SHIVAM KHATTA R Enrollment No. A3104611107 B.Com (H) GUIDE MS.

PREETI GARG (Lecturer)

A Study On Wrist Watch Industry

Industry Overview
India is an under penetrated market for watches
27% of Indians own a watch

Total estimated market as of 2005

Volume ~35 mn units Value: Rs 2328 crores (USD 530 Mn)

Vast proportion of the Indian market is below Rs 500

~68% (85% by volume)

Market has been split into low end, mass market, mid market, premium
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Research Objectives
To analyze latest Trends and Opportunities.
Gain insight into future trends Develop an idea in the watch market

To find the market leader in the industry.

Major Players

HMT
First major watch manufacturer in India and undisputed market leader till the entry of Titan Offshoot of Indias self-reliance and import substitution concept Main quality offered sturdiness and reliability As a market leader very few aggressive advertisement campaign No new advertisement drive in recent years Still holds a small market share among the old faithful loyal Lack of new and trendy design has led to erosion of value among the new generation

Titan
A joint venture between the Tata group and the Tamil Nadu Industrial Development Corporation Launched in 1984 Titan is today worlds sixth largest, integrated watch manufacturer and Indias largest 4 factories - main watch and jewellery plants in Hosur near Bangalore ( Indias Silicon valley), Watch Assembly plants at Dehradun and in Himachal Pradesh, with an ECB plant in Goa Investment of over US$130 million. A 450,000 sq.ft. state-of-theart facility
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Titan
Leader in the watch and jewellery businesses in India
First and largest branded player in the jewellery (Tanishq) >50% share of the organized watch market Over 60 million watches sold across 30 countries

Brands offered: Steel, Edge, Raga, Sonata, Fasttrack, Regalia, Bandhan, Sonata, Nebula, Flip Recently Titan has taken a drive to improve its image as a maker of contemporary style and design in wrist watches Titan is trying to offer international quality/style at an affordable price
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Timex
The main focus is on reflecting a sporty and fashionable look for the men
In the ladies segment it is offering highly stylized bangle bracelet watch that are sleek and sophisticated The advertising campaign aims at focusing on power, precision and timing Used Brett Lee as brand ambassador
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The Watch Industry Evolution

Conventional watches standard spring powered watch Conventional watch evolved into electronic watch Varieties:
Jewelled lever watches (complex and expensive) Pin lever watches (recent development)

New generation watches evolved from electric watch to Tuning Fork watch and ultimately settle at Quartz Crystal electronic watch Major players Switzerland, Japan and United States 60% Quartz, 27% Digital, 13% Mechanical
Source : Segmentation of the Indian Watch Market Y.L.R. Moorthi, IIMB
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Indian Watch Industry Evolution

1960: Indian Watch Industry came into being. Govt. took the decision to set up the countrys first watch factory 1961: HMT set up Indias first watch factory at Bangalore in collaboration with Citizen of Japan 1981: Hyderabad Allwyn Limited entered the watch industry in collaboration with Seiko of Japan 1984: The beginning of a new era - entry of Titan, the Tata TIDCO joint sector company 1990: Timex enters the Indian market in partnership with Titan, targeting the lower price segment 1997: Timex breaks away from Titan - increasing the already fierce competition
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Indian Watch Industry Trends

Rapid increase in target audience Rise of consumerism and purchasing power of the middle class Bulk of the demand exists in lower and middle segments Newer segments jewellery segment, etc. Rise of demand of trendy watches

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Survey Findings & Conclusion

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Survey On Brand Preference

No. of Respondents 45 40 35 30 25 20 15 10 5 0 Titan HMT Timex Citizen ANY OTHER No. of Respondents

Maximum number i.e. 42% of respondents are having Titan watches and least respondent i.e. 3% are having citizen watches. HMT Brand captured 26%, Timex 12% and rest brands such as Quartz, Casio, AIIWIN etc. capture 17% market.

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Survey - Types of Watches

It is observed that chain watches are preferred over other types of watches. Generally, bracelet watches are preferred by females and sports watch by young generation most of which comprises of males.

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Conclusion
Chain watch is most commonly used by all customers Design and quality are two important factors in the purchase decision of a watch. Titan is the most commonly used brand. Maximum consumers relied on their own decision of purchase irrespective of the promotion of various brands. Most of the people switch off brands with new offers.
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Suggestions
Quality control during production Must complete on the basis of prices and quality The quality should be provide with in a certain price range Should also provide some extra benefit Functioning of dealers of watch should be checked by the company Advertising should be improved New models of different makes of watch should be introduced
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THANK YOU

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