Swiss watch industry should find time for India_ says Deloitte

India and Mexico could become new drivers of growth for the Swiss watch industry_ which has been clobbered by US tariffs and slumping demand in China_ top audit firm Deloitte said Wednesday.

The emblematic Swiss industry "is navigating one of the most complex periods in recent memory"_ the professional services giant said in the 11th Deloitte Swiss Watch Industry Study.

Watchmaking_ the wealthy Alpine country's third-largest export sector_ was rocked when the United States -- its largest market -- imposed 39-percent tariffs on Swiss products in August.

Furthermore_ exports to mainland China -- the other major market for Swiss watch manufacturers -- continue to decline_ with demand hit by youth unemployment and turbulence in the real estate market.

According to figures from the Federation of the Swiss Watch Industry (FH)_ exports to the United States last year amounted to 4.4 billion Swiss francs (5.5 billion dollars) -- up 5 percent on 2023.

Exports to mainland China were at two billion francs -- down 26 percent. Karine Szegedi_ Deloitte Switzerland's consumer_ luxury and fashion chief_ said the industry should seize opportunities in other countries where growth is booming.

"Tapping into new growth regions is crucial as a way of cushioning declines in established markets_" she said.

"Countries like India and Mexico are a source of young_ dynamic customers. These customers are open to innovations_ giving the Swiss watch industry the opportunity to expand its global presence in the long term."

New watch markets

Deloitte had already identified India as a market with high potential for watchmakers in its 2023 study.

Since then_ Switzerland has signed a free-trade agreement (FTA) with India_ which came into force on October 1_ expected to facilitate the Swiss watchmaking industry's access to India's growing middle class.

This year's study noted the "strong domestic demand_ rising affluence_ and active investment in retail infrastructure" in India.

The study also shone a light on Mexico -- a country Switzerland signed an FTA with in 2021.

Since then_ watch exports to Mexico have increased fivefold_ with the country establishing itself as the leading market in Latin America.

Deloitte said watch enthusiasm in Mexico was being driven by social media.

India_ however_ remains the industry's fastest-growing major market.

FH figures showed Swiss watch exports to India were up 25 percent last year at 274 million francs_ while exports to Mexico were up 16 percent last year at 337 million francs.

But while growth in these countries offers promising prospects_ rising sales will not be enough to entirely offset the impact of US tariffs and the slump in exports to China_ Deloitte said.

Mexico was the Swiss watch industry's 15th-biggest market last year_ and India the 21st.(AFP)