← External Forces: Industry Specific (all topics)
Premiumisation - watches (Swiss & luxury)
What it is
Demand in watches has split. Volume at the low end moved to smartwatches and then contracted, while the mechanical and luxury end has grown - Swiss watch exports to India reached CHF 295 million in 2025, up about 35% since 2023
Boutique retail, authorised multi-brand stores and pre-owned platforms have all expanded to serve it
Impact on industries
- A mechanical watch bought as a durable or an heirloom is insulated from the smartwatch cycle entirely, so the premium end grows on different logic
- Realisation per unit is orders of magnitude higher, so a small volume shift moves segment revenue disproportionately
- The segment needs boutique retail, service capability and inventory funding per store that mass distribution does not
- Grey-market and travel-retail purchase still take a meaningful share of Indian luxury watch demand away from domestic channels