Japanese watchmaker Seiko expects India to rank as the third largest global market by the end of 2026, driven by high demand and rapid growth in the country's premium watch segment.
Current Market Position
Currently, India is the fourth-largest market for the manufacturer after Japan, the USA, and Europe. Niladri Mazumdar, President and COO of Seiko India, told Business Standard that the company currently holds the fourth spot, and their goal is to succeed and realize the potential present in the country.
Grand Seiko Brand Development
Despite its current standing, India is among the top ten markets for the luxury brand Grand Seiko. The company recently opened its second Grand Seiko salon in Bengaluru, making it the fourth store in the country. Mazumdar stated that the firm plans to open several more stores in seven or eight of India's largest cities.
Expansion Challenges and Prospects
According to Mazumdar, the most significant obstacle to expansion is the insufficient retail infrastructure in India for selling luxury goods. He emphasized that with all the brands available, it is time for companies to invest and offer Indian consumers the same experience and products as those available globally.
Competition and Sales Growth
Regarding the growing competition in the luxury watch segment in India, Tatsuya Asami, Director and Senior Vice President of the global Grand Seiko division, noted that many value the emotional aspect of Japanese Grand Seiko, which is a significant advantage over European brands in the Indian market.
He also shared growth data: last year, the company in India increased by 162 percent, and its Compound Annual Growth Rate (CAGR) over the past five years has been 56 percent.
Reasons for Demand Growth
Mazumdar attributed the increase in demand for high-end watches to a shift in mentality following the Covid-19 pandemic, as buyers became less hesitant before making large purchases. Furthermore, Indians recognize that the best goods are now available domestically, eliminating the need to travel abroad to acquire them. He added that servicing these products is accessible within India.