Swiss luxury watchmaker Rado eyes double-digit growth in India this year

Swiss luxury watchmaker Rado expects to see high double-digit growth in India this year as the country’s middle class with soaring aspirations continues to grow amid a slowdown in China.

 

India became the brand’s largest market in 2023 as exports to China declined due to the slowdown.

 

Buoyed by the festival and wedding season, Rado saw a strong December quarter in India.

 

“The festive and wedding season offers significant opportunities for gifting. While globally, gifting makes up 20 per cent of our entire business, it is higher in India. These are important periods for us as a brand, and we have seen a strong festive season last year. That momentum has continued and we have already seen a good start to the new year,” Adrian Bosshard, global chief executive officer at Rado, told Business Standard.

 

He said, unlike China, the company was not experiencing any major challenges in India. The company enjoys a 60 per cent market share in the $1,000-2,000 price range (Rs 90,000-1.80 lakh), and a leadership position in the $2,000-5,000 price range (Rs 1.80 lakh-4.4 lakh). To maintain the top position, the brand is ramping up its advertising budget for India.

 

“We have invested in communication budgets like never before for a 360-degree campaign with our ambassadors. This is done keeping in mind the younger customer who we can draw to the Rado brand,” Bosshard said.

 

In an earlier interaction, he had said the company was investing over a third of its total budget for the Diwali season.

 

According to a July 2024 report by Deloitte, the Indian luxury goods market, which is currently worth around $7 billion, is predicted to grow significantly to around $30 billion by 2030. 

 

"According to a survey conducted by Deloitte, roughly 60 per cent of consumers spend some amount on luxury goods – defined as luxury leather goods, eyewear, watches, jewellery, fashion, and cosmetics – each year.  Of these, nearly 30 per cent spend more than Rs 120,000," the report stated.

 

Bosshard believes this increased activity in India's luxury goods market will eventually propel the country to one of the top 10 countries in the global luxury watch market from its current 21st rank.

 

"This year, I expect India to move up to number 16 or 17, and eventually enter the top 10 markets globally in the next five years," he said.