XYLYS: Exploring Consumer Perception about
Premium Watches in the Indian Context
Background
• Liberalization of market, rising disposable income and exposure to
western lifestyle are some reasons for the growth of luxury watch
category in India.
• Watches figured at eighth position in Top 10 necessity of household
spending.
• Mckinsey report on India’s consumer says that spending on personal
products and service necessities is 8% share of wallet(SOW) in 2005,
expected to climb to 9% SOW in 2015 and 11% SOW in 2020.
Watch Industry in 2011
Global
1. Decline in production of watches during 2005-2009.
2. Premium market suffered the most during recession, with the
exports of Swiss watches dropped by 22% in 2009.
3. China and India are among the nations who are experiencing huge
demand for luxury and premium watches.
India
4. Growth of 8% per annum was seen during last five years.
5. Watches between INR 500- 3000 has highest share in terms of
sales during 2009 and premium watches was growing at 20%
annually.
6. During 2009-2014, forecasted CAGR was 7.3% and 13.7% in terms
Indian Watch Industry
• HMT Janata launched in 1962 and before that watches were
imported and afforded by small number of consumers.
• Titan Industries came in 1984 and started retailing watches in 1987.
• Only Competitor of Titan was Maxima.
• After 1992, liberalization came into picture and market was opened
for foreign players like Timex, Casio, Rolex, Tissot.
Growth of Industry
1. 1962 HMT came and able to retain goodwill in absence of competition
despite offering limited styles.
2. In 1980s Tata group introduced quartz watch and differentiated it on
the basis of accuracy, style, speed.
3. Timex in collaboration with Titan launched in nineties with promise
that former would be low priced and Titan work on luxury segment.
Overview of Competition
• Titan was the single largest player in 2009 with brand share of 20.6%.
• Timex was relatively strong multinational brand in the market.
• Market was captured by unorganized sector (almost 65%).
• Watches transformed from time keeping instruments to fashion
accessories during eighties and nineties.
Segmentation of Watch
Industry
Technology
Benefits Price
Segmentation of Watch Industry
Based on Technology
Mechanical
Quartz Analog
Quartz Digital
Based on Benefits
1. Use
2. Namely
3. Casual -- 35% were casual
4. Formal -- 60% were formal
5. Sports -- 5% were sporty
Watch Market
Economy
67% of volume
Luxury
and 50% of
value shares
Standard Premium
Price between Price between
Rs 500 to Rs Rs 1500 to Rs
1200 5000
Segments of Luxury
Watches
• INR 10,000 to INR 50,000
Pre
miu • Tissot, SEIKO, Citizen
m
Ac
• INR 50,000 to INR 3,00,000
ces • Rolex, Omega, Tag Heuer
sibl
e
• INR 3,00,000 and above
Excl
usiv • Breguet, Patek Philippe, Hublot
e
Luxury Brands
• Market was estimated to be 3% of watch retail and was growing 20%
annually.
• Titan was the only Indian brand in this sector with Xylys competing
with Rado, Tissot, Seiko.
• Main consumer was the new generation executive.
• Successful Brands positioned themselves based on benefits.
• Benefits could be Functional, Symbolic or Experiential.
Methodology
XYLYS
1. Premium Swiss-made watch brand from Titan.
2. Available in Contemporary, Classic and Sport collections.
3. Targeted the lower spectrum of luxury watch segment.
4. Consumers were highly influenced by “Country of origin”
association.
5. Brand wanted to convey Power, Style and Attitude.
6. In 2010 brand changed its positioning from “Symbol of
Success” to “Feeling of Love”.
Tissot
• Founded in 1853 and member of Swatch Group.
• Tissot collections included Touch, Sport, Trend, Classic, Gold.
• Price spectrum was much wider than that of Xylys.
• Tissot’s advertising campaign revolved around the theme “In Touch
With Your Time”.
• They used Deepika Padukone as brand ambassador and projected her
Tissot watch as symbol of luxury and glamour.
SEIKO
• Set up in Japan in 2007, headquartered in Bangalore.
• India is their potential markets.
• Willing to provide good customer service through their
“Flagship Stores”.
• Focused on creation of “emotional technologies”.
• Positioned below Tissot or Xylys.
Question 1
What are the patterns that you observe concerning the responses of
the users/non-users of luxury watches concerning brand personality
aspects , and how did they respond regarding these dimensions
when applied to themselves? What kind of interpretation can you
draw from the response in this case?
Question 2
How would you use principles of perception after considering
the data obtained in the exhibits associated with the present
and potential users of the premium watch brands?
Question 3
Explain the formation of stereotypes and your approach to
applying this concept based on the analysis performed for
question 2. How would you relate these aspects to the data in
exhibits in the case?
Question 4
How would you position XYLYS, considering the analyses
presented in responses to ques 1,2,3?