India has emerged as a crucial focus for international watch brands. This strategic shift has gained urgency due to a significant downturn in China’s luxury market, which has seen a staggering $200 billion in losses over recent quarters.
In an exclusive virtual interview with Mint, Omega’s President and Chief Executive Officer, a prominent player under the Swatch Group AG umbrella, shed light on the company’s strategic pivot towards India. Despite lower volumes historically compared to other regions, India’s burgeoning market is now seen as a key growth opportunity. Omega, along with its parent company Swatch Group, has noted substantial performance improvements in South Korea, India, and the United Arab Emirates, compared to the previous year.
The luxury sector in China, once the largest consumer of high-end goods globally, has faced a significant downturn. This decline has adversely affected Swatch Group, resulting in a drop in half-yearly sales. As a response, Swatch Group is refocusing its efforts on emerging markets with high growth potential, notably India. India’s growing economic strength and increasing consumer affluence present a promising landscape for luxury brands like Omega. The Indian market’s potential for expansion is increasingly appealing as traditional luxury hubs like China face economic headwinds. The optimistic outlook for India is based on its rising number of high-net-worth individuals and a robust appetite for luxury goods.
Omega’s strategic shift reflects a broader trend within the luxury industry, where brands are recalibrating their focus from mature markets to dynamic emerging markets. By capitalising on India’s potential, Omega aims to not only recover from global market fluctuations but also to establish a stronger foothold in one of the world’s most promising luxury markets.
