Getting into adjacent categories such as watches and footwear has always been on the radar for Bagzone Lifestyles, maker of Lavie handbags. So its recent foray into the women’s watch segment wasn’t much of a surprise, neither was the timing — 3.8 million weddings are scheduled in 23 days this ‘shaadi’ season. Watches are a fine way to accentuate your style besides being a pocket-friendly gifting option.
The introductory price for Lavie watches is Rs 5,999, and each time piece comes with a one-year manufacturer warranty to be serviced by Timex. Lavie has 100 outlets currently; it plans to open 300 more stores over the next year-and-a-half across tier-1 and 2 towns.
The opportunity for Lavie is huge. Market estimates put the size of the watch market at Rs 16,000 crore, with more than 55% of the market outside the luxury bracket. Over the past decade or so, wrist watches have come to be seen more as a fashion accessory than a mere timekeeping device. High brand consciousness, celebrity endorsements and aggressive marketing strategies followed by fashion brands have all contributed to segment growth.
That said, Rajat Wahi, partner, Deloitte, notes the per capita spend on watches is still one of the lowest in India at $1.30 annually. While the many smartwatch brands have disrupted the category, the high growth rate along with the low penetration, especially in smaller markets, make watches an attractive category.
Lavie has three sub-brands —Lavie Handbags (with 2000 SKUs), Lavie Luxe (around 500 SKUs), and Lavie Sports (500 SKUs). Lavie Handbags wear a price tag of Rs 1,499- Rs 6,499; Lavie Luxe ranges between Rs 3,000 and Rs 7,000, and Lavie Sports between Rs 1,499 and Rs 10,990. In FY23, the company logged Rs 500 crore in sales. Handbags constituted more than 80% of its business.
Ayush Tainwala, CEO, Bagzone Lifestyles, says the company is looking to close 2022-23 with Rs 800 crore worth of sales.
The company produces around two lakh bags every month at its Nashik plant. It is in the process of building a second factory close to the existing one, which will help the company increase its production capacity to five lakh bags per month.
Watch your step
Here’s how to win in the watch market
Physical stores are key, especially those where shoppers can interact with watches
Have a strong presence in multi-brand shops/distribution
Create a strong social media presence
Rope in a celebrity to endorse the brand and create excitement early on