Swot Analysis Of Watch Industry

INDUSTRY OVERVIEW

The watch industry in India began in the year 1961. It was started by HMT ltd which created the watch division in India. In 1962 HMT manufactured the first watch named Janata. HMT was the leader in watch making until the formation of Titan watches which was formed by the collaboration of TATA and Tamil Nadu Industrial Development Corporation in the year 1987. Titan launched its first model titled quartz in India which was a huge success. During this time some other companies such as ELCOT and SCL tried their hands in this industry however they were unsuccessful. HMT introduced its first electronic watch in the year 1981.

Today the watch market in India is of 50 million units, out of which only 40% falls under organized sector

10,000 crore rising at average rate of 8% annually. Overall 4.5 crores watches are manufactured in a year. The highest share of watches retailed is about the price range from Rs. 500/- to Rs. 3000. The category of watches retailed in the price bracket of Rs. 4000 to Rs. 15000 is growing at an exponential rate of over 20%.

Growth: The wristwatch marketplace has developed in terms of worth from INR 33,731.0 million in FY2008 to INR 55,213.0 million in FY2013. In India the wrist watches marketplace can be separated into three categories on the basis of price. Firstly, it is the mass price section which contains of watches valued lower than INR 1,000 and has mostly the wrist watches sold by the unorganized players. Secondly, it is the mid-price section of watches which is valued amid INR 1,000 and INR 10,000. Thirdly, it is the premium watch section with watches valued beyond INR 10,000.

In India, the mass segment of watches donates the maximum to the market in terms of volume. Alternatively, in terms of worth, each of the mass and the mid-price sections add around 37%-38% to the entire wristwatch marketplace in India. The rest is backed by the premium section which constitutes about 25% of the INR million wristwatch manufacturers in

Giving to the Transparency International (2010), India is a ranked 87 of 178 countries on corruption and India gets 3.3 points, which epitomize the most corrupt nation. So, as the Titan functions business in India, it must have a good association with governmental parties because it may help Titan to diminish the risk on commerce.

Economic: India has converted into a crowded nation and it is one of the fast developing and dominant economic in the world. Based on the Times of India (2010), in 2008 the India per capital income is Rs.40,141 and in 2009 it raises 10.5% to Rs.44,345. Growing the income as well as by growing the buying power in India. This reveals that many individuals have capacity to purchase the amenity products. Since, India is an eye-catching market many overseas brands enter into market of India and upset the profit margin of Titan. This builds challenge for Titan to keep up its market