TAG upbeat on ladies' watch sales

Kolkata and eastern India had one of the most evolved watch markets in the country thanks to tradition, according to Ravi Thakran, regional managing director for Asia Pacific on behalf of LVMH watch and jewellery, on the occasion of the launch of the world's first professional golf watch designed by Tiger Woods here recently.

The ratio of the sale of women's to men's watches is an indicator of mature markets.

Kolkata-eastern region had the highest national rate of women watch sales at 38 per cent of total sales when the rest of the country was at around 20 per cent.

TAG sales in Kolkata and eastern region were the third highest after Delhi and Mumbai.

Dior watch sales under the same LVMH group of luxury brands was the second-highest in Kolkata, after Delhi.

In a nation chain of 40 sales points, Kolkata had three.

The city provided suitable retail infrastructure and the ongoing development in the retail sector was good enough for a launch of at least one exclusive boutique by the end of the year in the city to serve the region, he indicated.

Last year, TAG sold 3000 pieces.

By 2006, the company aimed to reach five-figure sales in numbers sold, which implied a growth rate of 20 per cent from 18 per cent last fiscal.

There were no fixed estimates regarding the size of the luxury watch market in India.

Estimates placed it anywhere from Rs120 crore and Rs200 crore depending on classification norms and private sales data.

Current revenue figures for TAG was at about Rs 25 crore.

The company plans to continue spending in excess of Rs 10 crore for expansion each fiscal.

Thakran said the current import duty reduction would help sales but import duty structure as a whole did not yet provide a level playing field.

Zero duty destinations like Dubai were still much better places to buy premium products for Indian who enjoyed the facility of overseas travel.

"TAG as a brand is here to stay and establish itself as the market leader and the chain is therefore concentrating not only on expansion in metros but also penetration in relevant markets like Varanasi," Thakran said.

He admitted that to a certain extent, Dior and TAG were eyeing the same share of the market pie.

However, the two had distinct brand identities and different positioning which was being conveyed to buyers through awareness campaigns.

Fighting contraband

TAG Heuer has a 40 member team based in China dedicated to tackling problems regarding counterfeit products in the region revealed Ravi Thakran, Regional Managing Director, Asia Pacific, LVMH watch and jewellery on the occasion of the launch of the world's first professional golf watch designed by Tiger Woods.

This team serviced all the luxury brands under the LVMH group. It tried to identify and shut down manufacturers of counterfeit products so that the problem could be nipped in the bud, he added.

Since LVMH handled 97 per cent of its business directly, the effect of contraband goods was easier to limit, Thakran claimed.