The Luxury Society said in April 2013 that BRIC economies were fuelling the demand for luxury timepieces. It highlighted results of the 2013 WorldWatchReport that studied over 60 luxury watch brands in 20 markets. According to the report, China was in the lead with interest in luxury watches there going up by 36% and in Brazil by 29.4%; in comparison, interest in India grew by 19.7% with Russia of ahead of that figure by around 10%.

Yet there’s not a brand in the premium or luxury space that will not name India as a priority market. Most international designer brands aren’t forthcoming with numbers, but they’ve all been around long enough to heat up the competition for each other. Panerai just as much as names like Tag Heuer, Omega, Cartier, Patek Philippe and Montblanc aims to catalyze the interest of consumers here. Notably, Panerai wants to make it by sticking to its masculine style and heritage even as it tries to get ahead in India where price matters.

MAKING A STATEMENT

An Italian brand that leans strictly on Swiss design, Panerai first tested itself in New Delhi and Mumbai more than a decade ago, before beefing up its retail presence in South India by wooing Hyderabad, Chennai and Bangalore.

Milvin George, Managing Director, Officine Panerai, Middle East, India and Turkey says, “India is the beginning of our adventure in South East Asia. We’re also considering opening in other countries like Sri Lanka and Pakistan, but in India there are markets within a market in this country. We have to address them all.”

The watchmaker’s retail partners like Ethos and Helvetica work with a quota system. They help the brand make headway among bankers, celebrities, businessmen and watch enthusiasts.

Panerai’s watches are distinctive for sure, considering its heritage of making timepieces for the Italian Navy. In India, the brand makes some 30-35 references available. The watches are made once orders come in from customers.

“In spite of our making gold watches and Indians having an affinity to gold as an investment, we’re selling watches made of ceramic with high end movement. The value can be anywhere between USD 70,000 to 80,000. We actually have a waiting list in India for our watches.”

Managing Director of Wazir Group, Harminder Sahni says, “A few years ago, no one would have heard of Panerai. In the last 4-5 years, they’ve been on top of their game in India. Their designs are graceful and their signature comes across as clean.”

RIDING SMARTER

Panerai intends to stay a masculine brand, especially after experiencing that women too don’t mind big watches. The average price of its watches in India starts at USD 10,000. While that undiluted stance helps it stand apart for its product, the watchmaker is also making the efforts to be seen at the right places. The brand had a presence in the recently released Bollywood movie Bang Bang. It also sponsors the India Art Fair.

George claims the brand did well in India even through the recession years. “We’re looking at double digit percentage growth in India, because even when other markets saw a slowdown we had increased sales year on year here.”

Luxury watch brands will be competing with the bridge-to-luxury segment, because price segmentation defines a lot in the Indian market. “The mindset of the customer in India has to be understood and product range customised as well as the experience for luxury brands to succeed in the country,” Kumar Rajagopalan, CEO, Retailers Association of India.

However Wazir Group’s Sahni’s view is that price segmentation is working well for both brands and consumers. “It will be a push from the bottom, it works like a ladder. Someone driving a Mercedes today will aim for a Porsche and then later a Ferrari, and it works like that for most luxury goods,” he says.

So Panerai and others in the fray should ideally engage with customers in India who may be ready to buy luxury watches in the next 2-3 years rather than plan their outreach based on their own perceptions about who is likely to buy their products.

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