WATCH GROUPS & PRICE SPECTRUM

from Graduation Document - Jansher Aidan Bakhshi

REFLECTIONS

“People in the watch business often say that the “industry is very small.” That isn’t because the multibillion dollar a year watch sales market is insignificant, but rather that a few key stakeholders more or less control the business.”

- Ariel Adams from ablogtowatch

SWATCH GROUP ( Bienne, Switzerland) Breguet, Blancpain, Glashütte Original, Harry Winston, Jaquet Droz, Omega, Léon Hatot, Longines, Rado, Union Glashütte, Tissot, Calvin Klein, Balmain, Certina, Mido, Hamilton, Swatch, Flik Flak

RICHEMONT GROUP (Geneva, Switzerland) Vacheron Constantin, A. Lange & Söhne, JaegerLeCoultre, Roger Dubuis, Piaget, IWC Schaffhausen, Officine Panerai, Ralph Lauren**, Baume & Mercier, Cartier, Van Cleef & Arpels, Montblanc, Dunhill

INVICTA GROUP (La Chaux-de-Fonds, Switzerland) Technomarine, Glycine, S. Coifman

ROLEX GROUP (Geneva, Switzerland) Rolex, Tudor

FRANCK MULLER GROUP (Genthod, Switzerland) Franck Muller, Pierre Kunz, European Company Watch, Rodolphe, Martin Braun, Barthelay, Backes & Strauss, Pierre Michael Golay, Smalto Timepieces, Roberto Cavalli

LVMH GROUP (Paris, France) TAG Heuer, Bulgari, Hublot, Zenith, Dior, Fred, Chaumet, Louis Vuitton KERING GROUP (Paris, France) Ulysse Nardin, Girard-Perregaux, JeanRichard, Gucci, Boucheron, Qeelin, Bottega Veneta

BINDA GROUP (Italy) Breil, Freestyle, Hip Hop, Moschino, Kenneth Cole, Kenneth Cole Reaction, Tommy Bahama, Ted Baker London, Chronotech, Gametime, Sperry Top-Sider, Zoo York

FESTINA GROUP (Spain) Perrelet, L.Leroy, Candino, Festina, Lotus, Jaguar, Calypso

SEIKO GROUP (Japan) Seiko, Grand Seiko, Credor, Pulsar, Lorus, Alba, Orient

FOSSIL GROUP (Texas, USA) Fossil, Relic, Michele, Zodiac, Skagen, Adidas, Burberry, Diesel, DKNY, Michael Kors, Tory Burch, Marc Jacobs, Emporio Armani, Emporio Armani Swiss Made, Armani Exchange, Karl Lagerfeld

MOVADO GROUP (USA) Ebel, Concord, Movado, ESQ by Movado, Coach, Hugo Boss, Juicy Couture, Tommy Hilfiger, Lacoste, Scuderia Ferrari TIMEX GROUP (USA) Timex, Nautica, Opex, GC, Guess, Salvatore Ferragamo Timepieces, Versace, Versus

CITIZEN GROUP (Japan) Citizen, Campanola, Q&Q, Arnold & Son, Bulova, Bulova Accutron II, Bulova AccuSwiss, Wittnauer, Caravelle New York, Bulova Clocks, Frank Lloyd Wright, Harley-Davidson, Frédérique Constant, Alpina, Ateliers de Monaco

SEIKO GROUP (Japan) Seiko, Grand Seiko, Credor, Pulsar, Lorus, Alba, Orient

CITYCHAMP GROUP (Hong Kong) Corum, Eterna, Ebohr, Rossini, Codex, Rotary, Dreyfuss & Co., J&T Windmills

TITAN GROUP (India) Titan, Sonata, Fastrack, Favre-Leuba, Xylus

INDEPENDENT WATCHMAKERS Patek Philippe, Audemars Piguet, Breitling, Chopard, MB&F, Casio, Apple

Figure 35. Bovet 2017 Grand Recital Figure 36. Vacheron Constantin 2018 M metiers d’art Figure 37. Breitling 2018 Cosmonaute Navitimer

Ultra Luxury Watches

$40,000 (More than INR 30 Lakh) Ultra Luxury Watches Superb Heritage/Pedigree Exclusivity (Limited Quantities) May not have the best resale value Small niche boutiques (Independents) Impeccable Handmade Craftsmanship Brand recognition in horology circles Complex Automatic In-House Movements Precious Metals and Stones Sapphire Crystal

Examples: Bovet, MB&F, Richard Mille, H. Moser & Cie, Graff Diamonds High-End Luxury Watches

$10,000 - $40,000 (Approx INR 7 Lakh - INR 30 Lakh) Superb Heritage/Pedigree High resale values High Quantities (on most pieces) May have famous very expensive rare pieces Brand recognition by greater public Complex Quality Automatic Movements, most InHouse Impeccable Craftsmanship, often Handmade Precious Metals and Stones Sapphire Crystal

Examples: Patek Philippe, Audemars Piguet, Vacheron Constantin, Breguet, A. Lange & Söhne Luxury Watches

$5,000 - $10,000 (Approx INR 3.5 Lakh to INR 7 Lakh) Respected Heritage/Pedigree High resale values Mass Production, some rare pieces Quality Automatic Movements, some In-House Great Craftsmanship Some Precious Metals and Stones Sapphire Crystal

Examples:Rolex, Omega, IWC Schaffhausen, Cartier, Brietling,

Figure 38. Longines 2018 Multi-Complication Figure 39. Hamilton 2018 Pilot Watch

Basic Luxury Watches

$1,500 - $5,000 (Approx INR 1 Lakh to INR 3.5 Lakh) Average Heritage/Pedigree Mass Production Good Automatic Movements, frequently ETA Good Craftsmanship Occasionally use Precious Metals and Stones Sapphire Crystal

Examples:Oris, Longines, Alpina, Frédérique Constant, Junghans Entry Luxury Watches

(Approx INR 34,000 to INR 1 Lakh) $500-$1,500 Some Heritage/Pedigree Mass Production ETA Automatic Movements, some Quartz Basic Craftsmanship Quality Usually Sapphire Crystal

Examples: Hamilton, Tissot, Raymond Weil, Christopher Ward, Glycine

Figure 40. Citizen 2018 Eco-Drive

Mid Range Watches

< $500 (Below INR 34000 Approx) Fashion / Sports Brands Mass Production Quartz or Automatic Movements made in Asia Average Industrial Craftsmanship Quality Usually have Mineral Crystal Usually not worth servicing except for battery

Examples: Apple, Seiko, Orient, Citizen, Titan, Filippo Loreti, Swatch, Fossil

Figure 41. Casio 2018 Vintage Digital Series

Budget Watches

<$50 (Below INR 3,500 approx) Inexpensive Watches Fashion / Sports Brands Mass Production Quartz made in Asia Low Industrial Craftsmanship Quality Mineral Crystal or Acrylic Crystal Usually not taken to be repaired

Examples: Parnis, Sonata, Maxima, Casio Vintage, Timex, Fastrack, Counterfeit watches. Summary:

“There are two things that distinguish a watch from La Vallee de Joux(Switzerland), it’s complication (or technicality) and it’s finishing. You’re not just buying a watch for the sake of telling the time but you’re buying it for its beauty, its functioning, its finish, the way it was conceived and all the information it will give you mechanically.”

- Wilfred Berney, Watchmaker, 47 years with Audemars Piguet

Over the last two hundred years,German and Swiss manufacturers have taken watchmaking to a whole new level, therefore, it is not surprising that Europe has established itself as the cradle of the luxury watch industry. While you’ll still see a luxury industry active in places like Hong Kong, much of Asia caters to the price sensitive consumer. Asia also manufactures the largest number of watches and watch parts in the world.

With the rise of kickstarter brands and Apple(as a watch manufacturer), we can observe that most of the newer entries in the watch space also aim to target the more price sensitive consumer. Thus this section of the watch industry is going to get a lot more competitive. Given that this price bracket also happens to be the space that Titan operates within, Titan will need to gear up to keep the competition at bay.