Political Crisis Hits Piaget Sales Plans

Swiss watchmaker Piaget expects to fall short of its projected sales target in India for the current financial year. Piaget, which launched its brand of designer watches in the country last year, had set a target of 300 pieces for the current financial year.

According to S M Chainani, chairman of the Dubai-based Chainani group, For Piaget, business has not been as good as it should have been. Chainani attributed the companys relatively poor business during the year to the prevailing political crisis which has thrown the markets into a bit of a turmoil.

The Chainani group markets the Piaget brand of watches in the country through its company Nino India. Nino also has a marketing tie-up with Roamer Watch Co S.A., another premium segment Switzerland-based watch company, which has recently launched its products in the country.

Piaget watches are aimed at the high-end segment of the consumer market with price tags starts from Rs 2 lakh. The network chosen for marketing Piaget is frontline jewellery outlets across the country in a bid to key in on the elite segments. Tribhuvandas Zaveri in Delhi and B C Sen in Calcutta are examples of the select outlets that have been chosen for marketing the brand. According to Chainani, the country's watch market in general is going through a rough phase as a result of the political situation.

However he remains confident that things will improve with the next fiscal. The market is bound to stabilise with a stable government," he added.

With the infusion of so many world class brands in the market, retailers will soon have little choice but to throw out the brands that do not sell, he said.

What shape the market will really take depends on the new government that will come to power after elections. A new government means new import policies, he said. The new import policy is significant for foreign watch companies which are planning an entry into the domestic market.

At present foreign watchmakers can bring in their brands in semi-knocked down (SKD) state and the actual assembling has to be done in the country.

There are about 20 foreign brands like Piaget, Rene Becaud, Nina Ricci and Charles Dior in the country which are aimed specifically at the elite segment of the market.

However, slightly lower segment brands like Roamer are beginning to make an entry into the market as well. These brands would benefit immensely from the lifting of the ban on the import of completely assembled watches, Chainani said.