Marketing Brief of the Watch Industry

Prepared By: Harsh Gupta BBS 2C : 4949 Jitisha Malhotra BBS 2C : 4951


Topic 1. Acknowledgement 2. Brief overview- Time keeping devices 3. History of wrist watches 4. Watch Industry in India 5. International scenario 6. Top brands 7. Trends shaping the watch industry 8. Scope of watch industry 9. Media Watch 10. References

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Our first step towards this project started with the motive –“Studying the Watch Industry” and henceforth we began our research on the watch industry. Firstly, our deepest gratitude to our project mentor, Dr. Preeti Rajpal Singh, Faculty, SSCBS, for her invaluable support and guidance. Our heartfelt thanks to all the authors of the various articles referred to by us as well as to all those people who shared their valuable time and knowledge with us. This project would not be complete without thanking our institution “Shaheed Sukhdev College of Business Studies” for giving us an opportunity to have an enriching experience in terms of this project.

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but the originals were quite inaccurate. they were notoriously inaccurate. anachronistic kind of way). what's known as a lever escapement was created by a watch worker Thomas Mudge. It wasn't until about the 20th century that wristwatch became a man's item. In the early 1800's. the upper crust was extraordinarily concerned with fashion. Pocket watches still exist (in a sort of meta. though of course they still remain a staple accessory and beautiful pieces of technology. and in 1969 quartz watches graced the world stage. electric watches came onto the scene. The next stage of advancement was the ever-so-adorable pocket watch. They possessed only a single hour hand. unwieldy pieces. and something of a 'pop culture' obsession grew around pocket watches and later. And of course. The original wristwatches were called 'trench' watches. Wristwatches has actually been in use for quite sometime by women. watches will go the way of the dinosaurs. iStuff. It wasn't until 1657 and the invention of the balance spring that minute and even second hands were used. wrist watches became more about performance and less about fashion. who were thought not to possess the correct garb (or enough masculinity) to successfully carry a pocket watch everywhere. Why bother Page | 4 . In the 1950's. and hand held computing devices. with poor quality movement and heavy. chronometers started being used. and apparently the pocket watch was crafted after King Charles II of England brought the fashion of the waistcoat to hip gentlemen in Europe. many fear that with the onset of cell phones. and had to be wound twice each day. and pretty delicate temperature compensations further whittled down the margin of error on fine pocket watches. as well. and suddenly pocket watches were much more viable and popular. humanity suddenly realized the potential of mass production. John Harwood revolutionized the watch-making world when he invented a watch that could wind itself. As accuracy was pinpointed to the perfectly predictable oscillations of these fine new instruments. and not only for the rich. wristwatches. In the 1600's. and pocket watches were history.BRIEF OVERVIEW: TIME KEEPING DEVICES The first ever mechanical time keeping devices that could be worn by a person instead of mounted to a wall were called clock-watches. In 1923. In 1765. In 1850 with the onset of the industrial revolution. and they were much larger than today's wristwatches. and thus were reduced to strapping timepieces to their wrists. Today.

HISTORY OF WRISTWATCHES Before watches. inexorable ticking of our passage through the 4th dimension that can't be captured on the glowing screen of an iPhone. there was simply mechanism to tell and measure time. functional wristwatches in the world. Before clocks.strapping and antiquated technology to your wrist when you can access a multitude of information with your electronics? Because there is something timeless about the timekeeping of a watchthe slow. Page | 5 . there were clocks. There will always be a place for beautiful. Sundials told time by shadows.

000 pounds.000 pounds for anyone who invented something that reliably calculated longitude. Harrison’s Marine Chronometer went through many trials and eventually was accepted by the Queen who then paid him his prize money of 20. it became common to see civilian men wearing wristwatches in public. The wristwatch was invented by Patek Philippe. The main problem for portable time keeping before the 1600s was the Page | 6 . because soon after the war ended. In the 1700’s. is what we call history. It is rumored that in the famous painting of Henry VIII. Harrison decided that he needed to create a watch that was far more accurate then what was available at that time. Some might argue that World War 1 was the one single event that spurred the entire wristwatch industry. the soldiers got to keep their army issued wristwatches. He presented his plate sized watch to the royal academy and had his chronometers tested by people like Captain Cook. but a pocket watch he owned. England. than it was to fumble around in your jacket to find your pocket watch.Hourglasses measured time by predictable rates of sand moving through a narrow channel. and I guess the rest. In the midst of war. The watches were incredibly big and were generally worn around the neck because of their girth. From the time of its invention until world war one. A self-taught watchmaker by the name of John Harrison discovered that a precise reading of a ships longitude could only happen if you knew the exact time. some armies soon realized that it was much easier to glance at your wrist to check the time. It took until the 19th century for the wristwatch technology to come to fruition. In the 16th century pocket watches were invented in Tudor. it was not a medallion around his neck. to that point had generally used pocket watches. He worked for more then ten years to create 4 versions of the Harrison Marine Chronometer. The oldest extant sun-dial can be found in Egypt and dates back to 1500 BCE. They must have gotten used to wearing a wristwatch everyday. it was not until the 17th century that they became more common and accurate. At this point. the wristwatch was mainly considered something that a woman would wear. We know that the early Egyptians used the pyramids as well as the obelisks as a forerunner to the sundial. It is said that one of the first watches was created in Italy around 1524 CE. When the war ended. Queen Anne of England wanted to extend her vast maritime power and offered a huge reward of 20. While pocket watches were invented in the 16th century. Men.

Eventually Europe followed in the U.S. It was not until 1675 CE that the implementation of a spiral balance spring changed timekeeping forever by taking timekeeping accuracy from fractions of an hour to fractions of a minute. small enough to carry on a person. The inaccuracy of timepieces in this era were very common and most watches only had one hand that had to be wound at least twice a day. this group would contain early watches worn on a chain around the neck. and therefore were impractical to transport on one’s person. 1700-1775 – Steady Progress 1775-1830 – The First Chronometers 1830-1900 . a watch would only have to be wound once a day instead of every twelve hours. It was then a second hand was added to the watch. With time came greater technology. Eventually. By the 1850s. it didn't take very long to create an accurate pocket watch. With respect to mechanical improvements. Generally.'s trend and began to produce in mass quantities as well. the main milestones of watch evolution can be stated as • • • • • • • Prior to 1600 – The Earliest Watches 1600-1675 – The Age of Decoration. 1675-1700 – The Balance Spring. Typically. Other Page | 7 .lack of driving power. bearings were made from jewels (usually synthetic sapphires or rubies). and with the advent of better steel works to create more precise gears and springs. the timepieces of the day were driven by weights. At this time Roman numerals were added to mark the minutes. pocket watches and then wrist watches. To make sure the watch kept its accuracy over long periods of time. In 1524. America was leading the race in mass volume watch production. This was the earliest known date of a watch being produced. 15 florins were paid to Henlein for a gilt musk-apple with a watch. A watch is defined as a spring driven timekeeper.The Era of Complications 1900 on – Metallurgy to the Rescue The major milestones though have been explained in greater detail which is as follows: Prior to 1600 – The Earliest Watches Before 1600 the main problem in portable timekeeping was the driving power. Timepieces of that era were typically driven by weights making it very difficult for portable use. due to rapid development.

meant that timekeeping was not the art it is today. The first movements were straight verge movements. Thus watchmakers found a significant difference in timing between the short arcs and the long arcs. Watches were thinning by using a three-quarter or half plate movement. the balance. other methods of providing constant torque on the train were tried. opened up a whole range of problems for watchmakers. The fusee continued till the last decades of the century. but brass movements appeared shortly thereafter . This however. In an attempt to prevent over oscillation of the balance wheel. but even with all these embellishments. a spiral spring’s tension will not be constant from fully wound to unwound. the first use was made of the spiral-leaf main spring. This helped. lever and escape wheel were placed with separate cocks in a space obtained by cutting away a section of the plate. The variations in quality. In the half plate. The first movements were made of steel. In the horological industry. In the three-quarter movement. The Swiss and the English products do not occur till about 1575. as it allowed horologists to power a movement without the need for the common hanging weights. In an attempt to reduce this spring force error. in England.It was before the introduction of the gear cutting engine and steel production was not as precise as it is today. astronomical data and dates were already being displayed on watches. this period was one of great advancement and innovation. stops were also included as a crude form of regulator. but in the quest for better accuracy. At that end of this period. the lever watch reigned supreme. By 1860 the design of the lever had changed from a straight-sided design to a curved one. and were probably of German or French origin. In this period. 1830-1900 – The Era of Complications By 1850. with no balance springs. This was crucial to the production of the first appeared in 1548. and the fact that many steel alloys had not even been discovered at this time. the fourth wheel also had a separate cock. Page | 8 . These stops were typically of stiff hog bristle. Typically. Most watches had only the hour hand and had to be wound twice a day. timekeeping was still very poor. These first timepieces were notoriously inaccurate. the watchmakers found that they could increase the accuracy of their timepieces by using only a portion of the mainspring that produced nearly linear tension on the train.

The Swiss however. It should be remembered that up to 1840. A different concept was followed by the Waterbury Page | 9 . patented in 1892 by Bonniksen of Coventry. but the main ones were Waltham (1850-1950). day. but eventually this was dispensed with. the cases had no need to be opened all the time. With the introduction of the second hand. watches were all hand-finished. jaquemarts. musical.In 1814 Massey first used a push or pump winder with a rack operated by pushing the pendant that turned a ratchet on the fusee or going barrel. was designed in 1844 by Nicole. Nearing the end of this period. Parts therefore became interchangeable. date. It was not until 1862 that the contemporary three push system was used. Various winding systems were devised around the first and second decades. thus making the hole placement repeatable. striking. however. automata. in these early watches. some makers provided for the hand to be stopped like a chronometer. that devised machine tools that laid the foundation for mass production. Elgin (1864-on ) and Hamilton (1892-on). The designer of the first production machine was Leschot. as we now know it. A large proportion of the watches with complications were Swiss with lever or cylinder escapments. A snap on bezel was introduced. The main change was that holes were drilled using a panotgraph. moonwork. With keyless wind and pendant hand setting. Companies involved in watch production had mixed fortunes. The Americans were the first to begin volume production. watchmakers had devised mechanisms for all the grand complications such as repeaters. and the hinged back was snapped firmly shut. with a small lifting ear to assist opening. alarm. However. so that parts were not interchangeable. believed there was a market for cheaper. An English refinement was the karrusel . Initially the change of mode from hand set to wind was done via an external lever. It was Frederic-Jalpy (1749-1812). stopping the seconds hand also stopped the whole watch. month and stopwork. The first true chronograph. but the first man to devise winding and hand setting through the pendant was Audemars in 1838. The dials were divided to show fifths of a second and the number of beats was raised to increase accuracy. multi-dial. machine made watches with interchangeable parts. probably around the 1850’s.

self-compensating balances were made with bimetallic properties. Dials were white enamel or metal without decoration but the numbers were sometimes made luminous.. They made a cheap machine made watch with only 54 parts. It had a mainspring coiled behind the watch and the whole movement turned once an hour. cut ends and other compensations. horologists discovered the nonisochronous behaviour of the balance due to both temperature and position. Markets like Turkey and particularly China imported watches from England and later Switzerland. but tended to scratch and yellow with age. with each part intricately engraved. In an attempt to cure the balance problem. Page | 10 . Steel parts were blued or polished. compensated balance virtually eliminated middle temperature error. but the company failed with too cheap an image for their product. Guillaume produced an alloy such that when used with brass in a cut.The pocketwatch continued till the end of the Second World War (1945) but after that production was minimal. He further experimented and in 1919 it was possible to make a monometallic balance of Invar controlled by an Elinvar balance spring. In 1900. they were usually able to compensate for high temperature and low temperature but not for middle temperature errors. The movements in the Chinese watches were particularly ornate. the ratio of wrist watches to pocket watches was about 50:1. The other main change in this period was the form factor change that allowed the move from pocket watches to wristwatches . Winding was by button and hand adjustment by rocking bar or shifting sleeve. Hinged or snap bezels and backs were used. By 1930. This was in effect a tourbillion type watch. With the introduction of the balance spring on the first verge watch. Watch glasses started to be made from transparent plastic material which was less fragile. founded in 1878. The enamel dials nearly always had centre-seconds hands which moved but once a second. However. the strap lugs were simple wire loops added to what appeared to be very small pocket watch cases. In early designs or pocket watch conversions. 1900 Onwards – Metallurgy to the Rescue The main changes to horology in this period came not from mechanisms but mostly from the advances in metallurgy.Watch Company.

The Swiss watch captured a large percentage of the world’s consumption. This new technology was embraced and enhanced by the Asian watch industry. often with datework. shockproof. Manufacturers like Blancpain. Audemars Piguet. In 1945 quality wristwatches began to get complications that had been available in pocket watches. which replaced the escapement with electronic vibrations of a tuning fork. two escapements won through.5 beats per second for a mechanical watch to nearly 2. This changed the beat of the watch from about 2.5 million beats per second for an electronic watch. The cylinder escapement. with mechanisms to make them waterproof. After the war however. Japan in particular. This system allowed cheap and very accurate watches to be mass produced in the millions. The lever was used for expensive jeweled or partly jeweled watches whereas the pin pallet was used in cheaper watches. was a completely new concept. Now the market for mechanical watches is flourishing again. The resurgence in the mechanical watch was brought about mainly by the nostalgia of the Italians. Page | 11 . these electronic watches were so successful that the mechanical watch was nearly lost forever. Lange & Sohne and Vacheron Constantin all make high quality mechanical watches. The main complication was the Perrelet method of automatic winding. was finally a casualty of a crowded marketplace. alarmwork and moonwork etc. with over 6 million movements and ebauches produced in 1995. vacuum and gravity. Thirty percent of most Swiss watchmakers production is mechanical. production with new tooling began again. and able to function in extremes of pressure. Rolex. Watches were also made more robust. The battery-powered watch was available in 1952 as an alternative to the automatic. after two hundred years of life. In the new watchmaking regime. The chronograph became available. Jaegar LeCoultre. By 1970’s . mainly in the upper sections of the marketplace. The electronic watch. Patek Phillipe.English production tapered off till it effectively finished in 1930.

Earlier seen as a luxury item. Indian watches market was for long dominated by public sector organisations like Hindustan Machine Tools Ltd. Ajanta and Timex along with foreign entities jostling for display space in the smallest of shops selling these products.WATCH INDUSTRY IN INDIA Wrist Watches form an integral part of the personality of individuals in the present era. the country was solely dependent on imports to meet the Page | 12 . they are now witnessing a fundamental change in perception. and has now left the pioneers far behind or nowhere in market by private sector enterprises like Titan. and are now gaining respect as an essential utility item. Before the establishment of HMT as the dominant player in the Indian markets initially. Sonata. (HMT) and Allwyn (also famous for its refrigerators once upon a time!). For the watch industry. time seems in its favour what with the liberalization of the Indian market coupled with the rising purchasing power of the young and consumerist Indians.

the estimated annual market size is around USD 195 million. Movado. The size of the watch market currently is estimated to be around 40 to 45 million pieces annually. Longines. Thus it is a buyers market with multitude of designs that have entered and flooded the market place. The price of the watches is a major motive in the minds of the customer. However. namely low priced. Being extremely brand conscious. three segments can be identified here. Titan. currently. the medium price range consists of watches in the INR 500-1500 range and the high priced watches come in the INR 1500 upwards range. but they appeal to only a small category of the watch market in India. buyers are extremely choosy about the brand and type of wrist watches they wear. The lower priced segment consists of watches priced less than INR 500. Many watch makers have made significant inroads in the industry and others are in the process of establishing themselves. Accordingly. medium priced. Swatch. Rolex. The average growth in the size of the market is slated to be around 10 -15 percent per year. This data is significant indeed in view of the socio economic distribution of the Indian populace. and high priced watches.internal demand. benefits and types of watches. In post liberalization India. Besides this. many watch companies are interested in setting up base in India. the market stood to witness intensive competition between foreign and Indian manufacturers like Timex. compared globally. In dollar terms. their tastes have evolved over the years and have gone beyond the realms of durability to choose in terms of aesthetics and elegance. Rado. A casual study of the watch market reveals that it is segmented on basis of multiple proportions such as price. and the rest of the demand is being met by the unorganised grey sector. Fréderique Constant. There are other higher categories as well such as the premium and luxury range. More than 58 percent of the population is under twenty five and more than 80 percent of the population is below 45 years of age. Looking into this fact and the long standing Indian tradition of comparing watches with jewellery and other traditional items. Page | 13 . and many others. establishment of HMT as the leading player in the wrist watch segment in the 1960’s. changed the scenario. Mont Blanc. despite the fact that the penetration of watches is the lowest. The organized sector alone contributes up to 30 percent of this figure.

In terms of importance in the market. not to touch on anything that decreases the "snob" value. Customers usually base their preferences and buying decisions on a variety of factors like price. Indian customers are relying more on departmental stores and shopping malls to purchase their wants and needs. Allwyn 8% and others 11%. Major players in Indian market 1. it is expected that both international and domestic watch manufacturers will do well in the Indian markets. Some customers look out for features like fashion appeal. with the right planning and the right partners and experienced collaborators. However. aesthetic appeal and brand name. due to reasons like price sensitiveness and its largely unorganized sector. Titan 18%. However. 2. Since the early 1990’s. technology. Others go for durability. Many customers prefer mechanical and automatic watches.5% with others. The Japanese are ready to counter this strategy with Page | 14 . Newer segments are also on rise such as ladies watches. sophistication and status. though India is still considered to be a difficult market to penetrate. economy and precision. Moreover. who are now looking forward to utilise these new outlets to reach out to the Indian masses. In the end. The retail sector has just begun to boom in India. including mechanical watches the market shares are: HMT 63%.According to a recent study. to market their products in the same category as jewellery. Watch manufacturers are looking at a suitable mix to market their products ranging from exclusive retail outlets to display sections in malls and large departmental stores. Thus there is enormous potential for growth of the industry in this untapped segment. A combination of all these points ultimately forms the customer’s buying decision that translates into the purchase of a watch. around 20 to 25 watches are being sold for every 1000 citizens. This has come as a boon for watch manufacturers and dealers. while others prefer quartz watches. utility. more than 90 percent of the watches were from the lower price ranges with international costs being less than 20 euros. The Swiss have four-pronged stategies: to remove myths from the Indian mind that Swiss watches are only for the "super rich".5% and 7. HMT 29%. Titan has a market share of about 58%. to introduce faces Indian can relate to. durability. children’s watches and gent’s watches. The Japanese are feeling the Swiss pressure intending to market watches as "objets d'art" rather than as mere gizmos. Allwyn 5.

One young man contacted in the field survey commented: "I get respect in my friend's circle because of the uniqueness and the value that my watch carries. The categories most sought after are chronographs. Elite / Professional class. They plan to flood the Indian market with user-friendly timepieces. sports watches. Rolex. 3. 4. B. have launched solid gold collections. This range has been Page | 15 . maintaining cost advantages. They are fashion conscious and update their choices as per the trend. diamonds. They are pushing in sleek. 2. Cost doesn't matter much to them. gold. Indian consumers can be divided into different categories: A. Most preferred watch styles are Day/Date. Usually foreign brands with a classic look are preferred. Women: 1. Young men: New generation is highly trends conscious and prefers functionalities (whether useful or not) with hot looks. Middle income group (Men). this category bears timepieces as status-symbols to communicate their "wealth" achievement. Young men from middle class families: They change watches frequently. Esprit are at the top list of the most popular brands in this category. Market savvy. The major revenue sources are organized Indian players for whom they act as OEM suppliers. This category possesses knowledge about the variety of brands available but is price sensitive." 7. 6. 4. scratchproof watches. Prefer to wear branded watches with variety of styles. sporty. Traditional Businessmen / "Nouveaux riches": Not much concerned by the utility of the watch. preferring branded/economical products with a "decent" style. Nike. Amongst the Indian players. where they can get cheap imitations of high value brands. But to keep the same share of the medium market (50%) means constant upgrading and innovations. The Indian Consumer Based on a research. like Titan. high profile executive: This category prefers branded and designer watches. waterproof watches. etc… Preferred brands: Omega. Jewellery is supposedly Indian women’s prime "weakness". Titan is now flooding the market with international style and features watches at highly competitive prices. scubas. Young men from higher middle families: They prefer branded watches. The are equally trend conscious but highly price sensitive. Swatch. Taiwanese and Hong Kong/China products are available in the grey market. This category generally prefers to buy an all-occasion watch. digital. 3. They ideally prefer watches with high jewellery value. 5. Titan is the undisputed leader. but solely rely on the grey market. electronic gizmos with a very strong cost advantage. Some of the Indian watch manufacturers. Men: 1. This category generally prefers to have a small collection of watches suited to various occasions. Rado.

They are price conscious and prefer to buy not very expensive branded watches. 7. 3. 5. Switzerland. USA and Middle East countries. Western Europe. 4. skeleton watches. Japan and Hong Kong are the important watch manufacturing countries. Multi-dial. if compared to the previous generation.immensely appreciated by women having good disposable incomes and has also established itself as a regular marriage gift item. 6. Thin cases. Digital watches  Multi function watches. Middle class women prefer to buy an all occasion watch. However this trend is also shifting towards the women wanting to project a "confident. The popular "James Bond" Omega watch is very much in demand among the men (in 2000 Omega sold 12'000 pieces). bold" image. Jewellery watches. Indian women want accessories to match their different dress codes and colors. 2. they search to buy different watches according to various occasions and dress combinations. Salient Features of Contemporary Technology The salient features of contemporary technology are the following : Analogue watches     Superior appearance parts. Page | 16 . The new young women generation is hyper-conscious about their preferences and choices. INTERNATIONAL SCENARIO The total world production of watches (in 1991-92) is 828 million pieces. Sports watches and digital watches with futuristic designs are fast becoming very popular amongst college girls. Switzerland has the largest share in value terms. The upper income group and upper middle class women are very conscious about their respective choices in terms of apparels and accessories. The important markets for watches are Hong Kong. Widely exposed to international brand names but highly price sensitive. This particular fact has been noticed by all the major watch manufacturers who are flooding the Indian market with "vibrant" colors and rich designs. While Japan leads the world in terms of volumes. Watches are in no way different and designers watches are logically taking the lead in this snob value society.

Electronic components. Development of long life battery cells. This would not only lead to reduction in costs. Individual companies sometimes sponsor development in specific areas. The technology gaps are in the following areas:    Raw materials. Added to this. These factors facilitate ongoing development.Others     High level of process automation. in terms of not having to import metals. drilling. though more sophisticated equipment are reportedly available abroad. This has not happened due to the relatively small size and infancy of the industry. Testing Facility The testing facilities with large companies are said to be adequate. stamping. the industry is required to bear the cost of research. Increased use of plastics. The big three companies have active R & D departments. Till recently they were concentrating on indigenization of components and developing jigs and fixtures. in India there is not much research that goes on in areas connected with watches to offer any spin-off benefit. In the countries manufacturing watches. the scale of operation is very high. but also prevent material wastage. Therefore. In contrast. The smaller companies may not possess the standard testing equipment that is desirable. significant developments in watches are spin-offs of elaborate and fundamental research. Development of different calibre of ECBs. etc leading to wastage. Now some of them have started process improvement and product development projects. This will be possible as plastic components are moulded while metal parts undergo machining. RESEARCH AND DEVELOPMENT IN WATCH INDUSTRY There is hardly any research and development activity in national laboratories or educational institutions in this area. Finishing/electroplating Another area that potentially has immense benefit to the industry is development of plastics for movement parts. A central facility with Horological Inspection Institute is Page | 17 .

The Nebula collection for women uses solid structure in gold to give it a classic effect whereas the men's collection mostly has leather straps.not used by all the companies. Thrust Areas of Indigenous Technology The thrust areas should be as given below:     Indigenization of components. Development of plastics and other raw materials. There is a perfect watch for every occasion and every budget. Page | 18 .5 million watches. and has strong links with HMT. Indigenization of ICs. For those who live by the rules of fashion can indulge in Titan Technology collection which has very cool watches in steel-leather. Steel. Titan manufactures more than 5. Titan watches are made both for men and women. In the casual range. Titan offices are also situated in Singapore. Raga. Development of appearance parts and new styles. Girls can sport very trendy metallic watches in the shape of bracelets. the Titan brands are Nebula. TOP BRANDS IN THE WATCH INDUSTRY TITAN Titan is the largest manufacturer of wrist watch brands in the Indian subcontinent and ranks sixth in the world. and Gold and Steel. steel-gold or in complete steel. The headquarters of the Titan Company are located in Bangalore in India. Currently the BIS committee is reported to be working on standards for raw materials. Already 37 of them have been approved. it was co-promoted by HMT with UNIDO. The watches are highly priced but for the economically-conscious there are categories called “Karishma” and “Sonata” which cost a modest amount. Standards The Bureau of Indian Standard (BIS) is developing horological standards. Titan has Fastrack and Raga with attractive straps and shapes. Dubai and London. The company also produces exquisite jewelry. In the formal range. It is jointly owned by Tamil Nadu Industrial Development Corporation (TIDCO) and the Tatas. In a year. Edge. They are specially crafted for young people.

Rolex markets three brilliant series of its products. The Company's great history of excellent creations has been matched by an equally glorified present of great achievements and success. and Pearl Professional has models such as GMT-Master and Submariner Cellini has models such as Orchid.Men have more chunky options. These watches are proudly manufactured by a Swiss manufacturer. Its tag itself is taken as a proof of its marvelous quality. In 1953. They are sold as sets for weddings. Hans Wilsdorf and Alfred Davis. Rolex watches definitely reflect your sophisticated choice and is also an indicator of your social status. These watches are used as important accessories and are as good as the valuable jewelries. Rolex is eternally glamorous and is supported by a long history of great performance. However. DATEJUST. SWATCH Swatch presents a brilliant collection of highly innovative quartz watches which are marked by universal presence. Swatch can definitely prove to be an important accessory giving an additional touch to your personality. Titan Regalia collection specializes in golden watches for both men and women.) Hindustan Machine Tools is a public sector undertaking of the Government of India. Rolex watches are the first ones to have been produced with waterproof technologies. HMT as a brand is popular among the masses as a premium watch making company. the latter incorporated the machine tool manufacturing company by the name of Hindustan Machine Tools Limited. Rolex SA stationed at Geneva in Switzerland. HMT (HINDUSTAN MACHINE TOOLS LTD. ROLEX Rolex is one of the most sought after and luxurious brands of all modern day watches which are bestowed with elegant and classy looks. since its very inception. Prince and Cellissima. HMT Limited is into a lot of other things as well. Titan Bandhan has beautiful pairs of watches for men and women. They are:    Oyster Perpetual has models such as Cosmograph Daytona. Page | 19 . It was founded in 1905.

Fabiloreado GE185. Tissot Swiss watches are admired for its features like classic elegance. MONT BLANC Mont Blanc. Tissot watches are mainly designed to suit every person's taste and are widely popular among those who are brand conscious. One of its remarkable innovations is the Swatch Internet Time which was introduced in 1998. available in elegant colors like steel or gold with dials colored in silver. Swatch Labirinto STK404 and Access Black Injection SUMM100. Tissot offers some of the exclusive range of quality watches for its cherished users. This simplified the process of keeping a record of the different time zones. With a history of 150 years. sporty chic. Tissot is known for its innovative creations. blue or black. golden luxury. Tissot brand watches are committed in providing complete customer satisfaction with excellent services.Swatch has proved to be one of the most desirable and reliable watch brands ever since it was launched in the market by the Swatch Group Ltd. Something New LB153. This proved to be very useful for it enabled people to know better about the different times prevailing at a given moment in different parts of the world. in 1983. high fashion. Some years back the illustrious Mont Blanc Company also introduced a range of leather products. and for its traditional class. The very first dazzling lot of Swatch was launched in Switzerland and proved to be a market storming product. Tissot watches has some of the best selling sport collections. These sport watches come with excellent technology that too give proper value to money. designer watches and Page | 20 . stunning jewelry. fragrances. the brand which has been famous since ages as the manufacturer of first-rate writing instruments has also attracted worldwide attention for its exquisitely crafted. high-tech functionality. Chessboard LB160G. For the people who are passionate about watch collection. The Swatch Watches are known for their innovative styling and designing. premium watches . the Tissot Company has emerged as a distinguished brand name with its location near the small Swiss Jura town of Le Locle. Swatch Auto Quartz STK100. Strawberry Jam LK243. cutting-edge designs and high tech contemporary technologies. Some of the current Swatch models are Blue LR115. These classic watches are available in 150 countries all over the world. Swatch offers varied watches ranging from ‘metal bodied watches' to the ‘thin and flat bodied watches'. TISSOT Tissot is an exclusive watch brand which has made its presence worldwide for its eminent Swiss timepieces. having a range of Swatch products is a must.

In fact. useful mechanism and exquisite craftsmanship.Profile. star. Ebel Watch brands are designed to suit all occasions and designed with several metals and leathers. Mont Blanc has its production unit in Le Locle in Switzerland where all its timepieces are produced. Ebel timepieces are studded with gemstones and precious stones and offer a silky soft feel to users who adorn them. summit and time walker Watches for Women – profile. Ebel watch cases and bracelets are usually done up with steel or yellow gold metals. sport and star EBEL Ebel is a branded watch company which has a signature of expertise and Quality. without any kind of sharp edges. After three years the name Mont Blanc was adopted and since that time the company has been making the internationally famous pens and other writing instruments. The mother-of-pearls are pure white metal which is imported from Japan which accentuates the watch designs. over the ages the unique creations of Mont Blanc have reflected superior quality. The following are the other collection of watches under Mont Blanc – Watches for men .other accessories. The founder of Ebel watches was Eugene Ebel. Ebel watches are committed in proving distinctiveness in each of its timepieces that it produces. The exclusive range of Mont Blanc watches truly inspire awe with its solid metal work. It was Pierre-Alain Ebel. Crocodile skins or calfskin are used in making the Ebel leather straps. Mont Blanc was originally set up by a stationer of Hamburg in 1906 and named it as Simplo Filler Pen Company. the special collection of Mont Blanc is known as Haute Horlogerie collection. Ebel watches are made with state of art technology and carry a contemporary yet elegant look as far as its design and make is concerned. then Ebel is the ideal wear for both men and women. Ebel watches are designed with sleek designs. Among them the most famous is the Montblanc TimeWalker collection for men and the stunning Mont Blanc Profile Lady Elegance Diamonds collection for women. skilled craftsmanship and quality. Page | 21 . Mont Blanc offers separate collections for men and women that are specially created to cater to individual needs. Thus. sport. the grandson of the original founder converted this loss making company and today it is one of the reputed brands in watch industry. If you are looking out for branded watches. This Mont Blanc range of watches is created by expert watchmakers at the Institut Minerva de Recherche en Haute Horlogerie.

OMEGA When it is about the Swiss watches. was one of the greatest innovations of Omega. Nicole Kidman. the Racend OMEGA Timer (1949). Omega is the official timekeeper for 22 Olympic Games. Sedna. Some of the ambassadors of this watch brand are : Michael Schumacher. OMEGA watch brands are widely recognized for their quality and reliability watches and carries a great sense of tradition. This classic watch made its first innovation by creating world's first independent. Omega is a global company known for their Swiss watches that offer some of the wide range of men and women collections. Aqua. Page | 22 . Omega is also popular worldwide for their jewelry collections. Griffes and Omegamania are the main jewelry collection they boast of. If you are conscious about having a brand watch then Omega is surely the best choice for you. It was in the Helsinki 1952 Olympic games. Seamaster. Speedmaster. The world's first photo finish camera. Russell Coutts and many others. Their collections are known as: Constellation. Apart from the Swiss watches. De Ville and Specialities. Alexander Popov. which had the facility of OMEGA Time Recorder (OTR). Cindy Crawford. portable and water-resistant photoelectric cell way back in 1945. we can always relate to the brand name of Omega. Omega today stands as a Brand statement especially for the celebrities. OMEGA stood as the first company to utilize electronic timing in sport.

and distributors. agents. or ‘modes’. is shaped by basic ‘trends’. Trend towards new manufactures: The realization by brands on how dependent they can be on a single supplier also accelerated the trend towards the verticalization of production. ‘trends’.With this in mind. and the products… But. new designs. More and more watch companies are announcing their intention to gradually transform themselves into more or less ‘complete’ manufactures. Both upstream and downstream of the product. it aims. and exceptional pieces to collectors and other watch aficionados. wholesalers. a little bit at a time. Europa Star in print presents this Special Trends section. It is a long and perilous journey.TRENDS SHAPING WATCH INDUSTRY When people speak of ‘trends’. Trend towards new movements: The decision taken by ETA in 2002 (but delayed to 2010 by the Swiss Commission on Competition) to no longer deliver mechanical movements gave a boost to the industry to start creating movements. to establish a few reference points for the future. which finally ends at the retailer after passing through the successive hands of exporters. fashion. Trend towards exceptional pieces: Increasing numbers of watchmakers are seeking to occupy ‘luxury niches’ by proposing very small quantities of hyper-sophisticated. from production to distribution. all of which transform the timekeeping landscape. ETA ‘clones’ are flourishing and a number of firms specializing in haut de gamme calibres are spreading their wings. we tend to think of new models. We present a few recent examples of this ever-growing ‘trend’. independent agents and other intermediaries seem to be in Page | 23 . do not only exist in the shapes and in the products placed on the market. however. customdesigned. Trend towards the integration of distribution: The traditional channel of distribution. While it does not claim to encompass all the trends. the industry itself. Today. On many markets. is subject to strong strains. by fashions and fads. We take a look at the state of mechanical movement production in Switzerland.

Besides low penetration..000. having witnessed a CAGR of 11% over the last 5 years. SCOPE OF WATCH INDUSTRY At a time when the broad contours of the Indian economy are emanating positive vibes. the mass segment (lowest in the value chain) comprises a sizeable 11% of the total industry. These two indicators evidently signal the magnitude of untapped market and the scope for established players. the per capita private consumption expenditure per annum in India has grown to Rs 18. to the greatest extent possible. more than 50% of the population is in the working age group and personal disposable income levels are at an all-time high. which is largely catered to by the domestic players is the most addressable market. are yet to cater to a much broader customer profile. Page | 24 . the lower end segment (43% of the total share). As per the CMIE.733 in FY06 from Rs 12.650 in FY00 (CAGR of 8%). With penetration levels of 37%. The value proposition. Of this.given that only 4. the inflection point of the consumer durable industry is certainly well timed. the Indian watch industry has a lot more to offer. However.. sectors like the branded watch industry that have catered to the premium segment of the population so far.5 m (13%) watches out of the 35 m sold annually are priced at over Rs 1. Despite competition from the unorganised market and Chinese products.danger of extinction because the basic trend is for the brands to take distribution in-house. The mix of the branded watch segment in the adjoining chart clearly shows that the 'value proposition still remains the key USP in this sector. there also exists huge scope for upgrading .

The lower end valued at Rs 12 bn in FY06 has enjoyed the largest market share even since the government owned HMT forayed into the branded watch market. of which only 7 are owned while the remaining are under the  Page | 25 .. The company reaches out to its target customers through multiple chains like own stores (World of Titan. This is because the historical analysis of the performance of the branded watch players in the country (like HMT and Titan) shows that it the lower end of the value chain that drives volumes. The mass segment that is valued at Rs 3 bn has witnessed a sizeable growth in the past decade despite stiff competition from unorganized players. At the same time.The volume game.. The premium segment (valued at Rs 3.4 bn) has been swarmed by varied products like Titan (regular wear). Titan is launching watches priced below Rs 200 and penetrating rural markets through alternate distribution channels. Omega and Rolex and fashion brands Fossil and Calvin Klein. nevertheless. However. Multi-channel retailing: Titan has pioneered the concept of specialty retailing in the watches business. Swatch (sports wear) and Espirit. Time Zone and Sonata Stores) as also multi branded outlets and a national chain of stores. Structural factors impacting the industry  Lower end of the value chain driving volumes: Products seeking to target higher volumes need to necessarily offer the value proposition. Titan has 174 World of Titan outlets. so as to retain margins.7 bn). it will be necessary for players like Titan to continue innovating the top end of the value chain. Also. the mid upper segment (valued at Rs 9. continue to find takers in a very niche segment and faces competition from Swiss brands like Tissot. to capitalize on the vast potential offered by the economy segment.

000 people per annum in India is as low as 40 as against 120 globally. The main brand war will be fought in the (1 US$ and 1 Euro = approximately 50 Indian rupees) . Titan also manages 142 Time Zones.. The unorganised sector will grow further. Vibrant colours and futuristic designs will be a major trend. sub 1000 Indian Rs The top premium brands will see a rise but there is a question mark: people spending that much of money are frequent overseas travellers and prefer to buy watches from foreign outlets rather than Indian. the ability to innovate customer centric product offerings and market them through multiple channels will enable players to retain market share and enhance margins. Chinese watches will flood the market to the advantage of the unorganized players and smugglers. Internationally branded innovative watches are flooding in. presence of foreign players is set to intensify the competition. Also. The counter strategies of the top Indian watch companies will be an interesting thing to observe. 37% of the population owns watches (Source: IRS data 2005). it will be extremely difficult for the Indian players to maintain a sustainable growth.5% of the population owns multiple watches. design and price in a highly price sensitive environment. The sale of watches per 1. while just 3. Further.. Besides stocking the entire range of Titan. This data goes beyond doubt to prove the scalability of the Indian branded watch market. Titan has recently started using ITC's e-Choupal channel to penetrate the rural markets. these outlets sell select models of Sonata (lower end) and Tommy Hilfiger (licensed brand) watches. Only price. - Page | 26 . While the penetration level of 71% in A and B grade cities is healthy. In the near future… Now that the Indian market is widely open to importations. Scope ahead. Thus. which are multi branded outlets operating in the watches business. degree of innovation and continuous brand personality enhancement can protect them from foreign invasion. the level is as low as 19% in the rural areas.franchise arrangement. The majority of the market share will be taken away by renowned global brands which are pushing brand name. However what players need to keep in mind is that they are catering to discerning customers and well-defined customer segments with awareness of designs and brands. style.

Soon you will have watches incorporating the GPS for navigating your cars and carrying your entire medical history to be referred to by doctors in emergency! The Swiss currently have a 55 per cent market share in this segment. do we have imagination. On top is what Hayek calls “the art form”. It is important to note that last year Breguet sold 300 watches in India for probably an average price of Rs. The last is what Hayek calls “watches to read time”.7-10 lakhs. Food for thought: Would some of our big Asian brands fall in this last category? Would the Indian brands ever create an “art form” watch? More importantly. You already have watches that are reading your pulse rate and watches that can be used in emergency as a cell phone. The Swiss industry holds 95 per cent of this market and Hayek believes that this market will continue to grow at about 10 per cent a year over the next decade. more particularly. Watch industry upbeat on future V. Just a wake-up call though. He believes these are cheap watches priced between $1 and $30 and will grow at about 20 per cent annually. His Breguet falls into that category. As this market will have enormous volume throughput. The Swiss have only a 5 per cent of this market. These are masterpieces where each component is handcrafted by Masters of Horology and designed by master designers. diligence and perseverance to sell a Rs10 lakh watch?Cynics seem to believe that such markets do not exist in India. local watch brands will be beneficiaries of some interesting volume sales. It is the same as the works of Picasso and Monet that you see in the Louvre.MEDIA WATCH Watches of the Future By: Nicholas Hayek Three clear and distinct scenarios are emerging. in India. It needs both savvy and guts to sell luxury products anywhere in the world. There is a lot of innovation in this space around the world. for them. This is where all local players survive and grow. Rishi Kumar Page | 27 . The next scenario is what Hayek calls “technology watches”. Chances are that over the decade the Swiss will lose market share in this segment from 55 per cent to maybe 40 per cent. He believes that watch as an “art form” will continue to stay in the hands of the Swiss. The market is growing rapidly at about 17 per cent.

" he said. This is clear from the positive signals from the Indian economy. one segment that has historically grown . However. have got together as association of watch manufacturers and we seeking a minimum levy on the value ascribed and have requested Government to bring in a directive to regulate the market. "We trying to lobby as part of the organised sector against this market. the country's watch industry is set to grow at about 9 per cent-11 per cent in 2004. are We are the "The landed duty for watches works out to about 70 per cent — covering basic duty. we could possibly witness growth rate of about 9 per cent to 11 per cent. who was here to launch a theme store at Prasad Imax Mall. certain sectors are growing driven by the luxury-end models and sports patterns.AFTER two years of stagnation and dip in some segments. South Pacific and India. which will make it more competitive. Regional Director. The country's watch market is estimated at about Rs 1. Timex. There is a large parallel market that is thriving in the country. The overall duty used to be about 81 per cent some time jewellery — has shown declining trend. are expected in the next two to three years. told Business Line that the overall watch industry in the country was looking up. he said. there is positive traction towards investments where lifestyle products and retail are major gainers. Within the watch industry. some more changes. But with acceleration in the retail segment. Could the wrist watch industry be growing? April 10. With the Government being a signatory to trade and tariffs. 2009 by apurvadesai Is it possible that wrist watch production and sales could actually be growing? Conventional wisdom is that the always with you devices such Page | 28 . "A conservative estimate is that we could grow the watch market by at least 6 per cent to 7 per cent." Mr Kapoor said. Mr Kapoor. and ad valorum — and we expect this to gradually come down further." he said. When the economy grows.000 crore in the organised sector and another Rs 500 crore comes from the unorganised market. according to Mr Kapil Kapoor.

Exports of Swiss plastic watches such as Swatches were down 12% from January to October compared with the year-earlier period. My initial cursory search for more recent wrist watch sales data since 2005 has been fruitless. this article in the Times of India from February 2009 at first glance is shocking to me. Most other industries showed negative growth. Genender International. Globally. Data from 2003-2005 supports this premise– here are some key stats from a Wall Street Journal article in 2005. “In 2005. compared to only a 0. However.32% growth from 2006 to 2007. Switzerland. The Times of India reports the following data points: • • • • The fastest growing industry in the Indian state of Karnataka (where Bangalore is located) in 2008 was the wrist watch cell phones and ipods have driven down demand for watches. says Deborah Rudinsky of the Doneger Group. particularly in the younger generation who have grown up with cell phones. Rise in watch production was a result of local consumption combined with an increase in export orders. according to the Federation of the Swiss Watch Industry in Bienne. Roughly 30% of those exports go to the U.5 million units in the same period in 2008. a 109% growth rate. which licenses watches for teen brands such as HotKiss and Unionbay. (Watches in other price ranges — cheaper and more expensive — saw single-digit growth. it does seem plausible that fashion purchases have increased and may have stemmed the rate of decline globally as watch companies have changed their Page | 29 . its fifth straight quarter of year-to-year declines. Only the cement industry’s growth came close during that period at 70%.’s youth-oriented Fossil brand watches fell 13% during the quarter ending Oct.S. The number of wrist watches produced rose from 6 million units between April-December 2007. Cigarettes was third at 8%. to 12. a New York fashionmerchandising consultant.” Given that. 1. I can’t believe that the trend in wrist watch sales has stopped declining.) Domestic wholesale sales of Fossil Inc. My sense is that the growth in India cited in this article is a local phenomenon and that consolidation of production may have benefited that region. sales of watches that cost roughly $30 to $150 — those usually bought by teens and young adults — declined by more than 10% from 2004. says its sales of watches for young men have fallen by around 5% over the past several years due to competition from other gadgets.

Today. which nearly took me three months. The high demand has initiated new luxury watches coming into the mankind. He believes his passion for luxury watches makes him stand out in the crowd. If some industry experts are to be and product strategies to emphasize the fashion value of their products. especially in Punjab. the country's multi-million dollar luxury watch market holds a huge potential. "I had it customized. And this is the best time to enter the watch market. Luxury watch industry may have good time ahead Good times are predicted for the luxury watch industry of the country. and he already has a cell phone.the basic range starts with 200 to 2000 be a little more Page | 30 . a single data point from this weekend also surprised me– my 12 year old nephew told me that he’d like to buy a watch. here were times when the Indian watch industry was dominated by HMT and Allwyn brands. it is open to all. Classified in terms of range of luxury . Luxury watches of national and international brands have created a new market for Punjab. The super-luxury watches cost 2. Also.000 dollars.000 dollars.Navneet Saxena of Chandigarh has a fetish for high-end luxury watches. whereas the prestige section may set you back by over 200.000 to 20. with the consumers going for luxury watches unmindful of their prices. the tide has started to turn. I wanted it certainly different from what others are wearing . He also states that many of his friends do wear watches at school. This engineer by profession gifted himself an exclusive Omega watch on his 40th birthday. I’ve always used the example of the watch industry when talking about the challenges of long term planning (a key aspect of my job) — how many watch companies in the early 1990’s would have labeled mobile phones as their biggest threat 10-15 years out? Perhaps. the state with the highest per capita income in the country.

The picture may look rosy but the recessionary trends will have an impact on the growth of the luxury watch segment as well. It was a very delicate process and fortunately I was a part of it.exclusive. Things might be slowing down in the West. They are the potential buyers.thehindubusinessline. Ltd." said Yashovardhan Saboo.India's watch market is currently pegged at 500 million dollars of which luxury watches take about 150 million dollars. I celebrate life with my watch. This was the right time when they came to www.Pvt. be in IT or telecom sector so all these things made them the numbers which are growing in India. From being a mere testing ground to a more lucrative market." said Navneet. but the watchmakers in the subcontinent are making a beeline to take a bite of India's luxury and super-luxury segment. what is more important is the value. But the industry is bullish for the present picking up strong cues. so they are investing right now. "The way India has been exposed to the world. The real test is our people will pay money to buy those things. India has laid out the red carpet for majors like LVMH. They may not be making money at present but all these companies were very well aware when they entered into a new market. "For every product the cost is one thing." said Sandeep Kapoor. They did call me over a couple of times to see and approve. I got my name and date done on my watch and these people took it nearly 3 Page | 31 . the Director of Kapoor Watch Co. A Lange and Sohne and Jaegerle Coultre. So. So what's the perceived value. what does a customer see in it? You may feel a watch is expensive or not expensive. First three to five years was a time they spent into it to build a market and their revenue started coming and that's what they are doing in India. And the answer is that they the Chief Executive Officer of ETHOS. REFERENCES • • www. a car is expensive or not expensive. Page | 32 .com www.• • • www.