Watch hands and dials maker KDDL Ltd plans to boost the number of its retail outlets for Swiss watches across three formats.
Indian dial maker plans more outlets
MUMBAI: Watch hands and dials maker KDDL Ltd plans to boost the number of its retail outlets for Swiss watches across three formats.
According to Yashovardhan Saboo, chief executive officer, KDDL, which runs retail outlets called Ethos, the company will capitalise on the huge rise in sales of Swiss watches in the country.
The Chandigarh-based company (formerly known as Kamala Dials and Devices Ltd.) will add about 50 more outlets by 2009-10. It currently has eight Ethos outlets in Mumbai, Delhi, Bangalore, Pune, Chandigarh, etc.
“With the market for Swiss watches in India growing at an average rate of 30% year-on-year, we will make full use of this situation by launching our stores through three different formats. Under the first format, which would consist of high prestige and luxury end stores called Ethos Summit, we plan to sell watches like Breguet, Omega and Cartier that fall under the price band of Rs 1.5 lakh to 49 lakh.”
He said under the second format, mid-end prestige and fashion brand stores called Ethos will sell watches in the price range of Rs 10, 000 to a lakh from brands like Gucci and Versace that normally sell watches as accessories.
The third format will consist of exclusive brand outlets or EBOs selling specific watch brands like Swatch.
Currently, the company has one Swatch outlet and is going to add 15 more in the next fiscal in major metros in the country.
KDDL will invest Rs.80-100 crore to for its expansion plans which will be funded through debt and internal accruals. Saboo adds that although Swiss watches are highly priced, there are consumers, several from the middle-income group also, who buy them. A key driver of this being a shift in the consumer mindset.
“With growing awareness about Swiss brands and increasing purchasing power parity, people no longer perceive watches as mere devices of time. Since the past 2-3 years, people have started viewing watches as a medium, which reflects one’s attitude, and hence tend to splurge on them. With brands like Dior Christal studded with diamonds and sapphire, people view them as pieces of jewellery.” Ethos retails brands like Movado, Dior, TAG Heuer, Tissot, Longines, Rado, etc.
India, according to Saboo, is currently the biggest focus for Swiss watches in the world after China and this perception will see more brands entering the country in the next few years.
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