New Delhi: Swiss luxury watchmaker Rado is targeting double-digit growth in India with the country emerging as its No. 1 market by value, as well-heeled consumers in a nation reputed for its thrift no longer shy away from indulging themselves.
India’s overall consumption growth has slowed due to stubborn inflation, prompting the government to put more money in the hands of common citizens by easing taxes. But affluent Indians have been splurging on high-end luxury, including on fashion, cars and real estate.
For Rado, owned by The Swatch Group, India’s rise as a priority market also coincides with the slowdown in China’s luxury market.
“The journey of the Indian market has been good for our brand. We are targeting a double-digit growth here this year as India is now our number one country by value even though at the industry wide global level, India is about 21,” said Adrian Bosshard, Rado’s global chief executive, who is visiting India this week.
“Our brand has had a unique presence for the last 60-70 years in India, which we have been able to grow beyond the industry figures. Also, when Indian travellers travel internationally, we are seeing good growth in business from those countries as well,” he told Mint.
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Rado’s ambitions in India are reflective of the country’s growing individual wealth. India’s count of billionaires rose to 185 in 2024, according to the latest Billionaire Ambitions Report of UBS, making the country home to the third-largest group of individuals with over $1 billion in assets.
“Why I say the (Indian) market is growing is because we are not only selling entry price pieces but also very premium pieces in India,” Bosshard said. “High-end pieces with full ceramics, diamonds, etc., are also being heavily appreciated in (India). There is promising growth in this market, and we see purchases up to $5,000 a watch as well in India.”
Rado watches cost between $1,000 and $5,000 (Rs90,000-Rs4.4 lakh) in India.
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Importing luxury
Prices of high-end and luxury Swiss watches in India have increased significantly the last two years as the Swiss franc (CHF) has strengthened against global currencies and because of India’s declining rupee. The rupee fell to an all-time low of 87.5825 against the US dollar earlier this week.
That hasn’t deterred imports of luxury watches into the country.
In 2024, India imported Swiss watches worth about CHF 273.9 (or about ₹2,700 crore), growing 25% from 2023’s CHF 218.8 million worth of imports, show data from the Federation of Swiss Watch Industry.
India’s luxury market is on track to grow significantly, with projections suggesting it will hit nearly $30 billion by 2030, up from an estimated $17 billion in 2024, as per Deloitte India.
The growing presence of major international luxury brands in India underscores the momentum Deloitte is referring to. In December, Mint reported that collectively, Louis Vuitton India Retail, Christian Dior Trading India, and Hermes India Retail generated about ₹1,400 crore in operational revenue in 2023-24.
Bosshard expects Swiss watches to become more affordable in India once free trade agreements between Switzerland and India are agreed on. At present, Swiss watches imported into India are taxed at about 22%.
But as part of the India-European Free Trade Association agreement signed in March last year, Swiss watch imports could see a significant drop in prices in India over the next few years.
Raahuul Kapoor, founder of Delhi-based consultancy Luxury Ampersand Frolics, told Mint in an earlier interview that a key factor contributing to the growth in India’s luxury market was price adjustments by global luxury brands.
Rado’s main watches in India include the Captain Cook and Centrix Diamond collections, which are priced at ₹3-4.12 lakh per watch. These compete with brands such as Omega, Tag Heuer, and Rolex.
Swatch Group, the world’s largest watchmaker, houses multiple brands, including Blancpain, Breguet, Certina, ETA, Glashütte Original, Hamilton, Harry Winston, Longines, Mido, Omega, Tissot, and Swatch.
“India’s luxury watch market is at the cusp of a transformational shift, driven by rising disposable incomes, a growing base of ultra-high-net-worth individuals, and an increasing appreciation for fine craftsmanship among young collectors,” said Abhay Gupta, a Delhi-based luxury consultant.
“While heritage Swiss maisons continue to dominate, the emergence of pre-owned luxury, digital-first retail strategies, and bespoke timepieces tailored for Indian connoisseurs will define the next wave of growth.”
China’s luxury slump
The Swatch Group registered a 14.6% on-year decline in net sales last year as demand slumped for its watches in China, Hong Kong and Macau, the company said in its latest filings.
But the company registered record sales and market share gains in the US, Japan, India and the Middle East, with the strongest growth seen for its Omega, Longines and Tissot brands.
“For 20 years or so, China was a permanent growth market for many Swiss luxury brands, and while last year was still a robust year for the industry, all brands which are mainly oriented to China, have seen a decline,” Bosshard said. “But I am convinced that China will come back in the mid-term by either the end of this year or 2026.”
Meanwhile, Bosshard expects to see “a lot of (Rado’s) growth in the next 2-3 years coming out of India, the Middle East and the US. There is small growth also expected in Europe this year”.
“In the next 5-7 years, India will become one of the top five players both in the Swiss watch industry and the luxury watch industry overall,” he added. “The population, purchasing power and education are all growing. This is why I feel India will have strong future luxury customers.”