Why is India a Lucrative Market for Premium Watches? 6 Key Reasons

India has emerged as a thriving market for premium watches, driven by the burgeoning demand from Gen Z and millennials. According to the Deloitte Swiss Watch Industry Insights 2024 report, several factors including favorable trade agreements, a robust business climate, and strategic investment opportunities are making India an attractive destination for luxury watch brands. 

Here are 6 key reasons why India is the next big market for premium timepieces.

GEN Z and Millennials Drive Demand:

The ‘Deloitte Swiss Watch Industry Insights 2024: Spotlight on India’ report highlights the increasing preference of young Indian consumers for luxury timepieces.Gen Z and millennials are inclined towards discretionary spending on fashion and luxury products, significantly driving the watch market in India.

Impact of the Trade and Economic Partnership Agreement (TEPA):

The recent TEPA between India and four European countries, including Switzerland, has created numerous opportunities for Switzerland’s export-oriented sectors.The agreement involves a reduction in customs duties over the next seven years, presenting an “immediate and compelling” investment prospect for Swiss watch brands.

Favorable Business Climate:

India’s improved business environment enhances the favorable conditions for Swiss firms looking to expand their footprint.The combination of favorable trade conditions, a rising GDP, and increased consumer interest in the watch industry makes this an opportune moment for investment.

Strategic Investment Opportunities:

Pascal O Ravessaoud, vice president at Fondation Haute Horlogerie (FHH), noted that the Swiss-India free trade agreement offers a timely opportunity for watch brands to invest in India.Brands risk missing out on a lucrative market if they do not capitalize on these favorable conditions.

Market Growth Projections:

Deloitte estimates the current Indian luxury goods market to be worth around $7 billion (INR 58,100 crore), with projections to grow significantly to approximately $30 billion (INR 2.5 lakh crore) by 2030.The Future of Retail study by Deloitte reveals that about 60% of Indian consumers spend on luxury goods annually, with nearly 30% spending more than INR 1.2 lakh (approximately $1,445) on these items.

Luxury as an Experience:

Anand Ramanathan, partner and consumer products and retail sector leader at Deloitte India, stated that luxury in India is about “experience,” driven by global trends, urbanization, brand awareness, and personalization demands.