NEW DELHI: India’s premium watch market is shrugging off the smartwatch disruption that once threatened analogue timepieces, prompting luxury retailer Ethos Ltd to accelerate expansion across stores, younger consumers and adjacent lifestyle categories.
What was once seen as a structural threat to traditional watches is now fading, according to Ethos managing director and chief executive Pranav Saboo, as analogue and mechanical watches regain relevance as aspiration- and style-led purchases across age groups. The shift has helped the BSE-listed retailer cross the 100-store mark this week, with plans to double the network over the next three to four years.
“The threat from wearables (smartwatches) is going away. Analogue and mechanical continue to find relevance as style-led purchases,” Saboo said in an exclusive interview with Mint.
The company’s expansion push comes even as profitability remains under pressure. Ethos closed FY26 with revenue from operations crossing ₹1,612 crore, growing significantly over FY25’s ₹1,251 crore, helped by strong demand for , aggressive store additions and rising average selling prices. But profit largely remained flat at ₹96 crore, as higher rentals, employee costs, marketing spends and forex volatility linked to the appreciation of the Swiss franc against the rupee weighed on margins.
The company added 25 boutique stores during the year, taking its network to 98 stores across 32 cities as it expanded deeper into emerging markets. Management said in its earnings commentary that the company remains in an investment phase and is prioritizing long-term expansion, customer experience and brand building over near-term margin optimization.
“I haven’t seen any short-term impact on demand this year. There is still enough steam in the economy and consumers continue to spend on aspiration-led and long-term purchases such as luxury watches despite broader conversations around austerity,” Saboo said.
Ethos’ expansion comes amid growth in India’s broader luxury watch market. Swiss luxury watch imports crossed ₹3,500 crore for the first time in 2025, while the first three months of 2026 also showed no signs of slowing down. India imported Swiss watches worth roughly ₹1,035 crore (84.9 million Swiss franc) during the period, up from 62.3 million Swiss franc a year earlier, according to data from the Federation of the Swiss Watch Industry.
Saboo attributed the growth to changing consumer preferences, stronger consumption and the appreciation of the Swiss franc against the rupee.
Fading threat
Ethos said the sub- ₹1 lakh watch segment, once considered most vulnerable to smartwatches, is also witnessing renewed demand as consumers increasingly treat watches as fashion and status products rather than functional devices.
The company said demand is broadening beyond a narrow luxury buyer base, with younger consumers increasingly entering the category even as family purchases linked to weddings and milestones continue to drive sales. Saboo estimated Ethos’ core customer base at 35-40 years old.
The retailer is also seeing stronger traction for brands tailoring products to Indian tastes, including preferences for yellow and rose gold over white gold, larger dial sizes and jewellery-led watches.
He pointed to companies such as Jacob & Co. that are increasingly creating India-relevant products and collaborating on designs for the local market. “Brands are still very important to Indians,” he added.
The company is also seeing growing interest in watches from H. Moser & Cie., known for minimalist , and Arnold & Son, known for limited-production mechanical timepieces.
Ethos now operates multiple retail concepts across luxury watch segments and is preparing to launch a new youth-focused format called ‘Our Studio’ later this year. Designed for younger consumers who may find traditional luxury boutiques intimidating, the format will focus on more informal, culture-led experiences.
“On one side we may have a very high-end wine tasting while on the other, we may have a tequila bar or a DJ-led event,” Saboo said.
Beyond watches
The company is simultaneously pushing deeper into categories beyond watches. In 2025, it brought luxury jewellery brand Messika to India and earlier introduced luxury luggage brand Rimowa. Saboo said subsidiary Ethos Lifestyle houses these categories and could add more brands over time, including footwear, high fashion, bags and accessories.
“This vertical, it’s not a pivot. It’s an addition. It’s about serving the aspiring Indian customer and bringing the best craftsmanship from around the world,” he said.
Raahuul Kapoor, founding partner of Delhi-based luxury business Luxury Ampersand Frolics group, said Ethos’ expansion reflects growing confidence in India’s luxury market, though scale-led expansion may not always align with the slower, relationship-driven nature of boutique luxury retail.
“Their expansion beyond watches shows an attempt to build a broader luxury platform, though the approach is naturally more scale-led and institutional given (parent) KDDL’s background and public market expectations. Boutique luxury, however, often works differently, rewarding curation, patience, intimacy and long-term brand building over pure expansion,” he said.