Watches: From the first Indian watch factory started in 1961 by HMT, the Indian watch market has come a long way. With liberalization, several international brands like Dior, Casio, Giordano, Swatch, Tommy Hilfiger, Cartier, Rolex, Tissot, Omega, Esprit and Citizen entered the market.

Brands like Christian Dior, Tommy Hilfiger, Casio, Giordano and Swatch have been relatively more successful, primarily because:
» they entered early (watches was one of the earliest categories in India to be exposed to international names), and
» included a separate range of watches in the mid-price segment, with a fashionable yet affordable range of Rs 1,500–Rs 3,000.

In fact, Omega managed to improve the level of consumer association with the product by employing an Indian brand ambassador to advertise their range.

Jewellery: Jewellery as a category is also making its presence felt in organised retail market. The image is changing as well – from an item of pure investment and value, bought only from traditional family jewelers, to a representative of one's lifestyle and living standard. Most of the retailing of branded jewellery today is happening through shop-in-shops in department stores and exclusive outlets in malls. Quality retail space through regular and speciality malls like Gold Souk, wedding malls, etc., have also enhanced the growth of this category.

While an international brand like Orra is showing its exclusivity by tying up with the three leading jewellery organisations – DTC (De Beers), PGI (Platinum Guild India ) and WGC (World Gold Council), the strategy of D'damas is to cover the entire market at various price points and product choices. However, Indian names like Tanishq, Nakshatra, Gili and Oyzterbay are equally popular and command the same amount of consumer confidence.

Big international jewellery names like Tiffany, Cartier, Zales and Harry Winston are also showing interest in entering the Indian market, and are looking for partnerships with Indian companies.

Footwear: One of the most organised segments in India, footwear retailing is growing at a fast clip. Even though few global brands have successfully made their market holding, the market still continues to witness major competition between local and international brands.

Names like Bata continue to command a better footing due to their superior distribution network and licensing agreements with various brands such as Hush Puppies, Body Shoe and Dr Scholl. Global players like Reebok, Nike and Adidas have also successfully established themselves due to their aggressive expansion in tier II and III cities, supplemented duly by their value merchandise offerings.

Other international names already present in footwear include Franco Leone, Gucci, Guess, Lee Cooper, Trussardi, Mont Blanc, Nine West, Clarks and Allen Cooper. Premium lifestyle brand Gant and US footwear major Global Brand Marketing, Inc. (GBMI, licensee of Diesel, XOXO, Nautica and Mecca ) are also planning to launch retail operations.

Cosmetics: The Indian cosmetic market is dominated by brands such as Lakmé, Revlon, Ponds, Fair & Lovely, Nivea, Godrej, L'Oréal, Amway and Avon.

Of these, Lakmé, Revlon and Avon have been very successful due to:
» strong promotional campaigns,
» wide distribution network,
» continuous product and quality innovation, and
» a range of price-sensitive products – e.g., smaller pack sizes to make them more affordable.

International brands Burberry, Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden, Lancome, Chambor, Coty, L'Oreal, Oriflame, Wella and Yves St Laurent – already present in India – have been offering products with relatively high prices. As a result, these names have not been popular with the average Indian consumer and are restricted to the higher income group.

Food and Beverage: Food and beverage is one industry where international brands have managed to gain widespread acceptance. Food chains like McDonald's, Pizza Hut and Pepsi have customised their offerings to suit Indian consumer tastes. With Pepsi offering customised snack food like kurkure (where the name is also Indian) and Pizza Hut launching their range of tandoori pizzas, these companies through localisation have become highly popular, thus posing strong competition to Indian restaurant chains. On the flip side, a company like Kellogg's could not do well as it tried to modify the Indian consumer's mindset as per its American consumer.

The international fast food and restaurant chains are growing at a fast pace in the Indian food market. For instance, TGIF is planning to open 60 restaurants over the next five to seven years, while McDonald's is already present through 100-plus stores in tier I, II and III cities. Attractive market conditions and rise in average spends on eating out are attracting more international entrants including Gloria Jeans Coffee of Australia and Barnie's Coffee & Tea Co., Coffee World and Starbucks of the United States.