Indian summer for Swiss watches

Major Swiss watchmakers target Indian market with new product lines.

Leading Swiss watchmakers are gearing up for an Indian summer with new lines, new brand ambassadors and unbelievable price points.

LVMH, which operates in India through a fully-owned subsidiary, has decided to add two more brands to its existing portfolio comprising Tag Heuer and Christian Dior. In a few months, it will launch Fendi, the hugely popular fashion brand. Later in the year, it will bring in the upmarket Zenith, credited with having the finest watch movements in the world.

EganaGoldpfeil has shortlisted four brands for a launch in India: Carrera, Mexx, Cerruti and Goldpfeil. The watchmaker has already tasted success in the country with its Espirit and Pierre Cardin range of watches.

"With Cerrruti and Goldpfeil, we will have a presence in the top end of the Indian market," EganaGoldpfeil director Michael Poix told Business Standard.

Some other companies are also gearing up to lure Indian customers by appointing local brand ambassadors. Omega, whose brand ambassador, Shah Rukh Khan, recently switched to Tag Heuer, is in talks with another celebrity to endorse the brand. "I cannot disclose the name. All I can say is it will be a global ambassador, with a focus on India," Omega president Stephen Urquhart said.

Corum too admitted that it was toying with the idea of appointing a brand ambassador for India. Meanwhile, Longines is doing an advertising campaign for its new line of watches, LungoMare, with Aishwarya Rai. At the moment, the campaign was being shot at Cannes in France, senior Longines president Walter von Kanel disclosed.

Watchmakers displaying their latest products here said there was a great demand from India for Swiss watches priced between Rs 5,000 and Rs 30,000. Thus, Tag Heuer has come out with its Tag Heuer F1, a sporty watch with a rubber strap, priced at only Rs 19,000. The watch will soon be available in India.

This has also made value-for-money watchmakers like Victorinox plan a foray into India. The company, which claims to be the oldest maker of the Swiss knife for the local army, is all set to launch its line, priced at $100 and above, in the country.

Most watchmakers still lament the high tax regime prevailing in the country. Though companies have launched their watches in India at similar price points as elsewhere in the world, they say the high taxes have squeezed the dealer margins.

"If the duties are brought in line with India's commitment to WTO, India will become Longines' biggest market in the world," von Kanel said.