For Breitling, the good times continue in India
New Delhi: This year may not be as bright a year for the luxury market globally as 2024, but India could be an exception, said Pradeep Bhanot, managing director of luxury Swiss watch brand Breitling in India.
'2024 was a very promising year for us. We grew at a rate of about 40% plus (in India). This year has started off on a very good note too. In both volume and value, we are at a good, double-digit healthy number,' Bhanot told ET. 'We are growing at a rate which is a little higher than the Swiss watch imports into India, and we are confident that this trend will continue.'
Bhanot said a lot of economists had predicted the first half of this year to be slower than the second.'Because of geopolitical developments, luxury consumers seem to be cautious about spends globally. But India is a very resilient country and we are hoping things will pick up further from September with the festive season and the weddings,' he said. 'The Indian community must be the biggest spender on weddings globally, and Indians will continue to spend in the second half of the year as well.'
Swiss watch exports to India rose to 128.3 million Swiss francs between January and June this year, up 12.7% over 2024, as per data released by the Federation of the Swiss Watch Industry. In contrast, shipments to Japan, China, Hong Kong and Singapore fell 3.2%, 18.7%, 13.3% and 3.7%. To be sure, India's robust growth came on a much smaller base than the other markets.
Breitling is among the top three luxury watch brands in the country, in segments priced at Rs 4 lakh and above. The brand is available at five single-brand stores and 26 multi-brand outlets.'In the next three years, we are looking at 40 points of sale, which includes our single-brand boutiques as well as multi-brand stores,' Bhanot said.While the going seems to be good for the brand, high duties and lack of quality infrastructure seem to be limiting the growth of the luxury sector in the country, said Bhanot.'Lack of retail space for luxury brands is a major challenge. We can count the number of luxury malls in the country on our fingers,' he said, adding that the duties are also very high.'The customs duty is 22%. Thankfully, with the new trade and economic partnership agreement between India and Switzerland we should see some reduction of customs duty,' he added.He expects India's young demographics and entrepreneurs to drive growth for the country.'The only common denominator between India and China is the population. In terms of infrastructure development and spending patterns, China is a very different country,' he said.'But brands are realising that India is a young country. Look at the number of young CEOs and entrepreneurs we have. That itself will drive a lot of confidence in the market,' he said.
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