How Favre Leuba is betting on India to reclaim its Swiss Watch legacy

As the global luxury watch industry navigates a landscape shaped by shifting consumer preferences and market dynamics, Favre Leuba, a storied Swiss watchmaker, is positioning India at the heart of its revival strategy. Known as the first Swiss watch brand to enter India in 1869, Favre Leuba is tapping into the country’s unique blend of historical brand affinity and burgeoning luxury aspirations to redefine its global ambitions.

“India will be our biggest market initially, serving as a platform to drive volumes and investments,” says Patrik Hoffmann, CEO of Favre Leuba. With plans to establish 30 points of sale across India in the coming weeks, the brand is set to make the country its largest market globally.

Historic Brand Meets Modern Aspirations

India’s connection with Favre Leuba runs deep. “When I talk to people across generations, they recognise the name. They know it’s a Swiss watch brand with a rich history,” says Hoffmann. This enduring familiarity is a significant advantage in a market where heritage often translates into trust. However, Hoffmann is acutely aware that historical goodwill alone won’t drive sales in today’s competitive environment. “The design and value proposition have to resonate with the younger demographic,” he adds.

This younger audience, part of the highly discerning Gen Z and millennial cohorts, is driving new trends in luxury consumption. Hoffmann notes that this generation is more value-conscious, sustainability-focused, and invested in the stories behind brands. “They want to know what’s behind the product, who’s running the company, and whether it’s sustainable,” he explains.

Opportunities And Challenges

India’s luxury watch market reflects the country’s broader economic trajectory. As the world’s fastest-growing major economy, India is expected to become the third-largest economy by the end of the decade. Yet, it ranks only 19th or 20th in Swiss watch exports. “Can you imagine the potential,” Hoffmann asks, underscoring the untapped opportunities in the region.

Despite its promise, India presents unique challenges. To begin with, the market is highly price-sensitive, and consumers are increasingly demanding tangible value for their investments. “It’s not just about the name or the history; the product itself and its pricing have to appeal to the end consumer,” says Hoffmann. The brand’s strategy involves leveraging its historical recognition while delivering modern, forward-looking designs that cater to contemporary tastes.

Globally, the luxury watch industry is witnessing a pivot toward smaller, more wearable designs, moving away from the oversized, ultra-complicated timepieces of the past. This ‘vintage-inspired’ trend aligns with Favre Leuba’s current offerings. At the same time, the rise of smartwatches has introduced younger consumers to the habit of wearing timepieces, creating a bridge to traditional luxury watches. “Smartwatches familiarise young people with wearing something on their wrist, making it easier for them to transition to real timepieces,” says Hoffmann.

In India, these shifts are complemented by an increasing focus on sustainability. “A timepiece is one of the most sustainable products out there,” Hoffmann says.

The company recently relaunched with 22 new designs, receiving positive feedback.

Production is scaling up from 4,000 to 8,000 units, with a long-term target of 100,000 pieces annually within 12 years. “We’re still at the very beginning,” Hoffmann admits, emphasising the need to remain creative and agile as the brand expands its portfolio.

India’s rise as a luxury market comes at a pivotal moment for the Swiss watch industry, which is recovering from a global slump. While traditional markets like China show signs of stagnation, India’s luxury consumption is accelerating. “During this period, India will become much more important for the Swiss watch industry,” predicts Hoffmann.