INDIAN WATCH INDUSTRY

India is an under penetrated market for watches. Only 27% of Indians own
awatch. Total estimated volume as per 2008 is 44 million units and value of
Rs 2700Cr. Vast proportion of Indian market is below Rs 500 by about
68%. The key players in the market are1. Titan2. HMT3. Timex
Market Share of Indian Watch Industry 2009
Market has been split into:i. Low endii. Mass marketiii. Premium & Luxury
brands.
TITAN
Titan India Ltd., formerly (Titan watches limited)
is a joint venture
between T a t a g r o u p o f c o m p a n i e s a n d T a m i l
N a d u I n d u s t r i a l D e v e l o p m e n t Corporation (TIDCO)
was incorporated in
1987, and within three years of inception became a market leader. It has
itsHead Quarters at Hosur, India and Titan has presence in 4 continent and
32countries.
Watches:
Popular Priced, Mid Priced and Premium Priced
Eye Gear:
Sunglasses, Prescription Glasses. Contact Lenses
Accessories
: Wallets, Purses, Wrist Bands
SWOT ANALYSIS FOR TITAN
Strength:1
.
Style:
Titan first introduced the style concept in India and projected the watch
asa fashion accessory. Nowadays style is a very much evident
factor amongthe youth. So, Titan makes the peoples life more
glorious by making stylish wristwatch.2.
Models:
Titan offers the best and the biggest range to
c u s t o m e r s t o c h o o s e t h e watch of their choice with an
affordable price. It offers about 14 differentnames with
about 1000 plus different varieties with a watch for
literallyeveryone.3.
Exclusive products:
 Today Titan holds the pride for say that its products both within the
countryand internationally run in battle position. Its EDGE is
the slimmest watch inthe world position.4. Contribution of owned
brands and retail. The profit is accounted by beingin the retail space which
is
booming.5 . W a t c h e s a r e a v a i l a b l e w i t h p o
p u l a r f u n c t i o n s l i k e d a t e s , m u l t i functiona
lities and
chronographic.6 . G u a r a n t e e a n d w a r r a n t y f o r c
e r t a i n p e r i o d i s a s c e r t a i n e d t o t h e customers
.
B. Weaknesses
1.
Pricing:
The average price of Titan in mid-price segment is very high than the
othercompetitors. Average price for Titan is Rs.1100 while the
price for HMT isRs.550. In the mid-price segment the company
is not performing up to the mark due to the lack of choice of
consumers.2.
Market share:
As the average price of Titan wristwatch is f
a r m o r e t h a n t h e o t h e r competitor, Titan has less market
share. The market is more demonstrate bymiddle class people and for
them Titan is quite costly. Among 75% market share is in mid-
segment and Titans market share is between 18-20% whichis far lower
than HMT and Timex.3.
Globalized:
The company is not sufficiently globalized in spite of
b e i n g t h e m a r k e t leader in the Indian soil.
C. Opportunities1. Seasonality:
At the time of festival, like Diwali Titan promotes Nebula, Bandhan
becausethere is demand for the products. - Gold watches and
pairs are used duringthe wedding occasions. The fast track
brand is promoted in month of June- August when schools and
colleges re-opens.
2. Gifting concept:
Titan started as a brand which was associated with gifting and relations.
3. Exchanging offer:
 The Titan gives the exchange offer for any old watch, of any
make, in anyc o n d i t i o n f u n c t i o n a l o r o t h e r w i s e a n d g e t
a f l a t d i s c o u n t o f 2 5 % o n t h e purchase of a brand new,
stylish and technologically advanced watch from Titan.
D. Threats1. Competitor:
Lots of foreign brands are entering in our country
w i t h t h e i r b r a n d e d watches. As the removal of quantitative
restrictions on import watches leadto a threat to Titan.
2. Premium segment:
As in premium segment Titan is getting threats from reputed
internationalbrand such as Espirit, Swatch and Citizen.
3. Mobile:
Nowadays people can get the time and the other feature on
mobile phone.So, the need of wristwatch is in decreasing trend.

HMT
(
Hindustan Machine Tools)
HMT was incorporated in 1953 by the Government of India as a machine
toolm a n u f a c t u r i n g c o m p a n y
. O v e r t h e y e a r s d i v e r s
i f i e d i n t o w a t c h e s , t r a c t o r s , p r i n t i n g m a c h i n e r y, m
e t a l f o r m i n g p r e s s e s , d i e casting & plastic processing machinery,
CNC systems & bearings.
Successfult e c h n o l o g y a b s o r p t i o n i n a l l p r o d u c t g r o u p s t h r o
u g h c o l l a b o r a t i o n s w i t h world renowned manufacturers and
further strengthened by continuous in-
h o u s e R & D . Tod a y, H M T c o m p r i s e s s i x s u b s i d i a r i e s u n d
e r t h e a m b i t o f a holding company, which also manages the tractors
business directly.
SWOT ANALYSIS
A. Strengths
1. HMT is the market leader in the mechanical watches
w h i c h s e r v e s t h e lower segment of the society.2. HMT has a very
strong brand image because of the quality and reliabilityoffered by the
brand.3 . C o m p a n y s l i q u i d i t y p o s i t i o n h a s b e e n
q u i t e c o m f o r t a b l e a n d h a s availability of tangible assets
such as land and buildings.4. Production facility is flexible enough to adapt
to newer technologies.
B. Weakness
1. No emphasis on Research and Development.2. Competitors have
successfully been able to innovate continuously therebylaunching newer
designs in the market where as HMT has failed to do so.3. HMT did not
have control over their retailers hence they lost control overprices and
trade.4 . N o r e g u l a r t r a d e a u d i t s h a v e b e e n c a r
r i e d o u t b y t h e c o m p a n y t o determine what is going
around in the market.5. It restricted product development to quality
development
only.6. Bureaucratic and centralized decision making inhibited
HMTs ability torespond quickly with respect to market changes.
C. Opportunities
1. There are good diversification possibilities in products. Apart
from
them e c h a n i c a l w a t c h e s H M T c a n a l s o f o c u s o n m u l t i f u n c
t i o n a l a n d d i g i t a l watches with advanced technologies.2. Company
can expand in the market by launching products suitable
forcustomers in a particular market segment like the youth, gift fashion,
sportsetc.3. Enlarge network of the sales outlets.4. Leveraging brand equity
of HMT to products such as sports gear, personalaccessories.
D. Threats
1. Worldwide decline in the production and demand of
mechanical watchesdue to growing acceptance of Quartz watches.2.
Competitors successfully exploited the lifestyle segmentation which
HMTfailed to.3. More of unorganized manufacturing has been haunting
HMT.4. With the cheap prices and the availability of the watches
by the regionalplayers has been a big reason for the decline in market
share.
TIMEX WATCHES

Timex watches are in the market since 150 years. It has been ranked as
theno. 1 in U.S.A in 2001. It is the largest selling brand in U.S.A & Canada
and is
focused on Quartz based wrist watches in India. L
o w e s t c o s t w a t c h manufacturer in the world. The target market
segment for TIMEX watches in India includes the youth,kids,
high end society, fashion, luxury, sports etc. The unique
features lieamong the water resistant watches. It has tied up with Bret
Lee as the brandambassador.
SWOT ANALYSIS
A. Strengths
1. It has a big brand image to support its
p r e s e n c e i n t h e I n d i a n w a t c h Industry.2 . T h e c o m p a n y
has watch for all the different segments for kids,
y o u t h , luxury oriented etc.3. There are different price band
available from hundreds to thousands of rupees.4. It has a strong
technology to support like data link, perpetual calendar collection,
water resistant watch etc.
B. Weakness
1. It has failed to capitalize on its big brand name and the global
recognizedpresence.2. Failed to combat the tough competition from other
market players.3. The company doesnt have much variety of the
products to attract thecustomers.4. The after sell services and the
distribution network, retail outlets are fewas compared to competitors.
C. Opportunities
1. The company has opportunity to expand in the
l u x u r y a n d j e w e l r y segment of the watches and the accessories.2.
As the Indian watch market is still majorly untapped more
designs andprice range and after sale services should be provided to the
customers.
D. Threats
1. The company has to work to occupy more of the market share
as therehave been already well established players in the market.
2. The use of mobile phones is being treated as a substitute for the
watchesthese days.
COMPETITIVE ANALYSIS OF MARKET PLAYERS

___________

The Rado Product Strategy

Thus Rado like the other subsidiaries is not responsible for
themanufacturing of the watches. Although, they have complete
creativefreedom from the group when it comes to design and
marketing of thetimepieces. Rado has always maintained itself as a
premium watchcompany with very high levels of craftsmanship involved.
Their focus indesigning of watches has always been that of using novel
and strongscratch-proof materials together with using
advanced technology.RADO differs from some of the more traditional
luxury Swiss watchmakers in that it usesunconventional precious
materials to achieve a more futuristic look. RADO has pioneered
theuse of a number of these materials, e.g., high-tech diamonds,
ceramics, lanthanum & sapphirecrystal. However, many RADO watches
are (at least, partially) made of more traditionalmaterials such as gold
& steel.Other than the material, RADO watches also look very
different from most of the other luxurymakers. The company is much
more adventurous in constructing the shape of its watches thanwould
normally be expected of a high-end maker. Market reaction to this is
generally mixed,with some preferring the look of the more traditional
makers, & others appreciating the moredistinct RADO look.
RADO Product Line
The Current types of watches manufactured by the company are
as follows:
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Rado Integral Watches

The Integral watches from Rado offer an elegant complement to
professional and casualwear. They can be worn on a daily basis. Made of
hi-tech ceramics and completelyscratch proof, it is thin and has tall
rectangular silver-tone ceramic case. Other featuresinclude 100%
scratch-resistant sapphire crystal, ultra-precise Swiss quartz
analogmovement, and water resistance up to 30 meters (100 feet).
Bracelet in integralwatches is made of highly resistant, skin-friendly
high-tech ceramics.
Rado Sintra Watches
The Sintra watches are elegant looking. Made of high-tech ceramics,
sapphirecrystal, diamond studded dial and quartz movement. This
category of Radowatches is stunning in its form as well as the typical
Rado design which isrectangular based, with a beautifully flowing
transition between the case andthe bracelet. It is designed with
definitive Rado signature: daring, powerfuland individualistic.
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Rado Ceramica Watches

This category of Rado watches is made from high-tech ceramics and
sapphire crystal.They are scratch proof watch and available in either
black or platinum color. The RadoCeramica comes with ultra-precise
Swiss quartz analog or digital/ analog movement.Appropriate for sporty
or dressy attire, these watches are exclusive with a unique senseof
style.
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Rado Coupole Watches

Rado Coupole has the top surface covered with dome shaped sapphire
crystals and thelower surface with scratch proof high tech ceramics.
The Jubile version is the set of jeweled watches which have genuine
diamonds and precious stones. The distinctfeatures in Rado Coupole
include the ultra precise swizz quartz movement, waterresistance up to
30m and of course the scratch proof sapphire crystal.
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Rado eSenza Watches

Rado eSenza is among the unique Rado watches which are available only
on a strap.They are crafted in stainless steel or ceramic oval cases.
These watches carry a precisequartz mechanism. A multitude of
diamond options make it all the more wearable. RadoeSenza watches
for men and women are elegantly styled and make an impeccable
stylestatement. The diamond encrusted bezel and a beautiful leather
band add to itsexclusive beauty. This infuses modern taste with a
touch of old world style. Thesewatches are water resistant up to 30
meters.

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Rado Joaillerie Watches
A perfect blend of modernity and style, the designs are so
exclusivethat they make perfect style statements and are
perfectcompanion for the contemporary woman with the mostdemanding
standards. It is well known as the watch that mirrorsthe 'highly personal'
philosophy. These Rado watches mostly comein expensive metals and
are often bejeweled. They are also knownas Jewelry watches because
of their superlative appearance.
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Rado Original Watches

The Rado original is better known as a collector's item. The exquisite
designs and qualityconstruction make it a truly delightful buy. This
category of Rado watches are generallyknown as modern classics.
Besides the classic versions, there is the Diver and Chronowhich are
unique and add to the exclusivity of Rado watches.The Rado Original
comes with hard metal bezel and sapphire crystal. The sapphirecrystal
is faceted for better scratch proof effect. It is 100 meters water
resistant. Thediver version come with automatic movement and is 300
meters water resistant andideal for professionals. The 'Chrono'
version from Rado Original is also special as itcomes with a 1/10 second
quartz chronograph movement.
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Rado V10K Watches

It is claimed to be the hardest watch in the world. Made of high-tech
diamond ceramic,the Rado collection is almost incomplete without the
V10K. V10K stands for Vickers10,000. Vickers is a measure of hardness
with the scale ranging from 0 to 10,000 whichis the ultimate value only
diamonds can attain. The face of the watch is a curved scratchproof
sapphire crystal with an engraved Rado logo. The logo is metalized and
soldered.It has an ultra-precise Swiss Quartz crownless movement
The pricing strategy of Rado is clear and simple. Rado places itself as a
brand withhigh aspiration value and as a status symbol to many. Thus
the pricing of itsmodels together with factors like the cost of
materials tends to be on theexpensive side.One of the good things
about luxury items is that price competitiveness is not usually a
factorwhen it comes to such goods. Prospective buyers are okay with
paying a little extra till theproducts and services offered have the
desired level of exclusivity and efficiency desired.
The Communication Strategy of Rado
The usual method adopted by luxury watch brands with focus on
tradition is that of makingtheir presence felt in Trade Exhibitions and
Fairs. Rado is no different in that aspect and alwaysis present in all
major watch and jewelry exhibitions.One such exhibition is
BASELWORLD which is the leading event for the watch and
jewelleryindustry held anually in Basel. Rado in March 2010 had launched the
brand-new SintraSkeleton Automatic which is its first timepiece equipped
with the customized movement. Thewristwatch selects the most
representative black as the main color and was produced in
limitededition of 111 pieces.
The Communication Strategy Positioning
A Simple guideline to effectively market the watch can be seen here
below.
Following this guideline and keeping in mind the unconventional and a
littleless than traditional design concept followed by Rado, It can be
placed in thequadrant shown below.
Distribution Strategy of Rado
With a total Staff of 470 people in 31 countries, it is obvious that
Rado distribution strategy isheavily dependent on its 5900 retailers
worldwide. Rado also benefits from Swatch GroupDistribution network
which was formed in 2001 with the objective of providing
worldwidesupport to Swatch Group companies in their efforts to supply
customers with products in amore rapid, reliable and cost-effective
way.