New Delhi Errol Balian, Managing Director, Middle East, Africa and India for Franck Muller said, India could emerge as the top market within a few years, following the recovery in post-pandemic demand for luxury watches. Balyan said in an interview that the Swiss luxury watch company has renewed its contract with Bollywood star Ranveer Singh as its brand ambassador, but he is also wary of higher customs duties that could curtail this growth as consumer India Let’s start shopping outside. Edited excerpt:
Isn’t it unusual for Frank Mueller to be appointed a brand ambassador? Then, why are you renewing your contract with Ranveer Singh?
We took the right decision in 2019 by inducting him on the board. Normally, we do not appoint brand ambassadors. Around the world, we have very few. The football player Cristiano Ronaldo is a friend of the brand. Singh is a great route for the consumer, and we are delighted with the partnership and will be renewing his contract for the next three years. We saw an impact on sales within two or three months of appointing him as ambassador in 2019. She is a fashion statement icon and at the film star level, we don’t have an ambassador like this anywhere in the world.
Did the pandemic disrupt business for luxury brands?
Everything came to a standstill during the pandemic and the whole world was affected. But the amazing thing is that after the initial pandemic period, we saw an incredible increase in sales. People were stuck in their homes, but when they were free to go out, we saw an incredible consumption of luxury spending. it was crazy. I’ve been in this business for 20 years and I’ve never seen anything like it. Stock was out and our sales have quadrupled since the pandemic. So yes, we had a tough time, but right after that, we moved on.
Was this true for India as well?
Sales are not declining, especially in India. India is growing in double digits for us and I think it will not stop. We want to achieve even more in the next two years, because if we put in the right marketing strategy and effort in India, consumers respond quickly. Our watches cost 10,000-20,000 Swiss Francs ( 8.3-16.6 lakh).
How do you see India performing as a luxury market?
Indians love luxury, and they appreciate luxury unlike other continents. They work hard and create wealth and they want to invest that money, their success, into something that can be seen when they meet others. It is a growing market and India will take over the world in the next five years. I have full faith in luxury buying, if the country takes the right steps to support the luxury business, it is going to accelerate. But then, it is the decision of the government to introduce a fixed tax or a customs regime, (in that case) not much increase can be expected. It then encourages people to buy from other countries.
What about China?
Chinese customers are in great demand. It is one of the major markets for luxury consumption. They are very sophisticated and have a fast growing economy. But I think in the near future, China is going to slow down for some political reasons and governance issues.
Will Apple’s digital watch threaten the Swiss watch industry?
Apple pulled a PR stunt to say it would take over the Swiss watch industry, but it never could because we’re talking sentimental goods here. We follow the trends. For example, when the cryptocurrency craze started five years ago, we created the world’s first crypto wallet watch where people could deposit money on automatic watches. Initially people were hesitant, but now this is the only crypto watch in the luxury segment. It was very successful, and there is still a waiting list. Technology is always going to be there. But we need to be more creative to meet the needs of the new generation.
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