Recently, when Prime Minister Narendra Modi appeared wearing a rare Roman Baagh watch, a customised timepiece featuring an authentic 1947 one-rupee coin, the choice was symbolic — of local craftsmanship, heritage, and identity wrapped around the wrist. It echoed a trend visible across India’s younger demographic: watches are transcending their utilitarian origins to become complex personal statements.

Valued at $4.62 billion in 2026 and, according to Mordor Intelligence, projected to reach $7.52 billion by 2031 (at 10.23 per cent CAGR), the watch sector in India is forcing brands to constantly negotiate between performance and appearance. Success depends on how homogeneously function is wrapped in identity and design.

Smaller, bolder

Industry insiders note that preferences have shifted toward smaller, subtler dials — often around 3 cm diameter among younger buyers. Yet, simultaneously, brighter colours, unconventional finishes, and “loud” designs are finding favour again, suggesting greater confidence in experimentation.

The surge in demand for serpentine wraps, square and rectangular dials, asymmetrical cases, and integrated bracelet designs reinforces this pattern. The trend resonates beyond watches — eyewear brands like Lenskart report a growing demand for smaller frames paired with bolder colours, as consumers increasingly treat accessories as fashion-forward identity markers rather than purely functional aids.

This evolving taste connects directly to the ‘double wristing’ phenomenon — namely wearing a watch on both wrists. While some may dismiss it as ostentatious display, those in favour offer their own reasons: tracking multiple time zones for global work collaborations, pairing a smartwatch’s fitness tracking with a mechanical watch’s aesthetic appeal, or simply celebrating horological interest.

The fact that watches are now viewed as multifunctional accessories rather than mere timepieces has direct implications for how brands position products and how retailers stock inventory.

Analogue holdout

Smartwatches are projected to register 8.78 per cent CAGR through 2031, with premium models priced above ₹20,000 witnessing 147 per cent year-over-year growth. Google’s Pixel Watch 3 and Samsung’s Galaxy Watches with blood pressure and ECG monitoring capabilities exemplify how health tracking and AI functionalities justify premium pricing for younger buyers who view them as essential wellness companions.

Yet traditional quartz and analogue watches still command well over 50 per cent of market share. This isn’t resistance to technology. A 25-year-old software engineer in Bengaluru may check notifications on a Noise smartwatch during work hours and then switch to a Casio G-Shock for weekend adventures, with each choice communicating a different facet of identity.

For brands, this dual appetite creates both opportunity and operational complexity. Average selling prices for budget wearables dropped from $21 to $19 over the past couple of years, compressing margins even as volumes grow. The response has been clear: push consumers toward mid-premium tiers, where differentiation through build quality, brand heritage, and after-sales service can justify higher prices and restore profitability.

Swiss watch imports surged 40 per cent compared to 2021, driven partly by younger affluent consumers who view mechanical timepieces as both status symbols and tangible investments in an increasingly digital world. Brands must simultaneously compete in the high-volume, margin-compressed smartwatch space and the premium analogue segments where brand equity commands pricing power.

Casio India recently commenced local manufacturing of 28 SKUs, with plans to expand annually, anticipating the country to become one of its top-three global markets by the 2030s. Its watch business in India is growing by about one-third annually, fuelled by a desire to own multiple watches for different uses rather than just an “everyday” timepiece.

Organic marketing

The 377-million strong Gen Z prioritises authenticity, inclusivity, and community-driven narratives in its purchasing decisions. Traditional celebrity endorsements are losing ground to experiential marketing that feels organic rather than transactional. Take how domestic player Sylvi launched limited-edition collections under ₹2,000 through social media countdowns, creating urgency without requiring premium pricing. Timex’s ‘Waste More Time’ initiative and Fire-Boltt’s music festival partnerships exemplify how brands are engaging younger demographics through experiences rather than mere product upgrades.

This generation discovered watches through social media rather than on parents’ wrists, creating distribution challenges that traditional retailers struggle to address. YouTube reviews, Instagram unboxings, and Reddit communities shape purchasing decisions more than advertising. They’ve learned to appreciate the mechanical ingenuity of automatic movements while simultaneously valuing the utility of fitness tracking.

Tier-2 expansion

The distribution landscape reflects Gen Z’s hybrid consumption habits, with direct implications for where retailers should allocate expansion capital. While offline retail retained a bulk of the marketshare in 2025, online retail is projected to clock 9 per cent CAGR through 2031, driven by metropolitan and tier-2 consumers. But the younger buyers who research watches online may still visit a physical store to try on watches before purchasing — if only for gratification.

Casio’s expansion of brand stores recognises a fundamental truth: younger consumers want seamless omnichannel experiences. The retailer who cannot facilitate ‘research online, purchase offline’ (or vice versa) loses the sale entirely. This requires integrated inventory systems, consistent pricing across channels, and sales staff trained to assist customers who often know more about specifications than them.

Tier-2 and tier-3 cities represent particularly fertile ground, with lower real-estate costs and less intense competition. These markets are witnessing smartwatch adoption just 15 percentage points below metro averages, a gap that is rapidly narrowing thanks to improved digital infrastructure and rising disposable incomes.

For brands, the question isn’t whether to enter these markets but how quickly before competition intensifies. Enter too early, and infrastructure costs outpace revenue; too late, and brand perception solidifies around competitors.

Adrian Bosshard, Global CEO of Rado, notes that India is becoming “more and more relevant for the global luxury industry” with its rising affluent population and increasing international travel. But, crucially, younger Indian consumers aren’t simply mimicking Western luxury consumption patterns. Domestic boutique brands flourish by blending traditional Indian craftsmanship with contemporary mechanics, establishing niches — around the ₹1,00,000 price point — that feel culturally authentic rather than derivative.

Premiumisation

Perhaps the most consequential trend is “affordable premiumisation” — the introduction of features typically associated with luxury watches into mid-tier offerings. Brands are adding ceramic bezels, AMOLED displays, and NFC payment capabilities to products priced economically, blurring traditional category boundaries.

This democratisation creates both opportunity and challenge. For consumers, it means access to sophisticated functionality and design at unprecedented price points. For brands, it means compressed margins in budget segments that were once reliably profitable. The strategic response has been to use entry-level products as acquisition tools while actively migrating customers towards mid-premium tiers through targeted marketing, trade-in programmes, and loyalty schemes.

Timex Group India’s performance illustrates this strategy: high revenue and profit growth over the first half of FY26, achieved while actively pursuing M&A opportunities to strengthen its premium portfolio. The company recently launched Aston Martin watches alongside its acquisition of premium retailer Just Watches.

Collection economy

Millennial and Gen Z consumers reject false binaries. They don’t choose between analogue and digital, heritage and innovation, affordable and premium. Instead, they build personal collections that serve different needs, express different facets of identity, and suit different contexts within their multifaceted lives — much like a Spotify playlist featuring indie punk, blues, and regional cinema soundtracks simultaneously.

For new entrants, particularly domestic brands, the opportunity lies in identifying underserved persona-based collection niches like the “formal office watch under ₹15,000”, the “weekend adventure piece with Pride motifs”, or “Indie Luxury”. Brands that can own specific collection slots with authentic positioning will capture wallet share from consumers building a portfolio.

Yet questions remain. How sustainable is growth predicated on consumers owning 3-5 watches (utility, collection, and identity in parts) when market reaches saturation? Can brands maintain premiumisation narratives as technology features commoditise at accelerating rates? How will the collection economy model reconcile with environmental concerns about consumption volume? Only time will tell.

(Manoshij Banerjee is an independent consultant on digital culture and behaviour, and Mohammed Shahid Abdulla is faculty member, IIM Kozhikode)

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Published on March 9, 2026