78% of Indian consumers plan to buy a watch for themselves next year: Deloitte Report

Once, Jean-Claude Biver, Former CEO of LVMH Group said, “Look at your watch. Don’t look at what time it is”. Cut to 2024, Swiss watchmakers are turning towards India as it emerges as a lucrative market for premium watches, reveals Deloitte’s Swiss Watch Industry Insights 2024 report. As per the report, this trend is primarily led by young generations, such as Gen Z and millennials, who prefer discretionary spending inclusive of fashion and luxury experiences and products.

The report further highlights that Indian consumers are keen to purchase aspirational products as each year almost 60 per cent of them invest in luxury products including leather goods, eyewear, watches, jewellery, fashion and cosmetics.  Moreover, 78 per cent of Indian consumers looking to purchase a watch next year stated that they would like to buy one for themselves. 

The report also unveiled that the recent Trade and Economic Partnership Agreement (TEPA) has created a wave of opportunities for Switzerland’s export oriented sectors. With TEPA, Swiss watches are expected to have better market access as customs duties will get reduced over the next seven years. 

Talking about the report, Anand Ramanathan, Partner, Consumer Products and Retail Sector Leader, Deloitte India, said that Luxury in India is about experience as driven by global trends, urbanisation, brand awareness and  personalisation demands. “We expect the Indian luxury goods market to grow significantly, reaching about  US$30 billion by 2030. This shift is driving consumer behaviour towards aspirational products, such as  Swiss watches, which are seen as status symbols and valued gifts during festivals and celebrations. The  rise of internet access and social media has spurred consumer aspirations and spending, especially in  urban cities, through e-commerce,” he added. 

Why India?

Swiss watches are gaining traction in India as they are not just status symbols but also highly valued gifts during festive seasons. As per the report, about 40 per cent respondents frequently choose watches as  gifts, especially during the festive season. In addition to this, when purchasing a luxury watch, 64 per cent of Indian consumers are brand conscious and consider the brand image to be the  most important factor. However, about 30 per cent of these consumers spend over Rs 1,20,000 on luxury watches.

What works the best for the luxury watches business?

When it comes to which platform works the best for the luxury watches, about 70 per cent of Indian consumers said they purchase watches online, either through a multi-brand online platform, virtual marketplace or directly through brand’s website, against just 38 per cent doing so in the US. 

Furthermore, over 50 per cent of consumers stated that they are very likely or somewhat likely to purchase a pre-owned watch in the next 12 months, with the main reasons being immediate availability, affordability and sustainability. While almost 50 per cent of respondents mentioned that they purchase pre-owned watches because they are cheaper than new ones. Apart from being a sustainable choice, over one-third of the participants said that they preferred pre-owned watches as they are readily available.