India is emerging as one of the key markets for the international watch brands in the country. Gopalratnam Kannan, group manager, Swatch Group India, claims that its Indian subsidiary, set up in January 2002, is growing at 50 per cent a year.
He does not, however, share the sales figures. Bhaskar Bhatt, managing director at Titan agrees: "The premium watch segment, priced at over Rs 10,000, has been growing faster than the other segments in the last three years." Kannan estimates the premium watch segment to be between Rs 600 crore (Rs 6 billion) and Rs 800 crore (Rs 8 billion).
Several reasons have been attributed to this growth. One, disposable incomes have grown. Two, consumers travel abroad and are exposed to foreign brands.
Three, generous marketing budgets and celebrity endorsements have increased the awareness about the watch brands. While Tag Heuer and the Swatch group declined to share information on their marketing and publicity budgets, Bhatt says that Titan spends about Rs 36 crore (Rs 360 million) on marketing which has been increased by another Rs 7 crore (Rs 70 million) this year.
With watches becoming a fashion accessory and attracting the largest number of celebrity endorsements (probably after cola brands), the growth in the premium segment is not surprising.
Shah Rukh Khan and Sushmita Sen endorse the international luxury sports brand Tag Heuer, Aamir Khan endorses the desi Titan while Aishwarya Rai has been the global brand ambassador for the luxury brand Longines.
Though it may be difficult to establish that celebrity endorsements boost sales, the fact remains that Omega flew Pierce Brosnan down to India to endorse the brand in February.
Timex had also invited the Australian bowler Brett Lee to promote and endorse its the brand last year.
Kannan says that each brand signifies definite characteristics, which may be best endorsed by a celebrity who shares the brand personality of the product. Small wonder then that Titan roped in Aamir Khan.
"He fits the Titan personality -- he is neither high-end or low-end but is a quintessential film star. He is widely recognised but not over exposed in endorsing brands," adds Bhatt. Titan's watches range from Rs 1,000 to Rs 45,000.
Though worldwide Swatch has 18 brands, in India, it has launched six -- Omega, Rado, Longines, Tissot, Swatch and Briguet. While Omega is priced at Rs 60,000 to Rs 16 lakh (Rs 1.6 million), Rado is available between Rs 15,000 and Rs 30 lakh (Rs 3 million).
Shah Rukh Khan endorses LVMH's Tag Heuer 2000 exclusive series priced over Rs 35,000. LVMH has four Tag Heuer exclusive stores in India.
