As the watch industry is slowly changing, Timex is using well-sought moves to win over consumers without losing the essence of traditional analogue watches. The entry of smartwatches may have changed the game for the industry, but it barely scratched the surface as demand for traditional wrist wear remains consistent.
But the fact remains that the watch industry is changing and people demand more from a watch now. Combining smart features into an analogue wrist watch is a well-balanced move and helps Timex stay afloat as the smartwatch approach didn't really pick up, especially in India.
Timex now has a "connected style" segment to cater to those users who want a hint of smartness in the traditional wrist watch. The Metropolitan+ and IQ+ Move strike a balance between analogue watches and smartwatches, and at an affordable price, which is crucial for Indian consumers.
With its latest connected watches, Timex eliminates the need for charging almost every other day, which is mandatory if you own a smartwatch or a fitness tracker. And this seems to be just the beginning and Timex has a full roadmap to move forward and successfully meet consumer demands.
International Business Times, India, sat down with Timex's head of marketing and sales – Anupam Mathur, to discuss the changing trend of the watch industry and the company's future plans to stay in the competition. Below you can read the excerpts from our interview with Mathur.
IBTimes, India: Is Timex's strategy to balance between analogue watches and smartwatches with models like IQ+ Move the way forward?
Anupam Mathur: TIMEX is a traditional watch maker that has throughout its journey worked on offering its consumers innovative and technologically advanced offerings. Backed by American legacy and world class quality, TIMEX has come out with watches that have synced perfectly well with consumer demands and trends, the most recent being the watches under the 'connected style' segment!
Currently we will be focusing on this segment with the launch of Metropolitan+ and IQ+ Move, which encapsulates the beauty of a traditional watch and the functionality of an all-day activity tracker so that one does not need to compromise on either style or technology! Both the watches are analog activity trackers which combine signature elements of a contemporary traditional watch with sophisticated modern technology for tracking your daily activities.
IBT: What is your take on smartwatches and why has it become so important for tech companies like Apple, Samsung and LG to explore this new category?
Mathur: Smartwatch is not entirely a new category, but is in the spotlight of both consumers and the brands. Currently, wearables especially smartwatches are a niche offering in India – a price sensitive market. They are still not a mass market device as the industry is still at its nascent stage. Thus, this means soon it is going to see a paradigm shift in its acceptability which means all the big players should be looking at leveraging the opportunity while it's still nascent.
TIMEX as a brand is very focused on listening to the consumer demands and feedback and provide devices that are value for money. We are bringing devices in the connected style segment that are not just pure activity trackers but a part of one's lifestyle. We believe that as the market grows with more brands bringing in innovative technologies, consumers will realize the value proposition that the wearables segment offers.
IBT: The consumer response for smartwatches hasn't been great, where do you think the companies are failing?
Mathur: Like I said before, it's still at a very nascent stage and is quite a niche offering. Consumers currently are looking at offerings that are value for money and make lives convenient. For instance, there are consumers who do not want to be hassled with the charging bit – yet another device after smartphones and laptops. Thus, brands need to understand the current dynamics of the segment and create unique offerings basis their target audience feedback rather than bringing out an array of products that are not easy to differentiate from another brand.
IBT: Can we expect to see Timex explore an opportunity for a fully smart watch?
Mathur: Our current focus is on the Connected Style Segment that encapsulates the essence of both traditional watch and helps the user to track their daily activity. In future, reading the consumer mind and demand, if we feel that our consumers are looking for a smartwatch, we would be willing to explore that segment.
IBT: What are immediate priorities for Timex and where is the wrist watch industry heading?
Mathur: The brand is focusing on making the best use of its American legacy and expertise to offer Indian consumers unique timekeeping devices. While our products are doing their job perfectly in making lives more convenient for the consumers, the brand is also focused on strengthening its presence across the country to provide fast, reliable and world class service.
In the past few years, our retail presence has also grown through TIMEX world stores. We are currently present across 3,000 POS PAN India which range from Large Format Retailers to small Mom & Pop stores. With the growing and expanding categories under the brand TIMEX, we expect to capture more markets. We have also invested in improving our online presence with all the leading ecommerce players having exclusive TIMEX stores on their portal.
We believe that Indian consumers in the recent times are showing an interest in owning premium watches. Gradually, watches have become fashion accessories and considered to be a fashion statement by both men and women. Many consumers are keen on owning more than one watch, but right now this number is very low. As per a report by EuroMonitor International, on the watch trends in India - The rising importance of watches as a fashion accessory among urban youth also helped watches register retail value growth of 17% in 2016, with sales reaching Rs. 89 billion. We believe that this trend is here to stay.
IBT: Where does Timex stand in terms of ranking in India? What are your goals for 2017 and how well did Timex do last year?
Mathur: Watch industry has grown at an average CAGR of 7-8% due to the factors including increasing disposable income; internet penetration, technologically advanced electronic gadgets and smartphones and tablets bringing in a new set of consumers to the fore; wearable technology and smart watches offering benefits such as ease of use, mobility and robust fitness-tracking acquiring new consumers across demography, increased spending from top e-commerce portals etc. In India, we are positioned under Top 5 players.
TIMEX reported a turnover of Rs 135 crore in 2015-16, and we are aiming at 20 per cent year-on-year growth.
IBT: Currently Timex watches offer standard fitness tracking sensors, and consumers get better options with standalone fitness trackers in the market. How does Timex plan to beat the competition?
Mathur: We are focused on offering products that have been built on consumer feedback and demand just like our Connected Style range. Consumers are looking for devices that help them not compromise on either functionality or style – basically a confluence. They are looking for devices that makes lives more convenient which is what we are offering. The IQ+ Move and Metropolitan+ free consumers from the hassles of charging – you don't need to charge for almost year and not many trackers offer that currently. IQ+ Move blends with every attire, be it a casual, corporate or party. Users can now enjoy their summers with a splash in the pool as the watch is 50 metre water resistant.We are offering watches that look beautiful on the outside enclosed with smart tracking features on the inside.
