WATCH INDUSTRY IN INDIA

Presented By:
Arani Ray 17PGDM067
Abhijeet Bose 17PGDM071
Anirban Banerjee 17PGDM080
Gourav Guha 17PGDM090
Nabarun Ghosh 17PGDM101
Nilankur saha 17PGDM105
 The Market Structure of the Industry

Number of Dominant Firms Few

Type of Product Differentiated
Barriers to Entry High
Economic Profit in Short Run Present
Economic Profit in Long Run Present
Pricing Power Price maker but interdependent behaviour
Non-Price Competition Very important
Considering all the above factors, the Watch Industry in India can be termed a Oligopoly
 Nature of the Product

Watches are highly differentiated products

The differentiation can be based on brand, design or functionality
Different types of watches Analog, Digital, Chronograph,
Smartwatches etc.
Watches are used both for convenience as well as an accessory
With the advent of smartphones, watches can now be considered as
a luxury product
Major Players
65%
MARKET SHARE
12%
10% 0.80%
7.20%
5.00%
10.00%

5% 12.00%
65.00%

<8%

TITAN TIMEX CASIO

HMT OTHERS SMARTWATCHES
<1%
Source www.business-standard.com
 Prominent Strategies
Pricing Price is set based on the brand value of the company. It also depends on the
material used, watch mechanism, design and functionality.
Advertisement Advertisement is a major tool for the brands to reach out to the
consumers. As non-price competition is high, brands spend a lot of money on
advertisements. Most of the major brands use a famous movie-star or sports personality
as their brand ambassador. Example: -
Titan Aamir Khan, Jacqueline Fernandes
Timex Brett Lee
Casio Rannvijay Singh
Tissot Virat Kohli, Deepika Padukone
Rado Hrithik Roshan
 Nature of Demand
In case of watch market in India we say a very unique trend. The demand is not only
different for different companies, it is also different for different price ranges .

Price Range Brands Present Nature of Product Nature of Demand

<2000 Sonata, Titan, Fastrack, Timex, HMT Differentiation is only based Demand is highly elastic
on design
2000 -10000 Titan, Casio, Timex, Citizen, Fossil, Highly differentiated Demand is highly elastic
Tommy Hilfiger products
>10000 Titan, Casio, Citizen, Fossil, Very highly differentiated Every company has its niche
Longines, Swatch Group product customer base
Luxury Rolex, Seiko, Cartier, TAG Heuer Unique products, often Mainly Veblen goods
limited in number
 Nature of Supply

Supply of watches in India is dependent on the condition of the market

Increase in the income levels have resulted in the increased supply of mid-
ranged and high-ranged watches
Watches are normally sold through: -
Brand Showrooms
Multi-Brand Showrooms
Online Shopping Sites
 Nature of Cost

High Fixed Cost present

Economies of Scale exist
Short Run Average Cost is high because of the high fixed cost and also
due to the cost incurred in marketing the new product to the consumers
Long Run Average Cost is substantially lower than the Short Run
Average Cost
 Regulations and Barriers

Barriers to Entry: -
High initial investment
Special locations for factory
Many different components required

Each price range has a number of well recognized brands. All the brand have
their own loyal customer base. So getting a share of the market is not easy
 Notable Pricing Practices

Price rigidity with a stable price

No Unique Pattern of Pricing Behavior

Pricing is dependent on the strategy taken by the competitor

 Notable Features / Current Trends

Growing demand for sports watches especially among the

youth
Innovations in digital watches
Introduction of smart watches and fitness bands
Increase in demand for mid-range and high range watches
 Acknowledgement

It goes without saying that the successful completion of our project would not
have been possible without the cumulative contribution and support of all the
members in our group. We are extremely grateful to our respected faculty
Maam Dr. Paramita Mukherjee, Dean (Academics) at International
Management Institute, Kolkata for allocating the topic Watch industries in India
which helped us to understand the nature of the respective industry in depth .