Baume & Mercier Sees Growth Potential in India Amid Luxury Market Expansion

Baume & Mercier's CEO Michael Guenoun sees significant growth potential in India for luxury watch brands. He believes that despite current challenges, including a weaker Indian rupee and stronger Swiss franc, it is the right time to invest in India. The reduction in tariffs under the India-EFTA trade pact will improve the operating environment for Swiss watchmakers over the longer term.

Guenoun attributes part of the industry's slowdown to repeated price increases without corresponding improvements in quality or innovation. Baume & Mercier is responding by emphasizing product differentiation, improving quality and adding features while avoiding aggressive price increases.

The company currently has around 50 points of sale across approximately 20 Indian cities and works with eight to 10 local partners. Guenoun described India as one of Baume & Mercier's markets with the strongest expansion potential, citing strong demand for premium watches in second-tier cities.