TIMEX VENTURES INTO LUXURY RETAIL

It is another bout of luxury retail with the entry of luxury watch brands like Ferragamo, Valentino and Vincent Berrard. Ferragamo and Valentino would make the entry through licensing arrangement with Timex Industries. However, Vincent Berrard a super Luxury Brand name acquired by Timex will be available only on order. Vincent Berrard will cost more than Rs.20 lakh a piece Timex and Fashion Brands President, Salil Sadanandan, reveals these brands will be retailed through a separate luxury format stores instead of their flagship stores, Time Factory. They would be distributed through other high-end watch retailers as well. The prices are fixed above Rs.50000 for both Valentino and Ferragamo giving a tough competition to the brands like Dior and Fendi of the same segment in the Indian market.. Sadanandan is upbeat about these luxury brands since it ensures higher margins. A gradual shift of customers` preference towards top-line brands has encouraged the company to make this foray in luxury retail. And as a part of this operation, the company has phased out all its product range priced below Rs.2000 The company is looking for ramping up its export growth by transforming its manufacturing unit at Baddi, Himachal Pradesh, into export centre for SAAR countries. The company had reported revenues of Rs.115 crore last fiscal and expects this to go up by 20% by the end of this fiscal, as they target a share of 33% (in terms of value) in the organised watches market by 2010 from 25% at present.