Rendez-Vous

TIMEX

HANS-KRISTIAN HOEJSGAARD
PRESIDENT AND CEO, TIMEX

How did the Timex Group perform in 2008?
The Timex Group was the only one amongst the leading groups to post a very strong 10% growth in 2008 taking our Group turnover beyond US$ 800 million. We are please to post such growth in this challenging environment. It was driven by 12 different brands across the portfolio. It was driven by the fashion brands and key markets such as India and China. India now accounts for 5% of global sales. The Group turnover divided equally between the Americas, Europe and Asia Pacific. The US is the single largest market followed by Italy, Canada, France and India in the Top 10. We are anxious and excited about 2009, yet confident. We are confident about continued growth in India, China and the Middle East. There are other markets where certain Group brands are strong and we can leverage strengths to translate potential into opportunity. History has shown that brand Timex does very well globally during times of recession. Consumers return to trust, reliability and value-for-money. We are planning cautiously. Baselworld will give us key insights into the outlook of distributors and retailers.

Is the economic situation very grim?
The overall economic situation is very serious and we believe that this will last till 2011. After 7 years of uninterrupted growth, we are facing challenges. The economic slowdown is affecting the horological business because retail business across core markets is down and so are customer footfalls. The Timex Group is unique because of the strength of its portfolio across a wide spectrum. Peers are either focused on the high end or low end. The Timex Group has a play in all segments of the market. Some brands will be affected, others will prosper while still others will scrape through.

Tell us about your India plans?
It was a proud moment for me and a great privilege to take up the Chairmanship of Timex Watches India after becoming the CEO the Group. It’s a fabulous and long-term market. I’m proud and pleased to see the growth in the Indian market and the dynamic initiatives being taken by our team. From the global perspective, India is less affected by the economic slowdown as it is an inward looking market and not export oriented. We are continuing the retail and distribution march. We are getting more brands into the stores as compared to peers. We shall continue to provide more brands, more diversity, exciting designs, new technology, etc. We urge the Indian Government to reduce the import duties and also enhance retail infrastructure to take it to international standards. The Indian customer has to be well-served. The industry has to become bigger and more brands have to get in as there is a big market to share. Due to its culture of appreciation of beauty and gold and design tradition, we see lots of opportunities for conversion of global trends into local ones. Some of the designs we see in India are absolutely spectacular and we hope to take these Indian trends to the world at large. In India, we are looking five years ahead and will be a true star in the Top 3. 

What is your strategy in 2009?

KAPIL KAPOOR
SR. VICE PRESIDENT ASIA PACIFIC & VICE CHAIRMAN, TIMEX GROUP INDIA LTD.

“The new leadership strategy will give new direction and impetus”  
Kapil Kapoor

How did the economic slowdown affect your Asian operations?
In the Asia Pacific market, the fear factor has been overdone. We continue to hear positive stories from India and China. We are fortunate to reside in a part of the world where we are facing a slowdown in growth even when the rest of the world seems to talking about a recession. A growth of 5% as compared to the heady growth of 8-11% in China is not so bad as is being made out to be. There is a lot of opportunity for brand Timex in this situation as it has historically done well during times of recession and slowdown. In Asia, 2008 was a strong year. For the first 3 quarters, there was unrivalled passion and enthusiasm for luxury and fashion products. In the last quarter, there was a slowdown at the luxury end. But in the value end of the market, the businesses held up strongly. We see a robust growth in India and China. There is relatively lower growth in Japan, Hong Kong, Singapore and Australia. In the emerging markets, we are seeing growth.

Tell us about the new launches at Baselworld 2009?
At Baselworld 2009, we launched a lot of new products. The newness being infused into the system this year is our best offering in the last 4-5 years. In brand Timex, we are seeing a real invigoration of our Classic style lines with the introduction of some very interesting chronographs. We also see a reinvigoration of our Easy Leader collection. One of our new iconic products is X-Edition Altoline White Screen outdoor accessory with barometer, altimeter and temperature. We have introduced outdoor instruments and rugged feature products with Conrad Ankle. In our sports collection, we are launching the value line, 10-lap Ironman, and the Ironman analog chronographs.

At Baselworld 2009, we haven’t seen anything dramatically new. We are seeing a reinforcement of earlier trends. We are seeing perhaps little less bling. We are seeing more classic and back to the good old traditional watches. We are seeing little less fashion forward than seen in recent years. We are seeing a little pullback of some of the frontiers that we were pushing at the fashion end of the market in the last 2-3 years. We are seeing more of a core collection.

How did Timex Watches India fare in 2008?
India fared very well. We restructured our board. The CEO of the Global Group became the Chairman of the Board and the new MD, G. Kannan is a veteran. He built the luxury market in India. He can give a huge impetus over the next few years. We introduced the Ferragamo collection and it has truly become a group company in India. We are witnessing a metamorphosis of our Indian operations. We focused a lot of efforts into turning around the business performance; putting a new factory; building new infrastructure and re-focusing our efforts at the front end of the business. We want to build integrity and portfolio of our brands. The new leadership strategy will give new direction and impetus.  

What is your message to the trade and consumers?
Keep the faith! At the end of every storm, there is a rainbow. The rainbow is not very far. We are going through turbulent times and everyone is focusing on the storm. This situation will also separate the men from the boys. During the good times, lots of fly-by-night operators came in. Many attractive players came in but they were flighty. The trade has to decide whether they will stick to the fair weather friends or those who will stay the course with you. But now, there will be a shake-up. Consumers and the trade will see who is still staying true their course. This is a  good time for the trade to see who are their long term partners. Indian consumers have come a long way and they must continue to demand the very best. They must not settle for anything less in terms of the best value or international retail experience. They must project the new emerging international Indian class, which is so proud and confident. It continues to believe in its success story; go out and spend and live that story even when the rest of the world has pulled back. The rest of the world has taken notice. More and more investments will come in and jobs will be created. It will be a self-sustaining prophecy.  

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