Industrial Report Project on the

WATCH INDUSTRY Submitted towards the partial fulfillment of the requirement for the award of the degree of Bachelors of Business Management Of Christ University

By Shreyans Sipani Reg. No. 1011049 Shasank Goel Reg. No. 1011048 Madhav Nath Reg. No. 1011005 Under the guidance of Mrs Jasmine Simi

Department of Management Studies CHRIST UNIVERSITY Bengaluru 2010-2013

DECLARATION
We declare that this report titled, Industrial Report Project, is a record of a bonafide project work carried out by me under the supervision of Jasmine Simi, MBA, Academic Coordinator, III Semester Bachelors of Business Management Section A, Department of Management Studies, Christ University, Bengaluru.

We further declare that this has not previously formed the basis of the award of any degree, diploma or other similar time of recognition.

Place:____________________________ Date:_____________________________

Shreyans Sipani 1011011 Madhav Nath 1011005

Shasank Goel 1011048

GUIDE CERTIFICATE
This is to certify that this report titled Industrial Report Project, submitted to Christ University in partial fulfilment of the requirement for the award of the Degree of Bachelor of Business Management, is a record of the original work carried out by Shreyans Sipani, Shasank Goel and Madhav Nath under my guidance and supervision.

Place: Date: Jasmine Simi

ACKNOWLEDGEMENT
With a deep sense of gratitude, we would like to thank each and everyone who have been instrumental in making us achieve completion of this project. We take this opportunity to thank our class co-ordinator Mrs Jasmine Simi for her guidance and support throughout the course of this project. We would also like to thank Dr (Fr) Thomas C Mathew- Vice Chancellor, Christ University, Bengaluru and Dr. Jain Mathew, Head of the Department- Department of Management Studies for their support. Lastly, it is the blessings of the almighty, our parents and our elders that have made us what we are, and no amount of acknowledging their contributions to any of or works would be sufficient to thank them.

Shreyans Sipani Reg. No. 1011049

Shasank Goel Reg. No. 1011048 Madhav Nath Reg. No. 1011005

CONTENTS
Chapter I II Particulars An Introduction to the Watch Industry Company Profiles

Pg. Nos. 6-11 13-23 24-29 30-35 36-37 38-43

Citizen (Shreyans Sipani) Casio (Madhav Nath) Hublot (Shasank Goel)

III IV

Research Methodology Comparative Analysis SWOT Analysis The 7S Model Conclusion

44-46

CHAPTER -I INTRODUCTION TO THE INDUSTRY

Watch Industry
History of Watches
Overview of the Watch History
6

Prior to 1600 The Earliest Watches 1600-1675 The Age of Decoration. 1675-1700 The Balance Spring. 1700-1775 Steady Progress 1775-1830 The First Chronometers 1830-1900 - The Era of Complications 1900 on Metallurgy to the Rescue

The Journey of Watch Industry

1500s : Germany : Peter Henlein creates the first pocket watch. 1485 : Leonardo da Vinci sketches a fusee for a clock. Early 1600s : Form watches becoming popular. Cases are shaped like animals and objects. Religious themes are popular. 1635 : Around this time that the fusee was adapted from clocks to watches. 1659 - 1675 : Christian Huygens invents the "Remontoire". 1687 : Daniel Quare patents the repeating mechanism that uses bells to sound quarter hours and the hours. 1704 : Peter and Jacob Debaufre, Nicolas Facio, are the first to use rubies in watch movements. 1750 : Watch makers began using enamel on watch dials. 1759 : Thomas Mudge invents the English lever escapement. 1775 : Abraham Louis Breguet sets up his own watch making shop in Paris, France. 1780 : Abraham Louis Perrelet invents the self winding movement. 1786 : Breguet is the first to use guilloche on watch dials. 1791 : J.F. Bautte founded the watch company that would eventually become GirardPerregaux. 1807 : Thomas Young invents the recording chronograph. 1809 : Luther Goddard of Shrewsbury, Massachusetts is the first watch manufacturer in America. 1820 : Thomas Prest registers a patent for the self winding watch. 1833 : Antoine LeCoultre starts his own watchmaking business which later become JaegerLeCoultre. 7

1837 : First Tiffany store opens. 1843: Adrien Philippe develops a watch with winding and setting through the crown. 1844 : The start, stop, and reset chronograph is invented by Adolph Nicole. 1844 : Antoine LeCoultre invents the millionometre. 1848 : Louis Brandt opens his own workshop in La Chaux-de-Fonds which eventually became the Omega Watch Company. 1853 : Tissot makes the first dual time zone watch. 1858 : Minerva is founded. 1860 : Heuer is founded. 1865 : Zenith founded. 1881 : Movado founded. 1884 : Greenwich, England is officially named the zero meridian and used as the world wide recognized basis of time zones. 1886 : Geneva Seal established. 1894 : Universal Geneve established. 1905 : Hans Wilsdorf starts the Rolex Watch Company. 1914 : Eterna introduces the first wristwatch with an alarm. 1918 : Japan : Shakosha Watch Company opened. This would become Citizen in 1931. 1923 : John Harwood is the first to mass produce a self winding wristwatch.

John Harwood invented the first Automatic wrist watch. Patent no. 218487

1924 : Tokyo : Seiko brand name is launched by Kinttaro Hattori. 1926 : Rolex introduces the first waterproof case called the "Oyster". 1929 : First anti magnetic watch created by Tissot. 1933 : Ingersoll introduces the "Mickey Mouse" watch. 1956 : Rolex introduces their first model that displays the day and date. 1957 : Hamilton introduces the world's first battery driven watch. 1962 : Rado produces the world's first scratch proof watch called the "Diastar 1". 1962 : ETA of Switzerland develops the first quartz battery operated watch. 1970 : Hamilton releases the "Pulsar", the first electronic digital watch. 1972 : Longines and Seiko introduce the LCD, (Liquid Crystal Display). 1980 : Hublot founded. 1983 : SMH of Switzerland launches the Swatch brand. 1985 : Swiss Heuer Company merges with TAG to form TAG Heuer. 1986 : Audemars Piguet introduces the first self winding tourbillon. 1991 : Franck Muller founded. 1999 : Casio innovates with the first wristwatch with a built-in Global Positioning System (GPS). 2008 : Total luxury market size is $29.08 billion with growth of 4% annually.

MAJOR PLAYERS IN THE WATCH INDUSTRY

Rolex
Worlds leading manufacturer of luxury watches Targets upper upper segments of customers Range starts from 1.3lacs and goes upto few crore Captures 25% of Indian luxury watches market Stores in 4 metros and Bangalore Vijay Amritraj as their Indian ambassador

Tag Heuer
Moet Hennessy Louis Vuitton (LVMH), Tag Heuer is known for manufacturing mid-high range sports watches and chronographs In india Tag Heuer is growin at a rate of 45% Tag Heuer watch range begins from Rs. 33,900 onwards in the Indian market Presence in 24 cities with 100 distribution points Shahrukh khan, Priyanka Chopra as brand ambassador

Omega
Subsidiary of swiss swatch group Omega claims 25% Indian luxury watch market Growing at almost 100% for the last 3 years India contribute almost 5% in groups total revenue Abhishek Bachchan and Sonali Bandre are the brand ambassador. Presence in 18 cities with 75+ distribution networks

Global Market size and division of watches:

Total luxury market size is $29.08 billion. Growth of 4% annually. Division: Mass price market Upper price market Luxury watches (under $50) ($299-$999) (above $999)

Middle price market ($50-$299)

10

Indian luxury watch market

Indias total luxury spending is 14.4$ billion Luxury watch market is Rs750cr Growing at a rate of 20%per annum Consistently growing from the last 6-7years Reason being increase in number of millionaires

CHAPTER -II
11

COMPANY PROFILE

12

Overview of the Company:

Citizen watches, a Japanese multinational company with a 70 year old heritage and worth 3 billion (US$), sells world-class watches and allied products in more than 150 countries worldwide. The company was founded in 1924. As one of the world's leading watch brand with renowned Japan watch making art, CITIZEN was officially introduced into India through its local subsidiary company, Citizen Watches (India) Pvt. Ltd in 1997. The entry was heralded by the revolutionary concept, Eco-Drive the worlds 1st light 13

powered watches, lending an air of excitement and expectation around the brand and adding to the excellent equity CITIZEN already had enjoyed in India. Citizens association with India goes a ong way back when 1st Prime minister of India, Pt. Jawaharlal Nehru, visited the Citizen Watch Co in Japan. Impressed by the technologically advancement he sought technology know-how for India. And HMT, the PSU, was selected for technology transfer of the same in 1964.

Company Idea:
As the names Citizen Watch or Citizen Group state, our policy is to provide the best products and services to all citizens in the world. The word citizen generally means all national in most countries, and every national surely desire better life and better goods. The Citizen policy is to provide the highest quality products and services to each of them. Citizen hopes to make a contribution to peoples life in everywhere in the world by making products that is familiar and loved by citizens.

Brand History
In 1924, the Shokosha Watch Research Institute produced its first "CITIZEN" watch. Mr. Shinpei Goto, the Mayor of Tokyo-Japan, named the watch "CITIZEN" and even after this was adopted as the name of the company in 1930. CITIZEN has produced approximately 300 million units of complete watch and movement in 2006. As an all round watch manufacturer, CITIZEN has always been breaking new ground in watch technology for more than seven decades. Its record of achievements boasts many firsts the worlds most 14

accurate analog quartz watch, the worlds thinnest light powered watch, the worlds most advanced radio controlled watch, and many more.

Year 1918 1924 1930 1931 1952 1956 1958 1958 1959 1962 1965 1966 1967 1971 1973 1976 1978

Month 3 12 5 6 3 4 1 6 7 8 12 3 1 10 8 8 8 5

Brand History Shokosha Watch Research Institute, forerunner of Citizen Watch Co., founded. Citizen's first pocket watch manufactured Citizen Watch Co., Ltd. Founded Citizen's first wristwatch completed Japan's first wristwatch with calendar marketed Japan's first shock-resistant watch, "Parashock," marketed Watch exports to the People's Republic of China begun Japan's first wristwatch with an alarm, "Citizen Alarm," marketed Japan's first water-resistant watch, "Parawater," marketed World's thinnest 3-hands watch developed Automatic water-resistant wristwatch with day and date, "Crystron Seven," marketed Japan's first electronic wristwatch "X-8" marketed World's first transistorized electronic quartz clock, "Crystron," marketed Tuning fork electronic watch "Hi-Sonic" marketed Analog quartz watch "Citizen Quartz Crystron" marketed World's first analog quartz watch using sunlight as power source, "Citizen Quartz Crystron Solar Cell," marketed Ultra-slim analog quartz watch "Citizen Quartz 790," containing world's first movement to break the "1-mm barrier," marketed Quartz watch "Exceed Gold" developed 15

1978 1981 1986 1987 1993 1995 1996 1996 1998 1999 2000 2001 2002 2003 2005

11 8 12 6 5 5 4 11 12 6 11 4 11 6 6

LCD quartz watch combined with analog quartz watch, "Citizen Quartz Digi-Ana," marketed World's most pressure resistant watch, "Professional Diver 1,300m" marketed The annual production quantity of movement become World's No. 1 "Attesa" titanium watch marketed World's first multi-zone "Radio-Controlled Watch" marketed "The Citizen" watch with free 10-year warranty and lifetime repairs marketed Light-energy powered "Eco-Drive" watch obtained "Eco Mark" Watch for contemporary woman "xC" marketed "Promaster Eco-Drive Duo," world's first hybrid power system watch (light power and movement power) marketed "Attesa Eco-Drive Radio-Controlled Watch" for Japan marketed Premium watch series "Campanola Collection" marketed Universal design watch "MU" marketed World's thinnest Eco-Drive watch "Stiletto" marketed World's first full metal case Radio Controlled watch with built-in antenna World's smallest Radio-Controlled watch movement, only 20.8mm x 3.5mm

Company mission:
As the names "Citizen Watch" or "Citizen Group" state, their policy is to provide the best products and services to all "citizens" in the world. The name Citizen was chosen to be "Close to the hearts of people everywhere", and every national surely desire better life and better goods. The Citizen policy is to provide the highest quality products and services to each of them. Citizen hopes to contribute to people's life in everywhere in the world by making products that is familiar and loved by citizens.

16

Products portfolio:
Watches and Clocks are the main products but the Citizen groups entered in Indian market with a wide range of watch models. Citizen Watches India has introduced more than 1000 models into the Indian market. Main category Price range 1. Mens and womens watches Rs 2500 - Rs.15000/- in the Quartz range 2. Eco Drive Rs 4500 - Rs.35000/3. Promaster Rs 10000 - Rs.60000/Mens and womens watches in the normal range These watches are available with steel, gold plated and two tone case and strip for men and women. More than 800 models have been introduced in this category. There are several leather straps models too. Models are available with day and date and only date besides basic models. Introduced in 1997, CITIZEN Eco-Drive watches made a revolutionary statement in terms of technology and beauty. The essences behind amazing cutting-edge Eco-Drive technology from CITIZEN are environmentally friendly (powered by any light) and maintenance free (never change a battery). The watch is capable of charging itself under any kind of light and runs even in the dark for a span ranging from 5 months to 5 years (depending on the models) after being fully charged. With its wealth of technological expertise build up over many years, CITIZEN has achieved impressive number of technical accomplishments in integrating special features in Eco-Drive, like Perpetual Calendar, Moon Phase, Retrograde Display, and Minute Repeater. Moreover, the luxurious and universal design epitomizes its product policy The Fusion of Technology and Beauty. Minute Repeater Working on the Eco-Drive technology, it has a special feature of telling time by different chime sounds which represent hour, quarter hour, and minute. Minute Repeater watch collection, priced between Rs. 22,000/- to Rs. 25,500/ Perpetual Calendar (for men) These watches incorporate the date programmed till the year 2100 irrespective of leap years. The watch shows the day, date and month display as 17

well as are water resistant with noon-reflective coating (glass). They also have an alarm facility and 270 days power reserve. These watches are priced from Rs. 15,000/- onwards. Moon Collection (for men) Watches in this special collection show the different stages of the lunar cycle besides day, date and month display. These watches are priced between Rs. 16,500/- to Rs. 18,000/-. Promaster Super Chronograph 1000 This latest tech wonder from CITIZEN represents heady mix of heart throbbing technology with incredible designs. The worlds 1st Eco-Drive watch which can measure time 1/1000 second. When chronograph operations commence, small hands on the dial begin to rotate rapidly, while the same information is also shown in the digital display. The watch comes with lap memo function for checking previous results, as well as recalling the best lap, average lap and lap speed of each. With its hinged function buttons, the watch offers highly distinctive styling, while the rubber edge on the left side of the case makes it easier to grip when performing chronograph functions. Added with a rotating bezel and a dial that suggests a measuring gauge, this is a watch purely designed for the sports-minded. With alarm, world time, calendar, LED light, titanium case/band and sapphire glass, it leaves nothing more to be desired. Calendrier With a light-powered Eco-Drive movement as the starting point, the watch depicts cosmic space through the earth, moon and sun. The theme of the design is the fusion of space and time. The dial represents a Calendrier (Calendar) with the earth at its center. Surrounding it is the moon phase at 6 oclock, the date (symbolizing the sun) at 12 oclock, and day and month at 9 oclock and 3 oclock, respectively. In a space measuring just a few millimeters thick, the multi-layered metallic dial creates a sense of infinite depth and breadth and gives a feeling of continuity with the cosmos. As a design element, the month and day disks, connected to the watchs rotation mechanism, suggest the movement of heavenly bodies. 18

The result is the creation of a unique world, and a model that marks the debut of a totally new Eco-Drive. Models available are BU0003-02P, BU0011-55A and BU0011-63Z; starting at a price range of Rs. 20,000. Perpetual Calendar It wasnt too long ago when CITIZEN brought out one of its great successes into the Indian markets. The Eco-Drive Perpetual Calendar BL800X series still continues to charm watch lovers across India with its great panache. Amazingly sharp looks blended with features like perpetual calendar, day/date/month display, alarm, 24 hour display, translates into this scintillating collection from CITIZEN. Models are available from a starting price of Rs 17,320 only.

PROMASTER These stylishly crafted watches are specially designed and developed for men, especially men who are passionate about sports. The new models in this collection are: Aqualand U100: These wrist - watches are ideally suited for professional Divers priced at Rs. 32,500/-. Navihawk: These are wrist - watches for use by pilots as an aid in navigating aircrafts. These watches are priced at Rs. 15,700/-. Land Sportissimo U200: These are the latest collection of promaster, which can be used in the land for the sports purpose. These watches have different features like 1/100 second

19

chronograph, world time, LCD display, 24hr display, sapphire glass and more. The price range starts from Rs.20, 000/- onwards Land E2100: these wrists - watches come packed with features such as 12 hours Chronograph, intervals of 1/5th of a second, alarm, 20 bar water resistance, Titanium Carbide Coating, Sapphire Glass (non-reflective coating) along with a Stainless Steel case and band. These watches are priced at Rs. 39,380

Citizen Promaster

Principles of the Company:

1. Provide products and services which satisfy quality expectations and consider the safety and well being of our customers. 2. Perform fair, transparent, and open competition in business transactions, and maintain healthy relationships with our suppliers and government regulatory authorities. 20

3. Publish corporate information positively and fairly under our own initiative, and manage relevant information appropriately. 4. Value the global environment, and act according to the environmental policy. 5. Value symbiosis with the regional society as a good corporate citizen, and strive to make a social contribution. 6. Ensure a safe and good work environment, encourage the development of our employees abilities and energies while respecting their character and individuality. 7. Respond to anti-social and corruptive behavior in a decisive manner. 8. Value and respect different culture and custom in foreign countries, and contribute to the development of the locale.

FINANCIALS: Stock Indices FY 2006 High Low PER (Note 1) PBR (Note 2) 1,206 788 56.92 1.52 21 FY 2007 1,292 819 23.99 1.21 FY 2008 915 298 0.72 FY 2009 648 395 58.03 1.12 FY 2010 697 390 30.13 0.85

(Note 1) Closing price as of the end of March / EPS (Note 2) Closing price as of the end of March / BPS

22

23

Casio Company Profile

24

Casio did not start out as a watch specific company, but instead started as a calculator specific company. Casio really only entered the watch making market after the electronic watch revolution. It was on the strength of expertise in electronics, developed from their calculator development background, which paved the way for Casio to make inroads into the watch making markets. Casio has continually progressed the watch making market by developing its skills in the electronic markets. These markets include calculators, watches, cameras, computers (hand helds), terminal screens, printers and projects etc, all of which provide a good base for Casio to further advance the watch making industry. The G-Shock and Baby-G (G-Shock for Women) are the most popular range of Casio's. The G-shock ranges of watches are aimed at the active sports enthusiast. The G-Shock are extremely tough sturdy watches, which come in a wide range of sporty styles for both men and women. The G-Shock watches have a variety of sports training functions available on each G-Shock. It is this range of functions and the tough sturdy construction of the GShock that has made it so popular with the sports enthusiasts. Since its release the G-Shock has continually raised the profile of Casio as a maker of fine quality watches. The founders of Casio, Tadao Kashio and family, have also been active in sponsoring sports events and contributing to a foundation to aid business development of new ideas.

History of Casio Watches

Sometimes things start out in the most surprising ways. Take the watch company of Casio for example. If you were asked to guess what the first product that was made by Casio, you may think it was the calculator or some other type of electronic product. You would be wrong. The Casio Company was started 1946 by Tadao Kashio. Understand that this was in Japan following World War II. The financial situation was dire in Japan at the time to say the least. When Mr. Kashio began his company, he was a fabrication engineer hoping to catch a big break. His big break showed up in a very unique way. Tadao Kashio developed a product called the yubiwa pipe. Its design allowed it to be worn on the finger. It was used to hold a 25

cigarette, allowing the smoker to smoke the cigarette to the filter, all while still being able to use both hands. In the impoverished Japan of the times, cigarettes were a hot commodity and the product was an overwhelming success. The yubiwa pipe is a far cry from the calculators and watches that were to follow, but it did start the company down the road to success. Since it is obvious that Mr. Kashio was an inventive sort of man, it only took a little while for him to decide to explore different products. At the business show in Ginza, Japan in 1949, he discovered electronic calculators. With the proceeds from the sale of the yubiwa pipes, Mr. Kashio and his brothers began to experiment with making their own calculators. At the time, most calculators were run by the use of gears. With diligence and hard work, the Casio Company came out with the first calculator to use solenoids. The new type of calculator went on sale in 1954. This calculator also was the first to have the 10 digit keypad and had only one display window as opposed to the competitors' that had three. As you well know, calculators weren't the only product manufactured by Casio. After the release of the Model 14-A calculator, many more products were designed and released to the general public. The same year as the release of the 14-A, the company also became the Casio Computer Co., Inc. This is about the time when watches from Casio first made their mark on the watch industry. Casio has been well known for the huge variety and innovation of their watches almost since the beginning of production. They were one of the first watch companies to manufacture the now famous quartz crystal watches. The quartz watches produced by Casio were available in both digital and analog styles. It is possible that the most well remembered watch produced by this company was the calculator watch. For those of you who don't remember, it featured all of the amazing time keeping capabilities of the regular Casio watches, with an added feature. It had a tiny calculator complete with miniature keypad built into the watch. During its heyday it was the bane of math teachers everywhere and the savior of every math deficient student. Considering the calculator watch was so much fun, Casio continued to raise the bar. This company was also the first to design and produce a watch that could provide its owner with some interesting details. One such watch could display the time of many different time 26

zones at the touch of a button. Others were equipped to give weather details like the temperature and barometric pressure. Mountain climbers of ages past particularly were fond of the version that came with a gauge to indicate the altitude. While other watch makers were stuck on the same old, same old, Casio consistently offered new and exciting variations on the classic wristwatch. With the true gadget geeks of the world in mind, Casio came up with a watch just for them. It is the Wave Ceptors line of watches. They really outdid themselves with this one. These watches are equipped to receive radio signals that enable the watch to keep accurate time. They also are able to tell the time in different time zones, the user can set alarms and timers. This line of watches also came with an incredibly extensive user manual to provide all of the necessary instructions to the owner. From the yubiwa pipe to the finest calculators and watches in the world, the Casio has come a long way from its humble beginnings. They continue to challenge themselves and their competitors to new higher peaks and offer the best products electronics can build.

Timeline of product releases

1957 Casio releases the Model 14-A, the world's first all-electric compact calculator. 27

1965 The 001 calculator is released. 1972 The release of Casio's personal calculator. The Casio "Mini" sells for 12,800 yen, going on to sell over 10 million units. 1974 The Casiotron, a watch that features a fully automatic calendar, including month lengths and leap years, is released. 1980 Casio releases its Casiotone keyboard instrument. 1983 The first G-Shock watch, the DW-5000C, is released. 1991 The F-91W digital watch, retro design with alarm and stopwatch, is released. 1985 Casio launches its first professional synthesiser, the CZ-101. 1995 The Illuminator/Foxfire backlight is released. The DW-5600E was announced as the first G-Shock watch with a full EL LCD panel. 1995 The QV-10, the world's first digital camera that includes a TFT display, is released. 2000 The WQV-1, the world's first wristwatch with digital camera is released. 2002 The EX-S1, the first Exilim digital camera is released. 2007 The OCW-S1000J, dubbed the Oceanus "Manta", is released, being the world's thinnest solar-powered chronograph at approx. 8.9 mm in thickness. 2011 Casio releases the Casio Prizm (fx-CG10/fx-CG20), a full-color graphing calculator.

Financials of Casio
Currency in As of: Mar 31 28 Mar 31 Mar 31 Mar 31 4-Year

Millions of Japanese Yens

2008 Reclassified JPY

2009 JPY

2010 JPY

2011 Trend JPY

Revenues TOTAL REVENUES Cost of Goods Sold GROSS PROFIT Selling General & Admin Expenses, Total R&D Expenses Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL OPERATING INCOME Interest Expense Interest and Investment Income NET INTEREST EXPENSE Income (Loss) on Equity Investments Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) EBT, EXCLUDING UNUSUAL ITEMS Merger & Restructuring Charges Gain (Loss) on Sale of Investments

623,050.0 518,036.0 427,925.0 341,678.0 623,050.0 518,036.0 427,925.0 341,678.0 457,133.0 387,701.0 330,417.0 227,923.0 165,917.0 130,335.0 97,508.0 113,755.0 90,533.0 7,838.0 2,262.0 1,080.0

113,362.0 110,122.0 109,416.0 14,750.0 2,372.0 1,558.0 12,631.0 2,290.0 1,276.0 13,693.0 2,247.0 1,461.0

132,042.0 126,319.0 126,817.0 101,713.0 33,875.0 -1,380.0 2,882.0 1,502.0 79.0 -5,832.0 1,401.0 31,025.0 4,016.0 -29,309.0 -853.0 2,385.0 1,532.0 37.0 -2,810.0 -4,217.0 -848.0 1,433.0 585.0 99.0 1,499.0 2,044.0 12,042.0 -840.0 1,328.0 488.0 -1,593.0 693.0 18.0 11,648.0 --202.0

-1,442.0 -25,082.0 -3,100.0 667.0

-- -10,845.0 -1,734.0 -3,764.0

29

Gain (Loss) on Sale of Assets Other Unusual Items, Total Other Unusual Items EBT, INCLUDING UNUSUAL ITEMS Income Tax Expense Minority Interest in Earnings Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS

-4,284.0

8.0

35.0 -2,078.0 -977.0

-6.0 -1,107.0 -174.0 10,333.0 5,085.0 434.0 5,248.0 5,682.0 5,682.0

-1,119.0 -13,005.0 252.0 -483.0

23,888.0 -29,048.0 -29,558.0 13,809.0 2,109.0 419.0 6,318.0 6,126.0 14,716.0

10,079.0 -29,467.0 -35,684.0 12,188.0 -23,149.0 -20,968.0 12,188.0 -23,149.0 -20,968.0

30

HISTORY
31

Hublot is a Swiss enterprise creating luxury watches and founded in 1980 by Carlo Crocco.The company currently operates as a wholly owned subsidiary of France's LVMH. A scion of the Italian Binda Group dynasty, best known for making Breil watches, Carlo Crocco left the company in 1976 to strike out on his own and create a new watch company. Moving to Switzerland he formed MDM Geneve and set about designing a watch that he named the Hublot after the French word for "porthole". The watch that he created featured the first natural rubber strap in the history of watchmaking. It took 3 years of research to create the strap. Despite failing to attract a single potential customer on the first day of its debut at the 1980 Basel Watch Fair, the watch quickly proved to be a commercial success with sales in exces of $2m in its first year. The Jean-Claude Biver era Carlo Crocco, preoccupied by his own design work and many activities for the Hand-inHand Foundation, a charity helping deprived children all around the world, set out to look for the man who could oversee his watchmaking business. In late 2003, Jean-Claude Biver, then president of Swatch Group's Omega division,[3] met Carlo Crocco, and in May 2004, Biver assumed duties as CEO, becoming a board member and minority shareholder in Hublot Watches. Upon his arrival, Biver set about creating a new flagship collection that was unveiled in Basel in April 2005, with the Hublot "Big Bang" chronograph. It was an immediate success and orders increased threefold in one year. A few months later, in November 2005, the Big Bang chronograph was awarded internationally, receiving the "2005 Design Prize" in the "Geneva Watchmaking Grand Prix", the "Sports Watch Prize" at the "Watch of the Year" ceremony in Japan, and the Middle Eastern Prize for the "Best Oversized Watch" at the Editors Choice "Watch of the Year" in Bahrain. Following the arrival of Biver in 2004, the brand's sales hit 24 million Swiss francs and by the end of 2006, sales were bordering on the 100 million Swiss franc mark. Hublot stores In February 2007, Hublot opened its first mono-brand store in Paris, in the Rue SaintHonor. The second was opened in the summer of that year, in the Htel Byblos, SaintTropez. 32

Acquisition by LVMH In April 2008 it was announced that luxury goods group LVMH had acquired Hublot from founder Carlo Crocco for an undisclosed fee, adding to its existing portfolio of watch brands including TAG Heuer. Hublot WISeKey At BaselWorld 2009, Hublot unveiled a new method of detecting counterfeit watches. Using a WISeKey smart card, the system authenticates watches on Hublot's servers. The system went live in August 2009.

PRODUCT PROFILE
The F1 King Power, the first racing-inspired official Formula One limited edition watch from Hublot, features zirconium case with ceramic bezel and racing suit material Nomex strap.

COMPANY PROFILE
Leading brands in watch production have been around for the last hundred years or so. These brands pride themselves on the many firsts in watch technology afforded their companies. They have long strings of awards giving recognition to their fine 33

craftsmanship and time precision. These companies counted decades of hard work and discoveries of new technology to give them an edge in the highly competitive world of watch-making. While these brands were happily looking at more ways to improve their lines of watches, Hublot Genve crept up from behind. Carlo Crocco belongs to a family of watch makers. His vision, even as a child, was to create a line of sporty watches that are stylish and elegant at the same time. In 1980, Crocco founded MDM Genve and his first line of Hublot watch. Hublot means porthole in French and Croccos first solid gold watch indeed looked like the porthole of a ship. The most notable feature of the watch was its satiny black rubber strap. The steel-reinforced rubber strap as invented by Crocco himself in his quest to find the perfect bracelet for his Big Bang Hublot watch. Hublots initial model was a success as the watch became the preferred time piece of the Royalties as they play Polo or go yachting. Famous celebrities followed suit and what made the Hublot brand more sought-after was the fact that you just cant walk-in a mall and buy one. Not anymore though.

ACHIEVEMENTS
In 2007 Hublot opened its first independent store in Paris. In the year of 2008 LVMH took over Hublot. Hublot marked another milestone in its history when it introduced the WiseKey technology for detecting counterfeit watches.Hublot 34

has signed a number of deals with many popular and various organizations. Hublot signed a sponsorship in 2008 with Manchester United. It is also the official watch maker of Formula 1 racing. Hublot is also the official time keeper of Fifa World Cup 2010 and 2014. It has also sponsored a number of Skiing events. Hublot's another great achievement and reason of popularity is the production of one of the world's most expensive watches that are One million $ bb 305.wx.994.rx.994 and the 2 million bb 305.wx.0099.wx.9904 priced at one million dollar and two million euro respectively. Hublot offers many other lines of watches for its customers such as Novelties, Aero Bang, King Power, Unico, Vendome etc. These lines of watches are all made with state of the art technology and meet the highest standards there is to offer, making a symbol of beauty and delicateness. From the world of fashion to Hollywood there are various Hublot fans all over the world which prefer Hublot wristwatches to all other. Hublot stays true to their customer by providing the designs and quality like no other company does.designs and quality like no other company does.

FUTURE STRATEGIES
Jean-Claude Biver made a definition on Hublots marketing strategy Focus on Diversity, this meant to target a variety of potential customers. Jean-Claude Biver invested and sponsored in various fields, and found broad partnerships. He mainly sponsored regatta and navigation, partners included the famous YCM that was in the charge of Prince Albert II of Monaco, the Real Club Nautico de Palma and Hublot PalmaVela Regatta held with Wally Yacht, Hublot also has sponsored Luna Rossa to campaign 2007 Americas Cup. It even connected the brand with golf, polo, skiing, car racing, tennis and other sports, invited these sports stars as ambassadors. Jean-Claude Biver was the first to let luxury brand sponsor footable events, accompanied by the European Championships holding, the status of Hublot became more important. Hublots new factory building was located beside the Lake Geneva and Alps, classic and solemn style, close to a high way. Bright and spacious interior space built a Hublot watch world. On the first and second floor, there were equipments, Cartridge Workshop, Afterservice Department, Technology Department and Purchasing Department. The third floor 35

had Management, Market Department, Sales Department, Finance Department, a exhibition area and Hublot TV Studio. Hublot Kindergarten had a special separate channel, children could play safely in the wooden garden. Jean-Claude Biver excitedly witnessed the whole completed processes of the new building, its completion indicated Hublots vigorous future. Mr. Biver said: In just five years, we started from a small and a simple building, developed rapidly and today has become a magnificent, ultra-modern and high-tech enterprise, this was really fantastic ! In the past five years, we successfully unveiled Big Bang series, now our self-made movement is also coming soon ! Im very proud of the achievement weve made in these years, but more proud of our teams spirit to overcome all difficulties and innovate continuously. I must mentioned the UNICO chronograph movement, which was independently developed by Hublots R & D, the current research has entered the Prototype stage, the in-house movement would be first installed into the new King Power series that was published in 2009. The uniqueness of this fly back chronograph movement lied in its power position and the Column Wheel. The most important innovation was the removable Escapement platform, a Hublot watch owner could have his or her name engraved on it, and created a unique watch.A professional team consisting of 15 watchmasters would assemble plates and various steel machine parts into the UNICO movement in January 2010. Hublot planned to produce about 2,000 pieces of UNICO movements in 2010 and predicted the production capacity would be up to 20,000 pieces in the mid-term of development. These imaginative and nuanced characteristics made Hublot watches be convenient to be served in maintaining, and could provide personalized custom service for each owner. Escapement was made of lightweight and durable high-tech silicon, which guaranteed the watchs durability and high accuracy.

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CHAPTER III RESEARCH METHODOLOGY

Title A comparative analysis on products and market of the Watch industry through three companies.

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Objectives To study the current growth of Watch industry. To study and analyse the major players prominent in the Watch industry. To compare the product differentiation, segmentation of all the three companies. To compare the process and productivity, strategic management techniques and competitive strategies adopted by the companies prevalent in the stationery industry To compare the advantage of one player over the other in the industry and the effect of privatisation of the industry. Scope To study the companies penetrating in the Watch industry. The study is based mainly on Indian market but having an idea of the international market also. To do a comprehensive analysis of the industry and see its effects on investors and the market at large.

Methodology of Data Collection Method

Secondary Data:
Newspapers, magazines, and the company websites include some of the secondary sources of information. Websites

Limitations The information is only secondary.

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CHAPTER IV COMPARATIVE ANALYSIS

SWOT ANALYSIS OF THE INDUSTRY

Strengths
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Watch industry is growing at the rate of 30% every year. As population is rising, the watch market is also expanding. Customers are not very price sensitive as far as quality watch is concerned. The varied offerings to diverse segments with a clear cut positioning. The quality of watches is highly impressive. Excellent customer service.

Weakness
Not much advertising is done by the watch industry. No product innovation what so ever. Few numbers of exclusive showrooms reduces the consumers accessibility to the product. There are few marketers, who are concentrated only up on a particular niche segment. Kids are fascinated with mobile phones rather than watches and incidentally, they show the time.

Opportunity
The young, independent individuals are the trendsetters that the fashionable luxury watch and fine luxury watch brands can target. In India the market is huge and demand is unlikely to change. People are using it as a fashion accessory which means more demand for the product. Youth of India are far more brand conscious than their successor. That can lead to the expansion of the market for branded watches. Gradually expanding market for expensive and high society products in India. Absence of a monopoly in the expensive watch category in India.

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Under-penetrated market for watches as only 35% (approximately) of Indian population possesses watches.

Threats
Many foreign players entering in the race. Too many players will dilute the market & the profit margin. Mobile phones acting as substitutes of the watches. Increasing the price of the raw material like steel may increase the price of the product. Chinese watches Unorganized sector/ Grey market. Mobile phones and wall clocks are a substitute to watches. The fashion trend keeps on changing.

The 7S Model
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Strategy:
The Strategy of all the 3 watch companies is completely different. Each of these watches companies have a different strategy. Citizens strategy is a Common Mans watch. Casios strategy is expertise in Digital watches. And Hublots strategy is a watch for the High Class and is a Status symbol.

Structure:
The usual structure in the watch industry is in a simple Hierarchical form. This is that the authority in the organization flows from top to bottom.

Systems: There arent any fixed systems or such placed in the watch industry. The main
activity starts when a new product is innovated.

Shared values:
In the entire watch industry the companies usually share the same values and goals. That is to provide high quality products to its customers.

Skills:
Skills is one of the most important factor in the watch industry, because making watches requires a lot of skills. Now a days precision in watches is highly required, thus skills of the workforce in the industry becomes very important.

Staff:
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Staff is also very important. The staff in the industry brings in the skill factor. Highly qualified and skilled staff is very important in the industry.

Style:
All the 3 companies here have different styles. Casio has a style of digital watches. Citizen has a style of a common mans watch or a corporate watch. And Hublot has a style of a high class luxurious watch.

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CHAPTER V CONCLUSION

CONCLUSION
This industrial report has helped us to get an in-depth knowledge about the watch industry. We had chosen 3 different watch companies Citizen, Casio and Hublot. Each of 44

these companies have a different brand image and also serve different segments of the society. Hublot being the brand for the upper class whereas Citizen and Casio being a brand for middle and upper middle class. This report also helped us in recognising the growing market of the watch industry. And also the current scenario of the billion dollar watch industry and how it is getting adversely affected by the grey market. The gray market in the watch industry is eating up the profits of the watch companies. By this report we also recognised the evolution of the watch industry, from being a time keeper to being a fashion statement and a symbol of social class. The Swot analysis helped us to analyse the scope and weakness of the three watch industries.

Bibliography
http://www.citizenwatches.co.in/brand-history.htm http://www.hublot.com/en/#/HOME scribd.com 45

slideshare.com http://casioindiacompany.com/cic/corporate/corporate.html http://www.business-standard.com/india/news/hublot-show-off-time/426700/ timesofindia.com Economic Times Business Today Magazine http://en.wikipedia.org/wiki/Hublot http://www.citizen-europe.com/links/watches.htm http://www.casio-intl.com/wat/

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