With the aim of promoting fine watches, The Foundation De La Haute Horlogerie (FHH) is setting up shop in India. Created in Geneva in 2005 by the Richemont Group, Audemars Piguet and Girard-Perregaux, FHH has been promoting fine watches globally, with an accent on authenticity, artistry and innovation. The foundation has local delegations in major markets, and Pascal Ravessoud, Development Director of FHH and an ardent watch lover himself, was in India for the announcement of India as its 16th such market. Admitting that the global watch industry has challenges ahead of it, not the least being overcoming the heady years before the financial downturn of 2008, which saw many new entrants that may not have added to the reputation and quality for which fine watchmaking has been associated over the years. A major distinction for the FHH from the long running F?d?ration de l’industrie Horlog?re Suisse or the Federation of the Swiss Watch Industry (FH) lies in its look only at fine watches, priced above 10,000 Swiss francs, or about Rs 4.5 lakh. Each year, it updates its list of what constitutes fine watches, and there are about 60 brands that have been making it to this list . Suman Tarafdar learns more about the promotion of an industry that is increasingly emerging as an alchemy of the head, the heart and the hand. Excerpts:

Why has FHH decided to increase its priority in the Indian market?

The Indian growth story is well known, and our partners have been saying that India is different from the Middle East, with which India was clubbed for us till now. India is of course a very young market still, and the potential is huge. It is too big a region to handle from Dubai, though I am aware that a number of our member brands do exactly that.

What plans does the foundation have for India? How much investment is it looking at?

For India, we are looking at this as the beginning of a long journey. We do not have a fixed amount to be spent on each market, but will look at the requirements and decide.

Our first priority will be to raise awareness about fine watches in India. The foundation has four main objectives?to inform those interested in fine watches, to arouse interest in watchmaking, be a think-tank for the sector and train watchmaking professionals. In India too we shall work in this regard, and for this we have appointed Anita Khatri as our Indian delegate. We also hope to identify five to six people who can be our ambassadors, who can then take the message of fine watches forward in the country. Increasing awareness is never an easy process. It is going to be a long, painful and expensive process. There have been mistakes in the fine watches are promoted. In the US for example, there will have to be a relearning process about fine watches as the initial entry did not get the positioning right. It takes about five to ten years for a market to mature. By bringing awareness, we could triple the market in India in no time.

As an aid, we have a specially developed tablet, which costs about $5,000 and has all the updates about the sector and watches, a valuable tool for retailers who can have all the information with them just a few clicks away. We also have some films that can educate both the retailer and the customer about the finer nuances of fine watches.

How are global manufacturers of fine watches viewing India as a market?

Though India is emerging as a major growth market for fine watches, the level of awareness about fine watches remains quite low. Our efforts will be complimentary to those by the brands. There are learnings from other markets, but there are also local conditions to be aware off. In India, early adopters are now ready to move to the next level.

Given the ongoing downturn, how is the Swiss watchmaking industry coping?

For watchmakers, the mature markets are badly affected. In a downturn, people are especially careful about their purchases. In the last seven-odd years, watchmakers had gone berserk as money was too easy. What was produced was sold. Both sales and margins were huge. To further this, some watchmakers even began to shift some part of the watchmaking process to China, which now makes watches sold at a fraction of the price. Right now, they are not a challenge, but in some time their quality will improve and they could take away a fair share of the market. So the first challenges is to deliver value for money.