NEW DELHI: Sales of smartwatches may be struggling, but luxury watches are seeing record demand, not just in the metro markets but also in tier-2 and tier-3 cities.
Most luxury watch brands, whose prices start from a few lakh of rupees and top the crore mark, have seen sales in India grow substantially in 2024, although the base remains low. The strong demand would offer some consolation to global players, who are seeing weakening of sales in China amid a slowdown. In India, premium products are seeing healthy demand as income levels rise.
“This growth reflects a strong recovery in consumer confidence and spending. The demand for luxury timepieces has not only returned (to pre-Covid levels) but has also expanded, showcasing a renewed appreciation for craftsmanship and heritage,” says Viraal Rajan, director of Time Avenue, the official retailer for Rolex in Mumbai and other brands such as Breitling, Tudor, Omega and TagHeuer.
Sellers said there have been instances of demand outstripping supply. The rise of a strong affluent class in India has prompted brands, such as Swiss Favre Leuba, to return to the country. The trade pact with the European Free Trade Association, led by Switzerland, will see import duty come down over next few years, making Swiss watches more attractive.
“There is a surge towards purchase of not only our writing instruments, but we are seeing an equally strong traction for watches and leather products. The average selling price is going up, and we have buyers for special editions,” said Neeraj Walia, MD & CEO of Montblanc India.
Adrian Bosshard, Global CEO of Rado, siad the brand is enjoying growing demand in India despite the geopolitical challenges around the world and the temporary slowdown in the Chinese economy. “Year 2024 will be, without a doubt, another record year for Rado in India.”
Gaurav Bhatia and Bharat Kapoor, co-founders and directors of retailer Art of Time that sells brands like Cartier, IWC, Panerai, Jaeger-Lecoultre, echo the sentiment, arguing that 2024 was “exceptional” for luxury watches, with certain brands seeing 30% growth.
Pranav Saboo, CEO of Ethos Watch Boutique, said cities such as Mangalore, Raipur, Indore, Kochi, Guwahati, and Siliguri are emerging as significant contributors to growth. “The growth reflects a broader trend of aspirational consumption in India, with more people keen to experience luxury brands,” he said, adding that competitive pricing within India was prompting people to buy here.
Sanjay Mishra, India director at FM International Watches & Jewellery that sells Franck Muller, said that Pune, Ahmedabad, and Lucknow have become focus areas for luxury watch brands with Coimbatore, Ludhiana, and Nagpur showing significant potential. “The combination of e-commerce, rising affluence, and brand expansion has made luxury watches more accessible.”
