Swatch to Open Stores in India

Swatch Group Ltd. is a merger of two Swiss watch manufacturers: ASUAG and SSIH. It was formed in 1983. Swatch group Ltd. designs, manufactures, distributes and sells finished watches, watch movements, watch components, electronic systems and jewelry. This group employs over 33,600 people in 50 countries. In July 2014, Switzerland based watch chain has applied to open stores in India under the 100 percent Foreign Direct Investment (FDI) route.

The watchmaker would be the biggest international group to seek entry into India’s 100 percent owned single brand retail segment after furniture maker IKEA and fashion clothing firm H&M, both Swedish Company. Swatch watches, including Omega, Longines, and Tissot, are currently sold in India through dealers and third-party stores. The Indian watch market is forecast to rise to $2.7 billion by 2020 from $898 million now.

Swatch has also proposed to procure small or melee diamonds from the country to meet the condition of 30 percent local sourcing for foreign companies engaged in single-brand retail. The watchmaker has said its Indian subsidiary will source melee diamonds from the country and export them to the group companies for use in products made in Switzerland. The local sourcing of diamonds will lead to generation of business and employment opportunities for traders and artisans.

Apart from melee diamonds, the watchmaker has also proposed to source finished goods such as gifts, raw materials such as buckles, packaging material like pouches, tags, and cardboard boxes, in store material such as brochures, flyers, banners, and posters. India allowed 100 percent FDI in single brand retail in 2011 with mandatory 30 per cent sourcing from small and medium enterprises. Swatch proposes to invest $10 million in India over five years. The company proposes to set up 30-35 retail stores for selling Swatch branded products in India within 4-5 years.