Swiss watchmakers see India as next Eldorado

India is emerging as the next main growth driver for Swiss watch manufacturers, according to a study by auditing and consulting firm Deloitte published on Thursday. The study forecast that India will become one of the Swiss watch industry’s top 10 markets within 10 years.

China’s economic recovery is not benefiting the watch industry as much as was hoped for, and India is emerging as a market with huge potential, given the expansion of its middle class and the soaring number of millionaires.

The Swiss watch manufacturers association reported that the world’s most populous country ranked only 23rd among the industry’s export markets in 2022. The value of Swiss watches exported to India last year was CHF188 million (€196 million at current rates), and it lagged far behind the CHF3.9 billion exported to the USA, and the nearly CHF2.6 billion exported to China.

However, according to Deloitte estimates, Swiss watch exports to India are expected to exceed CHF400 million by 2028. “And we believe that India will rank among the top 10 Swiss export markets within a decade,” said Karine Szegedi, Deloitte’s consumer industry lead, quoted in the press release issued with the study.

For its annual study on the watchmaking sector, Deloitte interviewed 75 industry executives and leaders about which country they regarded as “the next big market,” and never before had India been cited so often in their responses.

In the next 12 months alone, three quarters of respondents are expecting India to grow, while they were much more divided regarding China, the world’s second-largest watch market, which half of them expect to stagnate or even decline.

“In the past, conversations with watch industry executives focused mainly on China,” said Szegedi in an interview with the AFP agency.

But China’s economic recovery has been less robust than expected since the end of the zero-Covid policy, and “much more is now being said about other countries,” she added.

“When we talk to watch industry executives, they tell us that India is the most coveted country, full of endless possibilities,” said Szegedi.

Barriers to entry in India are significant, partly due to high import duties. But the country has a huge consumer base, one that is increasingly prosperous and eager to spend.

According to estimates contained in a study by Euromonitor International, the luxury market in India, intended in the broad sense, including champagne, spirits and luxury cars, was worth nearly $6.6 billion in 2022, and could grow to $10.9 billion by 2030.