Citizen to enter lower segment of Indian mkt
Japanese watch maker Citizen plans to enter the lower segment of Indian market this year under a new brand name and also set up an assembling plant in the country by 2010 for manufacturing spares.
By TNN |
MUMBAI: Japanese watch maker Citizen plans to enter the lower segment of Indian market this year under a new brand name and also set up an assembling plant in the country by 2010 for manufacturing spares.
"We are planning to enter the lower segment of the wrist watch market under a new brand in India this year," Citizen Watches (I) Pvt Ltd Managing Director, Hideaki Nakazaki told media here. We are also looking at setting up an assembly unit in the country by 2010 for manufacturing spare parts, he added.
When asked if this new low-segment watch would be launched with its existing partner Quartz, Nakazaki said, "We are looking all the options. We may launch this product under the same brand or come out with a new brand..."
He said that out of the overall company sales 50 per cent of watches sold are from the Eco-Drive segment and the firm expects it to be 60 per cent-plus this year. The company also aims to increase the share from its Indian operations to 10-15 per cent by 2010 from the current three per cent.
The Indian operation currently has a turnover of Rs 60 crore which the company aims to double to Rs 120 crore in next two years. Citizen currently spends a total of $4 million in India $1 million to establish outlets on the franchisee model and another $3 million for advertising, said Nakazaki.
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The watchmaker has 37 exclusive showrooms and plans to have 100 outlets by 2008 besides a presence in 500 multi- branded outlets. In India, Citizen is doing business worth $2.8 billion currently, of which the watch segment contributes 36-37 per cent, machinery 30 per cent and other businesses 30 per cent which include supplying technology to jewellery, offset equipments and mobile phone and LED segments.When asked if the company was planning to set up any manufacturing base in India, Nakazaki said, "No, we have no such plans as our watches require the best of technology and sourcing for raw materials. Such sophistication was not feasible in India."
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