Daybreak - India’s luxury watch craze is ticking up. This Chandigarh-based retailer is making the most of it

Episode Date: June 17, 2025

Indians are hungry for luxury watches. Just in 2024, even as exports of Swiss watches declined globally, they surged 25 per cent in India. Interestingly, the player winning in this fast-growing market is not a legacy business house like Tata or Reliance, rather it is little-know Chandigarh-based retailer, Ethos. What sets it apart is the strong relationships it has built with ultra-luxury watch makers over the decades. How does it do it? Tune in. Want to attend The Ken's next event on health, fitness and wellness? Buy tickets here. Here's your chance to help us shape the conversation: https://theken.typeform.com/to/bZhqWl2g

Hi, this is Rohan Dharma Kumar. If you've heard any of the Ken's podcasts, you've probably heard me, my interruptions, my analogies, and my contrarian takes on most topics. And you might rightly be wondering why am I interrupting this episode too. It's for a special announcement. For the last few months, I and Sita Raman Ganesh, my colleague and the Ken's deputy editor, have been working on an ambitious new podcast. It's called Intermission.

We want to tell the same. secret sauce stories of India's greatest companies. Stories of how they were born, how they fought to survive, how they build their organizations and culture, how they managed to innovate and thrive over decades, and most importantly, how they're poised today. To do that, Sita and I have been reading books, poring over reports, going through financial statements, digging up archives, and talking to dozens of people. And if that wasn't enough, we also decided to throw in video into.

to the mix. Yes, you heard that right. Intermission has also had to find its footing in the world of multi-camera shoots in professional studios, laborious editing, and extensive post-production. Sita and I are still reeling from the intensity of our first studio recording. Intermission launches on March 23rd. To get an alert, as soon as we release our first episode, please follow Intermission on Spotify and Apple Podcast. or subscribe to the Ken's YouTube channel. You can find all of the links at the ken.com slash I am. With that, back to your episode.

Have you heard of the Birkin? To the untrained eye, this may seem like a fairly standard leather handbag. But to someone who understands ultra-luxury retail, the burkin is so much more than that. It's a marker of social capital. It's a simple, not just of wealth, but of access, patience and insider status. that's because Hermes, the French luxury house behind the Birken

and its equally coveted counterpart to Kelly, doesn't quite function like your average retailer. You see, you can't just walk into an Airmen store and buy a Birken. It's offered to you. And that offer depends on your relationship with the brand, your purchase history, your rapport with sales associates, your loyalty. Even if you are among the lucky few, you don't get to choose the Birken.

The burkin in many ways chooses you. That's the world of ultra-exclusive luxury retail for you. This episode, it's not about the Birkin. It's about another rare elusive item, one sold in much the same way. I'm talking about luxury watches. Much like with the Birkin, just because you can afford one,

does it mean you will land one? A rich Delhi family learned that the hard way when the sales staff at an ethos store refused to sell them a 50-lack-rupy Rolex watch. just last year. The sales manager at the store explained to them that there was just one thing standing in their way. They hadn't established themselves as serious collectors. How do you do that? Well, by collecting rare and exclusive timepieces, of course. Now, turns out that's exactly what India's new class of wealthy is really getting into. And Chandigar-based ethos is making the most

of it. With 35 to 40% market share, it is India's largest retailer for a expensive ultra-luxery watches. Ethos has found itself in the perfect niche. Since its listing in May 2022, its stock has surged over 270% to reach a market cap of around 6,800 crore rupees. But while ethos is surging ahead, its competition is quickly catching up. So how does it plan to stay ahead? Welcome to Daybreak, a business podcast from the Ken.

I'm your host Rahil Filippos and I don't chase the new site. Instead, every day of the week, my colleague, Sinkda Sharma and I will come to you with one business story that is worth understanding and worth your time. Today is Tuesday, the 17th of June. Let me begin by giving you a lowdown on what the watch market is like today. At the very bottom of the pyramid are mass market or fashion watches, which cost anywhere up to 50,000 rupees. Then are the entry-level luxury watches that cost usually upwards of 1 lakh. Then you have premium luxury and high-end luxury watches that cost. between 3 to 5 lakh rupees,

and only after that do we reach the realm of ultra luxury. Now, these watches cost upwards of 15 lakh rupees. These include brands like Rolex, Katiya and Hugelow, and at the very top are the likes of Patek Philippe. Like the Birkin, these can't just be bought. Similarly, they can't simply be distributed by any retailer either. Trust is the holy grail in the luxury industry, which is why it's also the foundational principle of Kamla Dials and Devices Limited,

which is Ethos's parent firm. Founded in the 1980s by the Sabu family, KDL supplies luxury watch retailers in Switzerland with components like dials and hands. Its clients include the likes of the swatch group, Omega and even Gucci. Now, the Sabu's initially distributed LVMH, which is Louis Vuitton-Muet-Hennessee watches and jewelry in India, before doubling down on the luxury watches category.

And that makes sense, because right now a lot of these brands are whying for the Indian consumers' attention. That's because the number of rich and super rich has been growing with every passing day. For them, India is the next China. So let's try and understand the categories of consumers. First and foremost, you have old money who continue to invest in and collect these luxury timepieces. Then you have the new money buyer who's new to this world. And finally, you have the occasional buyers who can't afford to consist. instantly buy watches, but do occasionally splurge.

Now, brands are increasingly getting a clear sense of the Indian buyer and what sells in this market. For instance, Jacob and Co launched a limited edition watch at $34,000,000,000 in January 2024. Its launch coincided with the consecration of the Ayyodhya temple. So it had some special engravings of the temple and from the Ramayana on it. The watch was sold out within a week. That's the kind of opportunity that lies here. Which is why retailers like Ethos are going all out to try and reel all three categories of consumers in. In FY24, Ethos is sales soared by 110% to reach 1,250 crore rupees.

The average selling price doubled to more than 2 lakh rupees. But here's the thing. There's more to it. Stay tuned. Hi, I am briefly pausing this episode to make a very special announcement. On June 21st at the Bangalore International Centre, the Ken is bringing together a pretty extraordinary panel for a one-of-a-kind discussion on how we can lead healthier and happier lives. We'll be joined by Olympic swimmer Nisha Millick, Vice Chairman of the Narayana Health Hospital Group, Viran Chetty, and finally Dr. Syriac Abby Phillips, aka the Liver Dog.

Join us for what promises to be an insightful, vibrant discussion that covers a whole range of topics. From how to get great sleep, to attaining mental clarity through workouts, to which supplements matter to how to take care of aging parents and growing children, you get the drift. That's not all. We also want your help to shape this discussion. So send us your questions for Nisha Vireen and the liver doctor, and we will take care of the rest.

All the details about the event, where to purchase tickets, and how to submit your questions will be in the show notes. We hope to see you there. And with that out of the way, let's get back to the episode. Now, while the appetite for these ultra-luxury watches is steadily growing, here in India, brand awareness is still somewhat limited. Because here, typically apart from Rolex, people are more familiar with brands under the Swatch Group or with brands like Cartier.

That's largely because these brands have been present in India for a really long time. The Swatch Group, for instance, has been around since the 1950s. I'm sure you've heard of their brand Rado. India has been Rado's number one market for about two years now. But the thing is, these top-selling brands rarely fly so. solo in India. For instance, Rado's winning strategy involves selling through a combination of its own independent stores as well as those open in tie-ups with ethos and the North Indian multi-brand retailers like Kapoor Watch Company. Similarly, Italian watchmaker Panera

follows a similar playbook. It sells through boutique stores in collaboration with ethos as well as Mumbai-based retailer, Art of Time. For most global brands looking to grow in India, this seems like the logical approach. They learn the ropes by partnering with regional and national retailers. These retailers then give them a window into the consumer's soul. They understand their tastes and preferences across generations and, of course, occasions. Most retailers have caught on to this. So while Ethos wants to have 100 stores by the end of this financial year,

its competitors are also closing in. Titan-owned Helios has 195 stores. Coimittor-based Zimson has 16. and Kapoor Watch Company has about 13. Even regional brands like Jaipur Watch Company have recently risen to the challenge. This particular company has seen its revenue jump by about 10x in three years to reach 10.5 crore rupees in FI25. The company hasn't increased prices,

but the average selling price of its watches has nearly doubled to 40,000 rupees in the same period. Even Titan has started launching watches at over 1 lakh rupees. But the thing is, while this market is, is steadily growing, growth will always be somewhat slow. Why? Well, stay tuned to find out. When it comes to selling ultra luxury watches, the art is convincing buyers that they are buying much more than just a timepiece.

They are purchasing rare heirloops. So it all comes down to good storytelling. One sales executive at Ethos recalls a rather interesting incident where a customer was in a bit of a dilemma. He had to choose between a Jezeil Le Coutotour sold. by ethos or a cartier sold by its competitor. Ordinarily a salesperson would advocate for the watch at their store, right? Not this time.

Because the executive simply told the customer that it came down to choosing between a handcrafted piece of art, which would be the JLC of course, or a fashion accessory, referring to the Cartier. Soutle move, but it ended up working. The executive made a 25 lakh-roupie sale with barely any effort. Similarly, when a 42-year-old Manoj Wargis visited an ethos store in Pune to get an orris watch repaired, he was pleasantly surprised that the staff didn't push a sale on him. Instead, they engaged him and his wife in a mechanical versus smartwatch debate and even offered them a $30,000 watch case for free.

In the end, Ethos didn't just manage to make one sale. It got a customer for life and that is far more valuable. Now, to get to that point, Ethos realized that you. you need the best in the business. You need an army of solid salespeople. And Ethos is one of the few retailers that extensively invests to make that happen. It spends up to 15 lakh rupees on training and certifying each technician. You see, technicians like these are a rare breed.

The lack of mechanical watch technicians is actually impeding the expansion of India's luxury watch segment. So, as a retention tactic, ethos requires an employee or their next employer to return. turn the amount it invested in training them should they choose to leave. You see, it is an exciting time to be in the business. Because this market is seeing the emergence of a new kind of customer. Younger, first-time buyers

who don't want generic watches with calf leather straps. And by young, I mean they've been assigned a budget by their parents here. You see, in India, Gen Z and millennials are expected to boost demand for luxury watches, driven by their rapidly rising direct

spending power. Which is why, Now more than ever, ethos is aiming for the sky. One thing is clear. Its time has come. Daybreak is produced from the newsroom of the Ken, India's first subscriber-focused business news platform. What you're listening to is just a small sample of our subscriber-only offerings. A full subscription unlocks daily long-form feature stories,

newsletters and podcast extras. Head to the Ken.com and click on the red subscribe button on the top of the website. Today's episode was hosted by Rahil Filippo's and edited by Rajiv Sien.