Japanese watchmaker Citizen Watches, which has been present in India for 15 years, has just forayed into the women?s luxury watches segment. Part of the $3.5-billion industrial machinery-to-watch manufacturer Citizen Holdings, it clocks in global sales of $1.8 billion from watches and is betting big on India?s R4,000-crore watch market that is estimated to grow to R8,500 crore by 2016. In an interview to FE?s Sohini Mitter, Citizen Watches India managing director Katsusuke Tokura talks about the growing Indian watch market, competitors, emerging revenue streams and why the company won?t go the Titan way to gain market share. Edited excerpts:
The Indian watch market is largely unorganised. Where does Citizen stand in this clutter?
Citizen is present in the affordable luxury watch segment which lies between the price points of R10,000 and R1 lakh. This segment is roughly about R2,000 crore and is growing at 10-15% per annum. We have mostly been in line with that growth and sometimes even exceeded it. Our target base is the noveau-rich (newly rich) customers who have high disposable incomes and a great aspiration for lifestyle products. Earlier, the watch was only a device that showed time. Now it is a lifestyle accessory.
Who are your competitors in this space? How different are you from them?
Our biggest competitors are Swiss watchmaker Tissot and Japanese timepiece manufacturer Seiko. We operate in the same price point but our eco-drive technology is the differentiator.
Titan, one of India?s largest watch makers, was a drag until its foray into jewellery, eye gear and youth watches turned the company on its head. Do you have any plans to diversify?
Titan is specific to the Indian market. We are a global watch manufacturer inspired by global designs and cater to global tastes. We do not dish out region-specific or country-specific products. We don?t have any plans to expand into other categories like eye gear or jewellery as Titan did in order to gain market share. Our focus remains on watches that are luxurious yet affordable.
The growth in India?s e-commerce has shot up sales of fashion and accessories players. How significant is this new revenue stream?
E-commerce is an emerging revenue stream and we have recently tied up with Flipkart and Myntra to boost sales from that segment. It is a margin-sharing agreement. At present, our sales from e-commerce are less than 1%, but we expect that to grow significantly in the next few years with more consumers getting used to online purchases.
What kind of retail presence do you have in India?
We currently have about 500 points of sale, which include 21 exclusive brand outlets. There are no immediate plans to scale that up. We also have tie-ups with national fashion retailers like Shoppers Stop and Lifestyle and this has helped us improve our reach across various geographies.