Timex eyes smaller cities for new growth frontiers
Timex plans to ramp up its distribution network across smaller cities for a larger pie of the country’s growing watch market hitherto dominated largely by Tata group company Titan.business Updated: Dec 19, 2010 21:17 IST
Timex plans to ramp up its distribution network across smaller cities for a larger pie of the country’s growing watch market hitherto dominated largely by Tata group company Titan.
Timex is targetting smaller cities as its new growth frontier, with rising income levels translating into a rise in people’s aspirations.
“The purchasing power and aspirations are growing at a rapid pace in smaller cities and it is high time we ramp up our distribution network and spruce up our marketing campaigns to make our products easily available in these cities,” said VD Wadhwa, managing director Timex Group, India.
The company plans around 5,000 sale points over the next one year as it eyes 30% sales growth. At present, the company has close to 4,000 sales points. “We plan to add 1,000 sales points every year.”
The company also plans to roll out new television commercials and launch new watches targeted at the young audience in the age group of 20-30 years. “Unlike print, television commercials can reach out to a larger audience in the hinterlands which makes brand recall easier.”
Timex commands close to 7% markets share in the organised watch market of the country estimated to be around Rs 2,250 crore. “We plan to capture close to 10% market by December 2011.”
Wadhwa, however, said that larger cities including metropolitan cities would continue to account for a bulk of its business. The company derives 60% of its business from the top ten metropolitan cities. “The top ten will continue to remain important for us as business opportunities are growing there.”
In 2010, Timex introduced several watches from its global portfolio including Salvatore Ferragamo, Ecko, and Nautica.