Case Study On Watch Industry

863 Words2 Pages

1. The enhancement of Rs.9 croreswill be solely used for the purpose of acquisition of paid stocks of the said unit. No assets and liabilities relating to the said unit will be taken over by PRIL.

2. There is no scheme of demerger. Only the stocks and the Brand dealership agreements of M/s Meena Jewellery Pvt. Ltd. will be transferred toPRIL.

3. Details of stocksof luxury watch unit of M/s. Meena Jewellery Exclusive Pvt. Ltd. to be acquired is attached herewith.

4. The core business of M/s. Meena Jewellery Exclusive Pvt. Ltd. is Jewellery.Promoters of the said unit have the expertise in the jewellery section and they want to expand their business in jewellery section only, by focusing on the same. Moreover, they aren’t experts in retail …show more content…

The rationale behind the running of unit successfully by Prime Retail India Ltd in future rather than Meena Jewellery are:

a. PRIL has much greater expertise in the luxury watch industry compared to Meena Jewellery. Meena Jewellery want to focus on their jewellery business in the future, as opposed to PRIL, which focuses greatly on the watch business.
b. Currently, we are operating through 20+ stores across cities in India. In addition to our offline retail business, we have our very online portal -www.theprimewatches.com. Our online platform has beenoperationalfor almost two years ago, mostly as a tool of marketing for luxury watches online when no other retailer in India had a strong web presence.No competitor has such a large number of stores and a website that attracts over 5000 people every day.
c. PRIL has a multiple city database, contacts and extraordinary relationship with brands & customers. This gives PRIL an added advantage over most watch retailers in India.
d. Where a normal retailer offers a limited selection of around 500 watches, we have over 3000variety of watches through our 20+ stores and also available at www.theprimewatches.com. No online players such as Flipkart, Amazon, Snapdeal, Paytm,etc are authorized to sell Swiss watches like Tissot, Rado, Omega, …show more content…

We have introduced a number of unique value added services like insurance on luxury watches, extended warranty and EMI that are absolutely novel in the luxury watch market.
h. Massive E-commerce penetration in Tier 2 and Tier 3 cities through our website by www.theprimewatches.com

6. There is no ageing of stock in the luxury segment as every year there is a price increase of approx. 8% on MRP, which automatically leads to increase in margin. Further, to liquidate such stocks we organize a ‘Friends & Family’ sale every year.

7. During the Financial Year of 2015-16 we are expecting a turnover of Rs.103 crores (approx.)

8. The current stock holding period in the luxury watch sector is 8-9 months which is very normal in consistent to other luxury watch players in the same segment. Recent studies by Google, show that in India 75% of the cars are bought are researched online. A similar policy also works in the mind of prospective customers who are looking for luxury watches. With customers becoming more Internet savvy with each passing day, they research online and gather knowledge of the whole range of the products in a particular brand. Thus, to cater to all customers, we need to keep the whole range of stock for each brand,to positively influence the buying decisions of the customers. Thisin-turn leads to a biggerinvestment in

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