Timex plans 20 stores in one year; seeks franchisees

Leading watch maker Timex Group India has announced plans to open 20 more stores across the country in the next one year. The group which has embraced the franchising model for expansion, currently has 70 stores in India, in both kiosks and exclusive outlets formats. 

The new stores will be opened through the franchise model. Besides metros and big cities, the group is now looking to increase its footprints in tier II and III cities like Guntur, Kakinada, Asansol, Hazaribagh, etc., with a population of more than one million. The other cities targeted by the group are the Delhi-NCR region, Pune, Hyderabad, Ludhiana, Ahmedabad, Bangalore, Chennai, Kolkata, Mumbai and the like. 

Speaking at the launch of their 10th exclusive outlet in Bangalore, Gopalratnam Kannan, managing director, Timex Group, said: "We have extensive expansion plans for the coming year and will be increasing our footprints across the country, especially in tier II and III cities. We are also strategically expanding our product portfolio targeting the discerning Indian consumer." 

The company operates two franchise models -- kiosks and exclusive outlet (The Time Factory) formats. The space required for a Timex kiosk is 120 sq. ft with an overall investment of Rs 10-15 lakhs. While The Time Factory is spread over an area of 450-650 sq ft and requires investment of about Rs 20 lakhs, depending on the location. The franchisee can breakeven in a year's time expecting an RoI of 15-20 per cent. 

Timex Group designs, manufactures and markets innovative timepieces and jewellery globally with 12 brands in its portfolio including Versace, Nautica, Marc, and Ecko. 

Currently, the overall watch industry is expected to be Rs 3,500 crore of which 55 per cent comprises the organised market. Timex Group has a market share of 10 per cent of organised market. 

Timex Group reported a turnover of about Rs 132 crore in 2008-2009 fiscal with a profit of over Rs 7.56 crore. The profit was almost 37 per cent more than the previous year. Despite the recession, revenues in 2009-2010 grew at 3 per cent. The brand is now expecting a growth of 10 per cent in 2010-2011. 

 

Source: Franchise-Plus