According to a study conducted by Deloitte, India is emerging as a promising market for Swiss watchmakers and is expected to be one of the top 10 markets for the industry in the next decade. While China’s economic recovery has not had the anticipated impact on the watch industry, Swiss manufacturers are shifting their focus to India due to its vast potential. With the expansion of its middle class and the growing number of millionaires, India presents a lucrative market for Swiss watches.
The Swiss watch industry association stated that China, the world’s most populous country, ranked only 23rd among the industry’s export markets in 2022. In contrast, Swiss watches exported to India last year amounted to CHF188 million. Although this is significantly lower than the amount exported to the USA and China, Deloitte estimates that Swiss watch exports to India will exceed CHF400 million by 2028, placing India among the top 10 Swiss export markets.
Karine Szegedi, Deloitte’s consumer industry lead, believes that India offers endless possibilities and is highly sought-after by watch industry executives. Despite significant barriers to entry, such as high import duties, India’s large consumer base, increasing prosperity, and willingness to spend make it an attractive market. A study by Euromonitor International predicts that the luxury market in India, including champagne, spirits, and luxury cars, could reach $10.9 billion by 2030, highlighting the country’s potential.
Deloitte’s annual study on the watchmaking sector, based on interviews with 75 industry executives and leaders, revealed that India was mentioned more frequently than ever before as the next big market. Executives expressed optimism about India’s growth in the next 12 months, while opinions on China were divided, with some expecting stagnation or decline. Previously, discussions mainly centered around China, but with its economic recovery falling short, there is now greater interest in other countries. India, in particular, is seen as the most coveted country with immense potential.
Despite the challenges, the growing middle class and increasing number of millionaires in India make it an enticing market for Swiss watchmakers. As Swiss watch exports to India continue to rise, it is evident that India is on its way to becoming a major player in the global watch industry. The next decade will be crucial in determining India’s ascent to the top 10 Swiss export markets and solidifying its position as the next Eldorado for Swiss watchmakers.
Useful links:
1. The Economic Times: Swiss Watches Prepare to Conquer the Indian Market
2. Deloitte: The Next Top 10 Swiss Export Markets for the Watch Industry
