Swiss watchmaking: between market polarization and Chinese downturn
The Swiss watch market will undergo a new phase of change in 2024, marked by a decline in exports and a concentration of sales on major luxury brands.
A sector under stress
According to the latest Stanley Morgan x LuxeConsult report, Swiss watch exports fell by -2.8% in value. This trend is mainly due to falling sales in China (-23%), a key market for luxury watchmaking.
Faced with this slowdown, the sector is becoming increasingly polarized. In 2024, Rolex, Cartier, Omega and Patek Philippe accounted for 52.4% of sales, compared with 49.8% in 2023. High-end watches continue to dominate: those selling at over CHF 50,000 generate 84% of growth, although they account for only 1.2% of sales volume.
The rise of independent brands
Against this backdrop, independent private brands such as Rolex, Patek Philippe, Audemars Piguet and Richard Mille continue to grow, while the major listed groups (LVMH, Richemont, Swatch Group) are losing ground.
Swatch Group ‘s situation is particularly worrying: the brand has lost 18.3% market share, largely due to its dependence on the Chinese market.
Outlook for 2025
The year 2025 promises to be decisive. Brands will have to refocus their strategies on more buoyant markets, such as the United States (+4% exports), and optimize their distribution networks. The example of Rolex and its acquisition of Bucherer illustrates this evolution, giving it greater control over its market.
Read also: L’Oréal invests in Korean brand Borntostandout
