Rendezvous

Citizen Watch Co.

Japanese watch maker Citizen Watches Co. Ltd. is aggressively pursuing the India market. The brand launched its internationally renowned range of Radio Controlled watch in India along with inaugurating the new office space to celebrate the New Year. Isamu Kawaguchi, Citizen Watches India Managing Director spoke to WATCH MARKET REVIEW on the Indian watch sector, Citizen’s strategy for India and the road ahead.

What is your personal take on India economy?
I am bullish on India. India’s economy has weathered the global crisis. I know there is a slight improvement in the global economy, but India is moving ahead rapid compared to the global economy. I see great potential in India’s overall business and commerce climate.

What is the roadmap for Citizen on the global arena?
Globally, Citizen is expecting great growth potential in the US, China, and of course, India markets.  We at citizen have a 3-year—2009- 12- growth plan in place. We have set ourselves a target of 10-20 % growth for this period globally.

In the case of China, we are looking at increasing the current ¥6 billion turnover to ¥10 billion .Our next ambitious target is India— the aim is to ramp up turnover from the current Rs. 600 million to Rs. 1.2 billion by 2012. The three year plan is also being rolled in the South East Asian region.

What is your global growth strategy?
Our global strategy is driving all our energies into increasing and enhancing   the
Citizen brand value and brand equity across all markets. In the forthcoming Baselshow, all our marketing and communication activities will be focused on enhancing our brand value

It is pertinent to note that Citizen manufactures the entire spectrum of components that go into a watch and integrates them into the final product. Citizen boasts of a 100 % in-house research and development and manufacturing setup.

Another aspect that we wish to highlight is our technological prowess. After the Eco-Drive watches, the next revolutionary product is Radio Controlled watches. Citizen focuses on its technical strengths, rather than focusing on price. Just for the record, we have never offered discounts which are an affirmation of our brand’s strength. I see the India watch market reaching the level of developed markets in the next 5-10 years. If we get into prices wars, we will kill our brand equity and value by the time the market matures.

Comment on Indian watch sector.
The watch sector in India is seeing growth, but mainly in the lower price bands — the sub-Rs5000 price segment. The top, premium end is not seeing serious action. There is a plethora of foreign fashion brands that have forayed into the India market, but it has  not matured enough to absorb these brands, especially the premium segment.

Though, I must say, there is a positive shift. With greater disposable income and younger people joining the workforce, Indian consumers are graduating to higher priced watches. The entry level prices are shifting to the Rs 5,000- 10,000 segments and above. I see tremendous growth in these price segments over the next three years.

What are your expansion plans for India?
Our expansion plans are to increase our exclusive outlets (currently numbering 31). But the focus will be on premium, high street locations, rather than sheer quantity. The mantra is quality penetration – and not just chasing numbers. We will also increase
Citizen corners in malls and other channels where there is a multibrand presence.

At the core of our sales growth strategy is the Eco-Drive of the 120,000 pieces sold By Citizen in India, 25,000 to 30, 000 are Eco-Drive watches. This year we expect a 25 per cent increase in sales of Eco-Drive watches in India. For India, our aim is to increase share of Eco-Drive by 50 % in quantity and 80% in value. (incidentally in markets like Japan and US, Eco-Drive watches contribute 92-95% of the total sales.