The Hindu Business Line : Timex Corp unveils new retail strategy

HAVING completed its financial restructuring, the Indian subsidiary of American watch major Timex Corp has charted a retail strategy for the current year.

Timex Watches has charted a dual strategy by which it would have larger, more youth-centric exclusive outlets called "Time Factory" in major cities, and a smaller model for tier-two cities.

"We are planning to open 10 new "Time Factory'' outlets across 10 cities by the end of this year. At the same time, we will increase the number of Timex exclusive outlets from 6 to about 40 in 2006. Watch sales are increasingly being driven by impulse purchases," Mr Salil Sadanandan, Vice-President (Marketing), Timex Watches Ltd, said.

Further, keeping in view the double-digit growth in the watch market last year, Timex is targeting to double its top line in three years. It had sales of about Rs 83 crore in the last fiscal.

"We are optimistic about growth. The trends in the market have been encouraging, with multiple ownership of watches on the rise. Also a watch is increasingly being looked upon as a fashion accessory," Mr Sadanandan said.

The company has also been test marketing other brands from its international portfolio and now plans to take the FCUK and Opex brands national from March. While Opex brands are priced at between Rs 2,000 and Rs 5,500, FCUK watches are more expensive at Rs 4,000-9,000.

As part of its restructuring, Timex has shifted its manufacturing from Noida to its assembly facility in Parwanoo, Himachal Pradesh. The move has helped the company to take advantage of excise concessions that are available in the region. Further, many watch parts suppliers (including Kamla Dials) have their units in the region.