Anirban Bhattacharya, Sumu Saikia, Soumita Paria,

Sanglap Basu, Anjana Baruah,Pappu Shah

FACTORS
Aggregate
Market


ANALYSIS
Category Size
Currently is estimated to be around 40 to 45 million pieces annually.
Organized sector contributes 30%, 70 % demand is met by the
unorganized sector
Category Growth Slated around 10-15%
Around 20 to 25 watches are being sold for every 1000 citizens.
Product Life
Cycle
Category is in the early stages of growth phase
Sales Cyclicity
These watches are not premium prices for their medium income group & its
prices are such that they do not get impacted directly with the variations in
GDP

Seasonality Year round sales
Category may experience sales increase during festivals
Profits
Benchmarking the profits would be difficult. Many foreign companies are
interested in setting up their base in India may lead to lowering of pricing &
profits. It can be estimated around 100-200 crore.



FACTORS
Category


ANALYSIS
Threats of new
entrants/ exits
Lack of differentiation. It is maintained largely through brand, style, fashion
variety.
High capital required. Thus attracts less investors.
Economies of
scale
Entry is not that easy.
Large scale industry.
Product
Differentiation
Product differentiation is low.
Differentiated largely through brand, style, fashion variety.
Capital
Requirements
Relatively high. Lowering the threat of new entrants
Switching Costs
Switching costs are relatively low, increased no. of firms.

Distribution
No specialty requirements for distribution
Higher shelf life, products should be displayed in an attractive manner
Many modes of distribution ( retail stores, malls, e- tail)


FACTORS
Category
Contd.


ANALYSIS
Bargaining
power of buyers
Buyers are extremely choosy about the brand and type of wrist watches
they wear.
Buyer power is very high.

Bargaining
power of
suppliers
No strong suppliers. Lack of bargaining power. Rise of China & Taiwan as
low cost supplier is a threat

Pressure of
substitutes
Close substitutes from big players like Fast track range from TITAN which
starts from Rs. 500 & also same products from some gray sector.

Category
Capacity
Appears to be low.
But it has to be kept in mind that the majority of the manufacturers are from
the unorganized sector
Current category
rivalry
High. Differentiation largely of styles, brands etc.
People aged between 15-35 belonging to the middle class and the upper
class are targeted. 37.5% of our population are below the age of 40. Market
is vast but competition is very tough.

FACTORS
Environmental


ANALYSIS
Technological
Technology could play a significant role with respect to manufacturing
efficiencies & design profiles.

Economic
As it is mid priced, so less elasticity to gdp. Can also tackle recession well.
Political
The industry can be directly affected by the certain rules such as change in
Taxation rates etc.
Social
As the country is on the path of highly sensitive fashion hub . Mid ranged
trendy watches will be a common accessory for the mass.
Factor Analysis Attractiveness
Aggregate market factors
Market size 45 million annually ++
Market growth 10-15% +
Product life cycle Growth +
Profits Good +/0
Sales cyclicity None ++
Sales seasonality None +
Factor Analysis Attractiveness
Category Factors
Threat of new entrants High capital required. Thus
attracts less invest
-
Bargaining power of buyers Buyer market is less
attractive
-
Bargaining power of
suppliers
No strong suppliers. China
& Taiwan threats to the
market
0
Category rivalry High, still not alarming -
Pressure for substitutes Mid ranged, biggest
competitor is Fastrack ( big
Player)
-
Category capacity Not a problem for now +
Factor Analysis Attractiveness
Environmental Factors
Technological Very sensitive -
Political Not a problem, as the
impact is relatively less
0
Economic Performs well in recession
Mid ranged

++
Social Fashion hub, trendy culture ++