Ethos expects youth to drive sales

Multibrand watch retailer Ethos expects its entry-level fashion and youth format to be the

major volume driver in the next few years. Right now this category contributes about 20 per cent to the company’s revenues. Ethos sells about 35 watch brands at prices ranging between Rs 50,000 and Rs 2 lakh. Among these are Breitling, Chopard, Rolex, Cartier and Rado. The company, which clocked revenues of Rs 100 crores for the financial year ended March 2011, expects to register a 40 per cent jump over last year. Young professionals form a big chunk of the company’s customers and with their spending power increasing.

Moreover the company has earmarked investments worth Rs 7 crores for its expansion drive. It will add 14 more stores by the end of this year, taking the total to 40. Over the next five years, it aims to have a total of 100 outlets across all formats. The Ethos Swiss Watch Studio was launched in 2003. A Technopak report said that the Indian watch industry is estimated at Rs 4,000 to Rs 4,200 crores and is expected to grow at 12 to 15 per cent in the next few years. A large part of this growth is expected from the youth and the premium segment. While organized players control 40 per cent of the volumes the unorganized market, which consists of smuggled watches, cheap imported watches, watches assembled by small players, watch wholesalers and repairers, contribute the rest. By value around 60 per cent of the market is controlled by organized players.