Luxury watch brand Longines plans to tap Tier II cities

New Delhi: Global luxury watch brand Longines, which has a significant presence in the Indian metros through retail tie ups with popular retail chains is now planning to woo customers in tier two cities.

The brand is endorsed by actress Aishwarya Rai.

According to Charles Villoz, vice president sales, Longines International, India's luxury watch market has a lot of potential, wherein he believes that over the coming years, more Indians would sport luxury watches as compared to customers in the US.

Part of the Swatch Group, the Swiss watch manufacturing company is reportedly planning to launch around 20 new points of sale in cities such as Hyderabad, Bangalore, Chandigarh, Jaipur and Ahmedabad.

Villioz said that for the majority of the burgeoning middle class, a good watch is no less than a major investment. With the advent of organised retail and shopping malls in these second rung cities points of sale in these locations would prove beneficial “to increase our visibility.” The company currently has 68 points of sale. Of the 20 planned points of sale, reportedly five are planned as multi-brand retail outlets, with the remaining 15 following the shop-in-shop model.

Villioz indicated that cities such as Delhi, Kolkata, Mumbai, Chennai, Bangalore, Ahmedabad, Hyderabad, Jaipur, Chandigarh and Gurgaon, would probably get their own individual store. The brand plans to increase its focus in the south Indian region, given the number of young IT professionals who represent “a significant market for us.” The company plans to tap into the ever-increasing number of tourists who visit Rajasthan from all corners of the world, by making it an important place where it would mark its presence.

According to reports, the point of sale expansion would be carried out using the franchise model, with the company investing up to Rs1 million for a large stand-alone store spanning around 80-100 sq metres. For smaller retail destinations of around 70 sq meters, the company would reportedly invest around Rs200,000, wherein the venue would mostly be located in a shopping mall.

According to reports, India’s luxury watch market is growing at the rate of 20 per cent per annum, with the market estimated at over Rs3.5 billion. Villoz expressed optimism that over the next three years the brand may cross the 25 per cent growth rate, given that the group is “approaching India as a long term investment.”

He listed factors that tempt overseas brands to invest in India asthe size of the country, the current economic boom, the steadily progressing retail landscape, and larger disposable incomes with the youth. A heightened fashion consciousness among youngsters who want to look trendy is another factor that makes it tempting for a foreign brand to enter the Indian market.