Undeterred by these difficulties, Titan Industries set out to manufacture watches in 1986 and in the first week of 1987, it launched its first branded watches.

"One of our biggest milestones was starting our own assembling and manufacturing facility. Watch manufacturing involves precision engineering — very high level of quality measurements and manufacturing tolerances of micron levels, and that was a very big challenge we overcame," explains HG Raghunath, CEO, watches and accessories, Titan Industries.

Setting timewear trends since 1987

Since then, the company has come a long way. Today, Titan Industries is a dominant market leader, a company which in 2012 completed 25 successful years, a feat achieved by steadfast commitment to its mantra of precision and innovation. "Our watch making unit is considered as one of the best in the Global Watch Industry," says Mr Raghunath.

Crafting perfection
Watch manufacturing differs greatly from other manufacturing industries. For one, it revolves around both aesthetics and functionality. The beauty of a watch is as much within as without — its story is as much in its look and beauty as in its inner workings. A watch is manufactured with great care using precision components which, though not visible to the naked eye, are responsible for the accuracy of a watch. The accuracy of a Titan-made watch is as high as plus or minus 15-20 seconds per month.

Yet early on, the company realised that simply making great watches was not enough; the core competency had to be based on ideas and innovation. With this in mind, Titan put together a team of people with strong expertise in manufacturing, marketing and finance.

Titan's single biggest contribution has been in changing the way we perceive watches. When the company entered the market, watches were utilitarian. But, Titan decided to market the watch as a fashion accessory, one that could change depending on the occasion, person, mood, etc. That was a powerful insight. By turning the watch into an accessory, the potential of the watch market grew tremendously. It also meant that Titan had to design new products in accordance with the latest trends and create differentiation in its products. This gave the company a fantastic opportunity to expand and grow.

One of its groundbreaking concepts was the Raga range of watches for women. These watches were made keeping in mind the needs and sensibilities of Indian women, and today, Raga has become one of the biggest watch brands for women. Edge, the world's thinnest watch (just 3.6 mm thick), is another innovative product. Recently, Titan launched HTSE (High Technology Self Energising) watches powered by solar technology.

Revathi Kant, who headed the Titan Design Studio from 2005 to 2010, says, "We believed that it was important to build a story around the product. We sat with the designers and got them to immerse themselves in a particular theme, for example 'Raga chocolate'. It is important to let the idea reside with the designer, have them relate to it, be inspired. Then they interpret it as per the needs and desires of the consumer."

Marketing stories
Throughout its history, Titan's advertising campaign has complemented its products. The company advertised watches as a style statement and was the first to publish their prices. The campaign brought home the fact that people need not go abroad and pay in dollars to buy a good watch.

Titan also made the shopping experience for its customers exciting and interesting by introducing well-designed showrooms. This was a retail innovation which has helped protect the company against competitors. "A very significant portion of our sales – over 50 percent – comes directly from our showrooms," explains Mr Raghunath.

Titan also set up a strong franchisee network. "We take a lot of pride in the way we do business with our associates and maintain relationships with them," explains Mr Raghunath. Today the Titan network is one of India's largest, covering 900 stores.

Another winning strategy for Titan has been to cater to several segments through its various collections such as:

• Raga for women
• Fastrack for youth
• Sonata for the masses
• Zoop for children

Today Titan produces watches priced from Rs250 to Rs375,000. This wide product range has also helped make the brand a bestseller. "All our brands come out with flying colours during brand track surveys. We have won several advertising awards and scored well on consumer feedback," explains Mr Raghunath.

Over the years the watch division has strengthened all aspects of the value chain, including design, new product development, manufacturing, branding, service, etc. For instance, Titan's Design team scans the latest trends in watches, mobiles, technology, fabrics, apparels, colours, fashion, footwear, furniture and so on, before setting out to develop a product. It works in advance on many concepts, using inspiration from the cultures prevalent in India, yet infusing them with a global touch. Before the final product is launched, feedback is sought from potential customers and implemented.

Sustainable business
Throughout its growth years, Titan has looked at making the business model as sustainable as possible. In the factory at Hosur, the company has invested in new technologies for the conservation of energy and water and a reduction in their usage. The power requirement per watch has come down by 15 percent in the past 6-7 years. At the same time, the overall power consumption in the plant, even with increased production, has come down by 10 percent.

The factory operates on power generated by windmills and 50 percent of its watch manufacturing today is driven by green power. By the end of 2014, company officials expect the plant to be carbon-proof.

Looking ahead
Today, Titan has an international presence in about 26 countries and is very strong in UAE, Qatar, Oman, Saudi Arabia and Vietnam, Singapore, Malaysia, Sri Lanka, Bangladesh and Maldives. As part of its international strategy, it recently bought Favre Leuba, the second oldest heritage brand in the world.

In the near future, Titan is planning to focus on tapping middle India and reaching out to consumers in tier 3 and tier 2 towns to sell its products. "In the next five years, Titan will also be looking at the luxury watch segment in the price range of Rs50,000 to Rs100,000. The luxury segment is growing fast in India," Mr Raghunath said.

An unusual area of competition is the rapid growth of the mobile phone industry. The company, it appears, is ready for that challenge too. Says Mr Raghunath, "What helps us remain in consideration is our consumer segmentation of the market and our breathtaking designs and new products. We continuously invest in building powerful brands, creating desire, and keep injecting technology into your product space. These are the strategic interventions we are doing to make sure we overcome the threat from not only mobile phones but also other lifestyle products."

From its future-focussed strategy to its design innovations, its creative marketing approach to the strong supply chain, Titan, as a business, has relied on its ability to connect with customers and deliver what the customer needs. This has not only given the company an edge over its competitors, it has also helped Titan become the fifth largest watch manufacturing company in the world.