Indian Watch Industry

Titan Industries product line in watch manufacturing division includes watches for all purposes –
economy, mood and personality and obviously, for all ages. Titan Industries classifies its range
according to -

Occasion - Formal, Dress-wear, Fashion, Sports / Casual, Luxury, Economy and Technology.

Brands are – Edge, FasTrack, Nebula, Raga, Steel, Regalia, Bandhan, FLIP and Sonata .

Pricing:

Last Price Market Cap. Sales Net Profit Total Assets

The Indian watch market is estimated at 25 million units annually with 12 million falling in the
organised sector, valued at approximately Rs 1,000 crore. At present, Titan looks well-fortified,
accounting for 60 per cent of the organised sales. HMT is its closest competitor in numbers, selling
around two million watches. But Timexs CEO, Kapil Kapoor, claims his brand has increased its stake
from 18 to 22 per cent in the last four months.
Titan’s Strategies:

Titan, India’s most admired watch brand, announces the much-awaited ‘Titan Exchange Offer 2010’.
The exchange offer allows the customer to avail a flat 20% discount on exchange of any old watch.
This annual offer is a great delight to all our customers as it offers a chance to choose from wide
assortment of stylish and trendy watches ranging from Rs 995/- to Rs 17000/-.

Since inception, TITAN has attempted to provide our customers, with quality products at a wide
range of prices. As part of a conscious branding and pricing exercise, they have developed several
products for varying consumer demographics across different price segments. Brands like Sonata,
which are focussed on the mass market as well as premium brands like Nebula for high end
consumers.

In addition to the Tanishq range of jewellery for premium customers, they have also recently
introduced Gold Plus to cater to the mass market jewellery demand and price conscious customers.
The industry is in the process of implementing an ambitious growth plan that envisages expansion of
our watch and jewellery business to further expand our customer base. They recently launched
brand Xylys in India, a watch in the premium category range (above Rs. 10,000) which is assembled
in Switzerland. They hope to penetrate existing markets with our new offerings and expand our
existing customer base both in India and abroad.

Challenges:

Titan’s main fight is against brands such as Timex, Citizen, Esprit, and Swatch. Tissots lowest range
begins at Rs 3,700,says Kurien. While Timex is reinventing itself in the segment priced above Rs
1,000, others have their base range starting at Rs 2,000. Among these brands, only Timex and Citizen
have a sizeable retail presence in the country. Citizen is officially present in 300 outlets. It is present
in Delhi, Mumbai, West Maharashtra, West Bengal and the southern States. The brand recently set
up an exclusive shop in Bangalore and is poised to open more in the coming year. Timex claims to be
present in 5,000 odd retail points, which include 27 exclusive showrooms. The brand is poised for an
aggressive expansion by foraying into non-traditional outlets and expects to add another 300 retail
points through this route before the current year ends.

Titan is also evaluating the potential to launch a brand priced at Rs 10,000 and
above, which offers the consumers a set of values distinct from Titan and
competitive in that space

Unorganized Players:

Out of the 28 million pieces ( 80% of these below Rs.1000) that are sold annually, 18 million are sold
annually.

Titan
HMT
Purewal
Omega
Maxima
Sonnata
Orpat
Ajanta
Indo-Swiss

Titan expects to keep global brands at bay by building on its already established strengths and a
better understanding of the domestic watch market. The multinationals, however, are hoping to tap
consumers search for more options and lead an attack on Titans position as the overwhelming
leader in the organised sectors. Today Titan Industries is India’s leading producer and retailer of
watches and jewellery, and is credited with changing the face of the Indian watch as well as the
jewellery industry. The watch division has a domestic market share of over 70% of the organized
market. Titan Industries reported a turnover of Rs. 4703.12 crore for the year 2009 - 10. As a full
range producer-marketer, Titan Industries offers the Indian and International customer a very large
range of products to suit various consumer preferences. Its products are recognized for innovation in
design, quality and reliability.

Some companies practise Image oriented prices: This is a pricing strategy that sets or supports a
specific image of a product. A Swiss Omega watch is not necessarily a better quality watch than the
Citizen watch from Japan. Omega wants to sell their watch however at a price that is many times
higher than the Citizen prices.

ROLEX: Rolex like to put their prices up steeply and regularly, and that they tend to do it as a blanket
increase right across their entire range.

CASIO: Casio watches have affordable pricing and elegant design and they has proved that a shopper
could get a watch with all the features and advanced technology that lives for long time. Their quartz
crystal watches are available in analogue and digital LCD displays, in plastic, rubber, steel and
titanium and most of them are water resistance. Simple digital watch is famous for its accuracy and
features an alarm stopwatch also. The main categories in Casio watches are Casio Standard Line Up
Watches, Protrek Line Up, Edifice Line Up, G-Shock Line Up, Men's Watches, Data Bank and Metal
Fashion Watches.