EDITALK

The Festival of Lights and Samaya Bharati 2025
Both Harbingers of Good Times Ahead!

Today, the market-by-market breakdown of data shows the two-tier development that has characterized the global performance of the watch industry since the start of this year - which happens to be in a somewhat tricky and contrasting situation. Segmentation by price range, on the other hand enables to dissect the average more effectively, as well as to highlight a likewise two-tier business trend at brand level (without distinguishing which are involved) depending on their respective positioning. The watch industry's performance figures for the second quarter and more broadly for the first half of this calendar year were confirmed by the results posted in July. On the one hand, Greater China witnessed a particularly steep drop: -18.6% between April and June, and -21.3% for the first seven months of the year. The Chinese market has recovered less quickly than expected, following the severe public health restriction imposed in 2022. By 2023, it had yet not been able to return to the level prevalent two years earlier. On the other hand, the rest of the world has confirmed the very high level of consolidation forecast at the end of 2023, with a 2.3% overall growth for the first seven months of the year. Coming now to our own country - India's Horological Industry, has somehow remained better than that of other watch manufacturing nations, due to emerging affluence among the middle class as well as the generation next. Besides these, some other factors have also contributed to this fair situation such as the market dynamics in India coupled with consumer choices which have undergone a major shift since the Diwali season last year, whereby consumers have now become more Brand Savvy. In fact, even the brands know this, so they are elevating the quality and feel of their products, The game too, is shifting from being volume-based as was so earlier, to now having become more and more value-based. There is also a greater consumer-lure in favour of automatics and mechanical watches, which are gaining definite popularity. The other shift is towards vibrant colours and finishes, which make the products aesthetically rich and appealing. Yet another factor this year, is the buoyant mood that has set in from the Navratri Festival onwards, due to which, the previous lull and lukewarm response in terms of buyer footfalls looks to have shifted steadily towards an upwardly trend. The retailers and companies too are therefore feeling cheerful and behaving in a lively way. Also to be appreciated alongside, are the efforts, the brands too are putting in, which are indirectly also helping their vendors, in becoming a part of this upswing. Category development is thus what everyone has to work towards jointly. And now, with the Diwali Festival around the corner, the Industry as well as its Trade are fairly optimistic about the period to follow thereafter. Diwali, also known as the Festival of Lights, is one of the most popular and widely celebrated festivals in India. While Diwali has been traditionally celebrated in India for centuries, it has now become a global festival with people from different religions and cultures celebrating it all around the world. This transformation can be attributed to globalization and migration, as well as increased cultural awareness and appreciation. The popularity of Diwali as a global festival has also caught the attention of businesses looking to expand their reach and tap into new markets. As a result, many companies are now incorporating Diwali into their marketing strategies to connect with consumers during this festive season. One of the main reasons for this trend is that Diwali provides a great opportunity for businesses to showcase their products or services through culturally relevant messaging. With an estimated 1.2 billion Hindus worldwide celebrating Diwali, it offers an immense potential market for brands looking to make an impact globally. Indians are hence ready to dive into festive shopping, with many households planning to spend over Rs 10,000+ during the festive season of 2024. A survey conducted by community platform Local Circles reveals that urban India is set to spend Rs 1.85 trillion this year. Despite the growing influence of e-commerce, the survey also points out that 70% of urban households will still stick to local and retail stores, while only 13% plan to use online platforms for their purchases. The survey, which collected over 49,000 responses from households across 342 urban districts, dug into spending patterns for the 2024 festive season. It found that 40% of households plan to invest in home decor, while 38% will focus on beauty and fashion. Gadgets and whitegoods are also on the list, with buyers planning to make purchases in these categories too. However, even with the convenience of e-commerce, the majority of urban households still prefer traditional stores. Retailers, including those dealing in automobiles, whitegoods, lifestyle products such as watches etc and consumer electronics, are banking on the festive spirit to boost sales. According to Local Circles, value for money remains the top priority this year for 46% of households, while 43% prioritise product quality. Only 8% of respondents said that selection or range matters, and a mere 3% highlighted convenience as a deciding factor. This period, which often witnesses bonus payouts and significant consumer spending, has thus become a strategic focus for many brands as they develop product strategies aimed at this time. The strategies employed by e-commerce companies and online stores during this period are critical for driving consumption growth in the country in recent years. Leading players like Amazon and Flipkart have already launched their seasonal sales, while several online and omnichannel retailers in the fashion, consumer electronics, watches and jewelry segments have announced mega offers to maximize their advantage this season. Clothing and lifestyle retailers as well as the malls have stated that they are seeing and experiencing a record growth in sales in the past some weeks and expect demand at a decadal high through Navratri and the forthcoming Diwali Festival period. Customized gifts and products are gaining popularity, as consumers seek unique items that reflect personal connections. Many companies in the Horological Industry for instance, are launching new aesthetically rich products and models specifically aimed for the festive season, and often with special pricing. And to give the World of Watches & Clocks yet another Big Push as well as propel it, is none other than the 22nd edition of the India International Watch & Clock Fair - Samaya Bharati 2025, which is being held coming January 2025 in the National Capital - New Delhi. It's once again, going to be a monumental display of watches, clocks, smartwearables, connected ancillaries as well as plating services provided by service providers to the Horological Industry. An opportune platform to personally check-out, the many strides taken by the Indian Horological Industry, and in placing it where it proudly stands today, around 100 booths of different brands & companies from Entry Level Luxury to Mass Economy will be participating in the Fair, besides being visited on all the four days by B2B and B2C visitors from all over India and some other countries too. The Fair will also offer participants and their channel partners the right opportunity, to interact with each other, assess the present market trends and situation, as well as meet direct consumers and check-out their preferences too, all under a common roof. Hence, participating in and visiting the forthcoming Samaya Bharati 2025, is akin to an investment, which is bound to bear fruit in future. It's definitely a not-to-be-missed event on the anvil, which will only help to accelerate the prosperity and good-future for all of us who are an integral part of the World of Horology. So if we look at the current and ongoing trends which are demonstrating a rather positive outlook and climate, candidly speaking, the 2024 Festival Season followed soon by the Samaya Bharati 2025 are both harbingers of good times to follow, for the horological industry and trade of India!

Hemal M. Kharod