How do you see the India market progressing? Will it continue to be your largest market for the next couple of years?
We hold more than 50 per cent of the whole market between the ₹1 lakh and ₹5 lakh segment. We have this important share, and also this important absolute focus. On the other side, we also have big markets that are performing well, like the US and some areas of Europe. I also believe that China will bounce back one day, but I have the feeling that in India, the economy, the population and education level is growing. People are hungry, motivated and passionate to participate in the industry, and this will create wealth; and when you have wealth, of course they can buy luxury goods. So, I see a very optimistic outlook for the Indian market for Rado in the upcoming years.
Where do you think India’s contribution to global revenue can reach with premiumisation reflecting in preferences and purchases?
The Indian community is already an important, two-digit share, of the whole global community of the Rado business. We have the business here in India, and also the tourist business around the globe as Indians are travelling. In many countries, when we got the feedback that Indians are over proportionally focused on Rado. It is also bringing us a particularly nice contribution to the global turnover of brands. To keep this, we need to stay innovative and close to the consumer and partners, and really take care of India.
Is competition in ₹1-5 lakh segment rising, with more global brands intending to take share away from you?
No, we are not afraid of competition. When a customer decides to buy a Swiss watch brand, he’s investing in a long-term, valuable consumption goods from a country which has a huge expertise in watchmaking. Therefore, our products have a different standing. Of course, we also have competition within Swiss brands but customers worldwide, and especially in India, like individuality. The fact that the biggest part of our watches are produced in high-tech ceramic, scratch resistant, light and weather friendly makes it an investment for long term. These features definitely make us quasi- untouchable, because we are so different.
What impact of the India-European Union (EU) and India-Swiss trade deals do you see on your business here?
The big advantage of the trade deal between Switzerland and India, happened in March 2023, and it started to become relevant in the end of last year. Now, step by step, taxes will be reduced, and soon you will have a free market and a huge advantage for the end consumer because they won’t have to pay higher taxes. It’s definitely an advantage also for us since we have many employees here. It’s important on a political level. We have smooth and constructive relations. Now, the trade deals between Europe, US and India are interesting for other segments, not so much for Swiss watch business. But it will give an opportunity to Indian customers to buy products from other countries, without or with less taxes, specifically from the EU.
Does this open up the opportunity to do any sort of manufacturing here?
We’re Rado Switzerland and in order to communicate Rado Switzerland, we need to make the product 100 per cent in Switzerland, therefore production will remain there. But on the other side, we have our own marketing here, customer service is here as well, so all watches purchased here are also repaired here.
How are you planning to expand your retail presence in India?
We have 34 Rado boutiques in India, which is around 40 per cent of our business. So, the boutique strategy with the strong branding will be increased. The total point of sales may not increase, but we want to be present qualitatively, at the right places and also in Tier-II and III cities. Our ambition is also to increase the quantity of boutiques.
Have you identified the Tier-II and III cities for expansion?
The share of Tier-II and III cities is probably around one-third of our business. But the important thing is that we find an environment which fits the brand. So, our local team will analyse the whole market. We are defining the guidelines, for instance, we may do one boutique and one multibrand in certain markets.