China Slows, India Rises: The New Face of Luxury

Introduction 

In the rarefied world of Swiss luxury watches, time is money. For decades, China was the golden hour. However, in April 2025, the Swiss are setting their sights firmly on India. 

According to the Federation of the Swiss Watch Industry (FH), India’s imports of Swiss watches increased by 18.5% year-over-year in 2024, making it the fastest-growing primary market globally. Brands like Rado, Omega, and Tissot are making a decisive pivot towards India, indicating a profound shift in the global luxury landscape.

Why Are Swiss Watchmakers Turning to India?

1. China’s Luxury Slowdown

China, once the growth engine for luxury goods, is experiencing a sharp decline in growth. The post-pandemic recovery has been uneven, burdened by high youth unemployment (exceeding 14% according to China’s National Bureau of Statistics) and a real estate crisis that has impacted discretionary spending. Brands like Rado, part of the Swatch Group, have reported sluggish sales in China, pushing them to look elsewhere (Source: Livemint).

2. India’s Rising Wealth and Aspirations

India, in contrast, is booming. With a GDP growth rate projected at 6.5% for FY26 (World Bank estimates), rising disposable incomes, and an expanding upper-middle class, India is emerging as a luxury powerhouse. According to Bain & Company, India’s luxury market is expected to reach $200 billion by 2030, up from $8.5 billion in 2022.

3. Changing Consumer Behavior

Indian consumers are not only becoming wealthier; they are also becoming more brand-conscious. Luxury is no longer about necessity or tradition — it’s about status, self-expression, and social media validation. A survey by Statista reveals that 52% of Indian millennials consider owning luxury products as a symbol of success.

Data Snapshot: Swiss Watch Exports to India

Year	Value of Swiss Watch Imports to India (in CHF million)
2020	92.2
2021	136.3
2022	188.5
2023	223.7
2024	265.0 (estimated 18.5% YoY growth)

(Source: Federation of the Swiss Watch Industry)

Case Study: Rado’s Big Bet on India

Rado, known for its sleek ceramic watches, has declared India its most significant market globally, surpassing China (Source: Economic Times). 

Rado’s CEO, Adrian Bosshard, announced plans for an aggressive expansion, including the opening of exclusive boutiques in Tier II and Tier III cities. This reflects a strategic shift: luxury is no longer confined to Delhi and Mumbai — cities like Jaipur, Surat, and Chandigarh are becoming essential hubs.

Macro Trends Fueling the Shift

• Demographic Dividend: Over 65% of India’s population is under 35 years old (Source: UN Population Report), a prime age group for aspirational luxury purchases.
• Urbanization: India adds 10 million urban dwellers annually, expanding the consumer base for premium brands.
• Digital Influence: E-commerce penetration in luxury retail is growing, with platforms like Tata Cliq Luxury reporting a 40% YoY growth.
• Global Brand Entry: Louis Vuitton, Cartier, and newer entrants like Panerai are expanding their footprint in India, encouraged by improving infrastructure and ease of doing business rankings.

The “China Plus One” Strategy in Luxury

Just as manufacturers diversified from China to Vietnam and India to enhance supply chain resilience, luxury brands are now diversifying their consumer markets. The “China Plus One” strategy isn’t just for factories anymore — it’s also for storefronts, boutiques, and brand expansions.

A Jing Daily report notes that many luxury brands anticipate “modest” growth in China for the foreseeable future and are actively seeking to boost their exposure in India, Vietnam, and Indonesia.

Swiss Brands Doubling Down

Beyond Rado, other Swiss giants are also recalibrating:

• Omega: Launching new boutiques focused on experience-led shopping.
• Tissot: Partnering with Indian celebrities to strengthen brand recall.
• Tag Heuer: Rolling out India-exclusive limited editions.

Even ultra-high-end brands like Patek Philippe and Audemars Piguet, traditionally cautious, are evaluating deeper engagements in the Indian market.

Challenges Ahead

While the Indian market is booming, challenges persist:

• High Import Duties: Luxury watches attract nearly 36% duty, inflating prices.
• Counterfeit Market: Estimated at 30% of luxury watch sales in India.
• Consumer Education: First-time luxury buyers often need more brand education.

However, industry players believe these are “good problems” compared to stagnant or declining growth in other sectors.

Conclusion: It’s India’s Time

The Swiss watch industry is renowned for its meticulousness, taking pride in its precision and attention to detail. That they are now pivoting towards India with such urgency signals a structural, not cyclical, change. India isn’t just a stopgap; it is becoming a central pillar of the global luxury economy.

In the timeless world of Swiss watches, the hands move rapidly, pointing unmistakably to India.

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