The glimmering timepieces of Switzerland have found a flourishing haven in a land of vibrant cultures and burgeoning affluence – India. While global Swiss watch exports staggered in numerical value this year, experiencing a modest 2.4 per cent decline, India emerged as a beacon of growth, with a staggering 20 per cent rise in exports valued at SFr139.5mn ($165mn) in the first seven months of 2024.
Unleashing a surge of optimism for Swiss watchmakers, a recent trade pact was inked to smoothen watch exports to India further. The agreement with the European Free Trade Association aims to gradually eliminate custom duties on Swiss watches – around 20 per cent – within seven years. Additionally, it fortifies the protection of the revered terms "Swiss" or "Switzerland".
The Rising Star: India’s Appeal as a Watch Market
- Home to one of the fastest-growing major economies globally
- Projected surge of 22 per cent in the number of millionaires by 2028
- Dubbed by Deloitte Swiss Watch Industry Study 2023 as the "next big growth market"
- Reveals 94 per cent of Indian consumers flaunting a wrist companion compared to 79 per cent in the US
Karine Szegedi, the consumer industry and fashion and luxury lead at Deloitte Switzerland, articulates the evolving landscape, "As the population progresses and the luxury sector burgeons amidst the consumer market, there’s a notable shift in the preferences for timepieces."
Glancing at the Market Movements
Amidst a tussle with a sales dip in China, a substantial market for Swiss watches, the focus has shifted to the burgeoning Indian soil. Gerald Charles, producing a yearly limit of 1,500 watches, plunged into the Indian market through Ethos Watches in Delhi and Mumbai preceding expansions to Bengaluru and Kochi. Federico Ziviani, Gerald Charles’ chief executive, underscores the criticality of tapping into strong local markets such as India for seamless service amid geopolitical uncertainties.
Innovative Partnerships and Brand Awareness
Noteworthy collaborations and region-specific launches have been instrumental in amplifying brand awareness in India. From limited editions like the Panerai MS Dhoni Luminor Chrono Flyback to exclusive Bollywood endorsements with Rado, brand visibility has been pivotal in fanning the allure for luxury watch brands.
The Evolution and Bright Prospects
Jean-Marc Pontroué, the chief executive of Panerai, observes a transformation in India’s luxury landscape driven by rising affluence and infrastructural developments. The expanding foothold of Panerai in India and the heightened customer engagement underscore the burgeoning enthusiasm for luxury timepieces in the country.
Conclusion
The pulsating energy of the Indian watch market resonates with optimism and potential for Swiss watchmakers. With a rich history of fine craftsmanship meeting the vibrant spirit of the Indian consumers, the unfolding partnership promises a harmonic blend of tradition and innovation, elevating the essence of luxury timepieces in the Indian market. Embrace the timeless elegance, India beckons.
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