Timex is placing a significant wager on analog timepieces on its secondary market

Timex is placing a significant wager on analog timepieces on its secondary market

Tobias Reiss-Schmidt, worldwide president and CEO of Timex, acknowledged the influence of smartwatches but said that the firm still prioritizes classic timepieces because he feels they fulfill distinct purposes.

According to Rees-Schmidt, there is a movement toward the luxury market as consumers become more prepared to spend money on more expensive timepieces.

New Delhi: India offers a substantial potential for watch producers because of its large and growing consumer class and low penetration. In keeping with the "Make in India" campaign, Timex Group India is concentrating on homegrown manufacture in an effort to take advantage of this.

Unsurprisingly, the majority of the timepieces that are sold in India are already produced there. The business is looking for methods to produce even more international designs in order to satisfy consumer demand for these kinds of fashions while maintaining affordability.

Tobias Rees-Schmidt, the company's worldwide president and CEO, told Mint that India, being the second-largest market after North America, is a key factor in the company's future development. "India established itself as the fastest growing market for Timex since 2017 and became our second-largest market in early 2019," he said.

In India, the company's value for money products have earned them recognition and great brand awareness. Its present priority is not on growing its smartwatch segment, however.

Tobias Reiss-Schmidt, worldwide president and CEO of Timex, acknowledged the influence of smartwatches but said that the firm still prioritizes classic timepieces because he feels they fulfill distinct purposes. But I think there's room for growth in both areas, and we just released some smartwatches that are doing really well. However, that portion of the company is minuscule. Our specialty is vintage timepieces. It is impossible to discount the commercial potential for classic timepieces. Over the last three years, we have seen its growth. Going ahead, we are optimistic that we can maintain our market share growth in conventional watches," they said.

Additionally, we now know that there are two distinct marketplaces in India for classic timepieces and smartwatches. There are several reasons why they are worn. Indeed, every consumer product fights for the same market share. Give it a go. However, a smartwatch user eventually turns into a traditional watch user as well.We see these categories expanding rapidly," he said.

The pandemic caused significant disruptions to the worldwide watch industry, forcing many businesses to make changes as a result of supply-chain problems. "The world market is still trying to regain equilibrium, so we are still suffering the consequences of COVID in one way or another. Retailers are now overstocked. We are lucky to have handled this rather well and can handle it. However, expenses have undoubtedly been significantly impacted," he said.

India is where Timex's luxury branch, often known as the bridge-to-luxury sector of watches, is doing most well. Brands like Versace, which are managed by its founders, have seen rapid expansion. Spending power on more expensive timepieces is rising, suggesting a move in the direction of the luxury market. About six to eight years ago, our offering in India was limited to watches costing between ₹1,500 and 2,000. He said, "But we now have watches in the Rs. 15,000–20,000 range as well, and there are customers who are interested in fashion at this price point.

The organization has a network of over 5,000 stores or merchants and engages in both conventional and contemporary retail. Timex Group India Ltd had operating revenue of ₹328.14 crore for the nine months ended December 31, which is an increase from ₹300.43 crore during the same period last year. Its profit after tax decreased to ₹13.7 crore from ₹24.13 crore during the same time the previous year, mostly as a result of large stock acquisitions in the third quarter.