The Swiss luxury watch industry faces significant challenges in winning over younger consumers, according to Bloomberg. The strategy of offsetting declining sales with higher prices has favored premium brands such as Rolex, Patek Philippe, and Cartier, while mid-range manufacturers and suppliers suffer the consequences of this approach.
Swiss watch exports reached 14.6 million units last year, a considerably lower figure than the 25.4 million recorded in 2016. This reduction in export volumes is due to several factors, including lower brand loyalty among young people, the growth of the second-hand market, and increasing competition from Japanese and Chinese manufacturers.
Jean-Christophe Babin, president of Geneva Watch Days and chairman of Bulgari, argues that the sector has relied too heavily on technical improvements at the expense of bolder and more innovative ideas. He also warns that movements produced in China have already reached quality levels comparable to those of Swiss suppliers in the most common complications, representing an additional threat to the competitiveness of the Swiss industry.
