Leica expects India to outpace global growth, but won't chase store expansion

Leica Camera is walking the slow lane in one of the world's fastest growing luxury markets. Instead of rapidly expanding stores or chasing volumes, the German camera maker is betting on a selective retail network, customer communities and personalised relationships to grow its India business, which it expects to outpace the company's global growth trajectory.

The company, which transformed itself from a struggling film camera business into a €600 million enterprise over the past decade, says its India strategy is guided less by geography and more by where it can find customers who appreciate photography, art and culture.

"We don't talk in terms of tier one or tier two cities. We ask where our customers are, whether there is a community that understands art, culture and photography," Sunil Kaul, managing director, Leica Camera Asia Pacific Pte Ltd told Fortune India.

Leica currently operates two stores in India through its long-standing partner FCE Lifestyles Pvt. Ltd., located in Delhi and Mumbai. While Bengaluru is being evaluated for a future outlet, the company says no decision has been taken and expansion will depend on customer demand rather than conventional retail planning.

Manish Nichani, managing director of FCE Lifestyles Pvt. Ltd., Leica's official representative in India, said the Indian business has completed nearly a decade and continues to grow from a relatively small base. "We see better growth in terms of percentage than many global markets because our base is still low. If everything goes well, we may consider another store after a couple of years," he said.

Community before scale

Kaul said Leica's turnaround began when it shifted away from a distributor-led model to directly engaging with customers through its own retail stores and carefully selected partners.

"When I joined, the business model was wrong. We knew what distributors bought but we didn't know our customers. We started building our own stores, collecting customer feedback and creating communities. That changed everything," he said.

The strategy has helped Leica grow from roughly €100 million in revenue when Kaul joined to nearly €600 million in FY25 - nearly a 7.6% jump from April 2024. Rather than chasing rapid expansion, the privately held company targets annual top line growth of 5% to 7%, while improving profitability gradually.

That philosophy also shapes its India investments. Instead of spending heavily on mass advertising, Leica is directing resources toward customer relationship management, exclusive events and photography communities.

"Getting Steve McCurry to India is part of my marketing plan," Kaul said, adding that the company prefers investing in personalised customer engagement over traditional advertising. "Our efforts go into building emotional relationships rather than share of voice."

Leica's long-time global ambassador, renowned photographer Steve McCurry told Fortune India, said India's cultural richness continues to make it one of the world's most compelling destinations for photographers. "It's a culturally rich country and an ancient land with different religions, traditions and festivals. There's always something to see, something to learn, something different. It's never boring. There's always something to discover," he said, adding that he hopes to spend more time exploring eastern India and revisit places such as Ladakh.

The digital evolution

While online discovery is increasing through social media and virtual expert consultations, purchases largely remain offline. "It's a business built on trust and relationships," Kaul said, noting that digital platforms primarily help customers discover the brand before visiting stores.

India currently contributes around 5% to 6% of Leica's Southeast Asia business, according to Kaul. Globally, the US remains Leica's biggest individual market, followed closely by China, while Asia Pacific, including Japan, is the company's largest region by revenue. Sales in Asia grew by 7.3% in FY25.

The company said its India operations are profitable, although doing business in the country comes with its own set of challenges. Besides import duties and an 18% GST that weigh on margins, the company also absorbs additional costs to keep prices broadly aligned with global markets.

"We try to have price harmonisation. If a camera costs €100 in Germany, we want it to be priced similarly in India after accounting for exchange rates. That means we absorb a lot of other costs, whether it is import duty, additional taxes or GST. That dilutes profitability," he said.

Kaul also acknowledged that regulatory requirements can delay product launches. Certification processes, particularly for products manufactured outside Germany, add time before new offerings reach the Indian market. "These are not roadblocks, but they are barriers that we have to overcome. They just slow us down a little bit," he said.

Even as smartphones become increasingly capable, Leica believes demand for dedicated cameras will continue among enthusiasts. The company has partnered exclusively with Xiaomi to co-engineer smartphone camera systems but says its focus remains on preserving its expertise in optics rather than becoming a licensing business.

McCurry believes there will always be a dedicated audience for serious photography. "Photographing everyday moments is important because it's like a diary of our life. But there's always going to be a certain number of people who are serious about photography," he said. For aspiring professionals, he said meaningful photography requires "a lot of practice, a lot of time, a lot of dedication and a lot of discipline." 

For Leica, India is still an emerging market within its global portfolio. But with rising interest in photography and premium experiences, the company believes patient expansion and deeper customer engagement will deliver stronger long-term returns than a rapid increase in store count.