Rendez-Vous

Seiko

Tete-a-tete

“There is ample scope for new retail formats to develop”

Tetsuji Ishimaru
Managing Director
Seiko Watch India Private Limited

Tetsuji Ishimaru, who takes over the reins of the Indian operations from Atsushi Kaneko, is an industry veteran with over three decades of experience in the global horological domain. He has been involved in various facets of operations including sales, marketing and product development. He has traversed the globe with significant stints in developed markets such as the U.S. Indian handicrafts, fabrics and culture fascinates him. Excerpts from an interview…

How is the economic slowdown affecting you?
The economic slowdown and recession started in August 2008 and affected all markets. Today, Asian markets are relatively stronger and so are the Middle East and German markets. However, it’s not easy to compare 2009-10 to the previous two years. Yet, at Baselworld, retailers were quite positive and hopeful of recovery. We have posted a healthy double digit growth in key markets including India.

How important is the Indian market?
India is one of the most important emerging markets for Seiko watches. Indian customers are globe trotters and achievers. This is why we established a 100% subsidiary here and it’s one of the few markets where we established one. However, the Indian market is opening up and still in its infancy. In India, we are elevating the Seiko brand to a totally new premium and affordable luxury segment. We are leveraging a selective distribution strategy. We have 105 points of sale across 42 towns as well as 14 after sales service outlets. 

Tell us about your product portfolio?
We are confident of our ladies, technology and sports collections. The new collection Ananta has evoked rave reviews. Our other watches such as Spring Drive, mechanical watches, automatic chronographs are available at competitive prices for quality propositions. We have a global designing philosophy but there could be several Indian aspects that could inspire our designers. We want to educate consumers as well as retailers.

Give us your perceptions about retail infrastructure in India?
There is tremendous scope for the retail infrastructure to become stronger. There are top end retailers and mom-pop stores. There is ample scope for a new retail format in between, especially one for the young-at-hearts. We are exploring the option of exclusive boutiques similar to the ones started in Paris, Amsterdam and Hong Kong. There is a great opportunity for the Indian trade constituents to address the needs of sophisticated customers. Somewhere down the line, when foreign direct investment is allowed in India, the existing trade members must be ahead of the curve. The preparation has to begin now.

How do import duties affect you? How do you compete?
Import duties are higher in India as compared to the US (6%) or Europe (7-8%). This impacts sales and Seiko has taken a conscious policy to have a global pricing strategy. The key is not to compete but to differentiate. People buy brands for who they are and the aura that they create in the mind. It’s important to differentiate and make the consumer move up the value chain. Interestingly, 40% of our sales come from elite customers.

Tell us your future strategy?
Seiko has a global brand ambassador policy. The product is the highlight and takes centrestage. We want to strengthen our unique products portfolio including the ladies collection, which has been specifically designed for the fairer sex. Our sports collections have always been very popular. Right now 75% of our sales come from men’s watches and the remaining from women’s watches. Seiko is also gaining acceptance in the fashion and dress segment. The Perpetual is the highest selling watch in its category. Also, the distinction between sports, technology and dress watches are decreasing. We also want to increase after sales service outlets to seven. We want to explore the possibility of a Seiko mini museum in India.

Today, Seiko is the top 3 brands in its premium watch category”

Atsushi Kaneko
Former Managing Director
Seiko Watch India

Tell us about the journey so far?
While taking up the reins of the Indian operations, my priority was to build Seiko’s brand perception and image in the eyes of the Indian customers and retailers. I have always felt that the Indian market was tough and yet high potential. We also set out to build the base and foundation for the future. Today, the brand has made headway and it stands out in terms of innovation and refinement. These elements are visible in every aspect of marketing, distribution and product development. It has registered healthy and steady growth over the last 2 years. Today, Seiko is the top 3 brands in its premium watch category. Its market share has grown phenomenally. 

What are the wonderful memories of your Indian stint that you will cherish forever?
I shall always fondly remember the launch event at the Taj Mahal Hotel in Mumbai. It was a fabulous launch event and this kind of event was never attempted before. We chose every element carefully including the dance performance by Isha Shravani. In January 2009, Seiko Watch India launched its Arctura collection for the Indian market. Seiko also announced the launch of the Sailing season opener “Regatta” in India under the burgees of Sea Cadet Sailing and supported by the Yachting Association of India, Indian Navy and the Indian Army and other reputed Sailing Clubs in India. This was one of the largest ‘Regatta’ in the history of India with over 100 boats and over 250 sailors participating in the race. 

What are your future plans?
I shall be based in Tokyo. I shall be responsible for overseeing investments and strategy in overseas subsidiaries.



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