India emerges as a premier destination for Swiss watchmakers

Swiss watchmakers are capitalizing on India’s burgeoning luxury market, according to a report released by Deloitte. Driven by the Trade and Economic Partnership Agreement (TEPA) and the Swiss-India Free Trade Agreement, the demand for premium timepieces is surging, fueled by a young, affluent consumer base eager for luxury experiences.

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Swiss watchmakers are increasingly targeting India, recognizing it as a burgeoning market for premium timepieces. According to a Deloitte report released on Wednesday, the growing interest among Gen Z and millennial consumers, who are drawn to luxury experiences and products, is a key driver of this trend. The report also underscores the significance of the Trade and Economic Partnership Agreement (TEPA), which is set to reduce customs duties over the next seven years, thus creating favorable conditions for Swiss watch brands to invest in India. TEPA has bolstered consumer sentiment and opened numerous opportunities for Switzerland’s export-oriented sectors.

Deloitte estimates the current value of the Indian luxury goods market at around US$ 7 billion, with projections indicating substantial growth to approximately US$ 30 billion by 2030. The Future of Retail study by Deloitte reveals that about 60% of consumers purchase luxury goods annually, including high-end leather goods, eyewear, watches, jewelry, fashion, and cosmetics. Notably, nearly 30% of these consumers spend more than Rs 120,000 (approximately US$ 1,440.8). Anand Ramanathan, partner and Consumer Products and Retail Sector Leader at Deloitte India, shared insights on the evolving luxury market in India.

“Luxury in India is about ‘experience,’ driven by global trends, urbanization, brand awareness, and demands for personalization. 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 US$ 30 billion by 2030,” Ramanathan said. He further highlighted factors contributing to this growth, including India’s rapidly expanding economy, rising disposable incomes, global exposure through travel, and a young demographic driving a shift towards aspirational products. This shift is notably evident in the increased demand for Swiss watches, which are perceived as status symbols and cherished gifts during festivals and celebrations. The rise of internet access and social media has further fueled consumer aspirations and spending, particularly in urban areas through e-commerce channels.

In 2023, Swiss watch exports to India totaled CHF 218.8 million, accounting for 12% of all Swiss non-gold exports to India. This sector has seen the highest annual growth rate of 11% over the past two decades. The growing appeal of Swiss watches in India is mirrored in their role as status symbols and coveted gifts, especially during festive seasons and significant occasions like weddings. The report indicates that around 40% of respondents often choose watches as gifts, particularly during the festive season.