Swiss watch businesses look to India for growth: Deloitte

The Indian market is increasingly becoming an in-demand destination for Swiss luxury watchmakers. Numerous businesses are looking to tap into the country’s swiftly expanding luxury market, fuelled by millennial and Gen Z shoppers, according to a report by Deloitte.

“Luxury in India is about ‘experience’, driven by global trends, urbanisation, brand awareness, and personalisation demands,” said Deloitte India’s partner for consumer products and retail sector leader Anand Ramanathan, ET Retail reported. “This presents a significant opportunity for luxury brands to meet evolving consumer preferences. We expect the Indian luxury goods market to grow significantly, reaching about $30 billion by 2030.”
 
The Trade and Economic Partnership Agreement between India and Switzerland has secured reduced customs rates in the country for the coming seven years. India signed the agreement with the European Free Trade Association states in March this year and this has created more favourable conditions for Swiss watch businesses to invest in the Indian market.
 
Many Indian consumers are seeing their disposable incomes grow and are becoming increasingly exposed to international brands via media and the internet. This is encouraging many younger Indians to want to purchase aspirational products, including Swiss watches which are seen as a status symbol, according to Deloitte.
 
As the festive season approaches, demand for Swiss watches is expected to increase. Approximately 40% of respondents to Deloitte’s survey noted that watches are popular choices for festive gifts and 64% considered the brand image to be the most important factor when choosing a watch. The report also noted that Swiss watch businesses have a particular opportunity to establish a presence in India via local partnerships.