Seiko watches see great times ahead in India

Grows at CAGR of 40-50%; bets on 'India-specific' collection

Seiko Holding Corporation, the $15-billion Japanese time equipment giant, has announced a robust vision to grow its watch and clock business in India, a priority market.

The company is dictating a major push in all business directions, namely new products, competitive pricing, deeper market penetration, and wide promotion. Four years ago, Seiko Watches India launched its ‘India-specific’ collection in the country — Seiko Lord — that sold up to 15,000 pieces.

“Seiko is perhaps the only affordable luxury watch brand that makes watches for India. Though the products are made in Japan, they are for the Indian market. Subsequently, the Lord collection was also sold in South America, Russia, Indonesia, and the US, to name a few. Currently, we are working on more India-specific collections through the next couple of years, with a special focus on women customers, who occupy only 20 per cent of our entire base,” Seiko Watch India Senior Vice President Niladri Mazumdar told Deccan Herald.

Seiko retails its watches in India through a strong distribution network of 400 stores (including multi-brand showrooms and exclusive boutiques) in over 65 towns and cities, which is likely to touch 500 (including 12 boutiques), in the next three years.
The organised market for watches in India is valued at around Rs 8,000 crore, with the affordable luxury segment pegged at a modest Rs 1,000 crore. Yet the latter sees much promise in the country, growing at 15-20 per cent annually.

“Customers in India are a very intelligent and aware lot. We see a lot of potential in the country, and have brought some of our best wares to sell here. The beauty about Seiko is that we manufacture all our watch components (straps, hands, motors, movements, etc.) ourselves. Hence, our products are precision merchandise, all made in Japan,” Seiko Watch India President Atsushi Kaneko said.

Seiko has been in India since 2007, and sells products in the price range of Rs 12,000 to upwards of Rs 7 lakh. “Some of our most sophisticated products such as the Grand Seiko and the Astron are sold in India. Twice a year, we roll out select global models here. Though the business in India is small, the company views it to grow exponentially in the next few years, with the market dotted by watch connoisseurs,” Mazumdar said.

The company is increasingly bullish on technology, sport, and dress categories. Kaneko hinted at the company opening a watch plant or workshop here in the future, if the opportunity arises, adding that the company is growing at a CAGR of 40-50 per cent, and will continue to see good growth. It also views smart watches as good for the industry, as more customers would take to wearing watches.