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Switzerland-based watch chain Swatch has made a formal proposal to the commerce ministry to set up stores in India under the 100 per cent foreign direct investment (FDI) route, it is learnt. The watchmaker, with estimated annual sales of about $10 billion, is the biggest international group to apply for an entry into India's single-brand retail segment with full control, after Swedish furniture maker IKEA and fashion clothing company H&M.
The development coincides with French supermarket chain Carrefour's exit from the country.
A Swatch spokesperson at the company's head office in Bienne, Switzerland, wasn't available for comment.
Currently, Swatch watches are sold in India through dealer networks and third-party stores. Experts say the move to enter India through the 100 per cent FDI route is a sign the Swiss watchmaker is seeking to create a strong brand identity here. "Once you enter through the FDI route, you have more control over quality, pricing and customer experience. The company can now roll out its expansion plans and create its brand more aggressively," said Mohit Bahl, partner (transaction services), KPMG India.
The Swatch product line has about 20 brands across the luxury, high, middle and basic ranges, including Breguet, Harry Winston, Blancpain, Omega, Longines, Rado and Tissot. The company, famous for high-blitz brand endorsements and prices that sometimes exceed the $5-million mark, is known to have watches that are more expensive than a Ferrari.
Swatch is also a key player in the manufacture and supply of components to third-party watchmakers in Switzerland. The company employs about 33,600 across 50 countries.
In a report, the Associated Cham-bers of Commerce and Industry of India had estimated the size of the Indian wristwatch market at $898 million; it had predicted the market would expand to $2.7 billion by 2020.
