WATCHES

Submitted by:- Navneet Namrata Vishal Praveen

INDUSTRY OVERVIEW•50 million wristwatches are sold in India every year.

• Male watch buyers far outnumber females and account for around 65% of sales.

• Students are the largest segment of buyers accounting for approximately 30% of the sales.

•The organized watch market in India is around Rs 2,250 crore

•Market has been split into low end, mass market, mid market, premium

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Major Players

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HMT Ltd.• HMT started manufacturing Wrist

Watches since 1962• Technical collaboration with

Citizen, Japan• 4 integrated manufacturing units• HMT Watch manufacturing units

ISO-9001 certified

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• Mechanical Watches - Environment friendly– Automatic– Hand wound: Ladies, Gents

• Quartz Analog Watches– Roman

• Alarm Watches• EL Night Watches• Multi Dial Watches• Dater Watches• Plain Watches

– Elegance• Gold Line• Bracelet• Slim Line

– Utsav– Lalit: Ladies, Gents– Sangam– Swarna: Ladies, Gents

HMT Ltd. - Brands Special Watches

• Freedom• Braille• Nurse

Watches• Fragrance

Watch

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HMT Ltd. – Strategies• Targeted the global market• State-of-the-art technologies – IT

Infrastructure• Collaboration with ISA Quartz,

France and Fraporlux, France apart from Citizen, Japan

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HMT Ltd. – Positioning• Positioning based on age, sex, competition• Teenagers– Pace

• Older customers– Astra

• The male segment– Roman

• First watch company to launch watches for children– Zap

• Utsav – to compete with Titan Raga– Bracelets, Jewellery and Bangles

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HMT Ltd. – Distribution

• Manufacturer – Dealer – Retailer – Customer• Established a strong distributor

network of 10,000 distributors and 50,000 retail outlets• 1990: Followed Titan in introducing

C&F Agents

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HMT Ltd. – Advertising

• Huge early investments• Catchy slogan “If you have the

inclination, we have the Time”• Portrayed nationalistic instincts–“Timekeepers to the Nation”

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Titan Industries Ltd.• Titan Industries Ltd. set

up in 1987• Joint venture of the Tata

Group and TIDCO• Annually markets over 7

million watches–6th largest globally in

the category of “manufacturer brands”

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Titan Industries Ltd. – Brands

• Insignia– Anti-allergenic steel, scratch-resistant

• Psi2000, Technology– Sports & Multi-functional watches

• Regalia, Royale– Magic in gold and unique futuristic

material

• Classique– Elegant corporate wear

• Exacta–The “Everyday Watch”

• Raga–Exclusive watches for women

• Fastrack–Contemporary styles for the young

• Dash!–For young boys and girls

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Titan Industries Ltd. – Strategies

• Early to manufacture watches targeted at US and European markets– The “Insignia Collection”–Also makes watches for international labels

●Diversification into jewellery – Tanishq

●Very wide range of products in terms of looks, function and price points

• Noted for their workmanship and reliability–Reputation of being excellent value for

money

• The Titan Signet Club–Customer loyalty programme

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Titan Industries Ltd. – Positioning

• Market Segmentation– The young and teenagers, who are looking for

their first watch– The low ownership segment like women–Middle and upper segments of society

• International watch at Indian price• A watch that builds your image

• A brand which represents style, status and technology–A “Good Looking Watch”

• First watch company to brand its showrooms–Titania Titan watch boutiques in Bangalore–TimeZone–The World of Titan

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Titan Industries Ltd. – Distribution

• Manufacturer – Retailer – Customer

• Set up a chain of service centers, with close proximity to the marketplace

• Extensive use of C&F agents to reduce distribution costs

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Titan Industries Ltd. – Advertising

• Targeted the premium segment of “look and fashion conscious” customers– “To find watches like these you don’t have to go to

Europe, Japan, America or a duty free shop”

• Promoted the concept of a watch being the ideal gift– “Next time your husband wants to buy you a saree,

ask for a Titan watch instead”

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Timex Watches Ltd.• 1854: Started as the Waterbury

Company, in Connecticut's Naugatuck's Valley

• 1990: Tied up with Titan to launch in India

• Broke up with the Tata group in '97• Launched the Indiglo technology

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Timex Watches Ltd. – Brands

• Aqura• Indiglo• Basics• Datalink• Timex Sportz• Lextra• Vista• Mariner• Gimmix

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Timex Watches Ltd. – Strategies• Delivering quality products at affordable prices

• Basic objective: Change the mechanical watch user to a quartz watch user

• Transition from plastic to metal

• Launched Vista brand in Rs 475 – Rs 900 range– To appeal to small town customers

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Timex Watches Ltd.– Positioning• Initial understanding with Titan– Titan keeps out of Plastic – High Price Segment– Timex keeps out of Metal – Low Price Segment

• “You don't have to be rich to afford a Timex”

• Lower price segments– Basics, Lextra, Vista

• Premium segment– Technologically superior multifunctional brands like

Datalink, Indiglo

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Timex Watches Ltd.–Distribution

• Initially followed the Titan distribution channel

• Post ’97, set up their own showrooms

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Timex Watches Ltd.–Advertising• Featured sports and adventurous personalities– Rock climbing, Rafting etc.

• Exclusivity of the watch is presented by celebrity endorsements– President Bush declares his loyalty for Ironman

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Other Players• Mainly Rado, Tommy Hilfiger and Evidenza from Longines

• Tommy Hilfiger is positioned in the mid and premium segment while the other two players are in the luxury segment

• Trying to catch the up market, urban, western-minded youth

● Using high society and stylish brand ambassadors such as Shahrukh Khan, Aishwarya Rai, Yana Gupta, Lisa Ray

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Consumer Behaviour• Transition from mere time keeping device with

functional benefits like durability, toughness and economy to a personal wear reflecting people’s lifestyle and aspiration

• Price sensitive

• Durability and utility are important aspects

• Aesthetic appeal and trendy designs are very important

• Brand Name continues to be an important driver in the customer’s mind

• Availability in different segments and for different occasions makes the watch a suitable gift item

Indian Watch Industry Segmentation

Based on price categoryMass (Rs.350-600)Popular (Rs.600-900)Premium (Rs.900-1500)Super-premium (Rs.1500-8000)Connoisseur segments (above Rs.8000)

Based on user category

Men’s watchesWomen’s watchesYouth watchesKids watchesSports watches

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