The Indian luxury watch market is estimated at INR XX billion in 20-- and has grown at a% annually over 20-- to 20--, faster than the overall watch market. Key drivers of growth include the increasing high net worth individual population and changing consumer mindsets. However, the market also faces challenges like high import duties and competition from the grey market. Major trends in the luxury watch market include diversifying product portfolios, aggressive marketing, and growing sales in tier 2 and 3 cities. The market is dominated by international brands, though domestic players are increasing as well.

1. Luxury Watch Market - India
April 2010

2. Executive Summary
Luxury watch market is estimated at INR XX bn in 20--
It has grown at a% over 20-- - --
Market
High-end watch market segment in India include watches priced at INR Y and above
Luxury watch market has been growing faster than the overall watch market in India
Drivers &
Drivers:
PLE
Growth in HNI population
Challenges:
High import duty
Challenges
AM
Change in consumer mindset
and brand consciousness
S
Rise in luxury retail
Presence of grey market
Diversifying product portfolio
Aggressive marketing
Trends Presence of multi brand watch outlets
Growing sales in tier 2 cities
New players entering the luxury watch segment
Market is dominated by international players like Company 1, Company 2 etc.
Competition Mostly players operate through franchisees or multi brand watch outlets
Few domestic players operate in the luxury watch segment in India
LUXURY WATCH MARKET IN INDIA 2010.PPT 2

3. •Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
LUXURY WATCH MARKET IN INDIA 2010.PPT 3

4. Indian luxury watch market growing at a rapid pace in
comparison to the overall watch market
Overview Market Size – Luxury Watch Market
• Overall watch market in India is pegged at INR XX bn
and has grown at a-b% annually over 20-- - -- INR bn l%
P
• In comparison, the luxury watch market has grown at
LE
40 Q
l% over 20-- - 20--
30
P
• Luxury watch market in India is estimated at INR P bn
20
• Consumers of luxury watches are primarily in the age
group of z-c years
brands
SAM
• This market is dominated by imported international
• Organized sector accounts for the major fraction of
10
0
2008
Market Segmentation
2009
the high-end watch market in India
However, there is a strong presence of the grey market Total watch market is estimated at INR XX bn
which fosters growth in counterfeit watches
• Major consumers of watches in the luxury segment INR R1-R2
Luxury watch R2-R3
include CEOs and senior professionals in the their 30s
market segments
and 40s, new generation entrepreneurs and young S3% > R3
in India
working professionals
S2%
S1%
Source:
LUXURY WATCH MARKET IN INDIA 2010.PPT 4

5. Drivers & Challenges
Challenges
Drivers High import duty
Growth in high income households Presence of grey market
Growth in luxury retail
Changing consumer mindset and
brand conscious consumer
LUXURY WATCH MARKET IN INDIA 2010.PPT 5

6. Key Trends
Diversification of product portfolio
Aggressive marketing and advertising
Presence of multi brand outlets
Trends `
Sales through jewellery stores
Growth in tier II and III cities
New players entering the market
LUXURY WATCH MARKET IN INDIA 2010.PPT 6

7. Market is dominated by international brands with stiff
competition from growing domestic players
Overview Market Entry Route
• Luxury watch market in India is dominated by foreign
players Entry Route
LE
F1%
D1
F2%
D2
MP Route 1 Route 2
Players
SA
Market Entry Route: Domestic and Foreign Players
Route 1 Route 2
Domestic Players
Company 1
Company 2
Foreign Players
Company 3
Company 4
Source:
LUXURY WATCH MARKET IN INDIA 2010.PPT 7

8. Major Domestic Players (1/2)
Players Business Profile
Company 1 • In 20--, it formed a joint venture with a p% stake with Italian jeweller and watch maker Company T
• It operates in the luxury watch market in India under international brands like Brand 1, Brand 2,
Brand 3, Brand 4, Brand 5, Brand 6, Brand 7, Brand 8, Brand, 9 and Brand 10
• In 20--, it launched a multi brand luxury watch boutique Q which shelves brands like Brand A1, Brand
A2, Brand A3, Brand A4, Brand A5 and Brand A6
Company 2 • It was founded in 18-- and has an employee base of W
• It makes watches for various segments such as fashion, sport, youth lines and outdoor under the
flagship brand “K”
• It manufactures, designs and markets global brands like Brand B1, Brand B2 and Brand B3
Financials:
In 20-- - --, its revenue was pegged at INR J and profit was INR G mn
Company 3 • It is promoted by Company C, a Mumbai based jewelry group
• It designs luxury, classic, contemporary and sports watches which are retailed through F MBOs
• It has plans to open retail chains in four cities in India, namely, Mumbai, Bangalore, Chennai and
Delhi and is looking to make an initial investment of INR M mn
• It also plans to enter international markets. It intends to enter the R market
Source:
SAMPLE 8
LUXURY WATCH MARKET IN INDIA 2010.PPT

9. Thank you for the attention
The Luxury Watch Market in India 2010 report is a special feature from Research on India.
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