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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
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.
Shreyans Sipani 1011011 Madhav Nath 1011005
Shasank Goel 1011048
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
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
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 V 44-46 5 . Nos.CONTENTS Chapter I II Particulars An Introduction to the Watch Industry Company Profiles • • • Pg.
CHAPTER -I INTRODUCTION TO THE INDUSTRY Watch Industry History of Watches Overview of the Watch History 6 .
1687 : Daniel Quare patents the repeating mechanism that uses bells to sound quarter hours and the hours. Early 1600s : Form watches becoming popular. Massachusetts is the first watch manufacturer in America. 1833 : Antoine LeCoultre starts his own watchmaking business which later become JaegerLeCoultre. 1659 . 7 . Nicolas Facio. 1807 : Thomas Young invents the recording chronograph.• • • • • • • Prior to 1600 – The Earliest Watches 1600-1675 – The Age of Decoration. Bautte founded the watch company that would eventually become GirardPerregaux. France.The Era of Complications 1900 on – Metallurgy to the Rescue The Journey of Watch Industry 1500s : Germany : Peter Henlein creates the first pocket watch.1675 : Christian Huygens invents the "Remontoire". are the first to use rubies in watch movements. Religious themes are popular. 1635 : Around this time that the fusee was adapted from clocks to watches. Cases are shaped like animals and objects. 1759 : Thomas Mudge invents the English lever escapement. 1786 : Breguet is the first to use guilloche on watch dials. 1780 : Abraham Louis Perrelet invents the self winding movement. 1750 : Watch makers began using enamel on watch dials. 1820 : Thomas Prest registers a patent for the self winding watch. 1809 : Luther Goddard of Shrewsbury. 1485 : Leonardo da Vinci sketches a fusee for a clock. 1791 : J. 1675-1700 – The Balance Spring. 1700-1775 – Steady Progress 1775-1830 – The First Chronometers 1830-1900 . 1775 : Abraham Louis Breguet sets up his own watch making shop in Paris.F. 1704 : Peter and Jacob Debaufre.
1844 : Antoine LeCoultre invents the millionometre. 1886 : Geneva Seal established. 1884 : Greenwich. 1844 : The start. 1918 : Japan : Shakosha Watch Company opened. 1853 : Tissot makes the first dual time zone watch. 1923 : John Harwood is the first to mass produce a self winding wristwatch. 1858 : Minerva is founded.1837 : First Tiffany store opens. 1848 : Louis Brandt opens his own workshop in La Chaux-de-Fonds which eventually became the Omega Watch Company. 1914 : Eterna introduces the first wristwatch with an alarm. John Harwood invented the first Automatic wrist watch. This would become Citizen in 1931. 218487 8 . 1881 : Movado founded. England is officially named the zero meridian and used as the world wide recognized basis of time zones. stop. 1905 : Hans Wilsdorf starts the Rolex Watch Company. 1894 : Universal Geneve established. 1860 : Heuer is founded. 1865 : Zenith founded. Patent no. 1843: Adrien Philippe develops a watch with winding and setting through the crown. and reset chronograph is invented by Adolph Nicole.
1929 : First anti magnetic watch created by Tissot. 1933 : Ingersoll introduces the "Mickey Mouse" watch. 1986 : Audemars Piguet introduces the first self winding tourbillon. the first electronic digital watch. 1999 : Casio innovates with the first wristwatch with a built-in Global Positioning System (GPS).1924 : Tokyo : Seiko brand name is launched by Kinttaro Hattori. 1956 : Rolex introduces their first model that displays the day and date. MAJOR PLAYERS IN THE WATCH INDUSTRY Rolex • • • • • • World’s leading manufacturer of luxury watches Targets upper upper segments of customers Range starts from 1. 1970 : Hamilton releases the "Pulsar". 1957 : Hamilton introduces the world's first battery driven watch. 1985 : Swiss Heuer Company merges with TAG to form TAG Heuer. 1980 : Hublot founded. 1926 : Rolex introduces the first waterproof case called the "Oyster".08 billion with growth of 4% annually. (Liquid Crystal Display). 1962 : Rado produces the world's first scratch proof watch called the "Diastar 1". 1991 : Franck Muller founded. 1962 : ETA of Switzerland develops the first quartz battery operated watch.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 9 . 1983 : SMH of Switzerland launches the Swatch brand. 1972 : Longines and Seiko introduce the LCD. 2008 : Total luxury market size is $29.
Growth of 4% annually. 33. Division: Mass price market Upper price market Luxury watches (under $50) ($299-$999) (above $999) Middle price market ($50-$299) 10 . Presence in 18 cities with 75+ distribution networks Global Market size and division of watches: Total luxury market size is $29. Priyanka Chopra as brand ambassador Omega • • • • • • Subsidiary of swiss swatch group Omega claims 25% Indian luxury watch market Growing at almost 100% for the last 3 years India contribute almost 5% in group’s total revenue Abhishek Bachchan and Sonali Bandre are the brand ambassador.Tag Heuer • • • • • • Moet Hennessy Louis Vuitton (LVMH). Tag Heuer is known for manufacturing mid-high range sports watches and chronographs In india Tag Heuer is growin at a rate of 45% Tag Heuer watch range begins from Rs.08 billion.900 onwards in the Indian market Presence in 24 cities with 100 distribution points Shahrukh khan.
Indian luxury watch market • • • • • India’s total luxury spending is 14.4$ 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 .
sells world-class watches and allied products in more than 150 countries worldwide. Citizen Watches (India) Pvt. Ltd in 1997. a Japanese multinational company with a 70 year old heritage and worth 3 billion (US$).Overview of the Company: Citizen watches. 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. Eco-Drive – the world’s 1st light 13 . The entry was heralded by the revolutionary concept. The company was founded in 1924.
Brand History In 1924. was selected for technology transfer of the same in 1964. Shinpei Goto.powered watches. the Mayor of Tokyo-Japan. the PSU. And HMT. our policy is to provide the best products and services to all “citizens” in the world. Its record of achievements boasts many firsts the world’s most 14 . visited the Citizen Watch Co in Japan. Citizen hopes to make a contribution to people’s life in everywhere in the world by making products that is familiar and loved by citizens. 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. Company Idea: As the names ”Citizen Watch” or “Citizen Group” state. Impressed by the technologically advancement he sought technology know-how for India. Jawaharlal Nehru. CITIZEN has produced approximately 300 million units of complete watch and movement in 2006. lending an air of excitement and expectation around the brand and adding to the excellent equity CITIZEN already had enjoyed in India. Mr. As an all round watch manufacturer. named the watch "CITIZEN" and even after this was adopted as the name of the company in 1930. Pt. the Shokosha Watch Research Institute produced its first "CITIZEN" watch. CITIZEN has always been breaking new ground in watch technology for more than seven decades. Citizen’s association with India goes a ong way back when 1st Prime minister of India.
"Parashock. founded." marketed Japan's first electronic wristwatch "X-8" marketed World's first transistorized electronic quartz clock.. "Parawater. the worlds most advanced radio controlled watch. forerunner of Citizen Watch Co." marketed Watch exports to the People's Republic of China begun Japan's first wristwatch with an alarm." marketed Quartz watch "Exceed Gold" developed 15 . Founded Citizen's first wristwatch completed Japan's first wristwatch with calendar marketed Japan's first shock-resistant watch." 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.." marketed Japan's first water-resistant watch. "Crystron. and many more." marketed Ultra-slim analog quartz watch "Citizen Quartz 790. Citizen's first pocket watch manufactured Citizen Watch Co.accurate analog quartz watch. "Crystron Seven. 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. "Citizen Alarm. "Citizen Quartz Crystron Solar Cell." containing world's first movement to break the "1-mm barrier. the world’s thinnest light powered watch. Ltd." marketed World's thinnest 3-hands watch developed Automatic water-resistant wristwatch with day and date.
and every national surely desire better life and better goods. "Professional Diver 1. only 20." 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." marketed World's most pressure resistant watch.8mm x 3. The name Citizen was chosen to be "Close to the hearts of people everywhere". "Citizen Quartz Digi-Ana. 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. 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.300m" marketed The annual production quantity of movement become World's No.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. 16 .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.
000/. Moreover. date and month display as 17 .Rs. and Minute Repeater. Minute Repeater watch collection. Men’s and women’s watches Rs 2500 .Rs. the luxurious and universal design epitomizes its product policy “The Fusion of Technology and Beauty”. Eco Drive Rs 4500 . The watch shows the day.60000/Men’s and women’s watches in the normal range These watches are available with steel.15000/.in the Quartz range 2. and minute. gold plated and two tone case and strip for men and women. 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. More than 800 models have been introduced in this category.Products portfolio: Watches and Clocks are the main products but the Citizen groups entered in Indian market with a wide range of watch models. Promaster Rs 10000 . CITIZEN Eco-Drive watches made a revolutionary statement in terms of technology and beauty. it has a special feature of telling time by different chime sounds which represent hour. With its wealth of technological expertise build up over many years.to Rs. There are several leather straps models too. quarter hour. Models are available with day and date and only date besides basic models. Introduced in 1997. 25. Main category Price range 1.35000/3. 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).Rs. priced between Rs. CITIZEN has achieved impressive number of technical accomplishments in integrating special features in Eco-Drive. like Perpetual Calendar. Moon Phase. Retrograde Display.500/ Perpetual Calendar (for men) – These watches incorporate the date programmed till the year 2100 irrespective of leap years. 22. Minute Repeater – Working on the Eco-Drive technology. Citizen Watches India has introduced more than 1000 models into the Indian market.
respectively. calendar. When chronograph operations commence. As a design element. date and month display. 15. average lap and lap speed of each. The watch comes with lap memo function for checking previous results. The dial represents a Calendrier (Calendar) with the earth at its center. the watch offers highly distinctive styling. The world’s 1st Eco-Drive watch which can measure time 1/1000 second.onwards. Surrounding it is the moon phase at 6 o’clock.well as are water resistant with noon-reflective coating (glass). the multi-layered metallic dial creates a sense of infinite depth and breadth and gives a feeling of continuity with the cosmos.000/-. In a space measuring just a few millimeters thick. moon and sun. world time. suggest the movement of heavenly bodies.500/. as well as recalling the best lap. connected to the watch’s rotation mechanism. the watch depicts cosmic space through the earth. while the same information is also shown in the digital display. Added with a rotating bezel and a dial that suggests a measuring gauge. 16. With alarm. it leaves nothing more to be desired. the date (symbolizing the sun) at 12 o’clock. These watches are priced between Rs. These watches are priced from Rs. and day and month at 9 o’clock and 3 o’clock. LED light. 18 . while the rubber edge on the left side of the case makes it easier to grip when performing chronograph functions. The theme of the design is the fusion of space and time.to Rs. Promaster “Super Chronograph 1000” This latest tech wonder from CITIZEN represents heady mix of heart throbbing technology with incredible designs. the month and day disks. Calendrier With a light-powered Eco-Drive movement as the starting point. 18. small hands on the dial begin to rotate rapidly. With its hinged function buttons. Moon Collection (for men) – Watches in this special collection show the different stages of the lunar cycle besides day. titanium case/band and sapphire glass.000/. They also have an alarm facility and 270 days power reserve. this is a watch purely designed for the sports-minded.
15. starting at a price range of Rs.watches are ideally suited for professional Divers priced at Rs. alarm. These watches are priced at Rs. Perpetual Calendar It wasn’t too long ago when CITIZEN brought out one of its great successes into the Indian markets.700/-.000. day/date/month display. Navihawk: These are wrist .watches for use by pilots as an aid in navigating aircrafts. BU0011-55A and BU0011-63Z. The new models in this collection are: Aqualand U100: These wrist . Models are available from a starting price of Rs 17. especially men who are passionate about sports. and a model that marks the debut of a totally new Eco-Drive. Amazingly sharp looks blended with features like perpetual calendar.320 only. which can be used in the land for the sports purpose.500/-. 20. PROMASTER These stylishly crafted watches are specially designed and developed for men. These watches have different features like 1/100 second 19 . 32.The result is the creation of a unique world. Land Sportissimo U200: These are the latest collection of promaster. translates into this scintillating collection from CITIZEN. Models available are BU0003-02P. The Eco-Drive ‘Perpetual Calendar BL800X’ series still continues to charm watch lovers across India with its great panache. 24 hour display.
sapphire glass and more. Sapphire Glass (non-reflective coating) along with a Stainless Steel case and band. intervals of 1/5th of a second. These watches are priced at Rs. Perform fair. world time. The price range starts from Rs. Provide products and services which satisfy quality expectations and consider the safety and well being of our customers. 39.380 Citizen Promaster Principles of the Company: 1.20.chronograph.onwards Land E2100: these wrists . 24hr display. 2. 20 .watches come packed with features such as 12 hours Chronograph. 000/. and open competition in business transactions. 20 bar water resistance. alarm. LCD display. transparent. Titanium Carbide Coating. and maintain healthy relationships with our suppliers and government regulatory authorities.
and strive to make a social contribution. 4.206 788 56.92 1. FINANCIALS: Stock Indices FY 2006 High Low PER (Note 1) PBR (Note 2) 1.72 FY 2009 648 395 58.292 819 23. 5. 8.99 1. 6. Ensure a safe and good work environment. Value symbiosis with the regional society as a good corporate citizen.12 FY 2010 697 390 30. and contribute to the development of the locale.21 FY 2008 915 298 0.85 . Value the global environment. 7. and manage relevant information appropriately. Value and respect different culture and custom in foreign countries. Respond to anti-social and corruptive behavior in a decisive manner. and act according to the environmental policy.52 21 FY 2007 1.13 0.03 1. Publish corporate information positively and fairly under our own initiative. encourage the development of our employees’ abilities and energies while respecting their character and individuality.3.
(Note 1) Closing price as of the end of March / EPS (Note 2) Closing price as of the end of March / BPS 22 .
Casio Company Profile 24 .
all of which provide a good base for Casio to further advance the watch making industry. watches. which paved the way for Casio to make inroads into the watch making markets. Casio really only entered the watch making market after the electronic watch revolution. terminal screens. The G-Shock watches have a variety of sports training functions available on each G-Shock. Understand that this was in Japan following World War II. These markets include calculators. printers and projects etc.Casio did not start out as a watch specific company. It was on the strength of expertise in electronics. Casio has continually progressed the watch making market by developing its skills in the electronic markets. but instead started as a calculator specific company. have also been active in sponsoring sports events and contributing to a foundation to aid business development of new ideas. It was used to hold a 25 . you may think it was the calculator or some other type of electronic product. The financial situation was dire in Japan at the time to say the least. The G-Shock are extremely tough sturdy watches. History of Casio Watches Sometimes things start out in the most surprising ways. Take the watch company of Casio for example. he was a fabrication engineer hoping to catch a big break. Kashio began his company. computers (hand helds). The Casio Company was started 1946 by Tadao Kashio. Tadao Kashio and family. You would be wrong. The founders of Casio. Tadao Kashio developed a product called the yubiwa pipe. It is this range of functions and the tough sturdy construction of the GShock that has made it so popular with the sports enthusiasts. If you were asked to guess what the first product that was made by Casio. The G-shock ranges of watches are aimed at the active sports enthusiast. His big break showed up in a very unique way. developed from their calculator development background. Its design allowed it to be worn on the finger. The G-Shock and Baby-G (G-Shock for Women) are the most popular range of Casio's. When Mr. Since its release the G-Shock has continually raised the profile of Casio as a maker of fine quality watches. cameras. which come in a wide range of sporty styles for both men and women.
allowing the smoker to smoke the cigarette to the filter. One such watch could display the time of many different time 26 . Considering the calculator watch was so much fun. but it did start the company down the road to success. After the release of the Model 14-A calculator. The yubiwa pipe is a far cry from the calculators and watches that were to follow. The same year as the release of the 14-A. the company also became the Casio Computer Co. Japan in 1949. he discovered electronic calculators. Casio has been well known for the huge variety and innovation of their watches almost since the beginning of production. The quartz watches produced by Casio were available in both digital and analog styles. with an added feature.cigarette. They were one of the first watch companies to manufacture the now famous quartz crystal watches. cigarettes were a hot commodity and the product was an overwhelming success. calculators weren't the only product manufactured by Casio. the Casio Company came out with the first calculator to use solenoids.. This company was also the first to design and produce a watch that could provide its owner with some interesting details. During its heyday it was the bane of math teachers everywhere and the savior of every math deficient student. many more products were designed and released to the general public. In the impoverished Japan of the times. At the time. This is about the time when watches from Casio first made their mark on the watch industry. it only took a little while for him to decide to explore different products. most calculators were run by the use of gears. At the business show in Ginza. With the proceeds from the sale of the yubiwa pipes. it featured all of the amazing time keeping capabilities of the regular Casio watches. Mr. 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. Since it is obvious that Mr. Inc. Casio continued to raise the bar. all while still being able to use both hands. With diligence and hard work. The new type of calculator went on sale in 1954. Kashio was an inventive sort of man. For those of you who don't remember. It is possible that the most well remembered watch produced by this company was the calculator watch. As you well know. It had a tiny calculator complete with miniature keypad built into the watch. Kashio and his brothers began to experiment with making their own calculators.
Timeline of product releases • 1957 Casio releases the Model 14-A. Mountain climbers of ages past particularly were fond of the version that came with a gauge to indicate the altitude. the Casio has come a long way from its humble beginnings. While other watch makers were stuck on the same old. Others were equipped to give weather details like the temperature and barometric pressure. These watches are equipped to receive radio signals that enable the watch to keep accurate time. the user can set alarms and timers. From the yubiwa pipe to the finest calculators and watches in the world. They continue to challenge themselves and their competitors to new higher peaks and offer the best products electronics can build. Casio consistently offered new and exciting variations on the classic wristwatch.zones at the touch of a button. This line of watches also came with an incredibly extensive user manual to provide all of the necessary instructions to the owner. same old. They really outdid themselves with this one. 27 . the world's first all-electric compact calculator. It is the Wave Ceptors line of watches. With the true gadget geeks of the world in mind. They also are able to tell the time in different time zones. Casio came up with a watch just for them.
going on to sell over 10 million units. being the world's thinnest solar-powered chronograph at approx. 1980 Casio releases its Casiotone keyboard instrument. 1995 The QV-10. is released. 1985 Casio launches its first professional synthesiser. the world's first digital camera that includes a TFT display. is released. the DW-5000C. The Casio "Mini" sells for 12. a watch that features a fully automatic calendar. 2007 The OCW-S1000J. dubbed the Oceanus "Manta". 1995 The Illuminator/Foxfire backlight is released.800 yen. is released. the world's first wristwatch with digital camera is released.9 mm in thickness. • • • • • • • • • • • Financials of Casio Currency in As of: Mar 31 28 Mar 31 Mar 31 Mar 31 4-Year . 2011 Casio releases the Casio Prizm (fx-CG10/fx-CG20). 1974 The Casiotron. 8. 2002 The EX-S1. The DW-5600E was announced as the first G-Shock watch with a full EL LCD panel. the first Exilim digital camera is released. retro design with alarm and stopwatch. 1972 The release of Casio's personal calculator. a full-color graphing calculator. 1991 The F-91W digital watch. is released. including month lengths and leap years. the CZ-101.• • 1965 The 001 calculator is released. 1983 The first G-Shock watch. 2000 The WQV-1. is released.
0 113.042. Total R&D Expenses Depreciation & Amortization.050.0 99.508.416.0 623.0 1.0 1.713.0 667.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.0 110.025.442.0 387.532.882.309.0 693.0 2.042.217.0 341.0 -4.016.648.0 7.0 4.0 1.845.080.133.0 31.0 518.0 1.082.0 2.0 -1.0 518.0 -840.0 -3.0 227.0 130.0 97.917.593.0 -1.810.533.0 1.0 29 . 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.693.0 2.417.0 457.0 1.923.875.401.335.0 1.631.764.0 37.0 101.0 12.036.362.0 126.678.0 1.0 132.328.380.276.247.0 585.044.0 12.385.0 -5.0 11.750.925. EXCLUDING UNUSUAL ITEMS Merger & Restructuring Charges Gain (Loss) on Sale of Investments 623. Total Other Operating Expenses OTHER OPERATING EXPENSES.817.100.433.0 165.0 90.0 126.0 13.0 79.262.925.0 -853.0 18.0 -1.0 --202.0 341.0 1.0 -.122.0 -1.290.319.0 488.0 2.-10.0 -25.0 2.838.461.0 427.734.0 109.036.0 113.0 2.0 -2.0 14.372.499.050.832.0 2.558.0 -29.0 -3.701.0 1.502.0 -848.0 427.0 33.678.755.0 330.
284.0 30 .0 6.0 -20.968.0 -1.333.149.0 -13.0 6.0 -2.968.0 434.188.248.079.888.0 5.0 -977.682.0 35.0 5.188.0 -23.0 10.0 5.0 -29.0 -483.078.0 -6.0 8.149.0 2.0 252. Total Other Unusual Items EBT.Gain (Loss) on Sale of Assets Other Unusual Items.0 419.0 -1.048.684.109.0 -23.0 -29.0 14.005.119.467.0 -174.318.085.0 12.809.558. INCLUDING UNUSUAL ITEMS Income Tax Expense Minority Interest in Earnings Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS -4.126.0 23.0 5.0 12.0 13.0 -29.107.716.0 -35.0 10.0 -20.682.
HISTORY 31 .
 met Carlo Crocco. Moving to Switzerland he formed MDM Geneve and set about designing a watch that he named the Hublot after the French word for "porthole". in the Hôtel Byblos. in November 2005. Carlo Crocco left the company in 1976 to strike out on his own and create a new watch company. The Jean-Claude Biver era Carlo Crocco. Despite failing to attract a single potential customer on the first day of its debut at the 1980 Basel Watch Fair.Hublot is a Swiss enterprise creating luxury watches and founded in 1980 by Carlo Crocco. and the Middle Eastern Prize for the "Best Oversized Watch" at the Editor’s Choice "Watch of the Year" in Bahrain. In late 2003. with the Hublot "Big Bang" chronograph. set out to look for the man who could oversee his watchmaking business. A few months later. Hublot stores In February 2007. Upon his arrival. Following the arrival of Biver in 2004. The watch that he created featured the first natural rubber strap in the history of watchmaking. Biver set about creating a new flagship collection that was unveiled in Basel in April 2005. Jean-Claude Biver. the brand's sales hit 24 million Swiss francs and by the end of 2006. a charity helping deprived children all around the world. in the Rue SaintHonoré. It was an immediate success and orders increased threefold in one year. becoming a board member and minority shareholder in Hublot Watches. 32 . A scion of the Italian Binda Group dynasty. preoccupied by his own design work and many activities for the Hand-inHand Foundation. SaintTropez. It took 3 years of research to create the strap. and in May 2004. best known for making Breil watches. the Big Bang chronograph was awarded internationally. then president of Swatch Group's Omega division. Biver assumed duties as CEO. The second was opened in the summer of that year. sales were bordering on the 100 million Swiss franc mark.The company currently operates as a wholly owned subsidiary of France's LVMH. Hublot opened its first mono-brand store in Paris. the watch quickly proved to be a commercial success with sales in exces of $2m in its first year. receiving the "2005 Design Prize" in the "Geneva Watchmaking Grand Prix". the "Sports Watch Prize" at the "Watch of the Year" ceremony in Japan.
Hublot unveiled a new method of detecting counterfeit watches. features zirconium case with ceramic bezel and racing suit material Nomex strap.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. the system authenticates watches on Hublot's servers. Hublot WISeKey At BaselWorld 2009. These brands pride themselves on the many firsts in watch technology afforded their companies. PRODUCT PROFILE The F1™ King Power. They have long strings of awards giving recognition to their fine 33 . Using a WISeKey smart card. The system went live in August 2009. COMPANY PROFILE Leading brands in watch production have been around for the last hundred years or so. adding to its existing portfolio of watch brands including TAG Heuer. the first racing-inspired official Formula One limited edition watch from Hublot.
Famous celebrities followed suit and what made the Hublot brand more sought-after was the fact that you just can’t walk-in a mall and buy one. Hublot Genève crept up from behind.Hublot 34 . was to create a line of sporty watches that are stylish and elegant at the same time. Crocco founded MDM Genève and his first line of Hublot watch. His vision. While these brands were happily looking at more ways to improve their lines of watches. Carlo Crocco belongs to a family of watch makers. The most notable feature of the watch was its satiny black rubber strap.craftsmanship and time precision. Hublot’s initial model was a success as the watch became the preferred time piece of the Royalties as they play Polo or go yachting. Hublot means porthole in French and Crocco’s first solid gold watch indeed looked like the porthole of a ship. The steel-reinforced rubber strap as invented by Crocco himself in his quest to find the perfect bracelet for his Big Bang Hublot watch. 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. 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. even as a child. Not anymore though. In 1980. ACHIEVEMENTS In 2007 Hublot opened its first independent store in Paris.
Hublot signed a sponsorship in 2008 with Manchester United. Hublot stays true to their customer by providing the designs and quality like no other company does. It has also sponsored a number of Skiing events. this meant to target a variety of potential customers. polo. 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. making a symbol of beauty and delicateness. The third floor 35 . Jean-Claude Biver invested and sponsored in various fields. Bright and spacious interior space built a Hublot watch world. Cartridge Workshop.designs and quality like no other company does. invited these sports’ stars as ambassadors. It is also the official watch maker of Formula 1 racing. and found broad partnerships. Hublot’s new factory building was located beside the Lake Geneva and Alps. Afterservice Department. accompanied by the European Championship’s holding.9904” priced at one million dollar and two million euro respectively. He mainly sponsored regatta and navigation. classic and solemn style. FUTURE STRATEGIES Jean-Claude Biver made a definition on Hublot’s marketing strategy – “Focus on Diversity”.wx. King Power.has signed a number of deals with many popular and various organizations. tennis and other sports.0099.wx. skiing. From the world of fashion to Hollywood there are various Hublot fans all over the world which prefer Hublot wristwatches to all other. there were equipments. Vendome etc. It even connected the brand with golf. car racing. Technology Department and Purchasing Department. close to a high way.wx. Jean-Claude Biver was the first to let luxury brand sponsor footable events. the status of Hublot became more important. partners included the famous YCM that was in the charge of Prince Albert II of Monaco. These lines of watches are all made with state of the art technology and meet the highest standards there is to offer. Hublot offers many other lines of watches for its customers such as Novelties. Unico. the Real Club Nautico de Palma and Hublot PalmaVela Regatta held with Wally Yacht. Hublot also has sponsored Luna Rossa to campaign 2007 America’s Cup. On the first and second floor. Aero Bang.994” and the “2 million € bb 305.rx.994. Hublot is also the official time keeper of Fifa World Cup 2010 and 2014.
this was really fantastic ! In the past five years. Biver said: “In just five years. developed rapidly and today has become a magnificent. which was independently developed by Hublot’s R & D. Mr.” I must mentioned the “UNICO chronograph movement”. and could provide personalized custom service for each owner. ultra-modern and high-tech enterprise. The most important innovation was the removable Escapement platform. a exhibition area and Hublot TV Studio. The uniqueness of this fly back chronograph movement lied in its power position and the “Column Wheel“. Finance Department. Market Department. which guaranteed the watch’s durability and high accuracy.A professional team consisting of 15 watchmasters would assemble plates and various steel machine parts into the UNICO movement in January 2010. the in-house movement would be first installed into the new King Power series that was published in 2009. Escapement was made of lightweight and durable high-tech silicon. Sales Department.000 pieces of UNICO movements in 2010 and predicted the production capacity would be up to 20. children could play safely in the wooden garden. Jean-Claude Biver excitedly witnessed the whole completed processes of the new building. Hublot planned to produce about 2. 36 . and created a unique watch. we successfully unveiled Big Bang series. Hublot Kindergarten had a special separate channel. These imaginative and nuanced characteristics made Hublot watches be convenient to be served in maintaining. but more proud of our team’s spirit to overcome all difficulties and innovate continuously. the current research has entered the “Prototype” stage. we started from a small and a simple building.000 pieces in the mid-term of development. its completion indicated Hublot’s vigorous future. now our self-made movement is also coming soon ! I’m very proud of the achievement we’ve made in these years. a Hublot watch owner could have his or her name engraved on it.had Management.
CHAPTER – III RESEARCH METHODOLOGY Title A comparative analysis on products and market of the Watch industry through three companies. 37 .
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. and the company websites include some of the secondary sources of information. magazines. To compare the product differentiation. Scope • • To study the companies penetrating in the Watch industry. segmentation of all the three companies. 38 . Websites Limitations The information is only secondary. To study and analyse the major players prominent in the Watch industry.Objectives • • • • • To study the current growth of Watch industry. Methodology of Data Collection Method Secondary Data: • • Newspapers. • To do a comprehensive analysis of the industry and see its effects on investors and the market at large. The study is based mainly on Indian market but having an idea of the international market also. To compare the process and productivity.
CHAPTER – IV COMPARATIVE ANALYSIS SWOT ANALYSIS OF THE INDUSTRY Strengths 39 .
• • • • • • Watch industry is growing at the rate of 30% every year. independent individuals are the “trendsetters” that the fashionable luxury watch and fine luxury watch brands can target. Weakness • • • • • Not much advertising is done by the watch industry. Few numbers of exclusive showrooms reduces the consumer’s accessibility to the product. People are using it as a fashion accessory which means more demand for the product. Absence of a monopoly in the expensive watch category in India. Customers are not very price sensitive as far as quality watch is concerned. Excellent customer service. Kids are fascinated with mobile phones rather than watches and incidentally. Opportunity • • • • • • The young. The varied offerings to diverse segments with a clear cut positioning. they show the time. In India the market is huge and demand is unlikely to change. That can lead to the expansion of the market for branded watches. As population is rising. There are few marketers. No product innovation what so ever. The quality of watches is highly impressive. 40 . Youth of India are far more brand conscious than their successor. who are concentrated only up on a particular niche segment. the watch market is also expanding. Gradually expanding market for expensive and high society products in India.
• Under-penetrated market for watches as only 35% (approximately) of Indian population possesses watches. Too many players will dilute the market & the profit margin. Mobile phones and wall clocks are a substitute to watches. Increasing the price of the raw material like steel may increase the price of the product. Mobile phones acting as substitutes of the watches. Threats • • • • • • • • Many foreign players entering in the race. The 7S Model 41 . Chinese watches Unorganized sector/ Grey market. The fashion trend keeps on changing.
Casio’s strategy is expertise in Digital watches. Shared values: In the entire watch industry the companies usually share the same values and goals. Now a days precision in watches is highly required. Systems: There aren’t any fixed systems or such placed in the watch industry. Structure: The usual structure in the watch industry is in a simple Hierarchical form. Citizen’s strategy is a Common Man’s watch.Strategy: The Strategy of all the 3 watch companies is completely different. thus skills of the workforce in the industry becomes very important. And Hublots strategy is a watch for the High Class and is a Status symbol. That is to provide high quality products to its customers. Each of these watches companies have a different strategy. Skills: Skills is one of the most important factor in the watch industry. This is that the authority in the organization flows from top to bottom. because making watches requires a lot of skills. Staff: 42 . The main activity starts when a new product is innovated.
Style: All the 3 companies here have different styles. Highly qualified and skilled staff is very important in the industry. Citizen has a style of a common man’s watch or a corporate watch. 43 . Casio has a style of digital watches.Staff is also very important. And Hublot has a style of a high class luxurious watch. The staff in the industry brings in the skill factor.
Casio and Hublot. We had chosen 3 different watch companies – Citizen. Each of 44 .CHAPTER V CONCLUSION CONCLUSION This industrial report has helped us to get an in-depth knowledge about the watch industry.
com 45 . The gray market in the watch industry is eating up the profits of the watch companies. Hublot being the brand for the upper class whereas Citizen and Casio being a brand for middle and upper middle class. Bibliography http://www.these companies have a different brand image and also serve different segments of the society.com/en/#/HOME scribd.hublot. And also the current scenario of the billion dollar watch industry and how it is getting adversely affected by the grey market. This report also helped us in recognising the growing market of the watch industry.htm http://www.in/brand-history.citizenwatches.co. By this report we also recognised the evolution of the watch industry. The Swot analysis helped us to analyse the scope and weakness of the three watch industries. from being a time keeper to being a fashion statement and a symbol of social class.
citizen-europe.com/cic/corporate/corporate.com Economic Times Business Today Magazine http://en.com/links/watches.business-standard.slideshare.com http://casioindiacompany.htm http://www.html http://www.wikipedia.com/india/news/hublot-show-off-time/426700/ timesofindia.com/wat/ 46 .casio-intl.org/wiki/Hublot http://www.
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