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Luxury watchmakers are roping in Bollywood stars as brand ambassadors to increase sales as they are expanding into tier II and III cities.
Industry watchers say despite a high price tag of ₹4-6 crore for endorsements, watchmakers are keen to foot the bill as long as it helps them sell their wares at a greater speed.
Matthias Breschan, CEO and brand president of Swiss luxury watchmaker Rado Watch Co, says the climate in India is favourable for expanding into tier II and III cities, with the growing middle class emerging as a client base.
Rado, which has Bollywood actor Hritik Roshan as its brand ambassador, sees high double-digit growth in India.
According to industry estimates, over one lakh pieces of luxury watches are sold in India annually. The industry is growing at about 25 per cent year-on- year. Most luxury watches are priced between ₹50,000 and ₹4 lakh.
Valued at over ₹1,000 crore, the premium and luxury watch market makes up nearly a third of the ₹2,750-crore luxury products market.
Swiss watchmaker Tag Heuer recently roped in Ranbir Kapoor. Shah Rukh Khan is another ambassador of the brand.
Amit Chaloo, General Manager, Tag Heuer India, says both Ranbir and Shah Rukh will connect with the young first time buyers.
“Our new campaign, ‘Don’t crack under pressure’, is directed at the young audience.”
Industry analysts say the potential in India is huge as the Indian watch market is only a fraction of the Chinese luxury watch segment.
Swiss luxury watch brand Raymond Weil says the growth in the Indian market is slower than that in China due to policy and infrastructure bottlenecks.
“The growth in China has been huge due to the retail atmosphere and favourable Government policies. Also, the market in India is controlled by dealers unlike big retail chains in the West,” says Olivier Bernheim, President & CEO, Raymond Weil.
Bernheim adds despite challenges, India is still among the countries where Swiss watches are sold the cheapest.
According to a TAM media research study, Bollywood stars account for as much as 80 per cent of screen time on Indian television, while sport stars come in at 15 per cent.
As far as celebrity-led campaigns go, ad gurus estimate celebrity campaigns have jumped from 25 per cent in 2001 to 64 per cent in 2013.
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