**Swiss Watch Exports to India Surge Amid Global Slowdown**
Swiss watch exports to India have seen a significant increase, reaching 104.3 million Swiss francs (approximately ₹1,100 crore) from January to May, compared to 94.2 million francs during the same period last year, as reported by the Federation of the Swiss Watch Industry (FH). This growth follows a robust performance in 2024, where exports nearly hit ₹2,600 crore. While major markets like China and Hong Kong are experiencing a downturn, India stands out as a promising market, with strong demand expected to continue through the wedding and festive seasons.
Industry experts note that not only is demand rising, but there is also a noticeable shift towards higher price points and more design-focused selections. Retailers and distributors anticipate that this year’s growth may match or even exceed last year’s figures. India, which became the 21st largest global market for Swiss watches by value last year, is one of the few markets to achieve double-digit growth, alongside Spain (+10%). In contrast, traditional strongholds such as China and Thailand have faced declines of 23.1% and 22.7%, respectively, while Hong Kong contracted by 13.8%.
Yves Bugmann, president of the FH, highlighted the significance of the free trade agreement between the European Free Trade Association (EFTA) and India, stating it will benefit both nations. He expressed hope that the agreement would come into effect this year, emphasizing India’s potential for further growth due to its relatively low market penetration.
The FH, a non-profit trade association representing around 500 members—over 90% of Swiss watch manufacturers—attributes the increase in exports to robust consumer demand and a stronger Swiss franc against the Indian rupee. The exchange rate has shifted from approximately 94 francs per rupee last year to around 106 francs this year.
**Shifting Consumer Preferences in Luxury Watches**
Indian retailers are observing a shift in consumer preferences, particularly in the luxury watch segment. A senior executive from Kapoor Watch Company, which operates 15 outlets nationwide, noted that the ₹7-12 lakh price range is becoming increasingly popular among both collectors and first-time buyers, while the ₹1-4 lakh segment remains strong. Kapoor offers prestigious brands such as Rolex, Breitling, and Cartier.
Pratiek Kapoor, director of the company, remarked on the evolving landscape of the luxury watch market, stating, “We have seen a clear shift in customer preferences this year, with the luxury watch market not just growing but also evolving.” He emphasized that the growth is driven by a more informed and design-conscious consumer base.
Ethos Ltd, a prominent luxury retailer, reported a remarkable 22% year-on-year revenue growth, further underscoring the positive trends in the Indian luxury watch market.
**Conclusion**
The surge in Swiss watch exports to India reflects a dynamic market poised for continued growth, driven by changing consumer preferences and favorable economic conditions. As India solidifies its position as a key player in the global luxury watch market, the future looks promising for both retailers and consumers alike.
**FAQ**
**What factors are driving the growth of Swiss watch exports to India?**
The growth is primarily driven by robust consumer demand, a shift towards higher price points, and a stronger Swiss franc against the Indian rupee, alongside the anticipated benefits of a free trade agreement between EFTA and India.
