innovations like millionometer for
measurements to the nearest micron, caliber 101 (world's
smallest mechanical watch movement) and master control
watch.
A LANGE & SOHNE, 1845
Adolph Lange is considered the father of German
watchmaking from Glasshutte. He started making pocket
watches and for 100 years these were among the most
coveted in the world.
Even today Lange's watches are handcrafted according to
the time honoured traditions of quality and perfection. A
separate movement is made for every watch and only
precious metals are used silver for movement parts, 18k
gold or platinum for cases, crowns and buckles. Precious
stones are used for tourbillion models.
PANERAI, 1860
Officiene Panerai was started in Florence as a
manufacturer of watches for the Italian Navy. Since then it
has become a specialist in making watches for the
defence sector. It has the distinction of making the first
military underwater watch (requiring high level of water
resistance and luminous dial) in history.
LUXURY SHAWLS
Panerai plans
The story of the Panerai timepieces
th
began at the turn of the 19 century,
when Giovanni Panerai opened the
first Panerai clock shop in Florence
in 1860. The Officine Panerai watch
branch was acquired by the
Vendôme Luxury Group (now
Richemont Group) in 1997. In 1998, the brand
was launched internationally. Romain Le
Chevallier, brand manager for the Middle
East, talks to IMAGES BoF about his plans for
the brand in India.
RB: What have your observations been on the watch market in
India, not just from the perspective of your company, but the
industry at large?
RC: The industry in India is currently warming up to the idea of high
end luxury products in tune with the tastes of the burgeoning upper
middle class. The demand for more variety has made it a fiercely
competitive market for all national and international brands looking to
make a foray into the fashion industry. In a fast growing economy like
India there is immense potential for this industry to grow, especially
in the post liberalisation scenario, more so with the growing brand
consciousness among the younger generation.
PULLOVERS
CARDIGANS
www.osterindia.com, Enquiry for shirts - 9876400664
RC: India has tremendous potential for our kind of products. In
my view, in ten years time the two biggest markets in the world
for all luxury products or consumer products with certain brand
equity will be India and China. Especially in the postliberalisation phase, with a number of players – both domestic
and international – vying with each other, the potential here is
enormous, both in terms of size and variety. It is such a big
market that you can't even say its just one market. Different
areas have different tastes and markets. This is one of the main
challenges, as in such a diverse market one has to cater to an
array of customers both from the perspective of their budget
and their choices. Plus, we hope that with the increasing buying
power, high end watches like Panerai will find more takers.
The mushrooming mall culture is also a reflection of this
increasing buying capacity along with an urge to experiment
with newer products. With a variety of products under one roof,
the competition however increases manifold and this is where
the product USP becomes important. At present, the high end
watch segment in India is growing at about 20 per cent. The
overall Indian watch market, as per figures available with us,
amounts to more or less 48 million wristwatches per year, with a
growth rate between 8 per cent-10 per cent. However, the
organised sector represents only 30 per cent of this amount.
Nearly 34 million watches are sold through grey market
channels which is one of its main drawbacks.
RB: How can a brand successfully differentiate itself in a
market teeming with brands?
strategy based on
what it wants to
achieve and its USP
differentiates it from
others in the field. For
example, the Panerai
USP 'Italian watches
with a Swiss make', its
unique history and
association with eminent
personalities like Sylvester
Stallone make it stand apart from others.
Also the customer base one aims to target will evoke differential
strategies in terms of advertising, brand promotions and the like. Taking
another example, unlike other international luxury watch brands that
have popular figures as brand ambassadors, Panerai promotes only its
Historai Panerai. This is aimed to initiate each exclusive Panerai owner
to revel in the history and the evolution of the watch they own. There is
a story behind every Panerai watch and only those who have the
repertoire to appreciate its exclusivity albeit its simplicity is our target
clientele.
RB: What were the five important lessons you learnt while
launching Panerai in the Indian market last year?
RC: Some very important lessons that we learnt were the diversity of
the market wherein each zone has its unique attributes in terms of
culture, tradition and own requirements. There is also a fair amount of
demand from up country areas although the retail outlets are in the
leading metros. Hence for proper growth one needs to tap these areas
as well.
RC: Every brand, according to me, has its own promotional
THERMALS
ra i
ne
Pa
RB: What do you think are the challenges that the Indian
market offers today?
SHIRTS & TROUSERS
–RB
BED LINEN
[email protected], [email protected].
COVER
STORY
VACHERON CONSTANTIN, 1755
The philosophy of the brand promoter since the beginning
is, “Do better if possible and that is always possible”.
Following masterpieces stand out :
men's accessories, etc. The promoter's philosophy has
always been- compared with quality price is relatively
unimportant. The Dunhill legacy continues in 2003 with a
new definitive dress watch – the wafer, two watches with
the motorites in mind – The RPM and the D type, and a
new oversized facet - the Dunhillion.
LVMH
Highlights:
• Formed in 1987
• Turnover 12.69 billion euros.
• The group has 60 brands and
business interests in wines and
spirits, fashion, leather goods,
perfumes & cosmetics,
watches and jewellery.
• CEO: Bernard Arnault.
1. In 1979 a watch by the name of Kalista (“most beautiful”
in Greek) was made after 6,000 hours of painstaking work
made from 1 kg of gold and adorned with 118 perfectly
matched emerald cut diamonds, considered to be the
most expensive watch till date. The price and identity of
the owner have not been disclosed.
The brand's agreement with golfer Tiger
Woods marks a milestone in the brand's
historical involvement in sports as golf
epitomises the utmost in precision, prestige and
performance.
2. The model 1972 with an asymmetrical case.
Taking advantage of the unrivalled creative force of
Christian Dior, the Christian Dior watches collection is
structured into three main lines: Glamour, Sports - Chic,
Fashion. The brand ambassador for CD in India is Yana
Gupta.
MONT BLANC, 1908
Mont Blanc's white star symbolises the brand's dedication
and commitment to high
quality materials, top
master craftsmanship as
well as distinctive design
with the philosophy to
create prestigious
products of long lasting
value.
Mont Blanc
DUNHILL, 1893
Alfred Dunhill started his
business as motorities
emporium that sold truly
outrageous clothing and
gadgets. The product range
was later expanded to
include watches, writing
instruments, leather goods,
CHRISTIAN DIOR, 1985
EBEL, 1911
In the male dominated arena of
watchmaking Ebel, stands out:
Its founders were a man and
a woman in love. The brand
name is an acronym of
their initials – Eugene
Blum et Levy. Ebel
maintains the highest
quality in the art of
watch making as seen
in the caliber Ebel 137
as well as a unique
sensuality and originality
in design. It is the only brand
to offer an “international
Ebel
Vacheron Constantin
Tag Heuer has positioned itself
as a specialist in prestige
chronographs and sports
watches. By consistently
cultivating close links with the world
of sport, it has acquired legitimacy in
this field and unique knowhow in terms
of performance and reliability.
Tag Heuer
TAG HEUER, 1860
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STORY
warrantee of five years” on its entire collection from April 2,
2003 – a statement of trust that every customer can rely
on.
Nitot, the founder of the enterprise was an appointed
jeweller to Napoleon. He designed the imperial sword,
tiaras and all the finery of the Empresses Josephine &
Marie Louise.
Today, Chaumet is international, erasing time zones and
setting its watch to the hour of time. Khesis, Style de
Chaumet, Class One, Mihewi – the clock collections are
taking the turn of eternity.
FRED, 1936
Fred specialises in jewellery and timepieces. Famous for
its creation of exceptional jewels, Fred has expanded both
in France and abroad, notably to Cannes, Monaco,
Beverly Hills and Las Vegas.
The big three in India:
Swatch
The Swatch group had a prime mover advantage as it
capitalised on the opportunity when watch imports were
liberalised.
The following brands from the Swatch group stable are
available in the country:
1. Omega 2. Rado 3. Longines 4. Tissot 5.
Swatch 6. Balmain 7. Breguet
With the exception of Balmain, all brands are
distributed directly by the Swatch group
subsidiary headquartered in New Delhi.
CK was launched three years back and
was withdrawn from the market due to
indifferent consumer response and is
being re-launched soon.
Breguet has just had a formal launch.
Omega is the most happening and
visible luxury watch brand in India.
Swatch
Recently the brand spent more than
Rs 1 crore on brand promotion when
Pierce Brosnan inaugurated two Omega
boutiques in Mumbai. In terms of value, its
contribution to the Swatch group turnover (estimated at Rs
100 crore) in India during 2005 is likely to cross Rado's
revenue.
Rado is the most popular Swiss brand in its price segment
in India. Its popularity is not
restricted to just the metros
but to small towns as well. It
is available at 120 outlets
(through authorised retailers)
and is available even in
places like Pondicherry,
Kasaragod, Varanasi and
Nashik.
Rado has two collections in
its portfolio:
a. The regional collection and
b. The international collection.
No new product launches have taken place in the regional
collection for the past several years and the designs look
jaded for the frequent buyer. However, it contributes
around 80-85 per cent to Rado's turnover by value due to
its low price (in the Rs 10,000-25,000 bracket). Rado does
not advertise or promote its
regi
onal collection. The
international collection (priced
at Rs 25,000+) has witnessed
the following launches in the
last five years:
1. Cerix 2. Xeramo 3. Ovation
4. Carpe diem 5. Esenza
The fact that none of these
have been commercially
successful must be a cause of
concern for Rado officials at its
headquarters in Lengnau.
ega
Om
CHAUMET, 1780
Rado
Zenith is the only Swiss watchmaker to produce
chronographs without outsourcing the movement, and to
design and to design and manufacture a complete line of
mechanical movements and chronograph. Among these is
the legendary EL Primero; launched in 1969, it is the first
integrated chronograph movement in the history of watch
making.
Johnson Watch & Co, Delhi
ZENITH, 1865
Tissot is the
dark horse in the
Swatch group
India's stable. With its
distinct designs and styling
matched with pocket friendly
pricing, it is estimated to be the most
profitable brand here. It spends the least
in advertisements and market
promotions.
h
Swatch was launched with a big bang with
high decibel advertising followed by opening
up of exclusive stores in major metros. Four years
down the line, except for its store in Chennai all
exclusive stores have been closed. At retail shelves it trails
brands like Fastrack and Esprit.
Some of the things that went wrong are:
1. Launched plastic watches, which are unacceptable to
a majority of Indians.
2. A Swatch cannot be repaired. The concept of use and
throw for a watch costing on an average Rs 4,000 is
acceptable only to a few.
3. The communication (advertising) campaign does not
provide the much needed emotional connect with
majority of Indian buyers.
When the brand was launched, it was bundled with
products like mopeds (Bajaj) cell phones (Airtel),
televisions (Samsung), jeans, magazine subscription, etc.
Very few actually bought the product as it was given away
free with the purchase of other products. The company
has stopped bundling activity now.
Longines enjoys good brand recall due to its association
with Aishwarya Rai as brand ambassador. The sales have
shown increase after introduction of lower priced models.
Esprit
Sw
atc
A niche product, it is considered too classy for nonmetros.
LVMH
Tag Heuer and Christain Dior are the watch brands that are
available in India. The products are sold through its Indian
subsidiary based in New Delhi. The company is planning
to launch two more watch brands – Fendi and Zenith in
2005. The company has invested more than its turnover of
Rs 25 crore in market development activities. It has priced
both Tag Heuer and Dior watches lower than Dubai and
Singapore markets in order to prevent the influx of watches
in the grey market. Due to high import duties, the selling
price of most Swiss watches in India is higher than the
international MRP.
Tag Heuer has done a commendable job as in a short
span it has clocked respectable sales, more so when it is
a sporty (not associated with cricket) watch to be sold in a
place like India and with an average price tag of Rs 60,000
– an uphill task.
The following initiatives have helped:
1. Its association with stars like Shah Rukh Khan and
Sushmita Sen has resulted in high brand recall.
2. The introduction of F1 watches priced at Rs 28,500
has induced purchase.
3. Boutiques at prime locations.
4. Showcased its wares at high traffic/high visibility
department stores like Piramyd.
5. Tied up with banks to offer 0% finance
for credit card purchases.
Christain Dior is trying hard to
increase its sales. However, for
fashion watches priced at Rs
25,000+ there are few
takers.
RICHEMONT group
Panerai
The following brands
belonging to Richemont
group are available in India:
1. Cartier 2. Piaget 3. Baume &
Mercier 4. Jaeger Le Coultre 5.
Mont Blanc 6. Panerai 7. Vacheron
Constantin
Unlike LVMH and Swatch group,
Richemont group has not yet
set up an Indian subsidiary. It
had plans to set up
company-owned service
centres in south Mumbai
and even shortlisted space
for this activity. However,
due to lacklustre financial
performance the group
did not commit funds to
set up infrastructure in
India. The company
serviced the Indian market
from its Hong Kong office.
However, recently the
company has shifted its
Indian headquarters to
Dubai. With an upturn in
the economic conditions
in India and with an
improving bottomline,
Cartier, the jewel in Richemont's
crown, is reportedly considering an
office in New Delhi.
Cartier and Panerai supply watches and accessories to its
retailers directly. All other brands are represented in India
through sole distributors. Cartier and Mont Blanc enjoy top
of the mind recall and good sales. The latter, however, is
known for its writing instruments. All other brands cater to
a small niche of consumers.
Anil Prabhakar, currently associated with D'damas
Jewellery as president-marketing and corporate
communications, has a rich experience in retailing,
sales and distribution of lifestyle and consumer
durables in India and abroad. He has worked
closely with watch brands like Titan, Citizen, Rado
and Dunhill.
Mont Blanc
Vacheron Constantin
Ecodrive Boutique, Gurgaon
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