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Watches have been a statement piece since the 16th century in Europe. Not only does this innovation tell time, but it has also brought history to the mainstream world today.
Different timepieces all began with the famous Swiss movement and have evolved for other movements, such as automatic and quartz, to be their alternative counterparts. When we think of watches, we often think of various luxury brands that bring out their history in watchmaking. Markets in the watch industry are expected to grow each year, with the generated revenue in 2025 being $127.2 billion.
Rolex has been the top company in the market to maintain its relevance, with a record of $11.5 billion in sales in 2024. Despite the success we are seeing in the watch industry, some factors have affected the industry, such as the prices of watches varying from the economy to the change in the demand for Swiss watches. We will dive deeper into the factors contributing to the uncertainty on how watch companies could be currently or will be tackling the problems this year.
Recently, there has been a surge in Swiss watch prices because of the increased value in metals and gold. This has been evidenced by Rolex’s price spike of 14% for all the gold watches due to the current economic insecurity we are experiencing, leading people to invest in gold in general. However, overproduction has been a big issue over the years to match the demand for luxury watches. Richemont Chariman Johann Rupert voiced a statement to cut down on the production of the watches as it has interrupted the global demand as a whole.
With the U.S. generating the most significant revenue in the world when it comes to watches, there is no denying that the recent developments on increasing tariffs from President Trump will affect Swiss exporting watches over to the U.S. as the timepiece itself consists of 17% of the total production. This could lead to an increase in retail prices for consumers to be able to purchase them which could change the behavior of how consumers will want to spend their money in the future.
However, a new rise in India’s market has been improving the industry. With their expected economic increase of 6% this year, many watch brands have started seeing the country as an opportunity to further bring their luxury products to match the increasing market. This has led brands like Franck Muller and Jacob & Co. to start getting products exclusively made for India. Additionally, the European Free Trade Association signed an agreement with India in March of 2024 to collaborate on growing the economy and business together. EFTA’s inclusion of Switzerland makes this news an essential movement within the watch industry to innovate its market shares further.
As the economy changes daily with daily news coming into the public’s eye about specific reports that could affect industries, watches are one of the big industries where it changes every aspect of the business. Like many businesses, we are experiencing a new wave of questions on how the watch market will be in the future. From taking careful measures on the craftsmanship to the supply chain on how it will be distributed to the world, brands constantly make adjustments and strategize to maintain their current market.
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