FINANCIAL ASPECTS OF SONATA WATCH MANUFACTURING

22EE610 Accounting and Finance

Submitted in partial fulfilment for the requirement of B.E. degree in

Electrical and Electronics Engineering of Anna University

Submitted by
ASWIN SELVAM
(917722E014)
KARTHIKEYAN J
(917722E040)
NAGARAJAN R
(917722E058)

Department of Electrical and Electronics Engineering

THIAGARAJAR COLLEGE OF ENGINEERING

(An Autonomous Institution Affiliated to Anna University)

MADURAI – 625 015

April 2025

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 LIST OF CONTENTS

CHAPTER TITLE PAGE

NO NO
1. Introduction 3
2. Product Overview – Sonata Watch 4
3. Market Research and Demand Analysis 5
4. Manufacturing Requirements 6
5. Machinery And Equipment Details 7
6. Raw Materials and Components 9
7. Cost of Production 10
8. Branding and Packaging 12
9. Manufacturing Cost Per Unit 13
10. Packaging And Distribution Costs 14
11. Market Demand and Trends in India 16

12. Break-Even Analysis 18

13. Return Of Investments 20

14. Profit Analysis 23
15. Risk Factors and Mitigation 25
16. Conclusion 27

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 CHAPTER 1

INTRODUCTION

• Wristwatches, beyond their primary function of timekeeping, have evolved into

significant style statements and personal accessories. The global watch industry continues
to thrive on innovation, brand appeal, and design aesthetics. In India, the increasing trend
toward affordable luxury and fashion-conscious consumer behavior has fueled a growing
demand for locally manufactured, stylish, and budget-friendly watches like the proposed
Sonato brand.
• The proposed Sonato Watch venture aims to deliver timepieces that combine quality
craftsmanship, modern design, and affordability. These watches are envisioned to target
the mid-range consumer segment—focusing on students, working professionals, and
fashion-conscious individuals. The project incorporates Quartz movement-based
wristwatches, favored for their accuracy, reliability, and cost-effectiveness.
• This report presents a detailed financial feasibility analysis for setting up a Sonato Watch
manufacturing unit in India. It covers aspects such as product design, raw material
sourcing, machinery and equipment requirements, labor and operational costs, marketing
strategy, sales projections, and risk management.
• Additionally, the report provides key financial indicators like break-even analysis, return
on investment (ROI), production cost per unit, and profit margins. Insights are derived
from market research, competitor benchmarking, government data, and industry
whitepapers, making the study relevant for investors, entrepreneurs, and policymakers.
• The goal is to offer a clear, data-backed perspective on the business viability of the Sonato
Watch brand and highlight the potential of the Indian wristwatch market for new entrants
and innovators.

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 CHAPTER 2

INDUSTRY OVERVIEW

The Indian wristwatch industry is a vibrant and steadily growing sector that blends functionality with
fashion. As of 2023, the Indian watch market was valued at approximately INR 13,000 crore, with
projections indicating it could surpass INR 18,000 crore by 2027, according to reports by Statista and
market research firms. The segment is dominated by domestic players like Titan and international
brands such as Fossil, Casio, and Timex, creating a landscape that is both competitive and full of
untapped potential for innovative local ventures.

Growth in this sector is driven by multiple factors:

• Rising disposable incomes and lifestyle upgrades in Tier-2 and Tier-3 cities

• Increasing demand for affordable fashion accessories among youth and professionals

• A surge in e-commerce and digital marketing, enabling direct-to-consumer (D2C) sales

• Greater penetration of smart and hybrid watches, merging style with technology

India has a large pool of skilled assembly-line labor and relatively lower manufacturing costs, making
it an attractive base for domestic watch production. While imported components (especially
movements and batteries) still dominate the supply chain, efforts are underway to localize production
through government schemes like "Make in India" and PLI (Production Linked Incentive) programs.

Challenges such as counterfeit markets, fluctuating component costs, and changing fashion trends exist
but are counterbalanced by rising brand consciousness and the opportunity for mid-segment brands
like Sonato to carve a niche.

The emergence of niche brands with strong online presence and customized offerings is reshaping the
Indian watch industry—making it a fertile ground for new entrants looking to offer a blend of
affordability, design, and identity.

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 CHAPTER 3

MARKET DEMAND ANALYSIS

The demand for affordable yet stylish wristwatches in India has seen a steady rise, especially among
the middle-income, youth, and professional segments. With a growing preference for personal style
accessories and the desire for locally crafted yet globally appealing products, the Indian watch market
presents a promising opportunity for mid-range brands like Sonato.

Major Demand Segments:

• Youth and Students (35%) – Demand is driven by fashion, peer influence, and affordability.

• Working Professionals (30%) – Preferences for sleek, formal designs suitable for office wear.

• Gift and Occasion Buyers (15%) – Festive, wedding, and corporate gifting segments.

• Watch Enthusiasts and Collectors (10%) – Interested in design innovation and limited
editions.

• Elderly and Traditional Buyers (10%) – Favor durable and simple timepieces.

Regional Demand Distribution:

• Tier 1 cities (Mumbai, Delhi, Bengaluru, Chennai): 45% – High purchasing power and
trend-conscious consumers.

• Tier 2/3 cities (Madurai, Lucknow, Coimbatore, Jaipur): 35% – Fast-growing adoption
driven by aspirational buying and brand value.

• Rural Areas: 20% – Growing due to mobile commerce, influencer marketing, and budget
product availability.

Seasonal Demand Trends:

• Peak demand: October–January (festive season and wedding gifts)

• Moderate demand: March–June (school/college reopenings, job season)

• Low demand: July–September (monsoon and off-sale periods)

Future Market Potential:

• Expansion of online-only exclusive watch models

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 • Introduction of customizable watches for gifting and personalization

• Entry into hybrid smart-watches and limited tech-enabled features

• Collaboration with fashion influencers and celebrities to boost brand image

• Rising demand for ‘Made in India’ products under national initiatives

With the Indian youth population crossing 600 million, and increasing internet penetration boosting e-
commerce, the market conditions are highly favorable for launching a new brand like Sonato, especially
in the ₹800–₹2,000 price segment.

CHAPTER 4

INITIAL INVESTMENT REQUIREMENTS

To establish a Sonato wristwatch manufacturing unit with a monthly production capacity of 20,000
watches, the following initial investments are estimated. This setup is designed for a mid-sized, semi-
automated facility with scope for expansion and in-house assembly.

Category Investment (INR)

Land (5,000 sq. ft. industrial space) 12,00,000

Factory Construction and Interiors 18,00,000

Watch Assembly Line Equipment 22,00,000

Component Testing Machines (QC Lab) 5,00,000

Laser Engraving & Branding Tools 3,50,000

Packaging Unit (Boxes, Sealing Machines) 4,00,000

Office Setup (Furniture, Computers, CCTV) 2,50,000

Design Software and Licensing 1,50,000

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 Utilities Setup (Power, Plumbing, Internet) 3,00,000

Pre-Operational Costs (Legal, Permits) 2,00,000

Initial Marketing & Branding 5,00,000

Working Capital (3 months buffer) 15,00,000

Total Initial Investment 94,50,000

This estimate is tailored for a small-to-medium-scale watch brand targeting mass-market distribution,
especially through e-commerce and retail aggregators. Actual costs may vary depending on location,
labor rates, and supplier contracts.

CHAPTER 5

MACHINERY AND EQUIPMENTS

A successful wristwatch manufacturing setup requires specialized machinery to ensure
precision, quality, and high output. Below is a breakdown of the essential equipment for the
Sonato Watch production facility and their approximate costs in India:

Approx. Cost
Equipment Purpose
(INR)

Assembles watch components (case,

Automatic Watch Assembly Line 20,00,000
dial, hands, and strap)

Engraves logos and designs on watch

CNC Engraving Machine 5,00,000
cases

Applies detailed engravings for

Laser Etching Machine 3,50,000
branding and markings

Produces plastic watch case

Injection Moulding Machine 7,00,000
components

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 Approx. Cost
Equipment Purpose
(INR)

Automatic Strap Assembly Machine Attaches straps to watch cases 3,00,000

Tests accuracy and functionality of

Watch Movement Testing Machine 4,50,000
quartz movements

Automates packaging of finished

Packaging Machine (Automated) 3,00,000
watches into boxes

Quality Control Lab (Microscope & Ensures precision, waterproofing, and

2,00,000
Testing Equipment) durability of watches

Total Machinery Cost Estimate: INR 47,00,000

These machines can be sourced from local manufacturers in industrial hubs like Mumbai,
Delhi, and Bengaluru, or imported from countries such as Switzerland or Germany for high-
end precision and automation.

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 CHAPTER 6

RAW MATERIAL COST ANALYSIS

The core raw materials for Sonato wristwatch manufacturing are essential for ensuring the quality,
durability, and aesthetic appeal of each product. These include materials for the watch case, strap,
movement components, and packaging. The major suppliers for these materials are local as well as
global vendors specializing in watch manufacturing components.

Key Raw Materials and Costs (as of 2024):

• Stainless Steel (for watch case): INR 450 per kg

• Aluminum (for lightweight cases): INR 350 per kg

• Polyurethane (for straps): INR 150 per meter

• Quartz Movements (imported): INR 600 per unit

• Sapphire Glass (for watch face): INR 800 per piece

• Leather (for straps): INR 500 per meter

• Packaging (Boxes, Inserts, etc.): INR 30 per unit

Monthly Raw Material Requirement for 20,000 Watches:

Material Quantity Required Unit Cost (INR) Total Cost (INR)

Stainless Steel 200 kg 450 90,000

Aluminum 50 kg 350 17,500

Polyurethane (Straps) 1,000 meters 150 1,50,000

Quartz Movements 20,000 units 600 12,00,000

Sapphire Glass 20,000 pieces 800 16,00,000

Leather (Straps) 500 meters 500 2,50,000

Packaging (Boxes) 20,000 units 30 6,00,000

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Total Monthly Raw Material Cost: INR 38,57,500

This raw material cost will be the most significant recurring expense for Sonato Watch Manufacturing,
especially with the high volume of quality movements and sapphire glass used. Efficient supplier
relationships and bulk procurement strategies can help reduce these costs over time.

CHAPTER 7

MANUFACTURING PROCESS

The manufacturing of Sonato wristwatches involves multiple precision-driven stages

combining automated machinery and skilled craftsmanship. This process ensures the
production of aesthetically appealing and functional watches at scale.

Step-by-Step Process with Diagram:

1. Component Sourcing and Inspection:

o Raw materials such as steel, sapphire glass, leather, and quartz movements are
procured.

o Each component is inspected for quality and specifications.

2. Case Manufacturing:

o Stainless steel or aluminum is CNC-machined or injection moulded to form

the outer watch case.

o Surface finishing like polishing, brushing, or coating is done.

3. Dial and Movement Assembly:

o Quartz movement is inserted into the case.

o Watch hands are carefully aligned and fixed.

o Dial plates are printed or engraved with the brand logo and markers.

4. Glass and Back Case Fitting:

o Sapphire glass is fitted on the front.

o A pressure-tested back case is sealed to ensure water resistance.

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5. Strap Assembly:

o Leather, polyurethane, or stainless steel straps are assembled using strap

mounting tools.

6. Quality Testing:

o Each watch undergoes a movement accuracy test, water resistance test, and
durability test.

7. Branding and Packaging:

o Laser engraving is done for logos and serial numbers.

o The watch is packed in branded boxes with instruction manuals.

Fig 7.3 – Making Process

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 CHAPTER 8

UTILITIES AND OPERATIONAL COSTS

Operating a Sonata wristwatch manufacturing unit involves recurring expenses related to utilities,
skilled labor, and overheads necessary for uninterrupted precision production and assembly.

Monthly Utility Cost Estimate

Utility / Overhead Monthly Cost (INR)

Electricity (Precision Machinery, Lighting, HVAC) 1,50,000

Water Supply (Minimal use for cleaning & testing) 8,000

Compressed Air & Vacuum Tools 12,000

Maintenance (Calibration, Lubrication, Repairs) 30,000

Skilled Labor Wages (Technicians, QC Staff) 3,00,000

Packaging Materials (Boxes, Manuals, Wrap) 1,20,000

Miscellaneous (Stationery, Logistics, Cleaning) 35,000

Total Monthly Operational Cost: ₹6,55,00

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 CHAPTER 9

MANUFACTURING COST PER UNIT

Product Type: Sonata Analog Wristwatch

VARIBLE COST

1. Raw Material

Raw Material Requirement for 10,000 watches (Kg / Units) Usage %

Stainless Steel (Case + Back) 450 kg 28.12%

Hardened Mineral Glass (Dial) 800 sheets 22.50%

Watch Movement (Quartz) 10,000 units 24.00%

PU/Leather Strap 1,000 meters 10.00%

Dial Face Printing (Inks, film) Bulk 5.00%

Buckle, Screws, Gaskets 10,000 sets 4.00%

Packaging Box + Manual 10,000 units 5.00%

Battery (SR626SW or equivalent) 10,000 units 1.38%

Total Raw Material Usage – 100%

2. Utility Cost

Utility Details

Electricity ₹9/unit × 250 kWh × 24 hrs = ₹54,000/day

Utility Details

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Water & Air (for cooling, cleaning) ₹6,000/day

Compressed Air Tools & Soldering Stations ₹8,000/day

Total Daily Utility Cost ₹68,000/day

Production Output 10,000 watches per day

Electricity + Utility Cost per Watch ₹6.80

3. Labour Cost

Labour Type Details

No. of Workers (3 shifts) 90

Salary per Day per Worker ₹500

Total Labour Cost/day ₹45,000

Labour Cost per Watch ₹4.50

CHAPTER 10

PACKAGING AND DISTRIBUTION COSTS

Once watches are assembled and pass quality inspection, they are packaged and dispatched for retail
and online distribution.

Packaging Components:

• Presentation watch box (branded cardboard or plastic)

• Instruction manual and warranty card

• Outer carton for shipping

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 • Shrink wrap or foam padding for protection

• Barcode sticker and price tags

Monthly Distribution Cost Estimate:

Activity Cost (INR)

Primary Packaging (Watch Box, Tag, Manual) ₹1,00,000

Freight & Logistics (to dealers, retailers) ₹2,00,000

Storage/Warehousing at hubs ₹40,000

Handling & Dispatch Labor Charges ₹35,000

◆ Total Monthly Distribution Cost: ₹3,75,000

Combined Production Cost Overview (Sonata Analog Watch):

Component Cost per Unit (INR)

Raw Material ₹100.00

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Component Cost per Unit (INR)

Utilities & Electricity ₹6.80

Labour ₹4.50

Packaging & Distribution ₹3.75

CHAPTER 11

MARKET DEMAND AND TRENDS IN INDIA

India has witnessed a significant increase in demand for wristwatches, particularly driven by
rising disposable incomes, evolving fashion trends, and increasing awareness of timekeeping
as a personal accessory. The market demand is experiencing a steady growth annually.

Key Drivers:

• Urbanization and Increasing Disposable Income: As more people move to urban centers
and their purchasing power grows, the demand for discretionary items like wristwatches
rises.

• Evolving Fashion and Personal Style: Wristwatches are increasingly seen as fashion
statements and a way to express individual style, leading to demand for diverse designs
and materials.

• Growing Awareness of Timekeeping and Functionality: Beyond just telling time,

modern wristwatches offer various features like date displays, chronographs, and smart
functionalities, attracting a wider consumer base.

• Digitalization and E-commerce Penetration: The rise of online retail platforms has
made a wider variety of watch brands and styles accessible to consumers across India.

Industry Insight:

• Top Users: Young professionals, fashion enthusiasts, corporate employees, gift

purchasers.

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 • Product Trends: Increasing demand for smartwatches, premium and luxury watches,
and watches with diverse material options (e.g., stainless steel, leather, ceramic).
Preference for branded and reliable timepieces.

Key Market Drivers:

Driver Description

Rising Disposable Increased affordability of non-essential goods like wristwatches

Income among a larger segment of the population.

Growing emphasis on personal appearance and accessories as a form

Fashion Consciousness
of self-expression.

Technological Introduction of smartwatches and feature-rich analog watches

Advancements catering to tech-savvy consumers.

Brand Awareness & Preference for established and reputable watch brands offering
Loyalty quality and style.

Gifting Culture Wristwatches are a popular gifting option for various occasions.

Market Segmentation (Estimated):

Segment Market Share (%)

Budget/Mass Market 50%

Mid-Range 30%

Premium/Luxury 15%

Smartwatches 5%

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 CHAPTER 12

BREAK-EVEN ANALYSIS
Break-even analysis helps determine the point at which Sonata Watches starts earning profits, where
total revenues equal total costs.

Cost Structure:

Cost Type Monthly Amount (INR)

Fixed Costs ₹5 lakhs

Variable Costs ₹10 lakhs

Revenue ₹20 lakhs (@ ₹1,000/unit × 2,000 units/month)

Break-even Calculation:

• Selling Price per Unit: ₹1,000

• Variable Cost per Unit: ₹500

• Contribution Margin: ₹500

• Break-even Volume (units/month) = ₹5 lakhs / ₹500 = 1,000 units

Graphical Representation:

• X-axis: Sales Volume (units)

• Y-axis: Profit/Loss (₹)

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 • Break-even occurs where Total Revenue = Total Costs

(Graph showing Total Revenue and Total Cost intersecting at 1,000 units can be provided as PNG
upon request)

Conclusion:

• Sonata Watches achieves break-even at a monthly sales volume of 1,000 units

• With current sales at 2,000 units/month, the company operates above the break-even point

• Profitability is enhanced through effective cost control and premium pricing strategy

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 CHAPTER 13

RETURN OF INVESTMENTS

ROI (Return on Investment) is a critical financial metric used to evaluate the profitability and
efficiency of an investment. For a brand like Sonata, which operates in a competitive and brand-
sensitive industry like wristwatches, ROI highlights how effectively capital is being turned into profit.

1. Formula for ROI

Where:

• Net Profit: The profit earned after deducting all costs (fixed and variable) from the total
revenue.

• Total Investment: The amount of money initially invested in the business (including
equipment, raw materials, operational expenses, etc.).

2. ROI for Sonata Watch Manufacturing

Investment Breakdown:

Investment Category Amount (INR)

Manufacturing Setup ₹20,00,000

Raw Materials (Annual) ₹15,00,000

Branding & Marketing ₹8,00,000

Retail Channel Setup ₹10,00,000

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Investment Category Amount (INR)

Working Capital ₹5,00,000

Total Investment ₹58,00,000

Annual Revenue Projection:

Assume Sonata sells 100,000 watches annually at an average price of ₹1,000.

• Total Revenue (Annual) = 100,000 × ₹1,000 = ₹1,00,00,000

Annual Operating Costs:

Cost Category Annual Cost (INR)

Variable Cost per unit ₹500

Total Variable Cost ₹50,00,000

Fixed Costs ₹10,00,000

Total Operating Costs ₹60,00,000

Net Profit = ₹1,00,00,000 – ₹60,00,000 = ₹40,00,000

3. ROI Insights for Sonata

• ROI = (₹40,00,000 / ₹58,00,000) × 100 = 68.97%

• A strong ROI for a consumer goods brand, especially with established brand equity and
market reach.

• Break-even is projected within the first year due to robust margins and premium
branding.

4. ROI Sensitivity Analysis

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Units Sold Revenue (INR) Net Profit (INR) ROI (%)

50,000 ₹50,00,000 ₹15,00,000 25.86%

100,000 ₹1,00,00,000 ₹40,00,000 68.97%

200,000 ₹2,00,00,000 ₹1,00,00,000 172.41%

Selling Price Variation:

Price/unit (INR) Revenue (INR) Net Profit (INR) ROI (%)

₹800 ₹80,00,000 ₹20,00,000 34.48%

₹1,000 ₹1,00,00,000 ₹40,00,000 68.97%

₹1,200 ₹1,20,00,000 ₹60,00,000 103.45%

5. Key Takeaways on ROI – Sonata Watches

• Premium Branding Advantage: Higher average selling price boosts ROI significantly
without drastically increasing costs.

• Scale Benefits: As production volume increases, fixed costs dilute, enhancing

profitability.

• Operational Focus: Continued attention to cost optimization (e.g., sourcing,

automation) will directly raise ROI.

• Market Positioning: Maintaining a competitive pricing strategy while leveraging brand

prestige is essential for sustained ROI growth.

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 CHAPTER 14

PROFIT ANALYSIS
Overview:
Profit analysis helps evaluate how effectively Sonata Watches converts operational costs into net
income. It reflects the brand’s ability to sustain profitability across various production volumes,
especially in a competitive retail and consumer electronics market.

1. Monthly Profit Projection

Description Value (INR)

Units Produced (Monthly) 10,000 watches

Selling Price (per unit) ₹1,000

Monthly Revenue ₹1,00,00,000

Variable Cost (₹500/unit) ₹50,00,000

Fixed Costs ₹10,00,000

Total Cost ₹60,00,000

Monthly Profit ₹40,00,000

2. Annual Profit Estimation

Assuming 12 production months per year:

• Annual Revenue: ₹1 Cr × 12 = ₹12 Crores

• Annual Profit: ₹40 Lakhs × 12 = ₹4.8 Crores

3. Profit Variation at Different Production Scales

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Units Produced Revenue (INR) Total Cost (INR) Profit/Loss (INR)

2,500 ₹25,00,000 ₹21,25,000 ₹3,75,000

5,000 ₹50,00,000 ₹32,50,000 ₹17,50,000

7,500 ₹75,00,000 ₹43,75,000 ₹31,25,000

10,000 ₹1,00,00,000 ₹60,00,000 ₹40,00,000

15,000 ₹1,50,00,000 ₹85,00,000 ₹65,00,000

Assumptions: Variable cost = ₹500/unit; Fixed cost = ₹10,00,000/month.

4. Key Takeaways on Profitability

• Volume Drives Profit: Profit increases significantly with scale due to fixed cost distribution.

• Premium Pricing Model: Sonata’s brand allows for strong margins through mid- to high-range
pricing.

• Healthy Margins: With a 40% margin at optimal production, the business is financially sound
and scalable.

• Efficiency Focus: Continued optimization in production, logistics, and marketing spend can
further boost profitability.

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 CHAPTER 15

RISK FACTORS AND MITIGATION

In any manufacturing business, including plastic bottle production, risk identification and mitigation
are vital for sustainable operations. The following table outlines key risk factors along with
recommended strategies to minimize their impact:

Risk Factor Description Mitigation Strategy

- Negotiate long-term contracts

with suppliers
Raw Material Price Price volatility of PET resin due to global - Diversify supplier base
Fluctuations oil prices and supply chain instability.
- Incorporate recycled PET
(rPET) to reduce dependency on virgin
materials

- Conduct periodic regulatory

audits
Non-compliance with environmental laws, - Employ compliance/legal
Regulatory
safety standards, and plastic waste experts
Compliance Risks
management norms. - Implement Extended Producer
Responsibility (EPR)
frameworks

- Schedule preventive
maintenance
Sudden equipment failures causing - Maintain critical spare parts
Machine Breakdown
production halts and maintenance inventory
& Downtime
expenses. - Train staff for basic
troubleshooting and emergency
handling

- Collaborate with local

Labor Shortages & Difficulty in sourcing or retaining skilled vocational institutes
Workforce Issues labor; risk of industrial action. - Develop worker engagement
and retention initiatives

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Risk Factor Description Mitigation Strategy

- Introduce automation in
repetitive or low-skill tasks

- Diversify supplier network

Interruptions in raw material or product - Maintain buffer inventory
Supply Chain
delivery caused by transport delays, - Plan alternative logistics and
Disruptions
natural calamities, or geopolitical events. emergency procurement
channels

- Launch in-house recycling or

take-back programs
Environmental Rising concerns around plastic pollution - Acquire eco-certifications like
Impact & Public and sustainability may affect public image ISO 14001
Opinion or lead to regulatory changes. - Invest in R&D for
biodegradable and sustainable
alternatives

- Focus on customer loyalty and

retention strategies
Threat from new entrants or established
- Adopt cost leadership while
Market Competition players lowering prices or increasing
maintaining quality
product variety.
- Offer product customization to
capture niche demand

Conclusion:
Identifying and preparing for potential risks enables the business to be proactive rather than reactive. A
combination of strategic planning, regulatory awareness, and innovation helps ensure long-term
resilience and profitability.

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 CHAPTER 16

CONCLUSION
The Indian wristwatch industry continues to evolve, and Sonata, as one of the most recognized brands
under Titan, holds a strong position in this dynamic market. With rising aspirations among young
consumers, increasing fashion consciousness, and expanding digital retail channels, Sonata is well-
positioned to capitalize on current and future demand. However, sustained success will depend on
strategic innovation, operational agility, and customer engagement.

1. Core Brand Equity

Sonata’s mass-appeal and trustworthiness provide a solid base for growth. Maintaining product
reliability and expanding iconic collections will reinforce customer loyalty.

2. Innovation as Growth Engine

The rapid rise of smart-and-hybrid watches presents an opportunity. Introducing tech-infused
models under the Sonata umbrella—blending traditional design with smart features—can
attract younger demographics without diluting the brand’s accessible positioning.

3. Omni-Channel Acceleration
While brick-and-mortar stores remain important for touch-and-feel purchase behavior, the
digital storefront is where future growth is concentrated. Enhancing the e-commerce
experience—through virtual try-ons, AI-driven recommendations, and faster delivery—will
capture the online-first shopper.

4. Agile Operations & Supply Chain

In a fast-moving fashion segment, speed matters. Shortening prototyping-to-shelf cycles and
building flexible inventory systems (e.g., build-to-order for limited editions) will minimize
markdowns and maximize profitability.

5. Sustainability & Ethical Practices

Today’s buyers care about the planet. Moving to eco-friendly packaging, exploring sustainable
strap materials (e.g., recycled PET fabric), and publicizing Titan’s broader social-impact
initiatives will enhance Sonata’s appeal among conscious consumers.

Key Recommendations

• Diversify Offerings: Launch a capsule smart-watch line alongside refreshed mechanical and
quartz collections.

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 • Enhance Digital Engagement: Invest in AR/VR try-on tools, chatbot support, and loyalty apps
to deepen consumer interaction.

• Optimize Cost Structures: Leverage Titan’s global procurement scale to negotiate better input
costs and pass savings into competitive pricing.

• Cultivate Collaborations: Partner with emerging fashion designers, local artists, or regional
influencers to create limited-edition series that drive buzz and premium margins.

By executing these strategies, Sonata can not only defend its leadership in the value segment but also
pioneer new frontiers—be it wearable tech or sustainable fashion—ensuring the brand remains both
relevant and resilient in India’s dynamic watch market.

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