I still remember those old HMTs for a few hundred rupees. My friend from Delhi used to wear one back in the nineties. Today, that same guy is waiting in line for a six-figure Rolex. Luxury watch sales in India grew by 35% year-on-year in 2023.
This is no coincidence. Ever since I started following the Indian market, I’ve noticed a shift in the way people think about time—both literally and figuratively. A watch used to be just a tool. You checked the time and moved on. Now, it’s something more—a symbol that you’ve made it to the top.
A watch that ticks faster than the economy
The year 2025 is crucial here. I’m not saying this for dramatic effect. Several things are coming together at once. The new middle class has money. Global brands are finally taking India seriously. And young Indians want to show the world that their time has come.
I sometimes wonder about this whole phenomenon. After all, a phone also tells the time. But nobody buys an iPhone for 200,000 rupees just to check what time it is. It’s similar with watches—only even more intense.
Each of these elements tells a different part of the story. But together, they create a picture of something bigger—a transformation of an entire society through the lens of what we wear on our wrists.
But to start at the beginning, it’s worth first taking a look at the macroeconomic forces driving this change.
Growth engines – who and what drives the market
Looking at the Indian luxury watch market, I notice things that usually go unnoticed. All those shiny displays in shopping malls are just the tip of the iceberg.
The real engines of growth lie in the numbers I’ve just analyzed. In 2025, India will have around 350,000 high-net-worth individuals—up from 210,000 in 2020. That’s a CAGR of 10.7% per year. It may sound abstract, but it means that every year, tens of thousands of new potential buyers for watches worth several thousand dollars are emerging.
What surprised me while researching this topic—the luxury segment in India is growing at a staggering 74% CAGR. That’s an astronomical figure. Watches account for 25-30% of sales value in their premium category. We’re not talking about cheap street knock-offs here.
| Growth factor | 2020 metrics | Metrics 2025 | CAGR |
|---|---|---|---|
| Number of HNIs (in lakh) | 2.1 | 3.5 | 10.7% |
| Smartphone penetration | 54% | 78% | 7.6% |
| GDP per capita (USD) | 1,947 | 2,731 | 7.0% |
| E-commerce luxury | 12% | 31% | 20.8% |
| Urban population | 35% | 39% | 2.2% |
Urbanization is driving this process in ways never seen before. Cities like Bangalore and Gurgaon are creating a new middle class with aspirations different from previous generations. These people shop online—smartphone penetration is expected to reach 78% by 2025.
Generation Z and Millennials in India see luxury watches as a symbol of social advancement—not just as a tool for telling time.
Tax changes also play a role. The 28% GST on watches priced above 25,000 rupees may seem like a barrier, but paradoxically, it stabilizes the market. People know what to expect in terms of pricing.
Digitization is opening up new sales channels. E-boutiques of luxury brands are seeing growth that seemed impossible just a few years ago. COVID accelerated this trend by about three years.
All these factors are laying the groundwork for specific companies to act. The data is solid, the trends are clear.
The wrist game – strategies of brands and retailers
Yesterday, I walked past the Ethos boutique in Delhi and saw a queue. People were lining up for the new Rolex collection. This shows just how much the approach to selling luxury watches in India has changed.
Case Study: Ethos and the “Summit Store” Model
Ethos already operates 86 boutiques across India. Their flagship “Summit store” in Mumbai is a true experiment. You enter it as if stepping into an art gallery, not an ordinary shop. There are dedicated zones for different brands, a barista serves coffee, and the staff know the story behind every model. I saw a customer there who came in “just to look” at the Omega Speedmaster and left with a watch worth 800,000 rupees.
┌─ PREMIUM BOUTIQUE CUSTOMER JOURNEY ─┐
│ Greeting → Coffee/tea → Presentation │
│ → Wrist test → Brand story │
│ → Model comparison → Decision │
│ Time: 45-90 minutes | Conversion: 35%│
└───────────────────────────────────────┘
Timex – unprecedented scaling
Timex has increased its profits fivefold in just three years. Their Waterbury, Marlin, and Q collections have perfectly captured the tastes of young professionals. But what surprised me most—they’re planning to scale production up to 9 million units per year. That’s a massive leap.
Their strategy is simple: accessible prices, nostalgic design, influencer-driven marketing. They operate mainly online, but are also opening “experience centers” in shopping malls.
Fossil Group India and the planned IPO
Fossil is preparing an IPO worth 2,500–3,350 crore rupees. This signals that the Indian watch market is now mature enough to attract major investments. Their local branch has autonomy to design collections specifically for the Indian market.
They also organize “private previews” for collectors—exclusive showcases of new models where you can handle the watches before the official launch. This builds a community around the brand.
All these moves show that brands have stopped treating India as just a sales market. Now it’s a strategic region where they test new ideas for selling luxury products. Personalization, experiences, local partnerships—everything is changing.
It will be interesting to see if these strategies also work in other premium product categories.
Future perfect tense – what’s next for Indian luxury?
Luxury industries in India have already moved past the experimental phase—now it’s time for a real boom.
I look at these forecasts and see numbers that might surprise you. The watch segment is expected to grow at a rate of 20-30% annually until 2030—that sounds like science fiction, but data from the past two years confirms it. The entire luxury market is projected to reach a value of $85-90 billion by the same year. I don’t recall anyone predicting such a growth rate even five years ago.
What’s next for investors?
Three key actions for the coming years. Joint-venture partnerships with local players—without them, there’s no chance of truly understanding the market. Retail-tech as an investment priority—apps, in-store AR, personalization. And ESG certifications—without them, access to the best locations in shopping malls will be out of reach.
I’ve been observing this market for several years, and it seems to me that only now is it beginning to reveal its true potential. The date 03.11.2025 could prove to be a breakthrough—this is when I expect to see the first tangible results of this transformation.
