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Meghna Rathod    

Mumbai, India

An individual with masters degree in IT. Working as an computer teacher in school from last 5 years. I am highly interested in equity market and value investing. Looking forward to learn more in this sector and enhance my knowledge.

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Contributor since: 2023








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Ethos Ltd

Ethos Limited; Business Analysis

About Ethos

Ethos Limited is the largest luxury and premium watch retailer in India. The company delivers premium luxury watches through websites, social media platforms and physical stores. Ethos Limited operates on an omnichannel model and allows customers to order products either offline or online and have the flexibility of buying products at one store and returning at another or browsing product catalogues and placing orders online with doorstep delivery.

The company's watch portfolio has 50 premium brands including Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Tissot, Raymond Weil, Louis Moinet and Balmain.

The company has 50 physical retail stores in 17 cities in India including New Delhi Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Chandigarh, Ahmedabad, Jaipur, Lucknow, Gurgaon, Guwahati, Ludhiana, Nagpur, Noida, Pune and Thane. Ethos Limited has 7,000 different premium watches and 30,000 watches in stock at any given time.

As of December 31, 2021, the company's website had 21,844,216 visitor sessions.

Industry Overview

India expected to fare better than developed economies and recover to a high growth path in coming years

India's real gross domestic product ("GDP") has sustained an average growth between 6% and 7% since FY 1991. India has been the fastest-growing G20 economy since FY 2015, with annual growth rate hovering around 7%. India's economy grew at ~7% in FY 2019. The real growth rate declined to 4% in FY 2020 and witnessed a de-growth of 7.3% in FY 2021 due to the outbreak of Covid-19 pandemic which led to the imposition of lockdowns towards the last quarter of FY 2020 and a major part of the first quarter of FY 2021 causing a contraction in the economy.

The impact of Covid-19 has caused several large economies to shrink. It is being estimated that India's GDP is expected to resume its pre-Covid growth momentum by FY 2022. India witnessed a lower-case load in the 3rd quarter along with economic recovery which continued till the mid of 4th quarter of FY 2021. However, early March 2021 saw a tremendous rise in the number of Covid -19 cases in India in the form of the 2nd Wave of Covid. Daily new cases had risen to more than 0.2 million at the start of April 2021, and it increased to more than 0.3 million towards end of April 2021. Many state governments imposed long curfews to curb the growing number of cases & prevent the already collapsing healthcare system from further stress. Maharashtra has been one of the states where the rise in cases seen was enormous. Other states like Uttar Pradesh, National Capital Territory of New Delhi, Punjab, Tamil Nadu, Haryana, Karnataka and Gujarat also saw an unprecedented rise. In a departure from the intervention of the central government to impose a nationwide lockdown to mitigate the Wave 1 surge, it was left to the respective state governments (provinces) to impose local restriction. These interventions ranged from selective restrictions to total restrictions through curfews (as in the case of Delhi, Maharashtra that imposed weekly & then total lockdown on all kinds of movements and activities) depending on Covid-19 severity. These measures helped the central and the state governments to subdue the second wave of Covid-19 and there have been signs of economic recovery as the lockdown imposed during the second wave was lifted by the end of June 2021. As on 15th December 2021, the daily cases had significantly reduced to ~7,975 per day equivalent to 98.1% reduction in the number of cases since the peak of the second wave. Active cases have declined to ~78,000 from a maximum load
of 37 lakhs at the peak of the second wave.

Ramping up vaccinations of the citizens was another intervention that the government started to implement by revising its earlier approach from "produced in India vaccines" to "source more available vaccines from other nations". India launched its vaccination drive on 16 January. This was already underway albeit at a slower pace and with conditions. As on 15th December 2021, over 823 Mn. Indian citizens have at least received the 1st dose and over 530 Mn. Indian citizens have been fully vaccinated.

The second wave of Covid-19 brought about new challenges that the Indian government was ready to face. By imposing partial/complete lockdown in areas which were greatly affected, Indian government was able to bring to its peak within a month of the sudden outbreak. 

At the start of FY 2022, projections of Indian government, of the IMF and other organizations projected India's GDP to resume its pre-Covid growth momentum in FY 2022. This was in the backdrop of India witnessing a lower-case load in the 3rd quarter of FY 2021 and the economic recovery that ensued in the 3rd and 4th quarter of FY 2021. The 2 nd wave led to a further reduction in sentiment & economic activity. But due to high virulence, the 2nd wave rose and decreased with an equal speed, hence effectively lasting 2 months. As of November 2021, all states had lifted their lockdowns and have eased most of the restrictions placed since the second wave.

High share of domestic consumption in Private Final Consumption Expenditure

Per Capita Income Growth

Growth in Luxury products in other countries with Per Capita Income Growth

Gross National Income, i.e Per capita income, has a direct corelation with the overall luxury market in key economies. In the United States, as the GNI per capita increased from USD 48,990 in 2010 to USD 56,740 in 2015, the overall Luxury market in the United States also grew from USD 46 Bn. to USD 90.4 Bn. Similarly, when China’s GNI per capita increased from USD 4,340 in 2010 to USD 7,940 in 2015, the Luxury market size increased from USD 9.2 Bn. to USD 20.5 Bn.

Asia will continue to lead as the primary driver of global growth for luxury. Generating meaningful traction in China will be critical to perform as the US and Europe continue to suffer from financial uncertainty. The Gross National Income of India is expected to follow the same trajectory as China. As the per capita income of India would increase, the Luxury market is expected to follow the same trajectory as the Chinese Luxury market, making India a key contributor in Global Luxury market.

Concentration of Discretionary spend in India

The top 8 cities in India, namely National Capital Territory of Delhi, Mumbai, Maharashtra; Bangalore, Karnataka; Chennai, Tamil Nadu; Hyderabad, Telangana; Ahmedabad, Gujarat; Pune, Maharashtra; and Kolkata, West Bengal accounts for ~9% out of the 1.3 billion total Indian population. The consumption of discretionary retail is much concentrated in the top 8 cities as they contribute ~30% of the total Discretionary consumption in India.

Market Structure for Premium and Luxury Watches Retail

Indian Watch Market
Watch Market in India was valued at ~INR 13,500 Cr in FY 2020 and is expected to grow at a CAGR of 10.6%* to reach ~ INR 22,300 Cr by FY 2025, on back of factors like increased discretionary spend on watches category, opening of more organized channels of purchase like MBOs and online marketplaces & vertical specialists, increased penetration of smartwatches in mid to premium category, omnichannel market organization etc.

The Indian watch market is further segmented basis Product type and Price. On the basis of Product type, they are differentiated as ‘Traditional watches’ (includes both Analogue and Digital Watches) and smart watches. While traditional watches occupy almost 76% share of the overall watch market, smartwatches hold 24% share, with the latter expected to grow a faster rate, owing to consumer demand, fitness & health consciousness, technological advancements linking the watch to other smart devices, and most importantly, the entry of multiple brands in the mass to mid segment smartwatch space which has given consumers the option to try out smartwatches without pushing into the premium segment. Key brands in entry level smart watches are Noise, Boat, Amazfit etc.

Traditional Watches have been the mainstay of the segment attracting consumers across price points, gender & age groups. Brands have kept segment relevant through new launches attracting specific consumer groups, e.g. Ethnic range of watches which acts as a jewelry accessory by Titan Raga; Themed watches like Fastrack etc. targeting young consumers. Premium & Luxury segment is primarily dominated by traditional watches, which are bought by the consumers for their quality, legacy and brand value. 

Retailing Structure of Indian Watch market
Watch Retail constitutes various channels through which consumers purchase, broadly defined as Organised and Unorganised Channels.

Size of Organised & Unorganised Market in Watch Retail

The watch industry is dominated by the organised sector having a 65% share of the overall market, and unorganised market contributing to 35%. While the organized watch market in FY 2020 was estimated at ~INR 8,700 Cr, the unorganised market was approximately INR 4,780 Cr.

Organised channel is further segregated as EBOs, MBOs & LFS, Vertical Specialist MBOs and Online Marketplaces & Online Vertical Specialists:


Ethos Business Overview

Ethos is India’s one of the largest luxury and premium watch retail player having 13% share of the total retail sales in premium and luxury segment and a share of 20% when seen in exclusively luxury segment in the financial year 2020, delivering a content-led luxury retail experience to their customers through their online and physical presence. In addition to their chain of 50 physical retail stores in 17 cities in India in a multi store format, the company offer an Omnichannel experience to their customers through the website and social media platforms.

The company have the sizeable portfolio of premium and luxury watches in India enabling them to retail 50 premium and luxury watch brands like Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Tissot, Raymond Weil, Louis Moinet and Balmain. The company enjoy a healthy market share of 20% in the luxury watch retail segment and 13% in the premium and luxury watch retail segment in India. In addition to their premium and luxury watch retail, they also undertake retail of certified pre-owned luxury watches since Fiscal 2019.

Company's omnichannel approach is premised on their endeavour to provide experience, content, customisation, reach and convenience to their customers. The website of company “” is India’s largest website for premium and luxury watches in terms in number of brands and watches offered (Source: ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited’ available on the following link: In their industry, watches are categorised on the basis of price segments ranging from the high luxury price point (₹ 10 lakhs and above per watch), luxury watch segment (₹2.5 lakhs - ₹10 lakhs per watch), bridge to luxury segment (₹1 lakh - ₹2.5 lakhs per watch), premium segment (₹0.25 lakhs -1 lakh per watch) and fashion and mass segment (up to ₹0.25 lakhs per watch).

Business Performance Highlights

The physical presence is leveraged by their strong digital platform with a frequently visited website, effective social media communication, a large database of HNI customers and an active program of home and office delivery of luxury products. Company's digital platform had 3.2 million sessions in December 31, 2021. As of March 31, 2022, they had about 2.5 million website users, over 2,83,300 active email subscriptions, 1,68,000 Instagram followers, 1,57,000 Facebook followers, and 12,300 You Tube subscriptions. Company's digital platform has created a niche in the online luxury watch market through various unique value-added services including a highly specialised team of luxury watch consultants, targeted content, watch insurance, easy instalments and dedicated after sales service to their customers. In addition to leveraging their strengths in comprehensive merchandising, brand relationships and delivery experience, the company focus on educating consumers via digital content and newsletters, which is an integral part of their business model. ‘The Watch Guide’, their in-house digital magazine curates relevant and exclusive content for watch enthusiasts.


Ethos Group Structure

Ethos Strategy

Unparalleled offering in our Brand portfolio on the back of our Long-standing relationship with marquee brands 

Offering a sizeable portfolio of Premium and Luxury watches in India enabling us to retail 50 Premium and Luxury watch brands
– Relationships with owners of Luxury watch brands typically take many years to develop and are difficult to replicate
– Ethos has benefitted from its Promoter’s (KDDL Ltd.) longstanding relationships with luxury watch brands. Since 1981, KDDL undertook export of watch dials, thereby gaining valuable insights in the watch industry, which has been instrumental in building strong relationships with the brands Ethos retails
– For brands like Carl F. Bucherer, Raymond Weil, Oris SA, Corum, Parmigiani, Urwerk, Bovet, Arnold & Sons, Girard – Perregaux, H. Moser & Cie among others which are retailed exclusively by Ethos in the Indian market.
– Brands like Omega, Rado, Tissot, Longines, Baume Mercier, IWC Schaffhausen, Jaeger LeCoultre, Carl F. Bucherer, Hublot and Zenith have been ongoing for more than a decade

Brands Available Exclusively at Ethos in India

Ethos Loyalty program & Healthy Social media presence have contributed to build our Robust Omni Channel platform 

  • Ethos social media presence is ranked second globally amongst all major watch retailers.
  • Ethos is the only Indian Luxury watch retailer offering loyalty program for its customers Ethos has the highest reach on social media platforms such as Instagram and Twitter with over 1,64,000 followers on Instagram.
  • It is also ranked 8th in website ranking (in category – Jewellery and Luxury products) in Indiawhich is highest among the Premium & Luxury Watch vertical specialists in India.

Ethos is in unique position to leverage its large base of Luxury Customers

Ethos Store and Network

Strategically located and well invested store network with attractive in-store experience

Only Indian player to offer Loyalty program + Social media presence led to over 35% of business coming from repeat customers
– 48 retail stores offering over 7,000 varied premium and luxury watches and about 30,000 watches in stock at any given time
– 14 Ethos Summit Stores and 1 Airport store (that houses bridge to luxury, luxury and high luxury brands),
– 13 MBOs and 9 Ethos Boutiques both housing bridge to luxury and premium brands
– 10 Luxury segment mono-brand boutiques offering a single luxury watch brand
– 1 CPO luxury watch lounge for Pre-Owned watches

Management of the company (Ethos)

Shareholding Pattern

Ethos Growth Strategy Ahead

Advantage Ethos : Scale and Credibility

  • First Mover Advantage - Ethos is the only organised player in India with the capability of certifying, buying and restoring pre-owned watches.
  • Scale is critical. The large digital reach and transaction points across 48 boutiques in India allows us to transact with more customers and buy/sell the largest selection of pre-owned watches.
  • Existing Ethos infrastructure of Finance, Marketing, Sales, Digital, Loyalty base etc to be extended to Second Time Zone
  • State-of-the-art service center allows us to service all watches and offer 2 years warranty.
  • Lounges : Special lounges dedicated for pre-owned products to add credibility and experience.

Business and extending our Product Category 

Category Extension | Creating a house of luxury retail beyond watches
Expand into adjacent luxury offerings like hard luxury in various product categories such as eyewear, jewelry, luggage, cosmetics, writing Instruments.

  • Jewellery
    We have entered into a contract with Messika group to be the exclusive partner and reseller for Messika Jewellery in India. Founded in 2005, the Messika Maison is now firmly anchored in the French jewellery tradition. The Maison is recognised for its diamond expertise and unique craftsmanship expressed through modern jewellery designs and exceptional high jewellery creations.
  • Luggage
    We have entered into a FRANCHISE CONTRACT with RIMOWA for the opening of the first Rimowa store in Jio World Plaza, Mumbai. Founded in 1898 in Cologne (Germany), RIMOWA is in a LVMH brands portfolio since 2017. Rimowa is the global leader in premium luggage and essential tools for a lifetime of travel Since 1898.

Ethos - Strength

  • Access to a large base of luxury Customer.
  • Deep understanding of digital and Omnichannel commerce.
  • Strategically located and well-invested store network with an attractive in-store experience.
  • Strong and long-standing relationships with luxury watch brands and luxury groups.
  • Leadership position in an attractive luxury watch market.
  • Experienced and committed management team with a proven track record.

Financials of the company

Profit and Loss

Balance Sheet

Cash Flow Statement

Margin and Profitability


I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source - Company's website, Investor Presentation, Read Hearing Prospect, Quarterly Result Report and Disc - This is not an recommendation and for any position kindly consult your own advisors or do your own research.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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