CAS E f

A 3600 APPROACH TO TIME

Not too long ago, most Indians possessed one watch, which served the purpose of telling time. It
has been a long journey from a one-brand market to a market where it is estimated that about 28
million units are sold every year, and the off-take is growing at the rate of 30 per cent per annum.l
The wristwatch has indeed come a long way from the time when Peter Henlein of Germany
invented the world's first pocket watch in the 1500s. From one or two brands to the innumerable
brands available in the marketplace, the Indian time wear market has undergone rapid and massive
changes. Watches have today become a fashion accessory rather than mere devices which enable us
to know the time.
This case study examines the change in watch retailing in India and how one brand - viz Titan,
- went on to create a brand success in India.

COMPANY BACKGROUND
Titan Industries Limited is ajoint venture between the Tata Group and the Tamil Nadu Industrial
Development Corporation (TIDCO). It was incorporated as a public limited company in the year
1984, and manufactures and markets watches under the brand name Titan, Sonata, Nebula and
Fastrack. Titan is the sixth largest integrated watch manufacturer in the world and has sold over 60
million watches across 30 countries of the world. The manufacturing is done out of four factories
and the investment in a 450,000-sq.ft state of the art facility has been over US $ 130 million.
In India, the company operates over 230 exclusive Titan showrooms, and over 8500 dealer
outlets. Through this network, Titan has a presence in over 2400 Indian towns.f Titan is the market
leader, having a variety of ranges and introducing around 200 new models every year, ensuring
sustained growth. It has a 50% share in the watch market. The company believes that it generates
wealth for all its stakeholders by creating India's most desirable brands in watches, jewellery and
personal accessories,
, The vision of the company is 'to be innovative, world class, contemporary and build India's
most desirable brands.' This in turn, dictates the values, beliefs and strategy.

THE MARKET SCENARIO

In the mid 1980's, the watch market was characterised by the presence of a limited number of
brands. The market leader was HMT, which had over 90% of the market share. A few domestic and

'This case study has been prepared by Prof. Swapna Pradhan, for the purpose of classroom discussion only and does not
indicate effective or ineffective management.

llmages KSA Technopak Retail Report, 2005.

2www.myiris.com. Company sources.
496 Retailing Management

international brands were available in the market. Very little was offered to the consumer by way of
after sales service. Existing watch outlets did not offer the consumer choice or quality of after-sales
service. Watches were often bought by a booking system and servicing of watches was restricted to
small watch repair stores that were unorganised and unreliable. /
Given this background, the challenge was to be the watch showroom of preferred choice by:
• Offering a superior shopping experience to the customer and,
• Building lasting relationships with them, through a process of continuous improvement an-
benchmarking, across the length and breadth of the country.
Signet
THE STRATEGY Loyal

Titan decided to first focus on creating a format which would enable it to build a strong retail
presence and bring the product closer to the customer. The idea was to build and enhance th
brand experience through retailing. This led to the creation of the World of Titan showrooms
which exclusively showcased the complete product range and provided a brand experience in term
of service and convenience.
At this point in time, the company decided to opt for multiple channels of retailing. The :.;;
exclusive showrooms would aid market expansion while the multi brand outlets would help increase .. fIG. 1 The R
the market share. This was necessary to expand and achieve town penetration. The two channels
catered to different customer segments and helped Titan create a significant retail presence. In the n.
for the Cor
THE RETAIL PHILOSOPHY showr{)om~; ;
locations.
At Titan, retail has its own purpose, role and identity, which draws inspiration from the product
brand but is not subservient to it. Retail is therefore, seen as a strategic function and is handled by ~ This cha
a separate team at the corporate office. The structure of the retail division at Titan is indicated in . these showrc
Figure 1 given below. retail experi
internationz
The growth of the retail organisation has been achieved in a phased manner. In phase one
internationa
(fime span 1987-1992), the company opened its first showroom in Bangalore with the single
become mor
objective of showcasing the Titan brand. Titan was at that time, responsible for two extremely
wall displays
important revolutions in the _consumer market:
modern eve
• The first was the introduction of quartz watches, which were more superior to the mechanical fashioned c{
watches in terms of accuracy and the number of styling options that could be offered; and
The Wo
o Second was the display of a large range of watches under one roof, where the ambience and turnover of.
the environment was comfortable and the prices were uniformly displayed.
smaller tOWl
The next phase ( 1992-1998) saw the organisation open the first few stores with just an interest year. The "V
in showcasing the brand. They however found that these showrooms were immensely profitable. the net ean
Hence, The World of Titan (WOT) soon became one of the serious channels of business. The market rent
exclusive showrooms (WOTs) became a catalyst to the Titan watch trade in general. The success of profits from
the WOT showrooms encouraged trade to make a shift from just selling to retailing. These Titan h
developments saw a growth in the markets and enhanced profitability. showrooms
their busine
This service
adds equity
 '"

Case 1 A 3600 Approach to Time 497

snmer by way of
.ity of after-sales
was restricted to

red choice by: Channel Manager

Channel Manager TZs, Dept Stores ..
WOTs Business Development,
:j.;':'. ',:-}./
nprovement and

Signet- WOT
ie'Loyalty Clup

ld a strong retail
and enhance the
fitan showyooms, ',,·:Promotions
Merchandisei~:
_perience in terms and Adverti~ing

, of retailing. The
FIG. 1 The Retailing Organisation Structure
'ouId help increase
The twO channels
tail presence. In the next stage ( 1998-2004 ), the WaTs were seen by the organisation as a driver of growth
for the Company-increasing penetration in the smaller towns, increasing the number of
showrooms across cities and increasing presence as WaTs in large malls and popular shopping
locations.
(l from the product
This channel was seen as an extremely profitable brand ambassador. There is a dual focus where
Cl and is handled ~y
these showrooms are reinvented every five years or so, in terms of the looks, the ambience and the
[itan is indicated III
retail experience. This has become necessary with the emergence of a customer who is exposed to
international retail standards. Further, the brand has also had to respond to a number of
mner. In phase one international brands that have now been launched in the domestic market. The brand imagery has
lore with the single become more contemporary, international and fashionable. The new layouts provide for innovative
e for two extremely wall displays, interspersed with accessories and islands like counters, all designed to encourage the
. 1 modern evolved customer to browse at his or her leisurely pace, breaking away from the old
ior to the mechamca fashioned concept of 'selling from behind the counter!'
uld be offered; and d The World of Titan is the face of 'Titan' in the marketplace. Hence, each showroom has a
~rethe ambience an turnover of about Rs. 20 to 30 million a year in large cities and about half a million rupees a year in
ryed. smaller towns. All existing showrooms exhibit a consistently high growth of about 15%to 25% every
:s with just an interest ear. The World of Titan stores show a healthy return on investment of more than 24%. Although
mmensely profItable. he net earning potential of a showroom varies from market to market, in all cases, it exceeds the
nets of business. The arket rental value of the property. Most showrooms break even in the first year and start making
eneral. The success 0 rofits from the second year onwards.
g to retailing. Thes Titan has a dedicated retail team with 'professional expertise in setting up and operating
,howrooms across the country. This team is dedicated to the World of Titan and works on improving
\heir business potentiaL Besides, each of the showrooms also has an Authorised Service Centre.
I'his service centre is not only a profitable business by itself, but also helps drive traffic to the stores,
fdds equity to the showrooms and helps build trust among customers.

'\

....- -----.-~,jj
498 Retailing Management

• Flip - India
Titan has also set up Time Zone outlets which have brought together the country's top watch'
• Fastrack - il
retailers and leading brands under one roof This provides the customers with a variety of brands
• Sonata - foi
looks and price ranges, and is backed by efficient after sales service. It has helped the brand ret4~
leadership, through a process of dealer loyalty,and addresses the customer who is undecided about After the exit (
the brand. a brand to'addres~
Titan Value Mart on the other hand, sells surplus stocks of Titan watches at reduced prices, and had no appe:
offering fabulous value for money with the same warranty as a regular, full-priced watch.' Sinceits launch, 1
benefits of afford;
combination of cc
rural heartland ir
The brand he
226 of watches sold ir
751 with a populatiol
Unlike urban are
attention with co
Titan also focuses on identifying opportunities from every aspect of its operations. Some of the products are fon
key learnings which have helped the organisation are: in competltlon n
Innovation in process approach Creating top of t
• Recognising diversity in geographical markets a key [actor in d
• Customer contact To create fa
• Building trust by being genuine and honest with associates, while maintaining a professional sustained basis
approach learn that this is
• Encouraging transparency with franchisees, as this goes a long way in building more likely to a'
commitments. exploited for th
In the current phase, the company has dealt with downsizing, cost reductions and recalibrating The market
labour expectations. The focus has been on creating Strategic Business Units and adopting a 3600 earns consumer
approach for securing the present while pursuing future ambitions. they will be set
market tick, W<
Serving the Customer One satisfied a
Over the years, Titan has overcome competition in the market and has displayed aggression and an Titan will I
adventurous streak to become the market leader in its segment. Product innovation, investments in rural india. T
brand building and retailing have contributed to Titan dominating the domestic market. The forming partn
strategy adopted by Titan has revolved around three basic components: believes that t
• Offering a wide basket of offerings to the consumers positive for th
• Focusing on brand building Titan Rag
to be bought c
• Stringent control on the supply chain
owning a sing
Initially, Titan had largely followed a unibrand strategy. Titan faced turbulent times between
scene has sin
1999 and 2002, when the imports of finished watches were liberalised and a large number of new
communicati
players entered the Indian market, offering a wide choice to' the Indian consumer. The brands
girlfriend an
offered by Titan include:
target was the
• Titan Edge - the world's slimmest watch as the brand
• Nebula - in solid gold and precious stones Titan he
• Raga - for women Limited, a rr
 ,I
I
Case 1 A 3600 Approach to Time 499

y's top watch • Flip - India's first and only reversible watch with two movements and dial faces
:ty of brands~ • Fastrack - in the 'sporty casual' category
brand retain • Sonata - for the budget conscious buyer.
ecided about After the exit of Time x from the Titan portfolio of brands, the company felt the need to launch
a brand to address the economy segment as the Titan brand had acquired an aura of sophistication
luced prices, and had no appeal for the economy segment. Titan created Sonata to fill this gap in the market.
ch. Since its launch, Titan has strived to position Sonata as the 'no compromise' watch, offering the five
benefits of affordability, durability, great looks, a year's guarantee and water resistance (30m). The
combination of competitive prices and attractive designs is enabling Titan push this brand into the
rural heartland in India.
The brand has since captured 10 per cent of this overwhelmingly large market, but the number
of watches sold in the rural segment is exceptional. At present, the brand is available in all towns
with a population of more than 10,000. Creating awareness about the brand is a mammoth task.
Unlike urban areas, rural areas do not have the concept of exclusive outlets. Sonata watches vie for
Some of the attention with competing products, including those from the unbranded sector. These unbranded
products are formidable competition, and are studiously pushed by dealers. So, Sonata finds itself
in competition not only with brands like Timex and Maxima, but also with names like Lamex, ete.
Creating top of the mind awareness in such a scenario is a daunting task, where dealer margins are
a key factor in determining the sale of the product.
To create familiarity with the target audience, Titan organises mobile vans. This is done on a
professional sustained basis so that every village gets covered regularly. Credibility is also built when villagers
learn that this is a Tata brand. Once potential customers experience the watches first-hand, they are
n building more likely to ask for Sonata, forcing the dealer to stock up. Events such as haats and melas are also
exploited for the opportunities they offer for interacting with large numbers of the target audience.
ecaJibrating The market is rather volatile and has its own compulsions. The brand will be rewarded only if it
)ting a 3600 earns consumers' trust. The team is working to convince the rural audience that if they own a watch,
they will be seen as more progressive. Titan has already studied the metrics that make the rural
market tick. Word of mouth is a huge motivator and peer pressure can determine a lot of choices.
One satisfied and influential customer can be a better brand ambassador than a host of celebrities.
sion and an Titan will be able to build the rural market only in the proportion in which it can help develop
estments in rural India. This belief is central to Titan's rural business strategy. The company is looking at
.arket. The
forming partnerships with the rural people for creating a network of evangelists for the brand. It
-believes that this move will not only generate revenue for them but also translate into something
positive for the company and general prosperity for the village community.
Titan Raga, which was launched in the year 1992, was positioned as an occasional wear watch-
to be bought and gifted on a festive or special occasion. At that point in time, in the Indian context,
es between owning a single dress watch was adequate for the average Indian middle class woman in India. The
ber of new scene has since changed. Titan relaunched Raga, as Raga 9 to 5, the all time accessory. The
'he brands communication focused on the different roles that a woman plays, that of a mother, a wife; a
girlfriend and how from 9 to 5, she becomes a professional, after fulfilling her other roles. The
target was the woman in metros from Sec A homes, and former Miss India Gul Panang was roped in
as the brand ambassador.
Titan has entered into an exclusive sub-licensing arrangement with GVM International
-Limited, a member of the Murjani Group, for the marketing and distribution of Tommy Hilfiger

---..-----.~_ i
500 Retailing Management

Having dete
watches in India. The Tommy Hilfiger watch collection, comprising over 50 styles for men an basis of past sale
women, is priced between Rs 3,995 and Rs 8,995. The watches are available at World of Tit campaigns and
showrooms, Tommy Hilfiger flagship stores, and other select premium multi-brand watch 9tltle available produc
across the country. ' , stays cor:nected
Xylys, is the latest offering from Titan. Titan aims to bring about a redefinition of sorts in·,,: the production \
premium watch segment with Xylys. It is targeted at new generation achievers who go beyondjj inventory after"
obvious, who know who they are and set their own standards and live by their own values. It is a s the consignmen
statement for those who stand apart from the crowd. can track their (
Xylys has been created in collaboration with renowned Swiss designer Laurent Rufenacht'{
Titan's own design advisor Michael Foley. The watches are priced between Rs. 10,000 and RS'H" ·.','N"",. fRANCHISINf
33,000 and will be retailed through select World of Titan showrooms, key multi-brand outlets and at:·
Franchising is a
exclusive flagship boutiques in select cities. The brand will be available in Bangalore, Hyderabad,
to outsource ret
Mumbai and Delhi at the launch phase and will be rolled out to five more cities by July 2006. Achrr~
brand.
Rahul Bose, international supermodel Saira Mohan and tennis star Carlos Moya are the th~e~c.
The benefil
brand ambassadors of Xylys.
• An oppo
Building the Supply Chain Efficiencies • Growth!
Building a wide network of retail stores and ensuring that the right product is available at the stot~ • A low ri:
requires a focus on the supply chain. Not long ago, Titan had close to about Rs 180 crore stucK:_ " • Support
between its finished goods, raw material and working capital, and the company turned its inventory
• Prol11oti,
twice a year. Titan has since then put its assets on the treadmill to sweat them slim. Last year, it cut'
At l'itdil, t1
the flab down to Rs 110 crore; it increased its inventory turns to four. The company now plans to'
implement a new inventory plan of six times in a year at a mere Rs 80 crore. underlying phi
The r hoice
Earlier, the company worked on forecasting the market requirements six months in advance:' .
the location of
Gradually, by breaking down its array of products into discrete buckets, Titan reduced its response .. _
time significantly. The cycle of forecasting sales, creating a production plan, mobilising: The qualit
components and assembling them into watches was pared down to four months. However, to stay' • Integrit
competitive, the company is now working towards bring out a watch in one or two months and, in • Initiativ
case of urgent requirements, even in 15 days. • Open 11
This makeover is not skin deep and has required reorganising the structure. Till two years ago, • F<tmilv/;
the company's supply chain consisted of two discrete departments: manufacturing and sales and
• Financi
marketing. The idea for one supply chain banner became self-evident following the
The usual
implementation of an enterprise resource planning solution in 1999. This implementation enabled
information to become transparent and the stocks were visible across the entire system at a single 1. Franchi
glance, in terms of quantum as well as the financial investment, and for both finished goods and raw prices (
materials. 2. Titan p
The company sorted out its watch categories and made distinct processes for each. This 3. TypicaJ
happened when the realisation came in that different products required different time lines to be • It
manufactured. Depending on the market that they catered to-urban or semi urban - the batch sJ
"

sizes were different. The requirements of Sonata and Titan was different and the company realised
• 11
that the components for Sonata could be outsourced from vendors, while the Titan watches could be tI
taken care of in-house, Another category of products existed, which involved products where
international vendors supplied components; the time required for these was the highest. The
company realised that the lead time required varied from 30 days to 90 days for various products.
 Case 1 A 3600 Approach to Time 501

Having determined the lead times, the company then moves to forecasting the demand on the
; for' ;
basis of past sales data, and factoring in elements such as marketing schemes and advertisement
10rIeF
campaigns and also the seasonality of demand. The forecasted demand is then mapped to the
wate
available production capacity. Titan has a network of spares distributors across the country, and
stays connected using a web application. In fact, they are able to place approximate orders before
the production begins, thus helping Titan produce closer to market requirements. If there is excess
inventory after all the orders are met, it gets released into this system for all prospective buyers. As
the consignments are dispatched, the company's logistics service provider ensures that distributors
can track their consignment online without manual intervention.

FRANCHISING - THE TITAN MODEL

Franchising is a method used by many brands to grow their business. It enables the parent company
to outsource retailing, management and investments and gives access to prime properties for the
brand.
The benefits of franchising to the franchisee are:
• An opportunity to be entrepreneurs
• Growth supported by and driven by brands
at the st
• A low risk method of utilising prime retail spaces
I crore.s
its invert • Support and training in running the business
;t year, it • Promotion of the showroom at a local and national level
IOW plan At Titan, the franchisee is a part of the family, an extension of the organisation. However, the
underlying philosophy is that each store must be independently viable.
The choice of the franchisee is seen as critical and many a times, a more important factor than
the location of the retail store itself.
The qualities desired in a Titan franchisee are:
• Integrity
• Initiative
• Open mindedness
) years ago,
:l sales andt • Family/personal involvement
owing the' • Financial capability
on enabled The usual arrangements between Titan and the Franchisee are as under:
at a single 1. Franchisee has to purchase products directly from Titan and sell these at the recommended
ds and raw prices (MRP).
2. Titan provides a healthy margin on the retail price of all products.
each. This 3. Typical investments required from the franchisee are:
lines to be
• Investment ofRs. 20 - 30 lakhs for interiors ofthe store, as per the company's standard
the batch
specifications. .'
1y realised
s could be • Investment of about Rs. 20 to 30 lakhs, (depending on sale) to keep stocks equivalent to
cts where two months' sales.
hest. The
products.
 c

502 Retailing Management

4. Showroom operations Regular v

• Drawing from its experience in retailing, Titan has set specific standards for servit These worksb
manpower, computerisation, maintenance of outlet ete. A franchisee is expected"" • Influer
operate the showroom as per these standards. .. • Educat
• Operational costs of Titan showrooms are Rs. 75,000 - 1,00,000 per month, dependi • Updat
upon the city and size of showroom. " • Devisii
The Process The feed
the managerr
Sales analysis and review of various developments at the town or the market level are the mal' family of enn
factors that influence the identification of the market. Prospective towns are identified on the basi
of sales per '000 metric. Field staff validates this and the corporate and the field executives identify
CARRYING
priority markets.
The work of initial prospecting and short-listing of the franchisees and the properties is don. The strategy
by the field staff, which in turn sends a proposal to the corporate office. The corporate team" . forward, to n
handling market development, then makes sites visits and evaluates the locations on the basis of .~ opposed to r
various predefined criteria. Projections on Return on Investment for a period of five years are made. " opportunity 1
and the appropriate sites selected. accessories. ~
Once a site has been selected and a franchisee decided upon, the legal agreement is signed. ,." country.
The cost that would be involved and the time period considered are determined. The inauguration
of the showroom and a press conference to announce the same is then scheduled. Once the store is BUilDING
operational, monitoring and tracking its growth becomes important. Promotions for the store and The Tiian Si
the brand are planned and executed and reviews are held on a six monthly or an annual basis. )995. It is <
Titan believes that aware and motivated people make a large difference to the retail chain. showrooms a
Hence, a great deal of emphasis is laid on training. Front line staff training comprises of product v benefits in re
knowledge and selling skills. A special training module is conducted for the store managers, which over 400,OO(
deals with various aspects of ownership of the business and attitudes. Training is also imparted on The rew
Visual Merchandising. Regular training for the upgradation of skills is provided to the persons World of Tit;
employed at the retail store, in order to deliver value to the customer. Titan Signet
In order to be able to build a retail chain through franchising, uniformity of policies and for the rnern
services across the chain is necessary. de',.iveryof s
Titan has also instituted very strong review systems that are integrated with the sales processes various even
to ensure a profitable growth. The key measures of store profitability are Return on Investment and The org.
Return on Space. Retail Audits are a regular feature at the stores and the key inputs for the retail on building
audit are:
• Merchandise THE MAR~
• Display India is an
• Store hardware/imagery estimated m
• Quality of people vast proport
• Interaction split into: L,
The first three elements of the audit are evaluated through customer satisfaction surveys, While 0
customer feedback mailers, customer contact and grievances. The quality of people is evaluated by today has a
way of people audits and their manner of interaction with the customers by mystery shoppers.
31mages India
 Case 1 A 3600 Approach to Time 503

~' Regular workshops are conducted for the franchisees of The World of Titan and Time Zone.
These workshops are aimed at:
• Influencing franchisee attitudes
• Educating franchisees about retailing developments in other industries
• Updating franchisees with retailing best practices from outside as well as within
• Devising action plans to improve customer retention, loyalty and satisfaction
The feedback obtained from the franchisees is used as an input and the learning is applied to
,the management of the chain. Over the years this network has grown and has created a close knit
family of entrepreneurs who have grown along with the brand.

CARRYING IT FORWARD: WATCH CARE CENTRES

The strategy behind setting up the watch care centres was to carry The World of Titan experience
forward, to meet post purchase needs. A great deal of emphasis was laid on customer handling as
opposed to merely dealing with technical/repair issues. The Watch Care Centres were seen as an
opportunity to build and enhance brand loyalty and also as an opportunity to increase the sale of
accessories. They soon became independently viable and their network is now present across the
at is signed'. country.
tlaugur<;\,tion
~the sto'r~ BUILDING LOYALTY-THE TITAN SIGNET
le store"aN
The Titan Signet loyalty programme has been operational at the World of Titan showrooms since
.al basis: .
1995. It is a select club that recognises the loyalty of Titan customers at the World of Titan
'etail chai~, showrooms and is designed to give-these select Signet members, exciting rewards as well as tangible
; of product benefits in recognition of their loyalty to Titan and the World of Titan showroom. The database has
.gers, which- over 400,000 members.
nparted on
The rewards and benefits increase in value as the members increase their purchases from any
he persons
World of Titan showroom or Titan Watch Care Centre participating in the Signet programme. The
I
Titan Signet also provides a platform for direct feedback from these valued customers. Recognition
for the members of the club is in the form of preferential service at the Watch Care Centres, home
delivery of service watches, free delivery across the country, complimentary tickets and passes to
's processes various events and shows and special offers.
stment and The organisation recognises that the Signet database is a rich source of information and focuses
r the retail on building a relationship with its loyal customers, which helps in increasing sales.

THE MARKET IN INDIA

India is an under-penetrated market for watches - only 27% of Indians own a watch. The total
estimated market as of 2007 is: Volume: 39 mn units and Value: Rs 2500 Crores (USD 625 Mn). A
vast proportion of the Indian market is belowp..s500 (68%) 85% by volume).3 The market has been
split into: Low end, Mass market, Premium Luxury.
n surveys, While once upon a time, HMT was the key player in the Indian market, the marketplace of
aluated by today has a large number of international brands like Timex, Tag Heuer, Omega, Tissot, Rado,
ppers.
31mages India Retail Report, 2007.

J
504 Retailing Management

I
L-_
Formal/Classic
_
-'1 .
Tissot, Cartier Cl
followed by Car
watch market at
The Movad
IVIovado·, Ebel, I

from 40 outlets
Moet Henn.
Price plans to reach t
within the next
The brand
I Rs 500
number one bra
aggressive retai
months.
In Novernb.
Swiss designer I
touch to the wee
living in metros
The all-met.
FIG. 2 Positioning of brands with respect to Style and Price
and sports sera
Source: 1Wli>'.1L\arlYLClfki.l;Qm, Investors presentation, February 2008, accessed 02/04/08.
~ Laurent Collect

Movado, also striving to create a presence

brands in the Indian market.
in India. Figure 2 indicates the positioning of various 11collection is avai
the country.

Timex, a subsidiary of TimexCorp, USA, started business in India in 1991 through a joint
venture with Titan Industries. 'While the association no longer continues, Timex has emerged as a
key player in the Indian market. The parent company, Timex Carp, USA is the third largest and the
I THE WAY FOI
The retail envir
forces are fast tr
lowest cost watch producer in the world. Timex was very successful in attracting the young age
group of customers with its easily replaceable casings and straps. In India, Timex offers watches in
1 consumer segm{
retail. The comp
the price range between Rs 1,000-5,000 and claims to control about 22 per cent of the market share,
.~ mortar retailers,
Digital, Chronograph and Dress Fashion are some of the popular Timex sub-brands that sell from
21 exclusive brand outlets and 2,500 multibrand outlets across the country. J 1. Discuss tl

Watches have moved between being mere functional objects to an accessory and a fashion
• changing
statement. Higher disposable incomes, greater awareness and the desire to be more fashion-savvy 2. Discuss tl
have contribtlted to the influx of luxury watches. The potential customers in the hauie de gamme
market comprise less than 1% of the total population.
j 3. Analyse tl
into othei
The Swatch group, with brands such as Omega, Rado, Longines, Tissot and Bregeut, is the J
undoubted leader, capturing around 80% share in the high-end watch market." Swatch has the '1
largest distribution network in the country. The LVMH group, which boasts of brands like TAG
Heurer, Christian Dior and Louis Vuitton, follows with a 10% market share. Raymond Weil, Piaget,
Chopard, Cartier, Pierre Cardin, Mont Blanc, Rolex,: Cirard Perregaux & Jean Richard, Baume &
Mercier 'and Bvlgari are some of the other big names in the premium watch category. According to
j
industry sources, Omega is the top-selling luxury watch brand in the country, followed by Rado,
5www.ibef.org.

6Titan launches the;

4Watch Your Wrist, The Economic Times, 24th February, 2005.
j
J
 Case 1 A 3600 Approach to Time 505

Tissot, Cartier and TAG Heuer. However, in terms of value or brand image, Rolex leads the pack,
followed by Cartier, Chopard and Bvlgari. Industry sources peg the growth-rate of the high-end
Y./.atchmarket at approximately 25% per annum.
The Movado Group, Inc, designs, manufactures and distributes a range of luxury watches-
'~ovado, Ebel, Concord, Coach Watches and Tommy Hilfiger Watches. Movado currently retails
from 40 outlets in India, including five in Bangalore.f
Mod Hennessy - Louis Vuitton (LVMH), world's leading luxury products group, has formulated
. plans to reach the top slot in Indian premium watches market for its 'Tag Heuer' brand watches
. within the next three years. At present, the premium watches market is led by Omega and Rado.
The brand is at present, at the third position in the Indian market and aims to become the
number one brand in premium watches in India. To increase volumes, the company plans to go for
aggressive retail expansion, with initial plans to open 30 Tag Heuer boutiques in the next 18
months.
In November 2007, Titan launched the Laurent Collection." This collection, created by the
Swiss designer Laurent Rufenacht, is a premium range of watches for Titan, to give a European
touch to the wedding wardrobe. The collection is mainly targeted at men in the age group of 25-45,
living in metros and mini metros.
The all-metal Laurent Collection explores the flavour of European design in its dials and straps
and sports scratch resistant sapphire glass crystal. Priced between Rs 6,500 and Rs 8,500, the
Laurent Collection is presented in yellow metal, bimetal, steel and black metal finishes. This
collection is available at all World of Titan showrooms, Time Zones and multi brand outlets across
the country.

'ough a joi~lt THE WAY FORWARD

nJ
emerged as q
rgest and the, The retail environment in the country has changed significantly over the last five years. Several
forces are fast transforming the Indian watch industry. On one hand is the emergence of distinct
e young age
consumer segments which are willing to spend, and on the other hand is the rise of new channels of
rs watches in'
narket share. retail. The company is faced with increased competition to the retail chain and the rise of click and
mortar retailers. Given this scenario, discuss the following:
hat sell from
1. Discuss the strategy that can be adopted by Titan to sustain its leadership position in the
rd a fashion changing environment.
ashron-savvv 2. Discuss the process of creation of a brick and mortar model for the retailer.
ute de gamme 3. Analyse the brand power of the retailer and formulate a market entry strategy for the retailer
into other emerging markets.
egeut, is the
atch has the
ds like TAG
Weil, Piaget,
d, Baume &
\.ccording to
ed by Rado,
5www.ibef.org.

6Titan launches the Laurent Collection, Business Standard, November 28, 2007.
506 Retailing Management