News: Watch out, the Swiss are coming to India

(FE 06/04/2006) Geneva - The retail landscape in India is all set to change soon with as many as 10 of the top Swiss luxury watch brands Cartier, Rado, Tissot, Omega, Chopard, Harry Winston, Vacheron Constantin — to name just a few — looking at opening their exclusive boutiques in the country. This follows the government’s recent decision to permit 51% foreign direct investment in single-brand retailing, a move that has excited almost all the major players in the Swiss luxury watch making industry here.

Currently, these brands are operating through retailers in select metros and their watches are displayed among many other products in multi-brand showrooms. A dedicated showroom for each brand would allow them to display a much larger range of products and promote the brand in a more comprehensive fashion.

“We are happy to see that the Indian government has allowed foreign investors majority stake in mono-brand retailing. We will set up shop the moment we find the right location in Delhi and Mumbai,” Patrick Normand, managing director, Cartier, said.

Rado too is considering opening exclusive showrooms. “We are certainly considering our own showrooms. These will be more like a flagship store for us,” Roland Streule, president, Rado, said. Another Swatch group company, Tissot, is in the process of setting up a subsidiary in India to launch its own boutique. Omega, according to its spokesman, is also evaluating options.

The rush by watch manufacturers to set up own boutiques is riding on back of rising consumerism in an economy that has recorded the third consecutive year GDP growth of 8%. For most watch manufacturers, India is a key strategic market and would be consuming a good chunk of their marketing budget in the years to come.