By Pinaki Roy

The business of watches that was doing well till about a few years ago, has started to decline over the past few years. Industry insiders claim that the market of wrist watches that was registering a drop in business by 5-10 per cent yearly has its sales figures down by nearly 40 per cent since last Dashain.

T here is a diverse array of watches available in the Nepali market now-a-days, from low cost watches to high end Swiss-made watches. There are hundreds of watch brands having their presence in the market with a prominent few doing decent business. However, traders rue that the market is going through an absolute low with most companies involved in the distribution and retailing of wrist watches barely managing to survive in the market.

Difficult Times

Traders say the industry has not registered expected growth over a period of last few years with sales of watches facing a steady decline of 5-10 per cent on an annual basis. “The situation has become particularly grim since last Dashain and the sales of watches are down by almost 40 per cent,” says Pankaj Jhunjhunwala, the young CEO of Swiss International, the first watch showroom in Kathmandu that opened way back in 1965. He adds that the government initiative to promote business environment in the country is sorely missing.

Sunil Kumar Agrawal of Nepal Trade Network echoed the sentiment saying that the market for wrist watches is currently down because of an unfavourable business environment in the country. “Money is not coming into the market resulting in a lack of cash movement in the country.” He adds that political stability can help turn things around and revitalise the market.

Various Brands

Him Electronics, Regency Watch, Sulux Centre, Nepal Trade Network and Swiss International are the leading distributors of wrist watches in Nepal dealing in famous brands such as Timex, Tag Heuer, Tudor, Rado, Raymond Weil, Victorinox, Tissot, Omega, Rado, Cartier, Chopard Breitling, Baume, Mercier, Titan, Fastrack, Sonata, Corum, Titoni, Longines, Enicar, Roamer, Olma and Police among others.

While there are brands that are distributed by more than one trader, Jhunjhunwala points out that there is a difference in buying products from an old distributor vis-à-vis a new one. “People know us for almost 50 years now and the goodwill certainly holds us in good stead,” he says.

Vantage Point

Most of the showrooms for watches were located in New Road and Bishal Bazaar earlier. However, the leading showrooms have shifted base to Durbarmarg. Jhunjhunwala justifies this shift in location, “We moved our showroom to Durbarmarg keeping in mind the market allocation.” He said that Durbarmarg serves as an appropriate location for showrooms of wrist watches because of the segment of people that frequent the area.

Target Market

Jhunjhunwala says that his company targets all Nepali locals as its target clientele. “A lot of people, particularly the members of the business community are well travelled and hence, are exposed to brands worldwide.” He adds that from a marketer’s perspective, selling wrist watches is about managing the brands better.

Titan Watches entered the Nepali market in 1997; however, Nepal Trade Network that currently distributes Titan watches in Nepal is in its 9th year of operation. The company has three exclusive showrooms and around 40 retail outlets in the country. Agrawal says that the company targets everyone who is capable of buying a watch. Titan has watches ranging in price from Rs 2,000 to Rs 40,000 while its sub-brand Fastrack has watches in the price range of Rs 1,200 – Rs 9,000 targeted at the youth. Another sub-brand Sonata is targeted at the lower segment and its watches cost between Rs 600 and Rs 3,000. His store also sells Real Gold Watches (Nebula series) from Titan between the price range of Rs 100,000 and Rs 400,000 targeted at the upper segment.

Young people are buying watches more as fashion statements than necessities, observes a retailer. “Fashion is the driving factor for a lot of people to buy watches,” says Agrawal. “Factors like the model, brand name and the cost of the watch itself come into consideration afterwards.” A section of people buy separate watches to go with party wear as well as casual and formal attires while there are some who go for watches in the contemporary category.

The Gender Shift

Jhunjhunwala opines that the women in Nepal are coming into their own of late and are willing to purchase more. While the ratio of watch models for women vis-à-vis men at his store stood at a dismal 20:80 not too long ago, it has jumped to a significant 35:65 in recent times. “It is a reflection of the changing times with women becoming more brand conscious and having a sound mind to purchase in comparison to men.”

Agrawal too says that there is a surge in the number of watch models for women. His store at Durbarmarg that sells Titan, Fastrack and Sonata watches has a ratio of 40:60 for women’s watches in comparison to men’s.

Ray of Hope

Industry watchers claim that the purchasing power of the general public has gone down and that has hit hard the sales of high end as well as low cost watches. “People are simply not willing to spend money in the prevailing situation, they are conserving right now.” He added that the people are not open minded to spend and blamed it on the political uncertainly in the country.

Distributors and traders of watches agree in unison that a stable political environment in the country will help the economy improve and turnaround their business fortunes as well. Willingness to spend money is the key to rejuvenate the market which can only come with a sense of security among the country’s denizens, they say. “There is hope despite the current lull. We are keeping our fingers crossed and staying positive about the future,” Jhunjhunwala remarks.

Agrawal reasons that watch is an essential commodity and therefore, the sale of wrist watches will ultimately pick up even though it is going through a quiet period. The industry is hoping that the market will get better around Dashain this year and the overall situation will improve considerable in a couple of years’ time.