Globally the total watch segment is worth 29 billion $.

The total size of the market for

watches in the country is estimated at about Rs 2,500 cr per annum of which about 1000
cr is accounted by luxury segment.

The luxury segment has been growing at 25 to 30 per cent per annum. In the swiss watch
manufacturing industry both globally and in India, the growth is much higher at 25-30%
than the normal watch industry that is growing at 12-13%.

The price range of luxury watches is anything from rs 10,000 to Rs 1 lakh in what he
called selling in the prestige section. While the super luxury goes for anything upwards
from rs 1 lakh to Rs 7-8 lakh a piece and even more.

There are 22 luxury brands selling in the market among which are the likes of Cartier,
Omega, Rado, Tag Heuer,Rolex, Maurice Lacroix, Breguet among others.

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TAG Heuer
TAG Heuer International, operating through its Swiss-based TAG Heuer SA unit, designs
and creates men's and women's prestige sports watches and chronographs (timepieces
with stopwatch features). Some collection names include Carrera, Formula 1, Link, and
Monaco. Long aligned with the sports world (its ancestor, Heuer, began keeping official
time for the Paris Olympics in 1924), TAG Heuer promotes its upscale timepieces and
other products through endorsements by athletes and celebrities and via sporting event
sponsorships. French luxury goods company LVMH, which makes and markets several
other high-end lines, owns TAG Heuer.

Officers:
CEO: Jean-Christophe Babin
VP Marketing of TAG Heuer North America: Jenna Fagnan
Director of Public Relations, Strategic Partnerships, and Events, TAG Heuer North
America: Rachel Branch, Tag heuer India:

Company History:

Incorporated: 1860 as Heuer Watchmaking Company

TAG Heuer S.A. is one of the world's leading manufacturers of luxury and sports
performance watches and other high-end and high-precision timepieces. Since 1999, the
company, founded in 1860 in Switzerland's Jura mountain region, has also been the
cornerstone of the LVMH luxury products empire's Watches and Jewelry Division. As
part of LVMH, TAG Heuer has grown strongly in the 2000s, expanding its range beyond
a traditional emphasis on sports-oriented timepieces to establish itself as a highly sought-
after luxury watch brand. The company produces a variety of models, ranging in price
from $600 to $15,000. TAG Heuer has long been a synonym for innovation in the watch
industry, a tradition the company has continued to the present. An example of the group's
commitment to innovation is its launch of a revolutionary new belt-driven mechanical
movement system, featured in the Monaco V4 watch, released in 2004. In that year, also,
the company released the world's first timepiece capable of 1/10,000th second timing.
Traditionally sold through a limited network of retailers, TAG Heuer has launched its
own boutique concept, with a first store opened in New York's SoHo in 2002. LVMH's

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Watches and Jewelry Division posted revenues of EUR 496 million ($560 million) in
2004.

The Paris Exhibition of 1889

The first TAG Heuer workshop was founded by Edouard Heuer in 1860 in the small St.
Imier town high in the Swiss Jura mountains. While his competitors at that time
concentrated on the production of luxury pocket watches, Heuer began by making a name
for himself in timing devices for sports. In 1869 he patented his first stem-winding
system. Heuer displayed his wares at the 1889 Paris Exhibition, which unveiled the Eiffel
Tower as its main exhibit, heralding the advent of modern society, and won a silver
medal for his pocket chronographs. In 1908 Heuer invented and patented the Pulso-meter
dial division, still in use for medical applications, and introduced the first dashboard
timer for automobiles with a journey-time indicator. Then, in 1916, Heuer laid the basis
for a new and modern dimension to sport with his invention of the high precision
"Micrograph," capable of measuring time to an accuracy of 1/100th of a second. The
introduction of a precise timing device was considered a turning point that marked the
beginning of modern sport since athletes no longer competed against one another, but
against their own time records.

Heuer chronographs were used at all three Olympic Games in the 1920s. By 1930 Heuer
developed its first water-resistant case, followed by a new period of emphasis on the
development of the wristwatch. Continuing in its efforts toward innovative uses for
timing devices, in 1949 the company patented its invention of the Mareograph
chronograph, the first watch fabricated for the purpose of measuring ocean tides.

The 1960s-70s: Timekeeping in the World of Motor Sports

In the 1960s the company developed the "Carrera," a stylish chronograph sporting a high-
legibility dial, named after a world-renowned motor race of the 1950s, and the "Monaco,"
which featured an automatic winding mechanism. Heuer's other introductions during this
time included the patented "Microsplit," the first solid-state pocket-timer with a digital
readout; the first miniaturized, electronic sports timer with readings down to 1/100th of a
second; and a new Microsplit timer with LCD (liquid-crystal display) readout. Actor
Steve McQueen wore the "Monaco" throughout the filming of Le Mans, reflecting the
growing association between Heuer products and the motor sport industry. The
company's prominence was evidenced by its performance as Official Timekeeper for the
Scuderia Ferrari in training and races. As Official Timekeeper, the company was
responsible for providing times and details such as information about top speeds, split
times, and fastest laps. In 1970 Heuer equipped all of the competing sailing vessels in the
American Cup sailing event with timing instruments.

Heuer also was the timekeeper at the 1980 Moscow Olympic Games and at Lake Placid.
During this period the watch industry was revolutionized by the introduction of the new

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quartz mechanisms. Heuer introduced the first analog quartz chronograph with a 12-hour,
30-minute, and second elapsed-time register.

In a far-reaching move toward technological expansion the TAG group (Techniques

d'Avant-Garde) acquired a majority stake in the Heuer company in 1985, forming TAG
Heuer. Under the new management team the revitalized company almost immediately
began realizing a significant rate of growth. The new company designed and produced its
biggest-selling watch when it launched the S/el series, an unusual design still considered
a benchmark in the sports watch sector. The new management team determined to tighten
control over the brand's international distribution network to better manage its image, and
they began to raise the average retail price of their products, targeting an upscale market.
By 1988 the company sold more than 420,000 timepieces, significantly outperforming
the Swiss watch industry.

TAG Heuer in the 1980s: Form Following Function

According to company reports, a careful philosophical criterion informs the creation of

Heuer watches. In order to create the ultimate sports watch, TAG Heuer started with the
premise that all its products had to be capable of high performance and reliability in
extreme conditions. The brand strategy focused on the development of a well-defined
product style and the implementation of distinctive centralized marketing, advertising,
sponsoring, and merchandising. Heuer aimed to attract a broad cross-section of upscale
consumers from around the world. It drew up a list of six design features that each of its
watches would include: water resistance to 200 meters; unidirectional bezel; screw-in
crown; sapphire crystal; double-security clasp; and luminous markings. Within this
framework Heuer expected its designers to find different ways to add unique form. Most
of its watches took two or three years to design, during which time technical feasibility
studies and design work evolved cooperatively. Watches were subjected to tension and
torsion tests, as well as exposure to chemicals, ultraviolet light, and extremes of
temperature. State-of-the-art computer-aided design and manufacturing techniques were
utilized during product development and the machining of precise tolerances.

A large part of the company's marketing strategy involved recognition as sponsors of

major sporting events (its sponsorship amounted to approximately $15 million per
annum), along with official recognition as professionals implementing the use of their
equipment for these events. The company primarily concentrated on three sports: sailing,
Formula One racing, and skiing. In Formula One TAG Heuer had been associated with
the sponsorship of many great names of the sport: Niki Lauda, Emerson Fittipaldi, Jacky
Ickx, Michael Schumacher, and Ayrton Senna, with an especially close association with
the McLaren team since 1986 (in 1990 the McLaren team won the world title for
constructors and drivers in Formula One racing with Ayrton Senna). In 1988 Heuer
launched the S/el chronographs with a 1/10th-second register. In the following year the
company became the Official Timekeeper at the Ski World Cup events in the United
States and Canada. In skiing, the company sponsored champions such as Marc Girardelli,
Harti Weirather, Helmut Hoeflehner, Pedtra Kronberger, Kristian Ghedina, and Ole K.

4
Furuseth. Heuer created the Tag Heuer Maxi Yacht World Cup competition in tandem
with the release of its 1500 and 4000 Series timepieces.

To ensure high brand recognition Heuer stressed a nontraditional form of vitality and
originality in its designs as well as its advertising campaigns. Its 1995 advertising
campaign, "Success. It's a Mind Game," won major advertising awards globally and
emphasized the relationship between competitive sports and success. To capture the
attention of buyers, the exclusive boutiques and galleries featuring TAG Heuer products
tended to promote an ambiance of Modernistic minimalism that contrasted starkly with
the busy cosmopolitan cityscapes. The discriminating buyer was appealed to rather than
the masses. The image of museumlike showcasing presented an atmosphere of artful
quality. Setting itself apart from other watch manufacturers, Heuer combined the casual
image of the sports watch with the design and substance of opulence when it offered the
TAG Heuer Gold Series--sports watches in 18-carat gold, featuring a sophisticated case
and bezel design and a unique bracelet of more than 200 elements assembled by hand.

Initial Public Offering in 1996

The company reported that since 1988, TAG Heuer had seen its sales climb by an annual
compounded growth rate of 26 percent, rising from CHF 66 million in 1988 to CHF 420
million in 1996, with gross margins rising from 42 percent to 55 percent during that same
period. Free cash flow rose by 13 percent for the year. In September 1996 TAG Heuer
made its initial public offering with simultaneous listings on the Swiss and New York
Stock Exchanges, where it traded under the symbols "TAGN" and "THW," respectively.
A large portion of the proceeds from the offering were used to reduce long-term debt for
the purpose of decreasing significant future interest expenses. As of December 1996
Heuer had reduced its net debt level to $86.2 million, down from $241.0 million the
previous year. The company organized a stock program providing that Heuer would
purchase stock on the open market as incentive awards to key executives consisting of
about 30 managers.

The company worked to strengthen its presence in geographical markets such as Japan,
southeast Asia, Europe, and North America, while increasing brand awareness in areas
where its products were less well known. Early in 1997 the company announced that it
agreed to acquire its U.K. distributor, Duval, a company instrumental in the successful
development of the Heuer brand in the United Kingdom. The purchase had the advantage
of allowing Heuer to control distribution of its products in its most important European
market. In July 1997 Heuer made another move toward controlling higher yields in the
marketplace when it took over the distribution of its sports watches in Japan, after signing
an agreement with World Commerce Corporation of Tokyo. At that time Japan
represented 20 percent of Heuer's overall sales, making it one of the company's most
important markets.

Approximately three quarters of Heuer's business, represented by ten key markets, came
under the direct control of the company by this time. A new wholly owned subsidiary,
TAG Heuer Japan K.K., was formed, which included 100 World Commerce employees

5
and was headed by a new management team. CEO Christian Viros commented on the
transaction, "This development is an extremely important step in TAG Heuer's strategy to
increase its downstream integration in order to improve margins and exercise better
control over distribution worldwide." He added, "Following the acquisition of our U.K.
distributor in February, this transaction further consolidates TAG Heuer's potential to
obtain higher returns from our key markets." Continuing in like fashion, Heuer took over
the distribution of its prestige sports watches in Australia and New Zealand after signing
an agreement with Swiss Time Australia Pty. Ltd., the distributor for Heuer in both
countries. A new wholly owned subsidiary named TAG Heuer Australia Pty. Ltd. was
formed, incorporating nine employees from the previous ownership and bringing Heuer's
direct control of worldwide sales up to approximately 80 percent.

Heuer phased out watch models that were unpopular and added new models in segments
such as women's watches, an area with considerable growth potential. From 1991 to 1996
the average factory price of Heuer timepieces had risen by nearly 40 percent, representing
a compound annual growth rate of nearly 9 percent. Sales growth was fastest in the North
American segment in 1996, accounting for one-third of the company's sales. European
sales were up more than 15 percent during the same period, followed by strong
performance in Spain, the Benelux countries, and Scandinavia. In its home market of
Switzerland, the company also performed well. Sales were down slightly in Japan for the
year because of the weakness of the Japanese yen, impacting sales in the region's duty-
free outlets, and also because of inventory imbalances.

New Owner for the New Century

The company had begun cutting back on the number of retailers selling Heuer watches,
with the intention of focusing on presentation solely in upscale markets. Heuer preferred
to offer its watches exclusively through premium retailers in premium locations,
alongside other prestigious brands. The company continued to update its product range
through the design of newer models and line extensions. Most of its timepieces had been
refined over the years to encompass what the company reconsidered as core features of a
sports watch, namely, unidirectional turning bezel, water resistance to a depth of at least
200 meters, screw-in crown, scratch-resistant sapphire crystal, luminous hands and dial,
and bracelet with a double safety clasp. The company had relaunched its classic 1964
model Heuer Carrera chronograph in 1996 and produced limited editions of high-
performance specialty timepieces designed to display its technological expertise,
including a limited edition platinum watch of its 6000 series. Following a two-year
developmental process and the expansion of its engineering, product development, and
quality control departments, Heuer released its 1997 Kirium watch series, designed by
world-renowned stylist Jorg Hysek. It featured a band made of the company's patented
link system that followed a uniquely rigid yet flexible bracelet design. The watch sold
especially well in Germany, and especially well with women, where advertising featured
German sports hero Boris Becker. The company regarded Germany, a relatively new
geographical area for Heuer, as a potentially lucrative market.

6
Sales for 1997 dipped in Japan, Hong Kong, Thailand, Indonesia, and South Korea in
large part due to the financial turmoil in those regions. Sales increased by 22 percent in
North America, aided in part by the appreciation of the U.S. dollar versus the Swiss
franc. Revenues in South America, Canada, the Middle East, Singapore, Malaysia,
Taiwan, and the Caribbean were also impressive, although overall total unit sales dropped
by 6 percent from the previous year, which the company attributed to changes made in
product mix and the move toward selling more high-end items. Lower-priced products
were phased out during this time.

Heuer announced in May 1998 that consolidated net sales for the first quarter were
almost identical to those of 1997, with the most promising results in Europe and the
Americas. In a press release, CEO Christian Viros stated, "We are very confident that our
strong growth in Europe and in the Americas, the global success of the Kirium and the
planned launch of new products will enable the company to more than offset the difficult
sales environment in some parts of Asia."

Heuer continued to pare down its number of retail outlets, with the goal of reducing the
number of retailers carrying its models to just 1,000 worldwide. In this way, the company
hoped to build TAG Heuer into a truly global, and lasting, luxury brand. As Susan
Nicholas, then president of TAG Heuer USA, told Jewelers Circular Keystone: "We don't
want to be so hot that tomorrow we're cold... . It's always a delicate balance of being very
much in demand and not being a fad. I feel our success has been calculated. We've been
on this steady march. Maybe it was a new kid on the block marching boldly with a little
luck. But now we're marching as one of the new leaders. We're in the big leagues. It's a
position of strength not to be abused. We'll probably never say we've made it."

TAG Heuer's international ambitions led the company to give up its prized independence
in 1999, after luxury goods giant LVMH approached the company with a friendly
takeover offer. By the end of that year, LVMH had bought out nearly 100 percent of the
Swiss company. Under LVMH, TAG Heuer benefited from the company's extensive
global presence. The association with the luxury goods group also encouraged TAG
Heuer to continue in its drive to move into the more upscale watch categories, with its
top-priced watch selling for some $15,000. The company also extended its range of
models beyond its traditional emphasis on sports-oriented timepieces, adding watches
designed to establish the brand as a fashion leader as well. As part of this effort, the
company brought in a new range of celebrity sponsors, including Brad Pitt and Uma
Thurman.

TAG Heuer dipped its toes into the retail market as well, opening its first boutique in
New York's fashionable SoHo district. At the same time the company continued in its
tradition of innovation and commitment to technological advancement. In 2004, for
example, the company debuted a new professional chronometer capable of measuring
within 1/10,000th of a second. At mid-decade, the company also debuted its Monaco V4
wristwatch, featuring a revolutionary new mechanical movement using miniature belts,
based on an automotive transmission system. At the same time, TAG Heuer prepared its
entry into the haute couture segment, launching its first full collection, including the

7
Diamond Fiction watch, featuring nearly 900 diamonds. TAG Heuer appeared to have
found the balance between its sports-oriented past and its luxury goods future.

Principal Subsidiaries

TAG Heuer International S.A. (Luxembourg); Tag Heuer Ltd. (U.K.).

Principal Competitors

Seiko Epson Corporation; Slava Joint Stock Co.; Chayka Watch Factory Ltd.; Matrix
Systems Inc.; Compagnie Financiere Richemont AG; SWATCH Group AG; Citizen
Watch Company Ltd.; Diehl Stiftung and Company KG; Bulgari S.p.A.; Fossil Inc.

TAG HEUER INDIA

The company is growing at a rate of 40% and currently holds 8% share of the estimated
$250 million Indian luxury watch market. India ranks as one of the top 15 countries in
terms of revenue for Tag Heuer which is why they are very aggressive about the brand in
the country.

The company has adopted a unique strategy which involves shifting focus to a more
niche and high-end category, but with marketing investments in cricket which promises
to take the brand to the masses.

Having identified the strong equity in the country’s market for men’s products, Tag
Heuer will be soon entering a new category of men’s accessories. This is a move from
being a watch brand to men’s accessories brand. For their boutiques we are bringing in
visiting card holders, key chains, wallets and some form of apparel.

The move to men’s accessories though new for India is part of the company’s global
strategy that was adopted a year ago, that was directed at leveraging the brand’s high-end
positioning and growing retail space around the globe.

Women’s watches and eyewear as it contributes a significant portion to their sales, 50%
globally and 18% in India.

8
The brand’s change in positioning from being a mid-range luxury watch manufacturer to
a high-end one has reflected in the launch of their latest model - the TAG Heuer Grand
Carrera which sells for as high as Rs. 2.6 lakhs. The price is a significant jump from the
existing Tag Heuer range which sells for anywhere between Rs. 40,000 to Rs. 1.3 lakhs.

The company has pledged Rs. 100 crore marketing investments in India for the next three
years, the vehicles which have mostly been in glossy pages of fashion magazines and in
premium sports properties such as polo and car racing, is now moving to perhaps the
most mass market of all sports, cricket.

Tag Heuer is also the official time-keeper of the Kolkata team.

Tag Heuer has taken to the likes of Bollywood to unveil its newest time piece. At a
packed conference room in New Delhi India, the Swiss luxury watch maker introduced
its new Link Calibre S series. The beautiful watch was worn by Bollywood icons
Shahrukh Khan and Priyanka Chopra. Jean-Christophe Babin.

The Tag Heuer Link collection dates back to 1987, when it was first launched. The
collection is characterized by sleek angles and a very sporty design. Link watches vary
from chronograph, to day-date models and even quartz versions.

The high end watch maker is targeting the Indian market as a means of obtaining the
coveted #1 position as most wide recognized luxury brand. Currently Tag Heuer ranks at
#4, but company CEO announced at the New Delhi conference, "Tag Heuer will be the
most recognized luxury brand within the next 3 years."

Brand awareness seems to have a correlation with fashion trends, as well as marketing
strategies. Gucci for example, boasts one of the most widely recognized luxury brands in
the world. Their watches however are cheaper, and of inferior quality, yet rival Tag
Heuer in sales.

The new Link is Tag's first step in implementing a new marketing approach to
conquering the industry. India is regarded by all luxury brands as one of the most
promising markets in existence. The county's flourishing economy in spite of the
recession has made it a target for massive advertising campaigns by most designer watch
brands. Looking to capitalize on this factor, Tag Heuer's Indian ambassadors are some of
the most influential role models within the culture.

Speaking at the launch of the new Carrera Calibre 16 Day-Date Chronograph 43 mm at

the first concept boutique at DLF Emporio in New Delhi, Jean-Christophe Babin,
president and CEO, TAG Heuer said, "Indian luxury watch market is a dynamic market,
growing at the rate of 25 per cent and the estimated market size is USD 250 million. The
company is growing at a rate of 40 per cent and currently holds 8 per cent share and
further, we look for a consistent growth in India."

9
Further, the company also has plans to roll out it's much talked about high-end mobile
phone under the brand name TAG Heuer Meriidist by . The dual displays have been
crafted from scratch-resistance 60.5 carats sapphire crystal. It is constructed from
corrosion-resistant, watch making 316L steel with a 28-day standby time and 7 hours of
talk time.

"It is a high-end luxury mobile phone and in India, it will start at Rs 2 lac through
exclusive Tag Heuer boutiques and select stores. We want this phone to be the new
premium accessory for men,"
TAG Meriidist handsets will be available at TAG Heuer boutiques and select multi-brand
retail outlets across Mumbai, New Delhi, Bangalore, Chennai, Ahemdabad and Kolkata.

Meanwhile the company has also introduces other accessories including wallet, bags and
credit card devices for the middle class consumers.

Presently, the TAG Heuer has around 200 watch models available in five series. In the
interim, the company is also planning to launch 53 global models priced between Rs
30,000 and Rs 2 lakh this year in India to strengthen its retail presence.

TAG Heuer is planning to launch 53 global models priced between Rs30000 and Rs2 lacs
this year in India as it eyes to capture 10% share of the domestic luxury watch market.

At present, the company has around 200 watch models and are available in five series.

Launching its Carrera Calibre 16 Day-Date Chronograph 43 mm, Christophe5 said the
company has doubled its growth last year, compared to the previous year.

The company had closed 10 stores, including six boutique stores across the country in
2008.Tag Heuer has 75 stores and six standalone boutiques across 25 cities in India.

TAG Heuer, endorsed by Bollywood actor Shah Rukh Khan, k will open 15 showrooms
in India in three years. The company, which has six outlets, aims to spend 1 billion
rupees ($22 million).

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TITAN WATCHES

Vision : To be a world class, innovative and progressive organization and to build

india’s most desirable brands.
Misson : To create wealth for all are stakeholders by building highly successful
businesses based on a consumer centric approach, and contribute to the community.
Values :
 Total customer orientation

 Employee appreciation

 Performance culture and teamwork

 Creativity and innovation

 Passion for exellence

 Corporate citizenship

Titan industries is a part of the tata group.it’s 2010 revenue is expected to be

around rs 4500 cr of 1100 crores from the titan watches divison. Titan currently has
over 3000 employees.
Titan is the world's sixth largest wrist watch manufacturer and India's leading producer
of watches under the Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys
brand names. It is a joint venture between one of India's most respected business
organizations, the Tata Group, and the Tamil Nadu Industrial Development Corporation
(TIDCO). Its product portfolio includes watches, accessories and jewellery, in both
contemporary and traditional designs. It exports watches to about 32 countries around the
world with manufacturing facilities in Hosur, Dehradun, Goa and manufactures precious
jewellery under the Tanishq brand name, making it India's only national jewellery brand.
It is a subsidiary of the Tata Group.

Titan watch division was started in 1987. At launch it was the third watch company in
India after HMT and Allwyn. Titan formed a joint venture with Timex, which lasted until
1998, and setup a strong distribution network across India. As of 2010, Titan watches
account for a 60% share of the total Indian market and are also sold in about 40 countries
through marketing subsidiaries based in London, Aden, Dubai and Singapore. Titan
watches are sold in India through retail chains controlled by Titan Industries.

Titan Industries has claimed to have manufactured the world's slimmest wrist watch -
Titan Edge. Produced indigenously after four years of research and development, the

11
Titan Edge has a total slimness of just 3.5 mm and a wafer thin movement of 1.15 mm.
Apart from the Titan Edge, Titan also offers Steel, Regalia, Raga, Fastrack, Technology,
Nebula, Bandhan, Sonata, Octane, special RHosur, Tamil Nadu.

Fastrack is a popular brand among youth in India. Fastrack watches come in a variety of
styles, shapes and colours.

On 4 March, 2010,Titan Industries Announced the launch of its very first Titan flagship
store is located at Opposite Shoppers Stop, Bandra Linking Road, Mumbai, India. Store
is spread over a spacious 2,500 sq ft (230 m2) and houses more than 1500 watches on
display from Titan like Purple, Automatics, Orion, Raga, Edge, Nebula, and many more.

Distribution network:

Titan has tie ups with 10000 dealers across India. It is sold in around 2300 towns. Titan
has 291 world of titan showrooms in 104 towns and 616 service centeres in 314 towns.

Xylys : It Possesses You

Company : Titan Industries Ltd

Agency : Rediffusion

Xylys can be termed as India's own premium watch brand. The brand created by Titan
Industries is taking on the iconic premium watch brands like Omega, Rado,Patek
Philippe, Rolex,Cartier etc.

Indian luxury watch market is worth Rs 1000 crore and is dominated by Swiss and other
European brands. There is virtually no presence of any Indian brands in that segment.
The rising affluent Indian consumer class and the trend towards more expressive lifestyle

12
accessories prompted Titan to seriously look at this segment. Xylys is currently targeting
the lower spectrum of the luxury watch segment.

Xylys was initially launched as a flanker brand for Titan. Titan which is the market leader
in the mid-price segment felt that the upper end of their target customers were moving
towards iconic global premium brands. With that intention of blocking any such
migration , Xylys was introduced at the price range of Rs 8000- Rs 33,000.

Xylys however gathered good momentum with the brand clocking a 50% CAGR growth
rate. From being a flanker brand, Xylys morphed to be a powerful growth brand in the
course of time.

Titan while carefully analyzing the consumer behavior of premium watch customers, it
found that the consumers were highly influenced by the "Country of Origin " association.
The consumers loved the Swiss Made proposition and there is a huge association between
" Swiss Made " and quality, precision , premium etc. The insight was that it would be
difficult for an "Indian Made " tag to impress upon the target segment. Titan thus made
Xylys - a Swiss Made watch. Xylys is manufactured at a state-of-the-art factory in
Switzerland which has a rich heritage of 80 years in precision watch making.

Xylys' strong point was its design . The brand is being crafted in association with Swiss
designer Laurent Rufenacht along with Titan's own designer Michael Foley. The sharp
unique designs quickly made Xylys a fast growing brand in the segment.

Xylys was launched as a contemporary brand targeting the upwardly mobile successful
men & women. The brand has segmented the market based on psychographic profiles.
Xylys defines its customers as contemporary dynamic successful persons who has
attitude and confidence. The brand wants to celebrate success with them. The customers
of Xylys are highly individualistic persons who does what they love. These people would
love to express themselves and loves to show their success to the world.

During the launch phase, Xylys was endorsed by the Actor Rahul Bose, tennis player
Carlos Moya and super model Saira Mohan. The basic theme of the launch campaign was
the story of how these people tread their own path and became successful.

The brand at that time had the tagline " The power of X " . The brand used " X" to
symbolize the differentiating factor in the highly successful people. X also denotes
Xylys-the brand.

In 2010, the brand changed its positioning from " Symbol of Success " to " Feeling of
Love ". The brand now is talking about falling in love with Xylys. Xylys is currently
running a campaign reflecting the new positioning.

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The brand have also adopted a new tagline " You do not possess Xylys , it possesses you
".

The new campaign is a significant deviation from the core positioning of the brand. The
entire brand personality of Xylys was changed in the current campaign. I wonder why a
brand which is growing should try to change its positioning at this critical juncture.

The earlier positioning of Xylys were talking about the highly individualistic expressive
nature of successful people while the current positioning talks about how Xylys takes
control of such a person. If you look closely the brand is totally off the mark regarding
the core values that it stands for. I feel that the agency has not read the brand charter
before creating the campaign. The purpose of creating a brand charter is to protect
continuity in the communication. The product managers should use the charter as the
basis for devising their communication strategies. The current campaign is very difficult
to fit into the brand charter.

Xylys' core strength is its design and since watch is an experiential product , consumers
may fall for it when they see the designs. But the brand needs to create clutter-breaking
campaigns if it wants to fight the likes of Omega , Rado etc.

With Xylys, the company is eyeing at least 10% share of the premium watch market over
the next 12 months, which is growing at 20% annually. The Rs 250-crore market for
premium watches operates in the price band of Rs 10,000-Rs 40,000 and till now has
boasted of European (mainly Swiss) brands. With Titan's entry into the niche market, the
consumer can expect more choice in Indian products. While parts for Xylys will be
sourced from around the world, the final product will be manufactured in Switzerland and
then imported back to India.

The Xylys range comprises 60 models and will be available at select Titan World
showrooms, key multi-brand outlets and at exclusive flagship boutiques in select cities.
Initially, the brand will be available in Mumbai, Bangalore, Hyderabad and Delhi and
would be launched in five more cities by July. In fact, the Rs 1,100 crore Titan Industries
has adopted a two-pronged strategy for growth.

Not only has the company chosen to enter the premium end of the wrist watch market on
its own, it is also scouting for tie ups to bring well known international watch brands to
India. Titan already distributes Tommy Hilfiger watches and is negotiating with two

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other well-known global brands to bring them to India. The company is also expanding
its global footprint.

When it launched Xylys, Titan Industries (which till then was a mid-premium player) was
“completely shooting in the dark.” But it knew that consumers were looking for the
‘Swiss-made' quality assurance while making high-end buys. Hence, Titan gave Xylys
the ‘made-in-Switzerland' tag and introduced it in the Indian market as a brand appealing
to the “individual” in everyone.

Four years hence, Titan's experiment seems to have clicked with the brand's volumes
doubling between 2006-07 and 2007-08 and growing at 33 per cent since, thanks to the
watches' design appeal and widespread retail distribution across major cities. (Xylys
watches are available in over 50 cities, across 150 World of Titan showrooms and 50
multi-brand outlets including large format stores.) In value terms, Xylys has been
growing at a CAGR of 54 per cent.

Xylys has been well exposed to people and consumers have formed their impressions of
the brand. It enjoys a 30 per cent share in the premium Swiss watches market by volume.

The premium watches market in the country is estimated at Rs 1000 crore and Swiss
brands account for 90 per cent of that.

The TVCs showcase achievers looking lost, distracted and possessed upon setting their
eyes on the watches. Xylys watches are now priced between Rs 10,000 and Rs 30,000
and the company is looking to launch watches in the Rs 30,000-50,000 price bracket as
well.

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