A Report on

watch industry of india

Submitted by
SHIVAM SRIVASTV
1|Page
Birth of the industry

The history of watches began in 16th-century Europe, where watches evolved from portable
spring-driven clocks, which first appeared in the 15th century.

The watch was made by inventors and engineers developed from the 16th century to the mid-
20th century was a mechanical device, powered by winding a mainspring which turned gears and
then moved the hands; it kept time with a rotating balance wheel. In the 1960s the invention of
the quartz watch which ran on electricity and kept time with a vibrating quartz crystal, proved a
radical departure for the watchmaking industry. During the 1980s quartz watches took over the
market from mechanical watches, a process referred to as the "quartz crisis". Although
mechanical watches still sell at the high end of the watch market, the vast majority of watches as
of 2020 have quartz movements. One account of the origin of the word "watch" suggests that it
came from the Old English word woecce which meant "watchman", because town watchmen
used watches to keep track of their shifts. Another theory surmises that the term came from 17th-
century sailors, who used the new mechanisms to time the length of their shipboard watches.

The Oxford English Dictionary records the word watch in association with a timepiece from at
least as early as 1542. The India watch market is projected to register a CAGR of 20.32% over
the forecast period, 2020-2025.

2|Page
Market Insights:

By product type, the quartz segment holds the maximum share, however, the smart watch
segment was the fastest growing segment, mostly followed by an increasing demand coming
from fitness sports and health-conscious consumers. On the other hand, the lower priced and
mid-priced watches are increasingly gaining market traction, due to an increasing demand for
value-for-product watches and accessories among women.

By distribution channel, the offline retail channel holds a major share and under the offline retail
channel segment, specialty stores accounted for the prominent share and it turned out to be the
largest segment as well. Furthermore, mono-brand specialty stores are gaining popularity across
the country, for instance, a significant number of the chain stores of Titan are operated through
'World of Titan’ outlet franchises.

➢ India is an under penetrated market for watches - 27% of Indians own a watch, Volume ~35
mn units
➢ Total estimated market as of 2005 - Value: Rs 2328 crores (USD 530 Mn)
➢ Vast proportion of the Indian market is below Rs 500 - ~68% (85% by volume)
➢ Market has been split into low end, mass market, mid-market, premium

3|Page
Revenue in the Watches segment amounts to US$1,329m in 2021. The market is expected to
grow annually by 7.60% (CAGR 2021-2025).

In global comparison, most revenue is generated in China (US$14,682m in 2021). In relation to

total population figures, per person revenues of US$0.95 are generated in 2021. By 2021, 81%
of sales in the Watches segment will be attributable to Non-Luxury goods. The wrist watch
segment accounts for around 80% of the Indian timepiece market. The wrist watch market in
India was valued at INR 94.55 Bn in 2018, and is expected to reach INR 192.74 Bn by 2024,
expanding at a compound annual growth rate (CAGR) of ~13.21%, during the forecast period
(2019-2024). In the past few years, smartwatches and premium watches have witnessed a
significant growth in demand and popularity. These two are the main components which have
attributed to the rapid growth of the wrist watch market. Slashed goods and services tax (GST)
rates on luxury watches and increasing fashion consciousness among consumers have further
accelerated the market growth. Moreover, with the progressing retail landscape and increase in
Internet retailing, the sale of wrist watches is anticipated to experience a swift increase in the
Indian market.

However, the presence of counterfeit products is a major challenge for the market. The
developing market for fitness bands and activity trackers as substitutes for smartwatches, also
impedes the growth of the wrist watch market.

4|Page
Market Segment Analysis

Based on the price range of products, the wrist watch market in India is segmented into mass
price, economy price and premium price segments. In India, the mass price segment is operated
mostly by the unorganized sector. The customer-base of the economy price segment is the highest
and comprises mainly the millennial and working demography of the country. The revenue
generated from the sale of products in the economy price segment accounted for ~37.95% of the
overall market revenue in 2018. The demand for premium branded watches is predicted to expand
at a rapid growth rate of ~13.75% during this period, owing to the increase in average disposable
income, steady expansion of retail network by international fashion brands in tier II and tier III
cities and increase in fashion consciousness among people.

5|Page
 Companies in Watch Industry of India

Titan COMPANY

Titan Company Ltd is the world's fifth largest wrist watch manufacturer and India's leading
producer of watches. The company is engaged in manufacturing of watches jewellery precision
engineering and Eyewear. They produce watches under the brand name Titan Fastrack Sonata
Nebula RAGA Regalia Octane & Xylys. They export
watches to about 32 countries around the world. They
manufacture precious jewellery under the Tanishq brand
name. Titan Industries Ltd is a joint venture between the
Tata Group and the Tamil Nadu Industrial Development
Corporation (TIDCO).As on 31 December 2020 Titan's
retail chain (including CaratLane) stands at 1854 stores
with a retail area crossing 2.4 million sq. Ft. for all its
brands covering 292 towns. The Company is structured
into four verticals namely Watches and wearables
Jewellery Eyewear and Others where 'Others' include Accessones Fragrances and Indian dress
wear. Accordingly the Company has presented its segment results under these business segments.
Titan Industries Ltd was incorporated in the year 1984 and commenced their business in the year
1986. The company set up an integrated watch manufacturing facility at Hosur in Tamil Nadu in
the year 1987 with initial technical know-how from Europe and Japan. In October 1992 they
came with a right issue to the part of finance for its expansion programmes. In the year 1995 they
diversified into Jewellery under the brand name of Tanishq to capitalize on a fragmented market
operating with no brands in urban cities. Apart from the domestic market the company started
the manufacturing of watches for several prestigious international brands during the year 1997.
In the year 1998 the company launched the second watch brand Sonata.

6|Page
Traded as • BSE: 500114
• NSE: TITAN
• BSE SENSEX Constituent
• NSE NIFTY 50 Constituent

Industry Lifestyle

Founded 1984; 37 years ago

Founder Xerxes Desai

Headquarters Bangalore, Karnataka, India

Area served Worldwide

Key people N. Muruganandam (Chairman), C. K. Venkataraman (MD),

C. K. Venkataraman, CEO

Products Watches, Jewellery, Precision,

Engineering, Bags, Perfumes, Belts, Wallets and Eyewear

Brands • Fastrack

• Tanishq

• Titan Eye plus

• Sonata

Number of employees 7,500 (2020)

Parent • Tata Group

• TIDCO

Website titancompany.in

7|Page
Timex

Timex Group designs, manufactures and

markets innovative timepieces and
jewellery globally. Timex, founded in
1854, has expanded to become Timex
Group, a privately-held company, with
several operating units and over 5,000
employees worldwide.

One of the largest watch makers in the

world, Timex Group companies include the Timex Business Unit (Timex, Timex Ironman,
Nautica, Marc Ecko and Helix); Timex Group Luxury Watches (Salvatore Ferragamo); Sequel
(Guess, Gc) and Vertime (Versace).

Timex Group built its reputation as the pioneer in timekeeping by harnessing the power and
possibility of time. From the first clock and wristwatch we produced through data integration –
from classic, time-honoured designs through exclusive, luxury collector’s pieces – Timex Group
companies continue to deliver unparalleled quality to highly diverse and global customers.

Milan to Hong Kong, design sensibility and creativity inspire multiple lifestyle brands. From the
hallmark everyday watches on which we built our reputation, to exclusive, high-end offerings,
we are equipped to meet the needs of our brand partners.

Timex Group India has one of the most powerful portfolios of brands in the watch industry. With
technological innovation and cutting-edge design, we recognize the tremendous opportunity to
leverage the reach and appeal of each brand’s individual identity, personality and customer base.
With our global organization and breadth of expertise, we bring our partners from concept
through design, manufacturing to distribution, to meet and exceed the brands’ criteria for success.

8|Page
Founded 1854 (167 years ago)

Headquarters Middlebury, Connecticut, with various operations in Europe, the

Americas, and Asia

Area served Worldwide

Key people Tobias Reiss-Schmidt, President & CEO

Colin Arsenault, CFO

Products Watches

Number of employees 7,000

Parent Timex Group

Website www.timex.com

9|Page
Citizen Watch:

Citizen Watch Co., Ltd. is an electronics company primarily known for its watches and is the
core company of a Japanese global corporate group based in Nishitokyo, Tokyo, Japan. In
addition to Citizen brand watches,
it is the parent of American watch
company Bulova, and is also
known for manufacturing small
electronics such as calculators

The company was founded in 1930 by Japanese and Swiss investors. It took over Shokosha
Watch Research Institute (founded in 1918) and some facilities of the assembly plant opened in
Yokohama in 1912 by the Swiss watchmaker Rodolphe Schmid.

The brand Citizen was first registered in Switzerland by Schmid in 1918 for watches he sold in
Japan. The development of this brand was supported in the 1920s by Count Gotō Shinpei with
his hope that watches could become affordable to the general public. The growth of Citizen until
World War II relied on technology transfer from Switzerland.

Traded as TYO: 7762 Nikkei 225 Component

Founded 1918; 103 years ago

Headquarters Nishitōkyō, Tokyo, Japan

Key people Toshihiko Sato (President and CEO)

Watches and parts

Information equipment and parts
Products Electronic equipment and parts
Industrial machinery and equipment
Jewellery
Number of employees 20,882 (2018)[2]
Website citizen.co.jp

10 | P a g e
The Swatch Group:

The Swatch Group Ltd is an international

group active in the manufacture and sale of
finished watches, jewellery, watch
movements and components. Swatch Group
supplies nearly all components required for
the watches sold by its 18 watch and jewellery brands as well as by its two retail brands,
Tourbillon and Hour Passion. The Group’s production companies also supply movements and
components to third-party watchmakers. The Swatch Group Ltd is also a key player in the
manufacture and sale of electronic systems used in watchmaking and other industries. With its
watch brands, it is also a leader in the field of sports event timing as official timekeeper and data-
handler of most of the Olympic Games of the last decades and major international sports events.
The Swatch Group Ltd has a unique emotional culture. Beauty, sensuality, emotions in watches
are as much part of it as high-tech, quality and added value on the customer’s wrist. Both,
emotional poetry and innovation play an active part in the commitment to its customers. The
Swatch Group Ltd was founded in 1983, by Nicolas G. Hayek. It grew out of the merger of two
big Swiss watch groups, ASUAG and SSIH. The Group has since shown steady growth in key
financials, leading to records. Today Swatch Group employs more than 32'000 persons in over
50 countries.

1983; 38 years ago

Founded

Founder Nicolas Hayek

Headquarters Biel/Bienne, Switzerland

Area served Worldwide

Nayla Hayek (Chair) Nick Hayek, Jr. (CEO)

Key people

Products Watches, Jewellery, Electronic systems

Website www.swatchgroup.com

11 | P a g e
Fastrack

Fastrack was launched in 1998 and

became an independent urban youth
brand in 2005. Since then, it has
carved a niche for itself with
watches and sunglasses that are both
fashionable and affordable. Fastrack
extended its footprint into
accessories in 2009 with a range of bags, belts and wallets. Fastrack retails across the nation
through 158 exclusive Fastrack stores in over 79 cities as well as authorized multi-brand outlets
and online (www.fastrack.in). Today, the brand has successfully notched up the title of being the
most loved youth fashion brand in the country.

Founded 1998

Headquarters New Delhi, India

Area served India

Key people Suparna Mitra (CMO) Chiranewala (Head of Marketing)

Products Fashion accessories, Watches, Sunglasses, Bags, Belts, Wallets &

Perfumes.

Owner Titan Company

Website https://www.fastrack.in/

12 | P a g e
Competition Analysis

Some of the major players in the market include Titan Company Limited, Casio India Co. Private
Limited, Rolex Watch Company Private Limited and Timex Group India Limited. Among these
accomplished players, the industry is being led by Titan Company Limited, accounting for
approximately 40% of the overall wrist watch market, for almost a decade. As a strategic move
to capture higher market share, players are trying to diversify their product portfolios by
introducing smart watches in their product portfolio. In 2019, the overall sales volume of smart
watches in India was about 34,200 units. The companies are coming up with innovative ranges
of products incorporated with new features and technologies that are likely to further intensify
the competition.

13 | P a g e
Innovation in Watch Industry

The dynamics of innovation in the watch industry. Watches were thought of as jewelry,
purchased in the jewelry store and passed along the family to sons and daughters. A technology
change took place when electronic circuits made it possible to forgo the complex, hand-made
mechanical assembly of watches. The first attempts to reproduce watches as jewelry, but using
electronics, did not succeed. Then Japanese manufacturers redefined the watch as an instrument
for telling time: relatively inexpensive but very accurate and with numerous subsidiary functions.
This moved the center for the industry from Switzerland to Japan. Swatch, however, brought
watchmaking back to Switzerland by redefining the watch as a fashion accessory . Today, luxury
Swiss watchmakers are bringing back the expensive hand-made watch, but defining it as a status
symbol. When it comes to 21st-century wristwear, all too often it is – to borrow from Dame
Shirley Bassey – a little bit of history repeating. But while recent interest in preowned and vintage
timepieces might have led brands to revisit and rehash archival models, plenty are still set on
pushing the limits of horological design and function.

14 | P a g e
New technology

With the electronic TAG Heuer Connected, Montblanc Summit and Louis Vuitton Horizon all
making waves, watch manufacturers are increasingly taking up the challenge thrown down by
smartwatches. And while many are tackling applied science head on, offering a dazzling array of
wrist-worn apps, other ultra-high-end watchmakers are taking a more collaborative approach and
experimenting with combinations of traditional and modern.

Unsurprisingly, one of the earliest and most successful uses of hybrid technology in watchmaking
comes from Japanese powerhouse Seiko, which has used its patented Spring Drive movement in
its high-end timepieces – including Grand Seiko and Credor – since 1999. Accurate to one second
per day, Spring Drive has a conventional gear train but uses quartz instead of an escapement and
balance wheel to regulate it.

The market in Europe is expected to dominate the global watch market during the forecast period.
Presence of established watch manufacturers increase in demand for smartwatches, especially
among the youth, and change in lifestyles are some of the major factors driving the growth of the
regional watch market. In recent years, there has been an increase in adoption of luxury watches
like Swiss-made luxury watches owing to its superior quality, innovative design, and
craftsmanship.

The Asia-Pacific watch market is expected to register the highest CAGR during the forecast
period. Growth of organized retail sector increase in per capita disposable incomes, and
awareness of technology and trends are some of the factors boosting the growth of the regional
watch market. High product promotion and launch of technologically advanced watches in Japan,
China, and India are further adding to the regional market growth.

Global Watch Market, by Type

Analog Watches

Smartwatches

Chronograph Watches

Digital Watches

Others

15 | P a g e
Global Watch Market, by Category

Quartz Watches

Mechanical Watches

Others

Global Watch Market, by Distribution Channel

Store-Based

Supermarkets and Hypermarkets

Specialty Stores

Others

Non-Store-Based

Global Watch Market, by End User

Men

Women

Unisex

Global Watch Market, by Region

North America, US, Canada, Mexico, Europe, Germany, France, Italy, Spain, UK, Rest of
Europe, Asia-Pacific, Japan, China, India, Australia and New Zealand, Rest of Asia-Pacific, Rest
of the World (RoW), South America, Middle East, Africa.

16 | P a g e
Global Market Share

Global Luxury Watch Market:

17 | P a g e
Swiss Watch Market Share:

18 | P a g e
Conclusion:

Watch brands that seize the opportunity to make the ideas of the past relevant in the 21st century
are more likely to cement their place in the industry and its future. By looking to the future, rather
than to the past, the watch industry has an opportunity both to remain relevant and to reach new
consumers. By constantly looking backwards at design, it will fail to achieve either.

Thanks to the accelerated digitalization of the luxury watch space in the last year, small and
independent brands are getting more opportunities to compete directly with large brands/groups
in an environment that does not require extensive marketing budgets to reach out to consumers.
Independent brands are often present in the very high-end price segment. They have low volumes,
so it is difficult to compare them with brands that are part of a larger luxury group with higher
volumes and the same price segment. I believe that leading independent brands, top brands that
are part of a group and smaller, distinct independent brands will continue to contribute to the
industry’s growth in the coming year.

19 | P a g e