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Longines to tap second rung Indian cities
Global luxury watch brand Longines, which enjoys a strong foothold in Indian metros and is famously endorsed by actress Aishwarya Rai, is now all set to woo customers in second rung cities.
Aishwarya has been associated with the company since 1999 and it is a big help. Not only in this country but also globally.
The Swiss watch manufacturing company, which is part of the Swatch Group, plans to open 20 new points of sale in cities like Hyderabad, Bangalore, Chandigarh, Jaipur and Ahmedabad. India’s luxury watch market has a lot of potential.
In the coming years compared to the US more people in this country would sport luxury watches.
The country has a huge middle class and a good watch is no less than a major investment. Also, shopping malls are increasingly mushrooming in second rung cities where people go not only to shop but also to hang out. And it would prove beneficial to increase visibility.
The company currently has 68 points of sale. Out of the 20 upcoming points of sale, about five would be multi brand retail shops and the rest shop in shop outlets.
The focus will be towards the south. The number of young, IT employees marking their presence there makes it a significant market for Longines.
Based on the franchise model, the company will invest up to Rs.1 million (Can$25,516) for a large stand-alone store spanning over 80-100 sq metres, while spending about Rs.200,000 (Can$5,103) for a small shop of 70 sq metres, located in a shopping mall. Growing at the rate of 20 percent per year, the country’s luxury watch market estimates over Rs.3.5 billion (Can$89,300,000).
In the next three years it might cross the 25 percent growth rate and the group is “approaching India as a long term investment”.
The size of the country, economic boom, the steadily changing retail landscape and the availability of more money with the youth are some of the contributing factors.
The increasing fashion consciousness among youngsters who want to look trendy. For them, an elegant watch would add to the personality and attitude.
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