Ulysse Nardin chooses a far-flung suburb of Mumbai to debut their first India store at a time when demonetization and a general slowdown have hit the luxury industry.

 

 

The buzz in the Indian market is pretty insistent: the luxury watch segment is facing a slowdown. Just a few years ago, everyone was gung-ho about India’s burgeoning luxury watches market. However, pragmatism has set in, the optimism severely tempered by a number of market realities, local and global. In March 2014, when the global watch market was under pressure, TAG Heuer, among the most visible watch brands in India, backed by Bollywood star Shahrukh Khan as its brand ambassador, reaffirmed its plans for India. There were announcements about the brand tripling its store count in 2015 to boost sales. But by December 2015 the scene had changed completely.

Ulysee Nardin

The LVMH group of luxury brands had decided to shut down TAG Heuer operations in India. “By the end of December, LVMH will hand over distribution of Tag Heuer and Dior, its other watch brand, to a local company. The people cited above said sales at LVMH’s local watch division, LVMH Watch & Jewellery India, are sagging and the company sees its prospects further dimmed by the country’s tax structure,” reported The Economic Times.

The reasons are not difficult to pin down: the distribution and promotional costs are very high, and the Indian government’s recent demonetisation move hasn’t helped either. People in the industry will tell you that a lot of Indians bought watches using cash, and with demonetization and cash crunch, that is just not possible anymore.

Patrik Hoffman

So it is strange then that at this point of Indian economic history, Swiss luxury watch brand Ulysse Nardin has decided to open its first Indian store. It is stranger that the brand has chosen the far-flung suburb of Borivali, in Mumbai, as a destination. But as its CEO Patrik Hoffman says, “This one particular road in the suburb has turned into a veritable haven for luxury jewellery and watches brand, and we wanted to be there.”

The splendid boutique, which stands at the busy LT Road, reflects the DNA of the 170-year-old brand whose history is deeply rooted in the nautical world. The outlet houses exquisite collections of the brand, some of which were showcased in the coveted Basel Expo 2016, the world’s biggest event for the jewellery and watch industry. Among them is the signature Executive collection, the Skeleton Tourbillon, with oversized Roman numerals, hour-markers and imposing sword-shaped hands seemingly suspended in mid-air. The red strapped edition of this watch is exclusively available in only standalone boutiques.

Ulysee Nardin, Mumbai

According to Hoffman, “Ulysse Nardin has always laid great emphasis on innovation and independence. Part of the Kering Group, Ulysse Nardin aligns with the company’s unwavering commitment to quality and luxury. At the same time, we believe independent retailers are an important part of the brand experience. With this in mind, we open our freestanding Ulysse Nardin boutique in Mumbai, a city as replete with character as it is with the idea of luxury.”

The slowdown, too, doesn’t seem to bother him much. Hoffman says, “We are a brand with heritage. Once a family-owned luxury brand, we are now part of the Kering group, which has long term investments in mind. We have been in countries which have been hit by uncertainty, in countries like China and Russia. So, we know these economic and political issues are not permanent. They are a blip and we have to learn how to deal with them.”