Ethos Ltd, a prominent luxury watch retailer in India, is moving forward with ambitious expansion plans as concerns over smartwatches disrupting the traditional watch market fade. The company is focusing on attracting younger buyers and venturing into adjacent lifestyle categories.
According to Pranav Saboo, the managing director and CEO of Ethos, the perceived threat from smartwatches has diminished. Analogue and mechanical watches are increasingly viewed as aspirational and stylish purchases across various age demographics. This positive shift has enabled Ethos to surpass 100 stores, with intentions to double its footprint in the next three to four years.
Despite facing margin pressures, Ethos reported a significant increase in revenue, reaching ₹1,612 crore in FY26, up from ₹1,251 crore in FY25. This growth is attributed to robust demand for luxury timepieces, aggressive store openings, and rising average selling prices. However, profit remained relatively stable at ₹96 crore due to increased costs in rentals, staffing, marketing, and currency fluctuations.
Market Dynamics
The sub-₹1 lakh watch segment, once thought to be most susceptible to smartwatches, is seeing a resurgence in demand. Consumers are increasingly regarding watches as fashion statements rather than mere functional devices. Ethos has noted that younger consumers are entering the market, alongside traditional family purchases linked to significant life events.
Ethos is also observing a growing preference for brands that cater to Indian tastes, such as those favoring yellow and rose gold, larger dial sizes, and jewelry-inspired designs. Collaborations with brands like Jacob & Co. are enhancing the appeal of products tailored for the Indian market.
New Retail Concepts
To engage younger consumers, Ethos is set to launch a new retail format called ‘Our Studio’ later this year. This concept aims to create a more relaxed shopping environment, featuring culture-driven experiences such as wine tastings and DJ-led events.
Diversifying Offerings
Ethos is expanding beyond watches into luxury lifestyle categories. The company introduced luxury jewelry brand Messika and luggage brand Rimowa to the Indian market. Saboo emphasized that this move is not a pivot but an addition to serve the aspirations of Indian consumers.
Industry experts note that while Ethos’ expansion reflects confidence in India’s luxury market, the scale of growth may not always align with the boutique luxury retail model, which often prioritizes curation and relationship-building over rapid expansion.
