India imports Swiss watches worth Rs 933 crore: What makes the pieces so desirable?

The fascination of Indians with Swiss watches continues, with the imports of these luxury timepieces surging 21 per cent in the first half of 2023, reported Mint. According to the Federation of the Swiss Watch Industry, a Swiss watch industry trade association, imports reached 98.5 million Swiss francs (about Rs 933 crore) from January to June this year, as compared to 81.2 million francs (about Rs 766 crore) a year before in the same period. June alone accounted for 20 million Swiss francs worth of imports this year, the Mint report added. In 2021, India’s imports of Swiss watches were reported at Rs 59.1 million francs (around Rs 557 crore) in the first six months. Let’s take a brief look at the origin of the Swiss watch industry and why affluent Indians love these timepieces. How Swiss watches came to be While it wasn’t Switzerland that made the first portable watch, the European country has emerged to dominate the luxury watch market across the globe. Peter Henlein, a clockmaker who lived in Germany’s Nuremberg in the early 16th Century, is credited for developing small watches that could be worn as pendants or attached to clothing, noted The New York Times (NYT). It was around this time that Huguenots or French protestants – who followed the teachings of theologian John Calvin – fleeing persecution in their country came to Switzerland, bringing their watch-making skills to Geneva. However, it took around 300 years for the Swiss to challenge the dominance of their European neighbours in watchmaking, as per the NYT report. It was French watchmaker Jean-Antoine Lépine’s 1770 invention of a simplified flat calibre, which helped produce thinner pocket watches, that propelled Switzerland’s rise in the industry, the report added. [caption id=“attachment_12914462” align=“alignnone” width=“640”] Swiss watches have become synonymous with wealth and luxury. Reuters File Photo[/caption] By the 1800s, the Swiss were using Lépine’s calibre, to kickstart mass production of watches. While they were exporting watches, the Swiss were still not known for high-quality products. As per NYT, things took a turn by the end of the 20th Century. “They started to produce a good quality watch at a mid-range price,” David Christianson, author of the book Timepieces: Masterpieces of Chronometry, told the American newspaper in 2014. This continued through World War I, he added. After wading through the quartz crisis in the 1980s with the help of Swiss-Lebanese entrepreneur Nicolas G Hayek, the co-founder of Swatch Group, the Swiss watch industry has since come to dominate the luxury timepieces market. ALSO READ: New Apple Watch with ECG support threatens the Swiss watch industry: Report Why do rich Indians love Swiss watches? From not delivering quality watches to being one of the best manufacturers, the Swiss have come a long way.

Swiss watches, a status symbol, have become synonymous with wealth and luxury.

“The Swiss have that image of producing quality at the highest level, as Germans have the image of producing the best cars in the world”, Georges Kern, former chief executive of the Swiss watchmaker IWC Schaffhausen, told NYT in 2014. “And you cannot just copy this”. The brand reputation of Swiss watches , along with endorsements by well-known celebrities, have added to the allure of these timepieces for Indian buyers, noted DailyO.  [caption id=“attachment_12914472” align=“alignnone” width=“640”] Shah Rukh Khan looking at a newly launched Swiss watch during an event in New Delhi in 2006. Reuters File Photo[/caption] Luxury watches are also considered giftable items. Pushpa Bector, senior executive director and head of DLF’s retail division, told Business Standard (BS) that this is the reason for the growth of several foreign watch brands in India. As per the Mint report, luxury stores in Indian malls, such as Emporio and The Chanakya in New Delhi, have seen an 80-100 per cent surge in the luxury watch category. In April this year, Economic Times (ET) reported, citing the Federation of the Swiss Watch Industry data, that Swiss watch exports in India reached a record high in 2022. The country imported Rs 1,722.88 crore worth of Swiss watches last year, a 19.6 per cent jump from Rs 1,438.84 crore worth of watches imported in 2021. India ranked 23rd among the countries for most Swiss watch exports. This rise came after a drop in demand for Swiss watches due to the COVID-19 pandemic. According to the ET report, relaxing COVID-19 rules and reopening the economy spurred a rebound in the economy and stock market, triggering a rise in the wealth of upper-class Indians. This may have further increased the sales of luxury watches in the country. “With fast growth rates, India has been the talking point of the Swiss watch industry. The last two years have been the best ever in terms of sales of Swiss watches in India. Though our base is small, with discretionary spending going up, we expect sales of luxury watches to go up,” Pratiek Kapoor, head of marketing and operations, Kapoor Watches, an NCR-based watch retailer, told ET earlier. With inputs from agencies