The size of the Indian time wear industry is estimated at Rs 4,000-4200 crore. The industry has been witnessing a growth of 8-10 per cent from past few years. It is expected to grow at 12-15 per cent in next few years. A large part of this growth is expected from youth and luxury segment of consumers. It is estimated that the watch penetration in India is 27 per cent only with just 3.5 per cent of the Indian population owning multiple watches.
Economy and mass segments form close to 80 per cent of the market by volume and contribute only 40 per cent of the market by value. Whereas affordable luxury and luxury segments are estimated to contribute around 20 per cent of the market by value and have a meagre volume of around one lakh pieces.
The organised players in this sector control 40 per cent of the volume of the industry. Around 60 per cent of the market by value is controlled by organised players. Of the organised market, Titan controls around 40-45 per cent. All the other players control the remaining.
The growth factors are changing consumer dynamics, increase in disposable income, growth of organised retail and entry of international brands.
The challenges faced by the industry are stringent government regulations, slower than anticipated change in the consumer behaviour and the large unorganised market.