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Wrist watches in India

Presented by : DAVINIAA/P CHANDRANDAVINIAA/P CHANDRANDIYANARASHIDDIYANARASHID

LUT MAHYUDDINLUT MAHYUDDIN

NURADIBA MAHADZERNURADIBA MAHADZER

-It's All About the Money-

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INTRODUCTIONINTRODUCTION

Wrist watches form an integral part of the personality of individuals in

the present era. Earlier seen as a luxury item, they are now witnessing a

fundamental change in perception, and are now gaining respect as an

essential utility item.

For the watch industry, time seems in its favour what with the

liberalization of the Indian market coupled with the rising purchasing

power of the young and consumerist Indians. The Indian wrist watch

industry has tremendous potential to grow; whereby efforts would haveto be focused and penetrative.

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The total estimated sales volume in India currently is estimated to be around 40

to 45 million pieces annually. The organized sector alone contributes up to 35percent of this figure, and the rest of the demand is being met by the

unorganized grey sector. This data is significant indeed in view of the socio-

economic distribution of the Indian populace.

In dollar terms, the estimated annual market size is around USD 195 million,

despite the fact that the penetration of watches is the lowest, comparedglobally.

Not withstanding 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 80s, in the mechanical era, HMT dominated the market. And

after that it has again been the domination of a single company, Titan.

In the current market, there are a total ofthree major players which comprises

of TITAN, HMT and TIMEX. However, the other fellow players in the market

would include Rado, Tommy Hilfiger, and Evidenza from Longiness.

QUESTION 1

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In India, there exist a wide variety of mens' and womens' wrist watches featuring

some of the finest brands, like designer watches, style watches, luxury watches,

unisex watches, and sports watches for men, females, and youngsters. Male wrist

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.

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QUESTION 2Internal (Psychological Influences)

a) Needs/Motivation

(i)BasicNeedsWristwatchesareconveniently wornaroundthewristsothat

timekeeping iseasilyaccessible.(ii)SocialNeeds

Peoplebuyawatchtoimpress others,mainlytofitintoaspecific

social group toacquirethesense of belonging.Italsoactsasanatural

enhancementtobothmenandwomentocreateattraction.

(iii) EgoNeeds

Peoplebuyawatchtoaugmentsomenotionofself image,asapiece

ofjewelry.Previously,luxuriousfashionfocusesonmalesbutnow

morebrandsareincreasinglywooingfemalesthatwillsuittheactual

women'scritical tastes.Thisistocreatetheimpression thatthisisa

personofwealth and taste.

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b)PersonalityPersonality Performingavoguishroleasafashionaccessorythathelpsinmakinga

self-expressive stylestatement. Peoplebuyawatchbecausetheywanttoseek variety; e.g.glowinthe

darkwatches,waterproof,calculatorwatches,phonewatchesetc.

Sometimes,alsotoconformtoa trend,ortokeepupwiththelatest

fashion-look,inaccordancetotheirageandgender.

Someconsumersseektobeunique,bypurchasingdesignerwatchesor

limitededitionwatches.

c)Learning (Involvement)Learning (Involvement) A wrist watch is generally a high involvement product as consumers

tend to analyze the attributes of the watch in detail.

Eg: Digitalvs Analog,

Automatic vs Manual, or

Occasionalusage vs Daily usage

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External (Socio-cultural Influences)

a)Culture Cultures that value luxury also socially value these personaldescriptors in a very real way.

Not only that, but to be comfortable socially in some of these

cultures you actually need to display these messages on your

body (in some form or another) as much as possible, such as

by wearing a really nice wrist watch.

b) Socialclass Social etiquette often involves looking your best. Peoplejudge

how smart, tasteful, attractive, and successful you are based

on visual indicators. So, having something ofclass and elegance on your wrist is a

message to people dealing with you that you should be taken

seriously and indicates social status and recognition.

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c) Family Every family member doesnt have the same opinion to buy the

same product; different family members have different choice tobuy the product. So, in one family consumer behavior varies.

However, in India parents play an important role in an individual

decision to purchase a wrist watch.

Eg: A daughter would buy the same brand as her mother.

d) Peers Friends are the second most influential people after family

members. The generation of youth nowadays are easily influenced

by peers who are closest to them, reason being, they merely want to

fit in and want to feel associated. Eg: Colleagues influence buying behaviour of wrist watches

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e) Reference GroupInfluences (Comparative)

Wristwatchesisconsideredasapublic necessity wherethe

influenceontheproductisweak butonthebrandisstrong. Celebritiesisoneofareferencegroupappealsthatareusedin

theIndianwristwatchindustry.

E.g.: Aamir Khan and Katrina Kaif for Titan.

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Segmentation

Bases/V

ariables

Bond Time Piece Diva Time Piece Dual Effect Time

Piece

DEMOGRAPHICS

Gender Male Female MaleandFemale

Age 35 50years 30 45years 18 30years

Income Morethan

100,000rs.

Morethan

100,000rs.

Morethan

20,000rs.

BENEFIT

(NEEDS-BASED)

BenefitSought PrestigeandClass

ExertFeminism

Convenienceand Durability

USER-RELATED

Usage Rate Occasional Occasional Daily

LoyaltyStatus High High Moderate

SEGMENTATION TABLE

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