The Sikkim government-owned Sikkim Time Corporation Ltd (Sitco) is planning to restructure its operations and refurbish its image in a bid to take on the might of Titan and HMT in the organised big watchmakers league.
The enterprise is set to target the weekend executive with watches necessarily seen as fashion accessories to carve for itself a niche in the countrys 40-million watch market.
Sitcos managing director Taga Khampa, who was on a visit to the companys marketing head office at Bangalore, told Business Standard: We are presently restructuring our business and image to suit the changing dynamics of the market.
The Rs six-crore company which sells over 80,000 watches a year, is presently involved in consolidating its existing, small business dealer and retail network, besides moving into new areas like the north-east, setting up a new watch case manufacturing unit in Sikkim, investing in advertising and promotions and introducing a new range of trendy watches in the market.
We are keen to professionalise our activities and project ourselves as the organised player in the ad-hoc digital watch market with service back-ups, pointed out Khampa.
The company, which started out as an ancillary unit for HMT 19 years ago, came out with its own watches in the market as late as 1994. With their IQ Hi-Funda watch, they managed to capture the largely disorganised digital watch market and came to be known as the undisputed leader in this segment.
Keen to shed this Hi-Funda sporty looks watch and broaden their image to encompass a sporty looking one, Sikkim Time Corporation Ltd is now targeting a niche segment where their watches will be perceived as a fashion accessory.
We want to shed the track-suit image and target the weekend executive, the kind who wear an Allen Solly and an Adidas shoe. Sitco watches should necessarily be seen as a fashion accessory, pointed Sridhar Subramaniam, general manager, marketing Sitco.
To keep with this recent rage in the international scene for sporty analog watches, Sitco will also introduce its latest range of analog, sports watches here. Targeted at the younger generation, this featherlight watch will have chunky numbered metal dials, electro-luminescent features and come in metal, leather and synthetic coloured straps.
Sitco will also be launching a range of the plastic trendy ACE watches in 33 variants for young men and women. Made of polymide, these slim plastics will be sold as economically aesthetic and serviceable.
Sitco has been assembling around 5 lakh mechanical watches for HMT since the time of the HMT Janata stainless steel watch. Realising the popularity of this watch, the company wants to cash in on the technology itself. They hope to shortly launch a mechanical watch and design it exclusively for the rural areas of Uttar Pradesh.
However, since the company largely depends on the digital market for sustenance, they will also be releasing 40 new digital models with improvised additional features into the market shortly. Already their digital watches have a host of functions including the lap timer for joggers, alarm functions, etc. The company sources its technical know how from Taiwanese companies WNY Electronics and Xonix Electronics.
To be recognised in a dull and depressed market, the company is pumping in Rs 1 crore this year to go in for a multi-pronged advertising campaign simultaneously on TV, press, hoardings and film. Already, their 20-30 second film commercial, with football Sikkim star Baichung Bhutia endorsing their product. has been around for a year. This will be re-released again and will be used on television as well. Their campaign will revolve around highlighting their product ranges.
The company which has over 25 distributors and 2,000 retail showrooms spread across the country is moving into new areas like the North-East for the first time. In the next two months, they will be starting operations in Guwahati, Aizawl and Shillong. While strengthening their existing network by moving deeper into semi-urban areas and mini-metros like Kakidnada, Davengere, Chitradurga and Kohlapur for instance.
As part of their efforts to go in for backward integration, they will be setting up a watch case unit in Sikkim shortly. This unit to be set up with an investment of Rs 1 crore will have a 3 lakh watch case capacity. With these attempts the company which sold 80,000 pieces last year hopes to hike up its sales to over 1.5 million digital and analog quartz watches next year.
