Case 1 : Xylys: Exploring Consumer Perception About Premium Watches in

the Indian Context

 Summary :

The challenge was to create and shape a perception unique to the brand, since
premium.watches in India were associated with the Swiss brands Omega and Rolex, or Tag
Heuer and the like, which were more contemporary in nature. Was it necessary to obtain some
insights regarding the application of the uniqueness aspect to the self-perception of consumers?
The case delved into several aspects of the perceptual fieldsassociated with consumer
behaviour with the objective of finding the most appropriate approach to further the prospects
of the Xylys brand. The liberalization of markets, the rising disposable income, the exposure to
western lifestyles, and the need for the new generation to establish an identity for itself are
some of the reasons for the growth of the luxury watch category in India. The latest McKinsey
report on India’s consumer market pegged spending on personal products and service
necessities (watches were included as the eighth most required item, as described above) at 8
per cent share-of-wallet in 2005; this was expected to climb up to 9 per cent SOW by 2015, and
to 11 per cent SOW by 2020Today’s Watch Industry World Between 2005 and 2009, watch
production around the world decreased significantly, with production in 2009 being one-fifth of
what was expected. This is believed to be due to a decline in demand in recession-hit markets
in the US, Japan and Europe, among others. The luxury segment was hardest hit, with Swiss
watch exports falling by 22% in 2009, despite hitting unprecedented highs the year before.
What was puzzling, however, was that consumer demand for luxury watches and premium
watch products was increasing in the developing markets of China and India, while in other
regions even regular watches were out of reach. The economic recession in 2008 and 2009
hindered the growth of this sector, leading to a decline in sales of luxury watches and luxury
watches, which was offset by an increase in sales volumes in the economic sector. The Tata
Group introduced quartz watches under the Titan brand in the 1980s, differentiating itself
through precision, style, range, presentation and aggressive marketing. ” Timex collaborated
with Titan to launch its product range in India in the 1990s. It was agreed that the former would
be limited to the low-cost plastics sector, while the latter would control the high-cost metals
sector. Timex positioned itself with the slogan “You don’t have to be rich to buy a Timex” and
was well received by the market. In the early 20th century, the EXIM guidelines raised the
standards for importing luxury watches in India, and many multinational companies entered the
market. Competition Overview The single largest player was Titan with a brand share of 20.
Despite the presence of many brands, in 2009, the market was still largely dominated by the
unorganized sector. During the 1980s and 1990s, major lifestyle changes transformed watches
from timekeeping devices to fashion accessories. This is reflected in some of Titan’s advertising.
Watches as fashion accessories were complemented by a variety of other products such as
clothing and fashion handbags. Therefore, watches needed to have elements that clearly
differentiated their practicality alongside their fashion. Watch Market Segmentation The watch
industry can be segmented according to various criteria such as technology, merit, and price.
The second type is the largest in terms of both value and volume and is expected to continue to
drive market growth from 2009 to 2014. Digital watches suffered from consumer perceptions
that they were cheap and lacked style, and the market for digital watches had not yet taken off.
His second criterion for classification is practicality, and the market can be classified according
to purpose: casual, formal, sports.Almost 35% of all watches sold were casual watches, 60%
were formal watches, and only 5% were in the sports segment. 16 The mass market accounted
for almost 67 per cent of the volume and 50 per cent of the value share and was largely served
by the unorganized sector. The premium segment consisted of watches in the range of INR
1,500 to INR 5,000 offered by almost all national and multinational brands. From 2009 to 2014,
demand from middle and high income groups is expected to drive growth in this segment.
Better explained from a consumer behavior perspective is his third basis of segmentation,
defined by Yankelovich. As I mentioned earlier, watches have always been products that
fascinate people, but as the environment changes, their appeal and associations with watches
have also changed. Watches, especially certain brands, have become a symbol of some
relevance in harmony with the changing environment. In developed markets, such cases are
rare, especially when it comes to purchasing watches. Titan is a leader in the organized quartz
analog watch segment, selling millions of units over the years. In the period 2009-2014 the
quantity or amount increased by 7%.

In addition to being a fashion accessory, watches were also part of a ceremonial gift and
had to convey the emotional benefits necessary for success. Noting that regardless of price
range or practicality, watches have symbolic appeal in the Indian context, an appeal that can be
linked to the self-awareness and personality/style that consumers want to project to the outside
world. It was an interesting thing to do. For example, among sporty watches, Tissot, Tag Heuer,
and Breitling were brands in the premium, accessible, and exclusive luxury subsegments. The
luxury brand luxury watch market accounts for an estimated 3% of watch retail and is growing at
nearly 20% annually, which is more than twice the growth rate of the overall market. Titan is
currently the only Indian brand in this space and Xylys is at the luxury end of its portfolio.
Personal interviews with several retail store managers revealed that the competition for the
Xylys brand was established brands such as Seiko and Tissot, who had careers and strong brand
awareness. . This included not only a growing number of young and middle-aged professionals
in the upper echelons of companies, but also Indians from higher socio-economic classes with a
penchant for luxury goods.

The main consumers of luxury watches included CEOs and senior professionals in their
30s and 40s, as well as new generations of entrepreneurs and young professionals. Iconic
brands, on the other hand, responded to consumers’ preferences for brands that corresponded
to their own “self-concept” and to their symbolic needs for self-expression, prestige, and
improved self-image and sense of belonging. The selling point was the status and sophistication
the brand represented when worn by its owners, but while beauty and durability were
important, precision and price were not. The symbolic dimensions used in the study were
derived from research on brand positioning. Three sets of questionnaires were used to collect
respondents’ opinions about the brand, adjectives and phrases related to brand symbolism, and
detailed questions about the characteristics of the brand and its users. Methodology The
purpose of this study was to analyze and relate different aspects of consumer behavior and to
compare users and non-users of luxury watches. One set of questions addressed the consumer’s
self-concept, another set of questions addressed aspects of his personality, and the final set of
questions addressed the psychology of the individual respondent. This survey was conducted in
Bangalore, India in April 2011 among 40 current premium watch users and his 40 potential
premium watch users. Materials 1, 2, and 3 were related to the self-image, brand preferences,
personality traits, activities, interests, and opinions of potential users of luxury watch brands.
The following descriptions of various brand positioning strategies are based on the author’s
perception of each brand’s advertising. Xylys Xylys is a Swiss luxury watch brand originating from
India’s Titan company. Titan, a leader in the mid-range market in India, felt that the upper
echelons of its target customers were shifting towards iconic global premium brands.
Manufactured in a state-of-the-art Swiss factory with over 80 years of watchmaking tradition.
This brand was created for modern people who are extremely confident and conscious of the
image they project. Each of Xylys’ three brand ambassadors came from different backgrounds
and represented the attitude of a new generation of high achievers. In 2010, the brand's
positioning changed from "symbol of success” to “emotion of love.” Xylys ran a campaign that
reflected a new positioning that was a significant departure from the brand’s core positioning.
This campaign saw a change in Xylys’ entire brand personality. It was this aspect that created an
``irrational’’ desire to own a watch, strongly supported by a ``rational’’ reason, namely that Xyris
came from the House of Titan and was made in Switzerland. . Tissot was a member of the
Swatch Group, the world’s largest watch manufacturer and distributor.The brand attributes its
success to the trust of customers around the world in the quality and enjoyment of Tissot
watches. It’s clear that millions of wearers made no compromises, and the campaign clearly
praised their choice of stylish Swiss watches.