Retail Sector In India
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MARKET CHARACTERISTICS
Market characteristics can be defined as the factors that can be used to analyze a market for its attractiveness to a particular organization. These characteristics of the market that can influence the response of the market towards a particular product or an organization.
An industry or market can be analyzed for its attractiveness to a particular company or organization on a number of different characteristics. The list below presents some of the more significant market characteristics that should be considered.
A. Current market size:
The Indian watch market is estimated to be in excess of Rs 2,800 crore, of which the organized segment constitutes nearly 40 per cent of the total retail market (i.e. Rs 1,110 crore) and the remaining 60 per cent of the highly un-organized segment caters to the low end market.
B. Projected market growth rate:
The IMAGES-KSA India Retail Report 2005 estimates that about 28 million units are sold every year, and the off take is growing at the rate of 30 per cent per annum. The growth is mainly on account of the fact that watches are increasingly becoming a function of fashion rather than mere functionality. The frequency of watch purchases is growing and so is consumers desire to own different timepieces for different occasions. Poor watch penetration in India is likely to drive further growth in volumes.
27% – Indian population having watches.
30 – Watch sales per 1000 people pa.
C. Number of competitors, level of segmentation:
Contrary to general expectation, maximum volumes sales happen in the economy segment (8,310 units) in watches that are priced between Rs 501 and Rs 1,250, which is higher than the units sold in the extremely low end timepieces priced at Rs 250 or below. But in value terms, the medium and premium segments contribute most; this share is sure to increase in the years ahead.
On the basis of pricing, the Indian watch market can be segmented into six sub-groups