In a recent study conducted by Deloitte, a prominent auditing and consulting firm, India has emerged as the next major growth frontier for Swiss watch manufacturers. The study forecasts that within the next decade, India is poised to become one of the top 10 markets for the Swiss watch industry.
While the Swiss watch industry had high hopes for China’s economic recovery, it hasn’t delivered as expected. In contrast, India is now shining brightly on the horizon, with substantial potential for growth. This is primarily attributed to the rapid expansion of India’s middle class and the increasing number of millionaires within the country.
In the year 2022, China ranked a distant 23rd among export markets for the Swiss watch industry. Swiss watch exports to India in the same year amounted to CHF 188 million (equivalent to €196 million at current exchange rates), trailing significantly behind the CHF 3.9 billion exported to the USA and nearly CHF 2.6 billion to China.
Deloitte’s estimations suggest that Swiss watch exports to India are on track to exceed CHF 400 million by 2028. Karine Szegedi, Deloitte’s consumer industry lead, stated in a press release accompanying the study, «We firmly believe that India will secure its place among the top 10 Swiss export markets within the next decade.»
Deloitte conducted interviews with 75 industry executives and leaders for its annual watchmaking sector study, and India was more frequently mentioned than ever before when discussing «the next big market.»
In the upcoming year, 75% of respondents express optimism about India’s growth, while opinions about China, the world’s second-largest watch market, remain divided, with 50% anticipating stagnation or decline.
Karine Szegedi noted that previous discussions with watch industry executives predominantly centered around China. However, given China’s less-than-expected economic recovery since the end of the zero-Covid policy, attention is now turning toward other countries. «Watch industry executives now tell us that India is the most promising market, brimming with limitless possibilities,» Szegedi added.
It’s essential to acknowledge that India does present certain entry barriers, partly due to high import duties. Nonetheless, India boasts a substantial and increasingly prosperous consumer base with a growing appetite for luxury goods.
According to a study by Euromonitor International, India’s broad luxury market, including items such as champagne, spirits, and luxury cars, was valued at nearly $6.6 billion in 2022 and is projected to expand to $10.9 billion by 2030. Swiss watchmakers are gearing up to tap into this thriving market with great anticipation.
