Swiss watch brand Tissot was born in 1853 in a small town called Le Locle in the Jura mountains on the French border. What started off as a local creation is today a global player having roots in Asia, Europe and the Middle East. The brand has over 1,000 models globally. However, it defines a set of core watches specifically suited for every market. Ulrich Fischer, vice-president (sales) of Tissot who has been with the company for over a decade spoke to FE?s Kavitha Venkatraman on varied subjects including Indian watch industry, product line up and distribution network. Excerpts:

•How do you size up the Indian watch industry? What has been the growth pattern so far?

The overall watch industry in India, as per our estimates, is about 50 million pieces per year. This is irrespective of the segments. We cannot put an exact value for the market. In India, we have numerous international and domestic brands. And Titan is the most dominant player in the market. Of the overall market, nearly 30% could account for the premium and luxury segment and the balance could be shared between the low and mid-segments. Indian consumers are much more knowledgeable as they travel quite a bit. They are sophisticated and they know what to get where and at what cost.

For Tissot as a brand and Swatch as a group, India is a very promising market. In fact, within the Swatch group, there are about 19 brands. Out of this, 14 brands are present in India. Growth has been fantastic in the Indian market since 2001-02. We have been growing every year at the rate of about 30%-40%.

In 1997-98, when the market was liberated, several international players came into the market. Till that time, even for Tissot and its other sister brands, there was no presence in the country. We came in 1998 and our sales started in 1999.

Over the last ten years, the Indian market is quite evolved and developed especially for the premium and luxury segment. Now, with the increasing purchasing power, this market is growing very rapidly in the country. We expect the market to grow by huge steps. The economy has indeed faced slight setback owing to the slowdown but we expect it to leap back during the second half of the year.

•How do you compare Indian market with others? Which are the other major markets for Tissot?

As far as Tissot is concerned, the Far East, Middle East, China and Hong Kong are potential markets, which grow at a major pace. Taiwan, Thailand and Japan also offer business prospects but the growth is slow compared with other nations.

European market is another major market, which is a mature market. The slowdown has impacted the southern European market in a major way. However, the central and northern European markets seem to be insulated from the crisis and are growing. Similarly, South American market is growing despite the crisis. For Tissot, the Far East, Middle East and South America offer good growth prospects. In Europe, it is a mixed situation.

•What are your future plans for India in terms of product range and distribution network?

Right now, in India we have 260 point of sale (PoS) locations across the country. There is room to take it up to 450-500 PoS locations and we will do it over a period of time. We are quite confident about the market sentiments and based on the projections, we will enhance the network.

The focus for Tissot would be the south Indian markets. For example, we would want to improve our presence in Kerala and Cochin. There is a lot of potential in these markets and we need to develop a strong distribution and marketing support to tap the opportunities. Besides, working on the distribution, we would also focus on improving the quality of service and enhancing the visibility by promoting shop-n-shop concept.

Tissot has four boutiques in India, one each in Mumbai and Hyderabad and two in New Delhi. This year, we are planning to open four more boutiques. One each will come up in Bangalore, Mumbai, Cochin and Chennai. This will be either company owned or through franchisee route.

As regards product range, globally we have 1,000 different models. And since we are an international player, we cannot run different regional lines. So for every market, we define a core range of watches. In India, we have a core range of 320 models. The company is planning to enhance this range by introducing nearly 120 new models in the current year.

•There are so many international brands in the market. How do you view competition and what would be your strategies? Would you look at entering the lower-end or the mid-segment?

If you look at the overall Swatch group, Tissot fits into the mid price category globally. Our price range would be anywhere between $150 to $700. But in India, we are considered as the premium or luxury segment. It is impossible for us to move out of this slot or this price range.

As regards competition, we are watching the market very carefully. We understand what the competition is doing including both domestic and international players. There are also watches from markets like Spain and Germany. Tissot?s strong plans in terms of product line up and distribution network should enable the brand to sustain and succeed in the market.

•What is the reason behind choosing an Indian brand ambassador, Deepika Padukone, as the face of Tissot worldwide?

In December 2007, Tissot roped in Deepika Padukone to become the brand?s ambassador in India and the face of Tissot worldwide. It is the first time that the brand has chosen an Indian ambassador. This only underlines the importance that Tissot places on this dynamic market. Deepika is multi-talented, hard working, dynamic and always open to new ideas.