Mumbai: The India-EFTA trade pact is giving Swiss luxury watchmakers greater confidence to invest in the country for the long term, even as a weaker rupee and a stronger Swiss franc continue to negatively impact the market’s economics in the short term, Michael Guenoun, CEO, Baume & Mercier, a Swiss luxury watch maker told ET in an interview.
“The devaluation of the rupee is not helping, and the Swiss franc is extremely strong, so these factors are a challenge today,” said Guenoun. “But nevertheless, there is hope. We see the appetite, the need to invest, and I believe that it’s the right time to invest in India. We will be investing significantly in India.”
Industry experts say that despite near-term currency headwinds, the India-Switzerland trade pact is strengthening the long-term investment case for Swiss luxury watchmakers.
Guenoun said the reduction in tariffs under the free trade agreement between India and Switzerland would provide a stronger base for Swiss watchmakers like Baume & Mercier to expand in the country over the next five years and help boost Swiss watch exports to India.
Between January and August 2026, Swiss watch exports to India grew 31.7% year-on-year.
He described India as one of the markets with the strongest expansion potential for Baume & Mercier, particularly as China and parts of Asia remain challenging.
“I would say yes, absolutely,” Guenoun said when asked if India was among the fastest-growing major markets for the brand. “While the US will continue to be solid, as will Europe, we see markets like India and Turkey having very strong potential, at least for Baume & Mercier.”
Baume & Mercier has about 50 points of sale across around 20 Indian cities and works with eight to 10 partners. Mumbai and New Delhi account for the majority of sales, but the company is recording good traction for the brand in second-tier cities.
Baume & Mercier’s own performance in India has exceeded expectations, he said, driven by product design, the growing women’s segment, jewellery watches and the versatility of its watches.
The brand has also stepped up its India focus with two local brand ambassadors, Janhvi Kapoor for its Joia women’s collection and Shreyas Iyer for its main collection, highlighting the brand’s growing commitment to the market.
The CEO said that Indian consumers are also showing distinct preferences, with a stronger affinity for gold aesthetics and growing interest in automatic and mechanical watches, particularly among younger buyers.
“We see in India this trend of people looking for authentic watches, authentic design and authentic watchmaking,” he said.
That shift comes against a challenging global environment for the Swiss watch industry as sales stagnate or dip in countries like China.
Guenoun said the industry itself had contributed to the slowdown by raising prices without sufficiently increasing quality or changing products, while offering watches that increasingly looked alike. “Increasing prices without increasing the quality or changing things, and less differentiation between models” had created less appetite for some watches, he said. Baume & Mercier’s response has been to focus on differentiation while increasing quality and features without pushing prices aggressively.
