Rado CEO Adrian Bosshard says India is now the biggest market for Rado watches

The Swiss watchmaker has experienced a remarkable upturn, benefiting from a wider surge in luxury goods as the pandemic waned. In an interview with NDTV Profit, Chief Executive Officer Adrian Bosshard stated that local demand for their watches quickly outpaced supply as soon as stores reopened due to many international borders remaining closed for travelers. He mentioned that demand skyrocketed like never before, posing a challenge to cope with it because of Covid-related logistics issues at that time.

2023 was a “record year” for Rado in India, achieving double-digit growth in sales compared to the previous year and even pre-Covid levels. The brand has moved towards the high-end market, with the entry segment for a Rado watch now starting at Rs 1 lakh, up from Rs 80,000 two years ago. This strategy has also boosted revenue.

The trend of increasing sales of luxury watches was not limited to Rado alone. India imported Swiss watches worth 218.8 million Swiss francs or Rs 2,095 crore last year, an all-time high. According to data from the Federation of the Swiss Watch Industry, this marked a 17% increase from the previous year, despite already being high.

Swiss watch exports to only three countries — Hong Kong, Thailand, and Ireland — were higher than those to India. Exports to China increased by 7.6% last year, but declined by 6.9% from 2021. In comparison, India’s imports surged by 40% from 156.8 million francs during the same period.

Despite this, the penetration of Swiss watches remains low globally, with India ranking 22nd in overall exports. China, the UAE, Switzerland, and the US are the other key markets for Rado. A recent report by Goldman Sachs supports Bosshard’s perspective, indicating that India’s affluent class is expanding at a rate that could reshape the economy.

The report projects that by 2027, the number of people earning approximately Rs 8 lakh per year will soar to 100 million, up from the current 60 million. This change represents a shift in consumption patterns among the growing affluent class, encompassing a wide range of premium products and domestic companies are also benefitting from this premiumization trend. In light of the growing global smartwatch market, Rado has introduced a “slightly sportier feel” by using a textured all-black rubber strap, possibly to compete with the likes of Apple and Samsung.

Bosshard doesn’t view digital watches as a direct threat to expensive Swiss timepieces at present, stating that while nobody needs a watch these days due to mobile phones, the passion for them remains, especially among collectors and the younger generation. He emphasized that a Rado watch is not merely a fashion accessory, but also has emotional value, marking special moments in people’s lives. Bosshard remains optimistic about demand for timepieces, emphasizing that watches, like jewelry, are built to last a lifetime or longer, unlike smartwatches, whose lifespan is about two to five years.