Slide 1

LUXURY WATCHES1RETAILINGRetailing is defined as all activities involved in selling goods or services directly to final consumers for their personal, non-business use via shops, market, door to door selling, mail order or over the internet where the buyer intended to consume the product through personal, family or household dues. 2

* India Retail Report 20073Luxury WatchesA luxury watch may be defined as a timepiece which not only has the functionality of time-wear but is bought mainly for its brand value, precision, the legacy of the brand 4

5THE SIZE OF THE SECTOR3% of organized retail market. Indian Retail Value:Total:Rs.3,950 crore (in 2006)Organised: Rs. 1,800 crore

Luxury watches : 8% of luxury goods Rs 500 crore , YOY growth 22%

* India retail report 2007

6PLAYERS IN THE MARKET7TOP PLAYERSOnly Indian Player : -Titan Foreign Players : - Rolex ,Omega, Cartier,Tag Heuer,Rado ( all swiss made),Citizen (Japan),8 BrandRetail PresenceRetail OutletsRetail Sales ( INR Crore)05-0606-07Projection for 2010 05-0606-07Projection for 2010 05-0606-07Projection for 2010Titan108125165183223331263350780Rado57NA512NANANANAOmega37NA510NANANANALongines2022NA7580NANANANAMovado1218NA50100NANANANAPERFORMANCE AND PROJECTIONS9CRITICAL SUCCESS FACTORSBrand Name Premium price Design Choice of the retailer 10METHOD OF RETALINGBranded chain outletsMulti-brand outletsDepartment storesExclusive brand shopsE-tailing

11Omega nariman pt.MAJOR PROBLEMSFakes as fakes Fakes as originalsLook-alikesReplicas Smuggling12IMPACT OF ENVIRONMENTAL & POLITICAL SCENARIOThe slow but gradual reduction in duty will boost the sales, discourage smuggling Westernization of Indian culture

13IMPACT ON OTHER SECTORS14LEGAL REQUIREMENTSAuthorized dealership licenseImport permission Shop and establishment License

15DUTY & TAXATIONEffective Import duty : 35% (after budget 2007)Sales Tax: 12.5%

16IMPLICATION OF THE BUDGET 2007Effective Import Duty down by 5%Service Tax of 12.24% on renting of immovable property may discourage prospective retailers

17PORTERS FIVE FORCES MODELForcesHigh MediumLowThreat of New EntrantsThreat of Substitute productsBargaining Power of CustomersBargaining Power of SuppliersCompetitive Rivalry 18SWOT ANALYSISSTRENGTHS : Strong GDP growth Increases in PPP

WEAKNESS : High import duty Limited range on offer

OPPORTUNITIES : The sustained GDP growth Youngest Country by 2020 Westernization of Indian culture

THREATS : Availability of fakes High end mobile phones for functionality19Thank you !20? ? ?Questions 21