Kern expects the pact, under which New Delhi would slash the basic customs duty on Swiss watches over the seven-year period, would eventually reshape the economics of the luxury watch industry in India, whose world-leading growth credentials are already firmly established.
“The new free trade agreement is a big step forward. Earlier, we were operating with almost zero margins,” Kern said. “Pricing won’t change, but lower duties now allow us to invest far more than before. Earlier, we had to absorb the tariffs ourselves; now we can channel those resources directly into expanding our presence and strengthening the brand in India.”
India is one of the fast-growing countries for Swiss watchmakers like Breitling. Breitling is “probably the third-biggest watch brand in India” in its competing price segment, said Kern, adding that while the brand’s global average price point is around $7,200, “in India it’s about $6,600.” Swiss watch exports in September 2025 fell 3.1% year-on-year to 2 billion francs, while shipments to India rose 28.3%, according to figures from the Swiss watch industry.
“India is one of the few markets that’s growing strongly. We’re seeing double-digit growth. When I was here about 18 months ago, we had just three boutiques; today, we have seven. Our goal of reaching ten boutiques will be achieved very soon,” said Kern. Swiss watch exports in September 2025 fell 3.1% on year to 2.0 billion francs, while shipments to India rose 28.3%, as per the Swiss watch industry.
India ranked 20th globally in Swiss watch exports, with shipments worth 207.3 million francs between January and September 2025, up 9.6% from the same period last year. “In India, our boutiques are breaking even within the first year. The brand is very strong here. The average price point in our boutiques is higher, and sales are stronger compared to multi-brand stores,” he said. Next year, Breitling is also bringing two brands, Gallet and Universal Geneve, to India, said Kern. “Both brands fit for India-Gallet in $2,500-$5,000 range; Universal Geneve starting at $15,000,” he said.Globally, the Swiss watch industry is going through a rough patch, with exports falling 2.8% in 2024 to CHF 26 billion. “The global watch market is going through the longest slowdown I’ve seen in my career, three or four years of gradual decline,” said Kern, citing wars, trade tensions and political uncertainty. “When you buy a luxury product, you need to be in a good mood. Once there’s peace, spending will return.” Former Richemont executive Georges Kern has led a dramatic turnaround at Breitling since 2017, lifting its valuation from about 800 million francs when CVC first invested to nearly 3 billion by 2021, when Partners Group came on board. Partners holds a majority stake, with Kern retaining minority share, valuing Breitling at over $4 billion in 2022.Under Kern, Breitling has evolved beyond its pilot’s watch positioning. “Yes, and thank God for that,” says Kern. “Back in 2017, we were just 5% of the market and not even in China. Breitling was never only about pilot’s watches. By reviving the Premier, Top Time, and Superocean Heritage, we’ve returned to our roots and built an universal luxury brand that stays true to its 140-year-old DNA.”
Once known for its masculine appeal, Breitling now has a growing women’s portfolio. “When I joined, we had zero women’s watches; today they make up 20% of sales, and we can reach 25%,” says Kern.
Asked whether AI will hit Swiss luxury watchmaking, Kern says, “AI cannot be next Mozart, next Beatles, or next Karl Lagerfeld.” He recalls sitting on a panel discussion with On shoe company co-founder where AI designed a shoe and a watch, saying, “The shoe was fine, watch awful,” before adding, “Creativity still belongs to humans.”