WATCH MARKET REVIEW

India is one of the most promising markets for the watch trade across the globe with a penetration level of only 25 watches per 1000 people as compared to the global average of 250 watches per 1000 people. As per the recent national Readership Survey Platinum Study, 60% of the population does not wear watches, leaving a vast opportunity for the industry, which remains yet to be tapped. The size of the watch industry was still languishing at around 4crore watches in the year 2008 from 2.3crore in the year 2000. The industry is expecting a faster and steady growth in the years to follow, with the proactive support of the union government (rationalization of duty structures).

India has more than 10,000 horological industry retailers. More than 5,00,000 people are directly or indirectly employed in the industry. With more players and investment coming into the country, the potential for additional employment, especially in retail areas, is expected to increase significantly.

The total investment in the “organized” watch sector is US$ 250 million and industry leaders have already announced their plans to spruce up their manufacturing capabilities. The industry has the capabilities to cater to a gigantic consumer base of 1.2 billion. Out of a total demand of more than 40 million units, the organized, sector supplies only 16 million units (approx US$ 300 million).

** HOROLOGY is the art or science of measuring time.
HOROLOGICAL INDUSTRY represent manufacturers & retailers of clocks, watches, clockwork, sundials, clepsydras, timers, time recorders and marine chronometers are all instruments used to measure time.


By - Abhishek Nayyar
For Decoy

CONSUMER SPENDING IN PREMIUM TIMEWEAR

Luxury timewear has a market potential of Rs 5,386 crore.

The category engagement for males is 77 per cent compared to 31 per cent for females.

A mere 31 per cent penetration in premium watches for women indicates that watches are more of an accessory to them than time-keeping devices. On the other hand, to men, it is a style statement.

The per capita annual spend on premium watches for men is Rs 23,000 and for women it is Rs 42,000.

Consumers (both men and women) of up to 30 years are the highest spenders in the category — the estimated average being Rs 46,000 for women and Rs 76,000 for men.

Men living in metros spent Rs 27,000, which is more than what men staying in non-metros spend on premium watches, which is Rs 15,000. Clearly, the metro consumer is buying into designer brands, which typically start upward of Rs 25,000.

In the case of men, North has the highest spending with Rs 31,500, followed by West: Rs 20,000.

In the case of women, again, North has the highest spending per annum at Rs 38,000 followed by South with Rs 22,000.