Deloitte Swiss Watch Industry Insights 2024: Spotlight on India

This Spotlight dives deeper into the region, providing a comprehensive overview of the Indian watch market and highlighting the growing interest in Swiss-made watches as consumers' spending power rises. Despite the regulatory complexities of the market, including the tax structure and foreign investment regulations, the overall ease of doing business in India is improving. This presents Swiss firms with a timely and promising opportunity to expand their presence and capitalise on the demand for timepieces in one of the world's most dynamic economies.

Key Findings

Topics covered in the paper include:

India's strong economy is expected to grow by over 6% in 2024 and 2025, outpacing the global average, leading to increased consumer spending on aspirational products. The luxury goods market, currently valued at around $7 billion, is projected to reach approximately $30 billion by 2030, driven by the younger generations. Additionally, increased consumer spending, particularly through e-commerce, is observed in satellite cities and smaller hubs alongside major cities.

Indian consumers value luxury experiences, with travel, home lifestyle, fashion items, jewellery, and watches being popular choices. The wedding season in India presents a significant market for the watch industry, and the high level of online watch shopping reflects the growing internet usage and younger population. Additionally, the Indian market shows potential for growth in the certified pre-owned watch market, with over 50% of surveyed consumers expressing interest in purchasing pre-owned watches.

Watch brands have tailored offerings to Indian tastes, with limited-edition timepieces and India-specific models launched by Franck Muller and Jacob & Co. Established brands like Omega and Rado have strengthened their presence in India by appointing Bollywood actors as brand ambassadors. However, challenges persist in the Indian business environment, with complexities in the market and regulatory requirements impacting the profitability of ventures, influencing the strategies of global brands entering the market.

RAYMOND WEIL is one of the first, if not the first Swiss watch manufacturer, to have penetrated the Indian market. Our brand was born in 1976, and Raymond Weil himself sold the first watches in India in 1982. In the Indian market, Swiss-made, family heritage and an attractive value-proposition are key. RAYMOND WEIL was and is capable of meeting these requirements.

Jeremie Bernheim, Chief Marketing Officer, Raymond Weil

Switzerland and its EFTA counterparts signed a trade and economic partnership agreement (TEPA) with India in March 2024, aiming to strengthen economic ties and expand business opportunities. The agreement offers improved market access for industrial goods exported from Switzerland to India, potentially saving Swiss companies up to CHF 166 million annually in customs duties. Additionally, the agreement enhances protection for the 'Swiss-made' label, providing significant improvements to the protection of the ‘Swissness’ criteria and greater protection for geographical indications, which could significantly improve the position of Swiss brands in India.