The strategy behind setting up the watch care centers was to carry The World of Titan experience forward to meet post purchase needs. A great deal of emphasis was laid on customers handling as opposed to merely dealing with technical / repair issues. The Watch care centers were seen as an opportunity to build and enhance brand loyalty and also as an opportunity to increase the sale of accessories. They soon became independently viable and their network is now present across the country.
Building Loyalty – The Titan Signet
The Titan signet loyalty program has been operational at the World of Titan showrooms since 1995. It is a select club that recognizes the loyalty of Titan customers at the World of Titan showrooms and is designed to give these select Signet members, exciting rewards as well as tangible benefits in recognition of their loyalty to Titan and the world of Titan showroom. The database has over 400,000 members.
The rewards and benefits increase in value as the members increase their purchases from any World of Titan showroom or Titan Watch Care Center participating in the Signet program. The Titan Signet also provides a platform for direct feedback from these valued customers. Recognition for the members of the club is in the form of preferential service at the Watch Care Centers home delivery of service watches free delivery across the country complimentary tickets and passes to various events and shows and special offers.
The organization recognizes that the Signet database is a rich source of information and focuses on building a relationship with its loyal customers, which in increasing sales.
The market in India
India is an under penetrated market for watches – only 27% of Indians own a watch. The total estimated market as of 2007 is: volume: 39 mn units and value: Rs 2500 Crores (USD 625 Mn) A vast proportion of the Indian market is below Rs 500 (68%) 85% by volume. The market has been split into: Low end, Mass market, Premium Luxury.
While once upon a time, HMT was the key player in the Indian market, the marketplace of today has a large number of international brands like Timex, Tag Heuer, Omega, Tissot, Rado, Movado also striving to create a presence in India.
Timex, a subsidiary of Timex Corp, USA started business in India in 1991 through a joint venture with Titan Industries. While the association no longer continues Timex has emerged as a key player in the Indian market. The parent company, Timex Corp, USA is the third largest and the lowest cost watch producer in the world. Timex was very successful in attracting the young age group of customers with its easily replaceable casings and straps. In India Timex offer market share. Digital Chronograph and Dress Fashion are some of the popular Timex sub brands that sell from 21 exclusive brand outlets and 2,500 multi brand outlets across the country.
Watches have moved between mere functional objects to an accessory and a fashion statement. Higher disposable incomes, greater awareness and the desire to be more fashion savvy have contributed to the influx of luxury watches. The potential customers in the hands de gamme market comprises less than 1% of the total population.
The Swatch group, with brands such as Omega, rado, Longines, Tissot and Bregeut is the undoubted leader capturing around 80% share in the high end watch market. Swatch has the largest distribution network in the country. The LVMH group, which boasts of brands like TAG Heurer, Christian Dior and Louis Vuitton, follows with a 10% market share. Raymond Weil, Piaget Chopard Cartier, Pierre Cardin, Mont Blanc, Rolex, Girard Perregaux & Jean Richard Baume & Mercier and Bvlgari are some of the other big names in the premium watch category. According to industry sources, Omega is the top selling watch luxury watch brand in the country, followed by Rado Tissot Cartier and TAG Heuer. However, in terms of value or brand image , rolex leads the pack, followed by Cartier Chopard and Bvlgari. Industry sources peg the growth rate of the high end watch market at approximately 25% per annum.
The Movado Group, Inc, designs manufactures and distributes a range of luxury watches – Movado , Ebel, Concord, Coach Watches and Tommy Hilfiger watches. Movado currently retails from 40 outlets in India including five in Bangalore.