2025 Ki u hika G, D . Shakeela Banu C 20
© In e na ional Academic Resea ch Jou nal o Business and Managemen ISSN:2227-1287
Volume 13, Issue No:2, Decembe 2025
DOI: h ps://doi.o g/10.5281/zenodo.17695687
In en o y o Impac : SKU Discipline and Wo king‑Capi al
Resilience a Ti an Wa ches
Ki u hika G
MBA S uden s, Facul y o Managemen S udies,
CMS Business School,
Jain (Deemed- o-be Uni e si y), Bengalu u.
D Shakeela Banu C
Adjunc Facul y, Facul y o Managemen S udies,
CMS Business School,
Jain (Deemed- o-be Uni e si y), Bengalu u.
Abs ac
Ti an's Wa ches and Wea ables di ision wo ks in a apidly g owing Indian ma ke whe e a lo o
choices d aw cus ome s, bu slow-mo ing i ems can ie up cash. An in e nship s udy o FY21 FY25
FP A da a su aced SKU p oli e a ion p oduc ion sales misma ches and ageing in en o y ying up
wo king capi al especially ac oss 10K 10 25K and 25K p ice bands 10K 10 25K and 25K p ice bands
E en hough he lags o aging and excess p oduc ion go be e by FY25, he e a e s ill isks
because s ock- o-sales a ios a e s ill high. The p oblem is how o make po olio and low discipline
a pa o he company's cul u e so ha b ead h doesn' hu ma gins o he b and. Exhibi s include
he con e sion o opening s ock in o aging bucke s, p oduc ion sold in he same yea , and s ock o
sales by band. Op ions include SKU a ionaliza ion, p oduc ion aligned wi h demand, dynamic
liquida ion ladde s, c oss- unc ional dashboa ds, and a olling AI-assis ed o ecas . The goals o
lea ning a e o ind he oo causes, design go e nance, decide whe he o s op o con inue, edesign,
and igu e ou he ade-o s be ween wo king capi al.
Keywo ds: In en o y op imisa ion, SKU a ionalisa ion, Wo king capi al, Demand o ecas ing,
Sma wa ch s a egy
CASE INTRODUCTION
India's o ganized wa ch ma ke
combines ashion ends wi h long-las ing
use, making i ha d o build a po olio. No
enough a ie y makes hings less ele an ,
while oo much slows down sales and
clu e s shel es. In Ti an's Wa ches and
Wea ables di ision, FY21 FY25 FP A
signals show ha he e is oo much SKU
p oli e a ion in ce ain p ice anges and old
s ock ha is ying up wo king capi al. By
FY25, co ec i e ac ions we e e iden :
aging diminished, excess p oduc ion
indica o s declined, and opening s ock
con e sion imp o ed ac oss he 10K, 10-
25K, and 25K segmen s. Howe e , s ock-
o-sales imbalances con inued o a
p o ac ed lis o i ems. Resea ch on
in en o y shows ha p oduc i i y depends
on bo h u ns and g oss ma gin.
Companies ha align hei asso men and
eplenishmen do be e han o he s. Gau
Fishe Raman Two housand i e
Ne essine Rumyan se 2007 S udies on
e ail execu ion show ha inco ec eco ds
and p ocess d i can make decisions less
accu a e and inc ease he isk o
ma kdowns. DeHo a ius Raman 2008
Fo ecas ing li e a u e also says ha
demand ha is sensi i e o ashion and
comes and goes needs simple models and
s ic ules ins ead o complica ed
o e i ing. Syn e os Boylan 2005 This case
pu s s uden s in Ti an's ope a ing sea wi h
exhibi s on how old bucke s a ec band
opening s ock, how much s ock is sold
wi hin a yea , and how much s ock is sold
compa ed o sales. They need o igu e ou
wha causes a ie y o u n in o wo king
capi al d ag and hen come up wi h a way
o he ins i u ion o espond by edesigning
ules o people who a en' doing well.
SKUs need p oduc ion slo s ha a e in line
wi h demand, dynamic liquida ion ladde s
ha p o ec he b and while eeing up
cash, and a olling o ecas i ual ha ies
design FP. A supply and a s o e I is
common o manage s in li es yle e ail o
21 In e na ional Academic Resea ch Jou nal o Business and Managemen Decembe
eel s essed abou how o keep design
lexibili y and a ie y while en o cing low
discipline. The bes way o use in en o y is
o ea i like a s a egy ha is isible. This
means c ea ing a c oss- unc ional cadence
whe e dashboa ds show age, p o i abili y,
and sell- h ough expe imen s es o ecas
and alloca ion hypo heses, and
go e nance s ops people om going back
o bad habi s. S uden s will use basic ma h
and sensi i i y bounds o igu e ou how a
i e-poin inc ease in opening s ock sell-
h ough a ec s cash con e sion and
ma kdown expense o e wo qua e s. The
ul ima e objec i e is o c ea e a playbook
ha con e s analy ics in o ope a ional
decisions amid unce ain y, in alignmen
wi h e idence ega ding asso men
discipline, o ecas pa simony, and
execu ion quali y (Gau e al. 2005;
DeHo a ius & Raman 2008).
Abou he Wa ches and Wea ables
indus y
Wa ches and wea ables o
business India The ma ke is wo h
be ween 13,000 and 15,000 c o e, and i is
g owing a a a e o be ween 1% and 2%
pe yea . I includes analog, digi al, hyb id,
and sma wa ches ha a e ge ing as e .
U baniza ion, income e ec s, gi -gi ing
spikes, and ashion cycles all a ec
demand. In he en y o mid- ange
segmen s, sma phones a e eplacing
u ili y. Swiss and Japanese b ands, as well
as ech companies and nimble Indian
newcome s, a e all compe ing on a global
scale. This aises he ba o speed o
design and execu ion in channels.
Ope a ionally, expanding he a ie y o
p oduc s is di icul because o unce ain
demand and long supply cycles. The
li e a u e shows ha ha ing a lo o di e en
s yles in ashion can lead o mo e
misma ches and ma kdowns, unless quick
esponse and disciplined es ocking a e
used o con ol i . Cachon Swinney 2011
In en o y p oduc i i y depends on
balanced u ns and ma gin. Gaps be ween
p oduc ion and sell- h ough ha las o a
long ime pu a s ain on wo king capi al.
Gau Fishe Raman 2005 Execu ion e o s,
anging om inaccu a e eco ds o
inadequa e shel discipline, comp omise
signals employed o alloca ion and
o ecas ing, esul ing in sel - ein o cing
dis o ions. DeHo a ius Raman 2008 In
o ecas ing, ashion-sensi i e i ems
equen ly demons a e in e mi en o
bu s y demand. Empi ical s udies ad oca e
o s aigh o wa d, bias-awa e
me hodologies ha ensu e s abili y o e
ime, supplemen ed by go e nance a he
han solely elying on model complexi y.
Syn e os Boylan 2005 When liquida ion is
necessa y, ma kdown science indica es
ha iming and dep h mus be adjus ed o
sa egua d he b and while elimina ing
obsole e in en o y. Smi h Achabal 1998
Finally, po olio enewal, which is he a e
a which SKUs ha a en' selling well a e
e i ed o edesigned, is becoming a
s a egic ool o keep hings ele an
wi hou ying up cash.
P oblems in Wa ches and Wea ables
indus y
Sec o ic ions a e caused by he
con lic be ween unp edic able demand
and long eplenishmen cycles. SKU
p oli e a ion inc eases he likelihood o
slow-mo ing i ems ha ie up wo king
capi al, while sma phone subs i u ion
educes demand o mid- ange analog
wa ches. Gaps in execu ion mis akes in
in en o y eco ds Inconsis en alloca ion
and channel spillo e s u he dis o ue
sell- h ough, which weakens o ecas
baselines. DeHo a ius Raman 2008
In en o y p oduc i i y s udies indica e ha
e aile s wi h consis en disc epancies
be ween p oduc ion eceip s and sell-
h ough a es encoun e diminishing
u no e and inc easing eliance on
ma kdowns. Gau Fishe Raman 2005
Rumyan se Ne essine 2007 Fo ecas ing
2025 Ki u hika G, D . Shakeela Banu C 22
is made mo e di icul by in e mi en and
seasonal changes in ashion. Using ich
models wi hou go e nance o en o e i s
noise and makes bias wo se compa ed o
simple me hods. Syn e os Boylan 2005
Finally, liquida ion p ac ices ha don' ake
b and di e si y in o accoun hu equi y,
while cash ma kdown design mus hink
abou iming, dep h, and channel o a oid
sending he message ha quali y is going
down. Smi h Achabal, 1998 In sho , he
indus y's bigges p oblem is no ge ing
ools bu ollowing ins i u ional discipline
ules ha u n analy ics in o p oduc ion
slo s o di e en ypes o p oduc s and
liquida ion o di e en channels, all while
keeping a c edible enewal hy hm o
people who a en' doing well. gi es he
igh con ex .
Abou Ti an Company Limi ed
Ti an Company Limi ed is a Ta a
TIDCO en u e based in Bengalu u. I
helped India swi ch o b anded qua z
wa ches and now leads he o ganized
wa ch ma ke wi h i s own b ands, such as
Fas ack, Sona a, Raga, and Edge. I is
also expanding in o jewel y, eyewea ,
ag ances, and e hnic wea . Wi hin
Wa ches and Wea ables, g ow h has been
ueled by good design, a wide ange o
p ices, and a p esence in many channels,
such as company-owned s o es, la ge-
o ma e ail, and e-comme ce pa ne s.
The in e nship led FP An analysis o FY21
o FY25 shows ha oo many SKUs and
misma ched p oduc ion and sales
con ibu ed o in en o y aging and wo king
capi al being ied up. Managemen ac ions
educed aging, lowe ed excess p oduc ion
lags, and imp o ed opening s ock
con e sion ac oss he 10K, 10K, 25K, and
25K bands. P oduc ion sold wi hin he yea
also ose o p emium SKUs. The e we e
s ill a lo o i ems wi h high s ock- o-sales
a ios, which sugges s ha he e is s ill a
misma ch be ween he b ead h and speed
o design. The main ques ion is how o
make discipline a pa o he o ganiza ion
so ha imp o emen s las , and which SKUs
o s op, keep, o edesign. how o connec
p oduc ion slo s o demand signals, which
liquida ion ladde s keep he b and while
eeing up cash, and how o un a olling
o ecas i ual ha ies design FP A supply
and a s o e The case es ablishes a
qua e ly go e nance hy hm based on
dashboa ds ha e eal age p o i abili y and
sales pe o mance, accompanied by clea
egula ions o e i emen and edesign, as
well as a g adual ansi ion in o hyb ids and
sma wa ches, whe e speed and p o i
ma gins jus i y in es men .
P oblems aced by Ti an Company
Limi ed
Baseline FP A signals showed ha
olde s ock was concen a ed in ce ain
p ice anges, ha opening in en o y was
slow o sell, and ha he e we e gaps
be ween p oduc ion and in-yea sales,
especially o p emium launches. Mo e
SKUs made hings mo e complica ed and
less ocused, while s ock- o-sales a ios
showed ha wo king capi al was s uck in
he long ail. Execu ion p oblems,
inaccu a e eco ds, inconsis en alloca ion
ac oss channels, and une en liquida ion
p ac ices made o ecas s mo e noisy and
delayed co ec i e ac ions. E en hough
FY25 me ics go be e , wi h less aging,
less excess p oduc ion, and s onge
opening s ock con e sion, he e we e s ill
some a eas o o e hang whe e design
b ead h was as e han demand eloci y.
Wi hou ins i u ionalized ules,
imp o emen s a e a isk o going
backwa d, unde pe o me s s ay,
p oduc ion keeps going based on old
assump ions, and ma kdowns pile up la e.
Wha we need igh now is an ope a ing
sys em ha is backed by go e nance and
se s s op, con inue, and edesign
h esholds by band, links p oduc ion slo s
o olling demand signals, se s channel-
speci ic liquida ion ladde s, and uns a
23 In e na ional Academic Resea ch Jou nal o Business and Managemen Decembe
weekly e iew ha combines da a wi h
ac ion. Success will be clea in as e sales,
less aging, be e cash low, and s able
ma gins du ing po olio enewal cycles.
Key s a egies
The s a egy b ings oge he
po olio discipline, ealis ic demand, and
con ol o wo king capi al h ough a single
ope a ing cadence. Fi s , Ti an will
s eamline i s asso men by making
qua e ly s op–con inue– edesign calls
based on ABC p o i abili y, aging, and
s ock- o-sales signals. This will ge id o
i ems ha ha e been unde pe o ming o a
long ime and edesign i ems ha a e close
o missing he ma k. E idence shows ha
be e in en o y p oduc i i y is linked o
igh e asso men - eplenishmen
alignmen (Gau , Fishe , & Raman, 2005;
Rumyan se & Ne essine, 2007). Second,
p oduc ion will be aligned wi h demand
h ough a olling, AI-assis ed o ecas ha
ocuses on pa simony o in e mi en i ems
and is checked o s abili y. This is based
on he idea ha simple, bias-awa e
me hods o en wo k be e han complex
models in ashion con ex s (Syn e os &
Boylan, 2005). Thi d, a dynamic liquida ion
ladde will ge id o s ock ha has been
si ing o mo e han a yea h ough ie ed
channels and imed ma kdowns ha a e
based on how sensi i e he b and is (Smi h
& Achabal, 1998). Fou h, c oss- unc ional
dashboa ds will show design, FP&A,
supply, and e ail he age, sell- h ough, and
expec ed ma gin-a e -ma kdown a he
SKU le el. This will close execu ion gaps
ha ha e been shown o lead o bad
decisions (DeHo a ius & Raman, 2008).
Las ly, a wo king-capi al playbook will se
up cash KPIs, supplie - e m le e s, and
aging igge s. This will u n in en o y in o
a go e ned low ins ead o a s a ic s ock.
These changes u n a ie y in o speed
while keeping b and and ma gin sa e.
Academic Lea ning
Th ee po able ideas apply o mo e
han jus Ti an. The Aging- o-Ac ion
Dashboa d combines in en o y age, sell-
h ough, and expec ed ma gin-a e -
ma kdown in o one decision su ace. This
makes su e ha e e y SKU is on a pa h—
hold, ema ke , edesign, o e i e—and
educes eco d-inaccu acy dis o ions
(DeHo a ius & Raman, 2008). The Design-
o -Veloci y Playbook ga he s ea u es and
launch heu is ics om p e ious slow
mo e s o lowe he isk o misma ches.
This is in line wi h esea ch on asso men
discipline and in en o y p oduc i i y (Gau ,
Fishe , & Raman, 2005; Rumyan se &
Ne essine, 2007). The Fo ecas -
Collabo a ion OS connec s design, FP&A,
supply, and e ail o a olling, scena io-
based o ecas ing p ocess. I a o s
simple, bias-awa e me hods o in e mi en
demand and pai s hem wi h go e nance o
a oid o e i ing (Syn e os & Boylan, 2005)
while using ma kdown science o plan
calib a ed exi s (Smi h & Achabal, 1998).
These ideas oge he show how analy ics,
go e nance, and cadence can change
asso men b ead h om a wo king-capi al
liabili y in o a long- e m ad an age in imes
o unce ain y.
CONCLUSION
Be ween FY21 and FY25, Ti an's
aging and sell- h ough a es go be e , bu
hey need o be mo e disciplined in hei
s uc u e o keep om going back o whe e
hey we e. The company can ee up cash,
p o ec i s ma gins, and in es in hyb ids
and sma wa ches wi hou hu ing i s b and
by making a ionaliza ion h esholds,
demand-linked p oduc ion, calib a ed
liquida ion, and c oss- unc ional
go e nance pa o i s no mal ope a ions.
The win condi ion is no jus lowe
in en o y; i 's also a as e po olio enewal
cycle ha makes hings mo e ele an and
2025 Ki u hika G, D . Shakeela Banu C 24
p o ec s he P&L om changes in he
ma ke .
CASE QUESTIONS
1. Which wo me ics in he da a pack
mos eliably p edic a u u e “poo
pe o me ,” and how would you
alida e hei h esholds ac oss p ice
bands?
2. Design a qua e ly s op–con inue–
edesign ou ine. Wha e idence
quali ies a SKU o e i emen e sus
edesign, and who decides?
3. Build a olling 12‑mon h o ecas ha
links launch cadence o p oduc ion
slo s. How will you quan i y o ecas
e o and adjus sa e y capaci y?
4. P opose a dynamic liquida ion ladde
o >12‑mon h s ock ac oss
o line/online channels. How do you
p o ec b and while unlocking cash?
5. C ea e a dashboa d ha a design
head, FP&A lead and e ail lead would
all us . Wha a e he i e iles and
hei d ill‑downs?
6. Show how a 5‑poin imp o emen in
opening‑s ock sell‑ h ough p opaga es
o cash con e sion and ma kdown
expense o e wo qua e s
Elabo a ed Teaching No es ( o
ins uc o s)
P og amme i : MBA/Execu i e modules in
S a egy, Ope a ions, Re ail & FMCG,
Business Analy ics, and Wo king‑Capi al
Managemen .
Pedagogical objec i es: Diagnose ageing
and po olio complexi y; design
a ionalisa ion ules; cons uc a olling
o ecas and channel plan; quan i y
wo king‑capi al impac .
In‑class low (75–90 minu es): 0–10
con ex ; 10–25 me ic alignmen ; 25–50
eam wo k on a ionalisa ion and o ecas ;
50–75 plena y go e nance cadence; 75–
90 sensi i i y on cash con e sion.
Assessmen ub ic: Logic and s uc u e 40;
e idence and calcula ions 40; cla i y and
pe suasion 20.
REFERENCES
Cachon, G. P., & Swinney, R. (2011). The
alue o as ashion: Quick
esponse, enhanced design, and
s a egic consume beha io .
Managemen Science, 57(4), 778–
795.
DeHo a ius, N., & Raman, A. (2008).
In en o y eco d inaccu acy: An
empi ical analysis. Managemen
Science, 54(4), 627–641.
Gau , V., Fishe , M. L., & Raman, A.
(2005). An econome ic analysis o
in en o y u no e pe o mance in
e ail se ices. Managemen
Science, 51(2), 181–194.
Rumyan se , S., & Ne essine, S. (2007).
Wha can be lea ned om an
analysis o in en o y u no e
pe o mance o e aile s?
Manu ac u ing & Se ice
Ope a ions Managemen , 9(4),
414–435.
Smi h, S. A., & Achabal, D. D. (1998).
Clea ance p icing and in en o y
policies o e ail chains.
Managemen Science, 44(3),
285–300.
Syn e os, A. A., & Boylan, J. E. (2005).
The accu acy o in e mi en
demand es ima es. In e na ional
Jou nal o Fo ecas ing, 21(2), 303–
314.
