India's recent free trade agreement (FTA) with the European Free Trade Association (EFTA) is poised to significantly boost Breitling's operations in the country, according to the company's CEO, Georges Kern. This development signals a promising outlook for the Swiss luxury watchmaker, paving the way for increased profitability and greater investment opportunities within India's burgeoning luxury market.
Kern has expressed considerable optimism about India's potential, emphasizing its large and youthful population as key drivers for growth. Breitling is already making strides in expanding its footprint in India. The brand has inaugurated new boutiques in Chennai and Hyderabad, bringing the total number of stores to three. Furthermore, there are ambitious plans to increase this number to ten within the next couple of years, demonstrating a strong commitment to the Indian market. Most recently, Breitling opened its sixth boutique in Coimbatore, featuring the country's first "Spotlight Counter" dedicated to the brand's women's collection.
Breitling's Managing Director in India, Pradeep Bhanot, has highlighted the significant growth potential in India's tier-2 cities, noting a strong appetite for luxury watches beyond the major urban centers. This strategic focus on expanding beyond metropolitan areas indicates a well-thought-out plan to capture a wider customer base across the country.
Kern, who took over as CEO in 2017, has been instrumental in revitalizing the 140-year-old Swiss brand. Under his leadership, Breitling has focused on streamlining distribution, emphasizing its heritage, and reducing the number of models. These efforts have led to a substantial turnaround, with the company's annual turnover approaching US$1 billion. Breitling India's revenues have seen impressive growth, with a reported jump of 40%.
The FTA with EFTA is expected to further enhance Breitling's competitive edge in India. Switzerland is one of the few countries with a free trade agreement with India, giving Swiss watchmakers a distinct advantage. The agreement is anticipated to reduce tariffs and other trade barriers, making Breitling's timepieces more accessible to Indian consumers and encouraging further investment in the country.
Breitling's strategic moves in India also include a focus on sustainability. The company is actively working to reduce its plastic usage and increase recycling efforts. This commitment to sustainability resonates with an increasingly conscious consumer base in India and aligns with global trends in the luxury industry.
The luxury watch market in India is experiencing rapid evolution, with a growing number of young consumers viewing watches as investment assets. Breitling aims to become the top choice for this rising class of collectors by offering a blend of heritage, innovation, and investment-worthy timepieces. As Breitling continues its expansion in India, the brand is set to further solidify its position in this dynamic and promising market.
