Luxury watches gaining in India

The All India Federation of Horological Industries (AIFHI) had launched a white paper on the

‘Indian Time Wear Industry’ earlier this year and special attention was given to the luxury watch business in India. With the maturing economy, and growing sophistication among both buyers and sellers, this segment is ready to take off on a grand scale. Harish Bhat, Chief Operating Officer of Watches Division, Titan Industries, and secretary general, AIFHI agrees. He says they are happy that there are more than 60 international brands selling in India today, and many of them are investing handsomely in marketing and retailing efforts here. And if this continues, it will certainly make the market grow in strong double-digits.

The white paper focuses on two issues: making the Indian market easier to operate in, and leveraging India’s manufacturing abilities. Bhat says making the Indian market easier to operate in is the low-hanging fruit, the industry can seize. A single measure such as the introduction of GST will make the market much more navigable for organized players in wrist watches. In addition, rationalization of some duties (import and excise duties on high-value jewelry-like watches, far lower excise duties on economy watches) will also help expand this market. In fact, the opportunity for creating a global manufacturing hub in India for watches and watch components is huge. China enjoys this position, but its competitive advantage is getting eroded fast. This will require watches to be given priority under the government’s manufacturing policy, infusion of new technology, also the creation of hubs where manufacturing and ancillary units can come up in close proximity to each other.

The AIFHI has been instrumental in advising the Indian government that high-value jewelry watches should be subjected to lower import duties, along the lines of jewelry. The absence of good premium retailing space for premium and luxury watches is yet another barrier. These are issues that are being taken seriously by the industry.