Indian Watch Industry

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  • Topic: Watch, Automatic watch, Clock
  • Pages : 12 (3733 words )
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  • Published : April 6, 2013
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TERM PAPER
OF
BUSINESS POLICY AND STRATEGIC ANALYSIS
TOPIC
WATCH INDUSTRY

SUBMITTED TO:SUBMITTED BY:
PROF. J.K. SHARMAMAHIMA VERMA
M.B.A. (SEM. – III)
(FINANCE)
TABLE OF CONTENTS

SL. NO.| TOPIC| PAGE NO.|
1| INTRODUCTION| 3|
2| DESCRIPTION OF INDUSTRY| 3-4|
3| SCOPE OF INDUSTRY| 4-5|
4| CHARACTERISTICS OF INDUSTRY| 6|
5| IMPORTANCE OF INDUSTRY| 7|
6| GROWTH OF INDUSTRY| 7-8|
7| STRUCTURE OF THE INDUSTRY| 8-9|
8| PORTER’S FIVE FORCE MODEL| 10-11|
9| SWOT ANALYSIS OF THE INDUSTRY| 12|
10| PEST ANALYSIS OF THE INDUSTRY| 13-14|
11| CONCLUSION| 15|
12| REFERENCES| 16|

INTRODUCTION

A watch is a timepiece, typically worn either on the wrist or attached on a chain and carried in a pocket. Wristwatches are the most common type of watch used today. Watches evolved in the 17th century from spring powered clocks, which appeared in the 15th century. The first watches were strictly mechanical. As technology progressed, the mechanisms used to measure time have, in some cases, been replaced by use of quartz vibrations or electronic pulses. The first digital electronic watch was developed in 1970. Electronic Watches were introduced in the world market in the early seventies. They came to India in 1979 but had to be withdrawn due to problems with the product. HMT Ltd (HMT) introduced its electronic watches in 1981 and was followed by Hyderabad Allwyn Limited (Allwyn). Organizations such as Electronics Corporation of Tamil Nadu (ELCOT), Semi Conductor Complex Ltd. (SCL), etc. introduced watches but were not successful. By mid eighties many smaller companies, originally manufacturing mechanical watches, diversified into electronic watches. In 1987 Titan Watches Ltd. (Titan) a joint venture of Tata Sons and Tamil Nadu Industrial Development Corporation entered the market and shortly established itself as a major manufacturer.

DESCRIPTION OF INDUSTRY

50 million wristwatches are sold in India every year. Notwithstanding the presence of global players and the opening up of the market, the Indian market has always been dominated by a single player. In the past, till the late 80’s, in the mechanical era, HMT dominated the market. And after that it has again been the domination of a single company, Titan. Today Titan has almost 65% market share of the organized watch market in the country. The organized watch market itself is estimated at 35% of the total industry size. In value terms the size of the organized market is estimated at around Rs. 1500 crores, which means that the average price of watches sold even today is less than Rs.1000!!! Watches are typically segmented into specialist watches and fashion watches. All International watch brands have a clear position as to where they belong. In India most sales are in the fashion segment and this fine distinction has not yet been used by marketers. Male watch buyers far outnumber females and account for around 65% of sales. Students are the largest segment of buyers accounting for approximately 30% of the sales.

Since penetration is still low and the unorganized sector big, this industry has a lot of scope to grow both in value and volume. The jury is still out though whether the Indian companies like Titan will lead this growth or the global majors like Seiko, Citizen etc. After all the domestic players have hitherto grown because of a retail strategy and the wining global players are clearly focused on product

SCOPE OF INDUSTRY

India is an under penetrated market for watches. Only 27% of Indians own a watch. Total estimated market as of 2005 was around 35 million units (in terms of volume) and Rs. 2328 crores or USD 530 million (in terms of value). Market has been split into low end, mass market, mid market and premium market. India’s watch market is expected to grow at 15 percent every year to around $2.70 billion (INR 150 billion) by 2020 driven by young...
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